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Jun 30, 2023
Sphere Entertainment Co Q4 2023 Earnings Report
Sphere Entertainment Co reported a decline in revenue and a wider operating loss in Q4 2023 compared to the prior year.
Key Takeaways
In Q4 2023, Sphere Entertainment Co posted $129.1 million in revenue, down 8% year-over-year, with a net income of $536.8 million driven by gains from discontinued operations. Operating loss widened to $70.3 million, and adjusted operating loss increased to $59.8 million. The Sphere segment remained in a pre-revenue phase with minimal revenue, while MSG Networks experienced declines in both revenue and adjusted operating income.
Q4 revenue decreased by $10.7 million year-over-year to $129.1 million.
Net income reached $536.8 million, largely due to discontinued operations gains.
Operating loss widened to $70.3 million; adjusted operating loss rose to $59.8 million.
Sphere segment revenue remained minimal at $0.7 million while MSG Networks revenue declined 8%.
Sphere Entertainment Co
Sphere Entertainment Co
Sphere Entertainment Co Revenue by Segment
Revenue by Segment
MSG Networks Revenue
CapyFin.com Forward Guidance
The company expects to open Sphere in Las Vegas on September 29, 2023, with strong demand anticipated for initial events and experiences, though final construction costs are projected to be approximately $2.3 billion.
Positive Outlook
- Sphere Las Vegas opening scheduled for September 29 with U2 residency.
- October 6 debut of immersive production 'Postcard from Earth'.
- Formula 1 event to feature a multi-day takeover in mid-November.
- Exosphere fully illuminated for the first time in July with global media attention.
- Construction nearing completion with most technological systems installed.
Challenges Ahead
- Final construction costs projected at $2.3 billion.
- Sphere segment still incurring high operating losses.
- MSG Networks facing ongoing revenue decline due to subscriber loss.
- Rights fees expense increasing in MSG Networks segment.
- High selling, general and administrative expenses impacting profitability.