In its first full quarter of operations, Sphere, the next-generation music venue in Las Vegas, lost $193.9 million on revenue of $167.8 million, its owner, Sphere Entertainment Co., announced on Monday (February 5th). The company posted adjusted operating profit of $14.1 million if “certain corporate overheads” are excluded.
In the quarter ending Dec. 31, nearly half of the Sphere's revenue — $92.9 million — came from The Sphere Experience's 191 performances. (The Sphere Experience includes a tour of the space and a screening of the film Postcard from the earth.) Concerts accounted for nearly all of the $55.2 million in event-related revenue. The suite's outdoor advertising and license fees totaled $17.5 million.
After U2's residency ends on March 2, the venue will host performances by Phish and Dead & Company. Executive Chairman/CEO Jim Dolan didn't announce new housing, but said during Monday's earnings call that “our calendar is almost full for this calendar year.” Demand from artists continues to grow, Dolan added, and the company expects 2025 to be “another full year.”
Including MSG Networks, Sphere Entertainment had revenue of $314.2 million and an operating loss of $159.7 million. MSG Networks had revenue of $146.4 million, down 12.5% from the prior period.
The Sphere opened on Sept. 29 and scored $4.1 million from two U2 concerts and $7.8 million in total revenue in the previous quarter. The venue has received rave reviews and worldwide attention for its captivating audio-visual experience and presence on the Las Vegas skyline. It featured prominently at the Las Vegas Formula 1 race in November and will get more attention this weekend as Las Vegas hosts Super Bowl LVIII on Sunday (February 11).
Although Sphere has ended its bid to expand into London, the company is having “substantial discussions about expanding into international markets,” Dolan said. The plan is to have a franchise model for additional venues that will generate revenue directly through construction and development, Dolan added.
Shares of Sphere Entertainment rose as much as 10.4% to $39.11 on Monday and closed at $38.97, up 10.1%.
from our partners at https://www.billboard.com/business/touring/sphere-earnings-losses-grow-las-vegas-venue-2024-calendar-1235599508/