The NFL is back! Sort of. But it’s a great sign for the live sports space, overall. And that’s a space that has been great for investors over recent years. Hence, it may be lining up as one of the big winners as we start to get major advances on the virus testing, treatment, and vaccine front over the next 30-60 days.
With that in mind, we take a look at some of the most interesting stocks in the space, including: Madison Square Garden Sports Corp (NYSE:MSGS), Churchill Downs Inc (NASDAQ:CHDN), B2Digital Inc (OTCMKTS:BTDG), and World Wrestling Entertainment Inc (NYSE:WWE).
Madison Square Garden Sports Corp (NYSE:MSGS) is a professional sports company with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL); two development league teams, including the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and esports teams.
The company also owns two professional sports team performance centers, including the MSG training center in Greenburgh, New York and the CLG performance center in Los Angeles, California. Madison Square Garden Sports Corp. was formerly known as The Madison Square Garden Company.
Madison Square Garden Sports Corp (NYSE:MSGS) just recently reported financial results for the fourth quarter and fiscal year ended June 30, 2020. On April 17, 2020, The Madison Square Garden Company completed the spin-off of its entertainment businesses into a new company named Madison Square Garden Entertainment Corp. and changed its name to Madison Square Garden Sports Corp.
According to the release, for all periods through the date of the spin-off, the financial results of the entertainment businesses previously owned and operated by the Company through its MSG Entertainment segment, as well as the sports booking business previously owned and operated by the Company through its MSG Sports segment, are reflected as discontinued operations. In addition, results from continuing operations through April 17, 2020 include certain corporate overhead expenses that the Company did not incur after the spin-off date and does not expect to incur in future periods, but did not meet the criteria for inclusion in discontinued operations. The financial results of the Company for the period after the spin-off date (April 18, 2020 through June 30, 2020) reflect the Company’s results on a standalone basis.
Even in light of this news, MSGS hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 9% in that time on strong overall action.
Madison Square Garden Sports Corp (NYSE:MSGS) managed to rope in revenues totaling $-7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -102.6%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($90.7M against $290.3M, respectively).
Churchill Downs Inc (NASDAQ:CHDN) bills itself as an industry-leading racing, online wagering, and gaming entertainment company anchored by our iconic flagship event – The Kentucky Derby. The company owns and operates Derby City Gaming, a historical racing machine facility in Louisville, Kentucky.
It also owns and operates the largest online horse racing wagering platform in the U.S., TwinSpires.com, and sports betting and iGaming through its BetAmerica platform in multiple states. CHDN is also a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines and video lottery terminals and 200 table games in eight states.
Churchill Downs Inc (NASDAQ:CHDN) most recently reported business results for the second quarter ended June 30, 2020.
Highlights from the quarter include: net revenue of $185.1 million, down 61% over the prior year quarter, a net loss of $118.8 million compared to net income(a) of $107.1 million in the prior year quarter, adjusted net loss of $21.1 million, compared to adjusted net income of $115.0 million in the prior year quarter, adjusted EBITDA of $30.1 million, down 86% compared to $215.0 million in the prior year quarter, and strong performance from TwinSpires with $18.3 million of Adjusted EBITDA growth and $100.7 million of handle growth, or 21.6%, over the prior year quarter despite the rescheduling of the 146th Kentucky Oaks and Derby to September.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.
Churchill Downs Inc (NASDAQ:CHDN) managed to rope in revenues totaling $185.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -61.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($699M against $488.2M).
B2Digital Inc (OTCMKTS:BTDG) has established itself in an extremely interesting niche: as the premier development league for the mixed martial arts (MMA) fighting sport. The company operates live events, pay-per-view media, gyms, and other resources to maximize the development of future stars in the MMA sport.
B2Digital operates a number of fighting events brands, including Pinnacle, HRMMA, Strikehard, and others, and has developed and deployed the systems and technologies for the operation of the B2 Fighting Series. This includes social media marketing, event management, digital ticketing sales, digital video distribution, digital marketing, PPV, FTV, merchandise sales, brand management, and financial control systems. B2Digital owns all rights for TV, internet, social media, media, merchandising and trademarks, and branding for the B2Digital companies.
B2Digital Inc (OTCMKTS:BTDG) most recently announced the launch of its new “B2 Instastore” system, which provides a convenient, fast, and simple way to sign up for the Company’s new B2 Social Media Storefronts platform.
According to the release, for those interested, please navigate to www.b2instastore.com to sign up. It’s free, and you will receive a link to your very own affiliate marketing “Storefront” Link by email within seconds. You can then post this link on the pages of your own social media network. If your friends use it to buy tickets to watch B2 LIVE Pay-Per-View Events, you receive a commission for each sale. It’s a very interesting and innovative, and possibly very disruptive, new model for ramping sales on PPV events.
“The B2 Instastore feature is really something we feel has the potential to revolutionize the live-event PPV marketing game,” remarked Greg P. Bell, Chairman & CEO of B2Digital. “Imagine all of your fans and followers deciding to become a giant distributed affiliate marketing team helping you sell tickets to your event. The technology is seamless. We are already seeing a strong response. And the timing couldn’t be better – having this system up and fully functional ahead of our first major event in the busy B2 Fighting Series Fall Season carries the potential to provide us with a defining boost in the months ahead.”
If you’re long this stock, then you’re liking how it has acted over the past month, up now over 400% in that time as the company ramps up toward a big fresh season of live MMA events with big progress on its gym business, new PPV coverage, and this interesting marketing angle.
B2Digital Inc (OTCMKTS:BTDG) pulled in sales of $169K in its last reported quarterly financials, representing top line growth of 155%. In addition, the company is stocking over $75K on hand liquid cash assets. But the big numbers appear to be ahead as it scales up in a very rapidly growing marketplace that’s likely to only get stronger as we gradually move past the pandemic.
World Wrestling Entertainment Inc (NYSE:WWE) trumpets itself as an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
It operates through three segments: Media, Live Events, and Consumer Products. The Media segment engages in the production and monetization of long-form and short-form media content across various platforms, including WWE Network, pay television, and digital and social media, as well as filmed entertainment. The Live Events segment is involved in the sale of tickets, including primary and secondary distribution; provision of event services; and sale of travel packages related to its live events.
World Wrestling Entertainment Inc (NYSE:WWE) just announced that Nick Khan, former Co-Head of Television at Creative Artists Agency (CAA), has been named President & Chief Revenue Officer, reporting directly to WWE Chairman & CEO Vince McMahon.
“Nick is a seasoned media executive with a deep understanding of our business and a proven track record of generating significant value for sports and entertainment properties,” said McMahon. “While representing WWE at CAA, he was instrumental in transforming our business model by securing domestic media rights increases of 3.6x over our previous agreements. Nick’s management style and personal demeanor are perfect for WWE’s entrepreneurial culture, and he will fit right in with our exceptional management team.”
Even in light of this news, WWE hasn’t really done much of anything over the past week, with shares logging no net movement over that period. WWE shares have been relatively flat over the past month of action, with very little net movement during that period.
World Wrestling Entertainment Inc (NYSE:WWE) generated sales of $223.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -23.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($547.9M against $544.3M).