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MSG NETWORKS INC.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2021 10-Q, filed May 7, 2021. Its latest SEC filing is a 15-12B from Jul 19, 2021.

The sections below describe the company as of the FY2020 annual report.

What Did They Do?

Sells regional sports programming to distributors and advertising inventory to advertisers through two television networks and a companion streaming service.

How Did They Make Money?

Distributors pay affiliation fees for the right to carry the networks, generally based on how many subscribers receive them; advertisers buy commercial time and other ad inventory. Payment is generally 30-60 days after revenue is earned.

FY2020 revenue

Who Were Their Customers?

Cable, satellite, telephone and other distributors contract to carry the networks; advertisers buy commercial time and other inventory, including some inventory packaged with team and arena marketing and sponsorship sales.

Did Revenues Turn Into Profits?

Yes. It kept 27 cents of every revenue dollar as net income in FY2020 and turned 30 cents into free cash flow.

Operating income, FY2020
43% of revenue
▼ −5% vs FY2019 ($309.9M, 43%)
Net income, FY2020
27% of revenue
▼ −1% vs FY2019 ($186.2M, 26%)
Free cash flow, FY2020
30% of revenue
▲ +2% vs FY2019 ($203.1M, 28%)

How Were They Changing?

Since the FY2020 annual report
Latest quarter: Q3 FY2021, the three months to Mar 31, 2021
Revenue
▼ −4%
vs $185M in Q3 FY2020
Net income
▼ −1%
vs $46.3M in Q3 FY2020
  • Jul 9, 2021 MSG Entertainment acquired MSG Networks, and its shares were delisted MSG Networks became a wholly owned subsidiary of MSG Entertainment, and its shares ceased trading on the NYSE.
  • Mar 26, 2021 MSG Networks agreed to merge with MSG Entertainment The agreement provided for MSG Networks to become a wholly owned subsidiary of MSG Entertainment.
  • Nov 24, 2020 Deloitte replaced KPMG as auditor The Audit Committee selected Deloitte as the independent auditor and dismissed KPMG.

Held flat. Revenue was $685.8M in FY2020, about the same as the $658.2M of FY2016.

Who Did They Compete With?

Competes with NBC, ABC, CBS, Fox, Amazon Prime, Hulu, Netflix, Apple TV+, Disney+, HBO Max, Peacock, Quibi, ESPN, TNT, NBC Sports Network, NBA TV, and NHL Network

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