Sphere’s First Quarter Earnings Exceed Expectations

Sphere Entertainment surprised Wall Street Tuesday with a first quarter earnings report that exceeded expectations.

The operator of the eponymous Vegas venue and the MSG family of networks posted revenues of $386.4 million in Q1, ahead of the Zacks consensus of $367.5. Sphere was also a beat on the bottom line, posting a per-share loss of 4 cents; Zacks expected a 31 cent per share loss, with some analysts expecting an EPS loss of as much as 45 cents.

The report, released ahead of the opening bell, pushed shares to a record $147.40 before pulling back.

“Today’s results demonstrate our continued success proving out Sphere’s business model. Looking ahead, we remain focused on maximizing that model’s full potential in Las Vegas, while executing on our long-term vision for a global network of Sphere venues,” executive chairman and CEO James Dolan said.

The revenue surge was driven by Sphere itself, which had a take of $266 million, a 69% year-over-year increase with higher per-show numbers for The Wizard of Oz, which had its 500th showing in March. Sphere also hosted six more concerts in the quarter than the same period last year and an additional brand event. Sponsorship — which combines Exosphere advertising and suite licensing — also showed a revenue increase.