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Dec 31, 2023
Sphere Entertainment Co Q2 2024 Earnings Report
Sphere Entertainment Co reported Q2 results with $314.2M revenue, a net loss of $173.2M, and an operating loss of $159.7M.
Key Takeaways
Q2 revenue nearly doubled year over year to $314.2M, driven by Sphere's first full quarter of operations, but the company recorded a GAAP net loss of $173.2M. Adjusted operating income reached $51.4M, reflecting strong Sphere segment revenue and continued profitability at MSG Networks.
Total Q2 revenue was $314.2M, up 97% year over year.
GAAP diluted EPS was -$4.91 for the quarter.
Adjusted operating income was $51.4M versus a loss of $13.2M in the prior year quarter.
Sphere segment revenue reached $167.8M, including $92.9M from The Sphere Experience and $55.2M in event-related revenues.
Sphere Entertainment Co
Sphere Entertainment Co
Sphere Entertainment Co Revenue by Segment
Revenue by Segment
Sphere Revenue
CapyFin.comMSG Networks Revenue
CapyFin.com Forward Guidance
Management expects continued strong demand for Sphere Las Vegas programming, including upcoming residencies and events, while MSG Networks faces headwinds from subscriber declines.
Positive Outlook
- Sphere achieved positive adjusted operating income in its first full quarter.
- High daily ticket sales from The Sphere Experience averaging over $1M on operating days.
- Strong event pipeline including upcoming shows from Phish and Dead & Co.
- Expanded brand campaigns on the Exosphere, including presence during F1 Las Vegas Grand Prix.
- MSG Networks profitability supported by lower SG&A expenses.
Challenges Ahead
- No numerical forward guidance provided.
- Sphere segment posted a large GAAP operating loss due to impairment, depreciation, and high operating costs.
- MSG Networks revenue fell 8% year over year due to subscriber losses.
- Impairment charge of $116.5M related to halting London Sphere project.
- Ongoing competitive and cost pressures in media and live entertainment segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income