Sphere Second Quarter Earnings Exceed Expectations

Once again, the quarterly earnings report for Sphere Entertainment surprised Wall Street, exceeding expectations in revenue and on the bottom line.

The operator of the eponymous Vegas venue and the MSG family of networks posted revenues of $313.6 million in Q2, ahead of the Zacks consensus of $307.5 million. Sphere was also a beat on the bottom line, posting a per-share loss of $1.07; Zacks’ consensus was a loss of $1.52.

The report, released ahead of the opening bell, pushed shares up nearly 4% by midday.

“Today’s results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year. We are also advancing our long-term vision for a global network of Sphere venues, including in Abu Dhabi and National Harbor,” Executive Chairman and CEO James Dolan said.

During the period, ticket sales for The Wizard of Oz surpassed $400 million all time. Oz continues to be a major revenue driver; the company said year-over-year, revenues for its Sphere Experiences vertical increased nearly $54 million.

Revenue at Sphere itself was $226.4 million, $50.8 million more than the same quarter last year., booned by the aforementioned rise in Experiences revenue, as “event-related revenues” – which includes both concerts and brand events – were down, a dip attributed to two fewer brand events, as concert revenues increased.

The other half of Sphere Entertainment’s business — the MSG family of regional sports networks — saw revenues decrease by 18% as subscribers dropped 16.5%.