- SPHR
+6.66%
Key Points
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Sphere’s results improved while MSG Networks weakened: Sphere revenue rose 14% to $198.9 million and adjusted operating income increased to $32.4 million, while MSG Networks revenue fell to $75.4 million amid a 15.5% subscriber decline.
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New Sphere content is in development: The Wizard of Oz has sold more than 4.3 million tickets, generating about $540 million in ticket sales. The Rocky Horror Picture Show is expected to debut by the end of March, while the company is reworking its plans for From the Edge.
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Expansion plans are advancing: Sphere expects to announce another U.S. project this quarter, and the Abu Dhabi venue remains on track for completion by the end of 2029. Management also sees potential for Las Vegas business growth in 2027 and beyond.
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Sphere Entertainment (NYSE:SPHR) reported higher revenue and adjusted operating income in its Sphere segment for the September quarter, as additional showings of The Wizard of Oz helped offset a decline at MSG Networks. The company also said it expects to announce another U.S. Sphere project, likely in the current quarter.
Total company revenue was $274.3 million, and adjusted operating income was $39.2 million. Sphere segment revenue rose 14% from a year earlier to $198.9 million, while its adjusted operating income increased to $32.4 million from $17.1 million, Chief Financial Officer Robert Langer said.
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The Sphere Experience hosted 241 performances of The Wizard of Oz during the quarter, compared with a combined 220 performances of three productions in the year-earlier period. Langer said growth also came from Exosphere advertising, sponsorships, suite license fees and concert residencies.
New content and a changed plan
Executive Chairman and CEO Jim Dolan said production of The Rocky Horror Picture Show is well underway and is expected to debut by the end of March. He said it would be the fastest a Sphere Experience has gone from concept to market, reflecting production technology advances and lessons from The Wizard of Oz.
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Dolan said the company expects to continue showing The Wizard of Oz alongside Rocky Horror, potentially scheduling the more adult-oriented production later in the day. He also reaffirmed the expectation that three to four Sphere Experiences would be playing by the end of 2027.
