Sphere Revenues Surge In Q3 With ‘Oz’ Enthusiasm, Concert Increases

Third quarter revenues for Sphere Entertainment — the parent company of the eponymous Las Vegas venue and the MSG family of regional sports networks — hit $262.5 million, a 15% increase from the same quarter the year prior.

The growth was driven by successes at Sphere itself — the immersive version of The Wizard of Oz increased revenues in the Sphere Experience sector by more than $28 million and increased concert count pushed revenue in that sector by $15 million — but overall revenues took a hit from a dip at MSG Networks, where at 13.5% drop in subscriber count led to a 12% revenue slide.

Still, it was a top-line beat for Sphere with the Zacks consensus at $259.3 million.

Zacks reported a bottom-line beat. Sphere reported a loss of $2.80 per share, but adjusting for asset impairment, EPS was $1.37. Zacks consensus prediction was at $1.62. Sphere has taking an EPS loss for six consecutive quarters.

Shares of Sphere fell in pre-market trading Tuesday but rebounded to a new high of $70 by mid-morning.

Things appear to moving in the right direction at Sphere itself. Revenues generated at the innovative venue were up 37% with increases across the board — in addition to the aforementioned growth in Experiences and concerts, revenues from Exosphere advertising and suite licensing were up $2.7 million. Those increases, plus lower administrative costs help offset an increase in operating expenses — largely due to Oz — and increased maintenance expected as the venue ages; the operating loss at Sphere was $84.4 million, a 40.6% improvement over the same quarter in 2024.

“The Wizard of Oz at Sphere, which is the best example to-date of experiential storytelling in this new medium, has been met with strong consumer demand. Looking ahead, we believe our Company is well positioned for long-term growth as we continue to execute on our global vision for Sphere,” executive chairman and CEO James Dolan said.

This story has been updated with Zacks analysis information.