Sphere Entertainment Company posts $69.8m operating loss for Q1
The popular new venue has experienced high operating costs and has lost its CFO, but CEO is optimistic as more opportunities for Sphere are planned.
Sphere Entertainment Company has released its Q1 fiscal quarter 2024 results, posting overall revenue of $118m. The company also posted an overall operating loss of $69.8m for the quarter (up 37% annually) and recently saw the departure of its CFO, Gautam Ranji.
The venue, already known for its sold-out U2 concerts and critically acclaimed Postcard from Earth show by Darren Aronofsky, reported $7.8m in revenue in its Sphere segment, up from $0.7m this time last year (when the Sphere was not yet open). The operating loss in the company’s Sphere segment was $98.4m in fiscal Q1 2024, while it was $79.1m in the previous comparable period.
The Sphere had direct operating costs equal to its revenue ($7.8m), which were made up primarily of $2.8m venue operating costs, $2.2m event-related expenses and $2.1m in costs associated with The Sphere Experience, featuring the aforementioned Postcard from Earth.
The MSG Networks sector of the company brought in a fiscal Q1 2024 revenue of $110.2m, also down yearly from $122.5m. This segment saw an operating income rather than a loss, however, of $28.7m, up slightly from $28m.
Undeterred by the overall financial results, Executive Chairman and CEO James L. Dolan commented, “Sphere’s opening in Las Vegas in September represented a significant milestone, generating worldwide attention and marking the beginning of a new chapter for our Company.
“We are building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders.”
Due to the popularity of the venue, 11 further U2 concert dates have been added in January and February next year; the Sphere was able to launch several global brand campaigns (including with NFL Sunday Ticket) and there are plans for Formula 1 to ‘takeover’ the Sphere during next week’s Las Vegas Grand Prix.
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