A nighttime shot of the Sphere, the Q2 2024 earnings of which have emerged in a Sphere Entertainment performance summary. Photo Credit: Y2kcrazyjoker4
Amid a commercially successful Dead & Company residency – and as the Eagles and others prepare to kick off concert series of their own – the Sphere generated nearly $500 million during the 12 months ended June 30th.
Sphere Entertainment (NYSE: SPHR), encompassing the namesake $2.3 billion venue as well as the distinct MSG Networks, just recently posted its financials for April, May, and June. The three-month stretch marked the company’s fiscal fourth quarter and, among other things, saw the mentioned 30-show Dead & Company run begin.
These and different live music events contributed to a specific total of $497.2 million in Sphere revenue for the previously noted 12-month window. That’s up from just $2.6 million throughout the same period ended June of 2023; the Sphere officially opened in late September of last year.
Shifting the focus to April, May, and June in particular, the Sphere itself brought in $151.2 million (up dramatically YoY) across the quarter. Within the sum, nearly $75 million derived from the Sphere Experience, per the report, against $58.4 million from events including but not limited to concerts.
Rounding out the core financials, Sphere operating expenses came in at $67.9 million for Q4 due mainly to $22.2 million in “event-related expenses,” the earnings report shows.
As described by execs during the largely optimistic fiscal Q4 earnings call, the Sphere’s early operations have laid the groundwork for material efficiency and revenue improvements moving forward.
Said improvements refer to a continued embrace of hosting multiple events in a single day – with an emphasis on doubling up to capitalize on high-volume happenings like concerts with showings of original programs.
“We are also making progress towards our goal of hosting multiple event types on the same day,” communicated CEO James Dolan. “The Sphere Experience ran on the same day as select Dead & Co. concerts in July and August, and we believe that this had a positive impact on attendance for Postcard from Earth on those days.
“We also expect a similar schedule during the Eagles’ run and our upcoming EDM shows,” he proceeded.
Looking ahead to 2025, Dolan confirmed that plans are in full swing to bring a country residency to the Sphere (albeit while stopping short of divulging further details). Additionally, the CEO expressed the belief that fans won’t be satisfied with the length of the Eagles’ (already-extended) 20-show run.
As the legacy act is poised to perform solely on weekends and with weeks-long breaks separating the concerts, a “high-profile” (and as-yet-unnamed) female artist could step in to entertain fans during the off days, Dolan suggested.
Lastly, on the live music front, higher-ups strongly hinted at an announcement “soon” pertaining to concert specials recorded at the unique venue.
