Entertainment holding company, Madison Square Garden Entertainment Corp. (MSGE, Financial) outperformed in the period, as the company stands to benefit from the reopening and pent-up demand for experiential leisure. Notably, management believes the entertainment bookings business is poised to deliver a record year, with the schedule pacing 50% higher than pre-pandemic levels. MSGE’s assets also continue to drive consumer engagement and incremental advertising dollars, particularly with Online Sports Betting (OSB) growing in New York. Looking forward, we remain bullish on digital access to sports, as well as the opportunity at the Sphere, its Las Vegas property which is expected to be complete in 2023. In our view, the underlying value of MSGE’s physical assets coupled with our conviction around management’s expertise make this an attractive opportunity.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2022 commentary.
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