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Mar 31, 2024
Sphere Entertainment Co Q3 2024 Earnings Report
Sphere Entertainment Co reported Q3 results with $321.3M revenue, a net loss of $47.2M, and an operating loss of $40.4M.
Key Takeaways
Q3 revenue nearly doubled year over year to $321.3M, driven by Sphere Las Vegas, but the company posted a GAAP net loss of $47.2M. Adjusted operating income reached $61.5M, reflecting strong performance at Sphere and improved results at MSG Networks despite subscriber declines.
Total Q3 revenue was $321.3M, up from $162.1M a year ago.
GAAP diluted EPS was -$1.33 for the quarter.
Adjusted operating income was $61.5M vs. a loss of $18.7M last year.
Sphere segment revenue reached $170.4M, including $100.5M from The Sphere Experience and $34.3M in event-related revenues.
Sphere Entertainment Co
Sphere Entertainment Co
Sphere Entertainment Co Revenue by Segment
Revenue by Segment
MSG Networks Revenue
CapyFin.com Forward Guidance
Management pointed to continued programming at Sphere, new residencies, and events such as the NHL Draft and corporate keynotes, expressing confidence in growth opportunities. No formal numerical guidance was issued.
Positive Outlook
- Strong Sphere segment performance with second consecutive quarter of positive adjusted operating income.
- High ticket sales from The Sphere Experience averaging over $1M per day during operating days.
- Successful residencies from U2 and Phish with strong demand driving extensions for upcoming shows.
- Record-setting advertising week on the Exosphere during the Super Bowl.
- Upcoming corporate keynote and NHL Draft to further diversify event programming.
Challenges Ahead
- No quantitative forward guidance provided.
- MSG Networks saw a 6% year-over-year revenue decline due to subscriber losses.
- Sphere segment still incurred a GAAP operating loss due to high costs and depreciation.
- Ongoing high depreciation and operating expenses from new venue assets.
- Advertising revenue declines at MSG Networks related to live sports telecasts and branded content.