Sphere Entertainment revenue tops $1bn

Sphere Entertainment reported revenues of almost $1.03bn (£801m/€935m) for the 2024 fiscal year following the opening of its Sphere arena in Las Vegas.

The figure represents an increase of $453.1m on the prior year. The company also posted an operating loss of $341.2m, an increase of $68.2m, while its adjusted operating income of $80.7m represented a $203.3m year-on-year improvement.

Sphere Entertainment’s fourth-quarter revenue totalled $273.4m, an increase of $144.3m compared to the prior-year quarter. The company’s operating loss for the quarter was $71.4m, a slight increase of $1m, while adjusted operating income for the quarter was $25.7m, up $85.5m on the prior-year quarter.

Full-year revenue for the Sphere arena itself totalled $497.2m, with MSG Networks accounting for the remaining $529.7m. The arena’s revenue for the latest quarter was $151.2m – an increase of $150.5m compared to the prior-year quarter, when the venue had not yet opened.

The $2.3bn Sphere arena staged its first event in September and has hosted a string of music concerts since. Rock band Dead & Co completed a successful 30-show residency earlier this month, while the Eagles are due to start a 20-show residency in September.

The Sphere Experience, which features the Postcard from Earth film, generated over $1m in average daily ticket sales on the days it ran during the final fiscal quarter of 2024. Revenues related to The Sphere Experience were $74.5m across 208 performances during the quarter, while event-related revenues were $58.4m.

Arena revenues from sponsorship, signage, Exosphere advertising and suite licence fees were $15.9m. The Sphere arena had direct operating expenses of $67.9m for the fourth quarter, which primarily included $22.2m of event-related expenses and $22.1m of expenses associated with The Sphere Experience.

The arena also posted a fourth-quarter operating loss of $104.5m, which represented an increase of $9.3m year-on-year. Adjusted operating loss of $5.5m represented an improvement of $84.9m.

In June, the Sphere hosted its first sporting event in the shape of the NHL Draft, which also marked the first live television event broadcast from the arena. The venue will host a UFC event in September.

James L. Dolan, executive chairman and chief executive of Sphere Entertainment, said: “Fiscal 2024 marked the opening of Sphere in Las Vegas and a new chapter for our company. Sphere has already welcomed millions of guests, world-renowned artists and numerous global brands. We are confident that we are on the right path to execute on our vision for this next-generation medium.”