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Jun 30, 2024
Sphere Entertainment Co Q4 2024 Earnings Report
Sphere Entertainment Co reported Q4 results with $273.4M revenue, a net loss of $46.6M, and an operating loss of $71.4M.
Key Takeaways
Q4 revenue more than doubled year over year to $273.4M as Sphere Las Vegas drove results, but the company posted a GAAP net loss of $46.6M and operating loss of $71.4M. Adjusted operating income was $25.7M, reflecting higher revenues offset by elevated operating costs and depreciation.
Total Q4 revenue was $273.4M, up from $129.1M a year ago.
GAAP diluted EPS was -$1.31 for the quarter.
Adjusted operating income was $25.7M vs. a loss of $59.8M last year.
Sphere segment revenue reached $151.2M, including $74.5M from The Sphere Experience and $58.4M 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 highlighted continued programming at Sphere and upcoming events while noting MSG Networks is pursuing a refinancing through a work-out with its lenders; no quantitative guidance was issued.
Positive Outlook
- Robust event pipeline at Sphere (Eagles residency, Afterlife/Anyma shows).
- Strong traction of The Sphere Experience with >$1M average daily ticket sales on operating days in Q4.
- Corporate and marquee events (HPE keynote, NHL Draft) broaden venue use cases.
- First live sports event at Sphere (UFC 306) slated for September, expanding formats.
- Q4 adjusted operating income turned positive year over year.
Challenges Ahead
- No formal quantitative outlook provided.
- MSG Networks subscriber declines pressured distribution revenue in Q4.
- Sphere segment still posted a GAAP operating loss in Q4 due to high costs and depreciation.
- Ongoing high depreciation and amortization burden from new venue assets.
- MSG Networks pursuing a refinancing via work-out with lenders, creating financing uncertainty.