The Sphere is finally bringing in serious cash.
Sphere Entertainment Corp., the parent company of the already-infamous Las Vegas attraction, as well as the MSG Networks RSN business, reported its first full quarterly earnings report Monday with the venue open, its fiscal 2024 Q2.
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The company reported earnings of $314.2 million, with Sphere $167.8 million) overtaking MSG Networks ($146.4 million) as the predominant breadwinner. That being said, MSG Networks provided the bulk of the company’s profits, comprising $37.3 million of Sphere’s $51.4 million in adjusted operating income.
While Sphere reported adjusted operating income of $51.4 million, it reported an operating loss of $159.7 million thanks largely to a non-cash expense associated with the decision to abandon its London Sphere plan, as well as depreciation.
“Sphere is a next-generation medium intended to disrupt the traditional venue model,” Sphere CEO James Dolan said in a statement. “With positive adjusted operating income at the Sphere segment in our first full quarter of operations in Las Vegas, our early results are beginning to prove that thesis, and we remain confident in the global opportunities ahead.”
Sphere launched last fall with a pair of shows: A residency featuring U2, and a film from Darren Aronofsky called Postcard From Earth. The Sphere has also developed a robust sponsorship business thanks to its “exosphere,” the globe visible from across the Las Vegas strip, where sponsors have been posting their own imagery.
Sphere reported that advertising and suite license fees were $17.5 million in the quarter.
The company previously broke out the breakdown in Sphere revenue, reporting that Aronofsky’s film had brought in $44.5 million and U2 $30.7 million from the Sphere’s launch through November 2023. The film has a lower gross per showing, but ran more frequently.
The Sphere has already lined up residencies from Dead & Co. and Phish for later this year.
Meanwhile, revenue at MSG Networks declined 8 percent as subscribers declined. However, the RSN business remains profitable, helping to offset the early expenses of the Las Vegas project.
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