Sphere Posts Loss, Revenues Slip In Latest Quarterly Report

Sphere Entertainment — the parent of both the eponymous Las Vegas venue and the regional sports networks controlled by MSG Networks — reported first quarter revenue of $227.9 million.

The venue itself had $127.1 million in revenue for the quarter, which ended Sept. 30. That’d down from $151.2 million in the previous quarter and $170.4 million in the quarter prior to that.

On the bottom line, the combined loss was $117.6 million with the Sphere segment posting a $125.1 million loss.

Events revenue was $40.9 million, which includes the beginning of the Eagles on-going residency as well as the UFC event, which the company said was Sphere’s highest grossing event so far. The Sphere Experience sector brought in $71.5 million.

Advertising and suite licensing came in at $8.5 million, down from $15.9 million in the previous quarter.

Still, CEO James Dolan remains bullish, citing intense artist interest in playing the high-tech venue, saying on the earnings call that his company is “struggling with how to squeeze everybody in through the fall.”

Sphere has increased what Dolan calls “side by sides” — days with both concerts and Sphere Experience shows — in an effort to boost revenue.

Dolan said Year One of the venue was like cooking the “first pancake,” as everyone learns how to best operate and take advantage of Sphere’s advances, particularly the massive Exosphere and its advertising capabilities.

“It’s the first time we’ve done it, and we’ve learned, and we’re getting better at it,” he said. “I wish that the day we lit it up, that we knew exactly how to run it, exactly how to sell it, and exactly how to program it. But that’s just not the case.”

Sphere announced its second location in Abu Dhabi, United Arab Emirates, last month, a partnership with thje Department of Culture and Tourism – Abu Dhabi.

Shares of Sphere closed Monday at $44.12 and dropped as low as $38.88 in Tuesday trading.