Sphere Entertainment shares dip as Q1 earnings fall short of forecasts

NEW YORK – Sphere Entertainment Co. (NYSE:SPHR), a leading live entertainment and media company, announced its financial results for the fiscal third quarter ended March 31, 2024, showcasing a significant revenue increase but falling short on earnings per share (EPS) expectations. SPHR shares fell slightly, by 0.5% in premarket trading.

The company reported a third-quarter revenue of $321.3 million, a substantial 98% increase from the $162.1 million posted in the same quarter last year. However, Sphere Entertainment’s EPS was reported at -$1.33, which was notably below the analyst estimate of -$0.19. Despite the revenue surge, the company did not meet the consensus revenue estimate of $324.65 million.

Executive Chairman and CEO James L. Dolan commented on the quarter’s performance, stating, “With the second consecutive quarter of robust revenues and positive adjusted operating income at the Sphere segment, our early results continue to demonstrate Sphere’s potential to disrupt the traditional venue model. We are encouraged by the demand for this new medium and remain confident in our future growth opportunities.”

The Sphere segment, which includes the company’s next-generation entertainment medium, reported revenues of $170.4 million for the quarter, up from just $0.6 million in the prior year. This was largely attributed to The Sphere Experience, which generated $100.5 million across 257 performances during the quarter. Additionally, event-related revenues and sponsorship, signage, Exosphere advertising, and suite license fees contributed to the segment’s financial success.

On the other hand, MSG Networks (NYSE:), another segment of Sphere Entertainment, saw a 6% decrease in revenues, dropping to $151.0 million from $161.4 million in the previous year. This decline was primarily due to a decrease in distribution revenue, which fell by $8.4 million, and advertising revenue, which decreased by $1.5 million.

The company’s operating loss improved, with the fiscal third quarter showing a loss of $40.4 million, a 60% improvement from the $101.9 million loss in the prior year quarter. The adjusted operating income was $61.5 million, compared to an adjusted operating loss of $18.7 million in the previous year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.