Sphere Entertainment Inc. closed its fiscal year ending June 30 with fourth-quarter revenue of $273.4 million and a net loss of $46.6 million after hosting resident shows by Dead & Company and Phish.
For the full year, the company posted a net loss of $201 million on revenue of $1.03 billion, nearly double the $573.8 million it posted a year earlier when its Las Vegas Sphere venue, which opens in late 2023, generated just $2.6 million in revenue.
Following the earnings release, Sphere Entertainment’s shares rose 9.3% to $44.55 on Wednesday (August 14).
The MSG Networks division had quarterly revenue of $122.2 million, down 6.2% year over year, and full-year revenue of $529.7 million, down 7%. MSG Networks operates two TV sports networks — MSG Network and MSG Sportsnet — as well as the MSG+ streaming platform.
The eye-catching $2.3 billion Sphere venue in Las Vegas reported revenue of $151.2 million in its latest quarter. Events, including concerts and corporate events, accounted for $58.4 million in revenue. The Sphere Experience, an interactive experience paired with screenings of the film “Postcard from Earth,” brought in $74.5 million from 208 performances.
The Sphere brought in $489.4 million in revenues in the first three quarters. U2 began a 40-date concert run at the end of the first quarter, but the majority of the concerts took place in the second and third quarters. Phish played four dates in April, followed by Dead & Company, which began a 30-date permanent run on August 10th.
With cutting-edge visuals and audio and the ability to host a wide variety of events, Sphere “has the potential to change the entertainment landscape for our artists, guests and partners,” CEO James Dolan said in an earnings call Wednesday. “While fully realizing that vision will take time, we are learning more every day about how to optimize Sphere’s operating model.”
While the concerts draw global media attention and social media exposure, the Sphere’s profitability depends on making the most of its reach beyond the traditional venue. On that point, Dolan said the company is “making progress” toward a goal of hosting multiple events per day. The Sphere Experience, which includes the 50-minute film “Postcards from Earth,” was held on the same days as Dead & Company’s July and August shows.
Taking advantage of its Las Vegas location and ability to project compelling images on its 160,000 square feet of video screens, Sphere has also expanded into different types of events: in June, the venue hosted its first corporate keynote event with Hewlett Packard Enterprise and the NHL Draft.
The content category that includes “Postcards from Earth” is another aspect that is maximizing Sphere’s utilization: Dolan said the content has averaged more than $1 million in daily ticket sales in the most recent quarter and has generated more than $300 million in “high-margin” revenue since its October 2023 debut.
“We are actively developing new cinematic experiences and plan to launch our next attraction in the coming weeks,” Dolan said. “We believe this expansion of our content library will benefit our Las Vegas operations and enhance our value proposition in new markets.”
The Eagles will begin a 20-date residency at the Sphere starting in September, while Enima will play its first-ever EDM show at the venue in late December. September will also see the Sphere host its first-ever live sporting event, UFC 306.