Sphere Entertainment Co. reported total second quarter revenues rose 3% to $282.7 million, helped by a 16% jump in income from more concerts and corporate events at the Sphere that offset a 12% decline in MSG Networks revenue from a year ago.
Revenues from the Sphere division of $175.6 million where driven by a $26.7 million increase in event-related income coming corporate events, like one held by Hewlett Packard in the quarter, and nine more concert residences, including Dead & Co and Kenny Chesney. The company plans to host over 100 events in 2025, up from 70 in 2024. Revenues from the Sphere Experience, which shows films inside the Las Vegas Sphere when there aren’t concerts, fell by $6.7 million due to lower per-show revenue.
Total adjusted operating income rose 140% to $61.5 million, as the company moves to finalize agreements for its Sphere in Abu Dhabi and explores smaller, more affordable mini Spheres, which executives will take less than two years to bring to market. The company’s operating loss of $50.2 million was an improvement of $21.2 million.
“We are making progress on executing on our core priorities to drive profitable growth in our sphere segment,” said Sphere Entertainment CFO Robert Langer. “While we are still a nascent business [and] results can fluctuate quarter to quarter, we remain pleased with our overall trajectory and continue to see significant long term growth potential.”
Operating expenses for the Sphere rose 12% to $76.4 million on higher event-related expenses from the greater number of residencies in the quarter, higher Holoplot and Sphere Experience increases.
Expenses from sales and general costs fell by 6% to $96.4 million, and the division’s operating loss of $83.4 million improved by $21.1 million, or 20%. Adjusted operating income of $24.9 million was an increase of $30.4 million.
The MSG Networks division generated revenues of $107.1 million, down 12% from a year ago on $11.4 million in less distribution revenue on a 13% decline in total subscribers.
Advertising revenue fell $3.6 million from a year ago on fewer live regular season and postseason professional sports telecasts. Direct operating expenses of $55.0 million fell by 33% due to lower expenses from rights fees and lower programming and production costs.