Madison Square Garden Co reported a second-quarter profit that was down 39% thanks to ongoing renovations at the company’s Madison Square Garden arena and theater in New York, which has put a crimp on hosting lucrative events. The James Dolan-run MSG, which went public last year after being spun off from Cablevision Systems, saw revenue improve 3% to $233.9 million, beating Wall Street expectations, led in part by higher affiliate fees at the MSG Media unit, which includes MSG Network, Fuse and regional sports networks. It’s MSG Entertainment that took the brunt of the decline with its biggest venue unavailable (construction is expected to be completed in October). Overall, the company reported a profit of $8.5 million, or 11 cents a share; analysts expected 14 cents a share. Of course, analysts also expect things could get much worse if the NBA season is shortened or canceled owing to the current owner-imposed lockout — that’s 41 home New York Knicks games that are in jeopardy (MSG owns the Knicks as well as the NHL’s New York Rangers and the WNBA’s New York Liberty). The stock is down about 11% this year so far but was up following the earnings report.

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