MSG +3.5% with gains across sports and entertainment

|By:, SA News Editor

Madison Square Garden (NASDAQ:MSG) is up 3.5% and inched closer to its 52-week high today after posting Q2 earnings that benefited from a reduction in deferred tax liabilities due to reforms.

Adjusted operating income was $118M, up 23% Y/Y. The company is taking a noncash income tax benefit of $113.5M to reduce deferred tax liabilities due to successful tax reform.

Overall revenues were up 20% to $536.3M and beat an expected $523.5M. Entertainment benefited from including TAO Group, and higher overall event-related revenues including a boost from the Rockettes Christmas spectacular.

Sports, meanwhile, saw gains from higher sponsorship and signage revenues, along with gains in concessions and higher local media rights fees from MSG Networks.

Revenue by segment: MSG Entertainment, $271.2M (up 41%); MSG Sports, $265.1M (up 5%).

Adjusted operating income by segment: MSG Entertainment, $81.9M (up 29%); MSG sports, $55.1M (up 17%).

The company's also making important progress on designing a Las Vegas venue, CEO Jim Dolan says.

Press release