• by Wayne Friedman , August 26, 2011

Rebuilding New York City's Madison Square Garden complex was key in pushing down profits for the parent company's second-quarter reporting period.

Net income was down 39% for the Madison Square Garden Co to $8.5 million, and revenues were 3% higher to $233.9 million -- both of which beat Wall Street estimates.

MSG Media business -- which includes the regional cable TV channel, MSG Network, the young-skewing cable channel Fuse, and regional sports networks -- gained from higher affiliate fee revenues, with overall revenues up 3.8%. Operating profit fell 9%.

MSG Entertainment -- its venue division, of which Madison Square Garden is included -- took the brunt of the fall, with revenues dipping 23%. Remodeling has caused the venue to drop major lucrative entertainment events.

MSG's sports segment -- which includes the teams NBA's New York Knicks, NHL's New York Rangers and the WNBA's New York Liberty -- saw revenue jump 18% from higher playoff-related revenue.

This part of the company might have some troubles, especially if the owner-directed NBA lockout continues in the fall. MSG Network airs 41 Knicks home games.

Shares closed Thursday at $23.14, up 1.3%. The stock is down 10% so far this year, and 23% lower than its 52-week high.