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The coronavirus pandemic is impacting companies all over the world and Madison Square Garden Entertainment is no different. The company reportedly saw its revenue drop 20 percent amid the coronavirus outbreak, according to Variety.
The company revealed its numbers for the first quarter which included all of its venues that have been forced to shut down due to COVID-19.
Despite the losses, Madison Square Garden Entertainment is optimistic that it will be able to make it through the pandemic and return to its fully functional capabilities as states begin to reopen.
“With the MSG Entertainment spin-off complete, we believe we have created a company that will expand on our track record of creating long-term value for shareholders. Our Company has been in the business of bringing people together for decades, and we are confident that we are well-positioned to weather these uncertain times,” MSG Entertainment executive chairman and CEO James Dolan said in a statement.
“We believe the public’s innate desire to be part of shared experiences will continue and we look forward to opening our doors for unforgettable events yet to come.”
From the report:
The company, which recently divided its entertainment and sports operations into two divisions, saw its operating losses for the three-month period ended March 31 go from $18.6 million in the same quarter last year to $145.5 million this year, while its adjusted operating income dropped $25.2 million to a $7.2 million loss MSGE said the operating loss includes $102.2 million in “non-cash impairment charges” for its Tao Group Hospitality dining and nightlife division, which has been hit hard by the shutdown and closed one venue permanently.
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The coronavirus outbreak has led to the cancellation or postponing of many large events including The Masters, NCAA Tournament, Coachella, SXSW, the Winter X Games, Stagecoach, Ultra Music Festival in Miami, and more. The NBA, NHL, and MLS have temporarily suspended their seasons.
The coronavirus mainly comes from animals and a majority of those who were infected early either worked at or frequently visited the Huanan seafood wholesale market in Wuhan, according to The Guardian. The virus is similar to Severe acute respiratory syndrome (Sars) and Middle Eastern respiratory syndrome (Mers).
The Wuhan coronavirus is transmitted from person to person through “droplet transmission.” That means an infected person can pass the virus by sneezing or coughing on another person as well as by direct contact.
While a majority of the cases have been detected in the United States and China — with more than 9,600 deaths in the United States which surpasses and nearly triples the death toll of the September 11 terrorist in New York City — it has now reached many countries around the world. It has also been confirmed in Italy, Australia, Canada, France, Germany, and many other eastern countries.
