![Sphere on NHL draft day 2024](https://www.sportico.com/wp-content/uploads/2024/08/GettyImages-2159585100-e1723640044976.jpg?w=1280&h=721&crop=1)
The Sphere got off to slow start when it opened last September, but the one-of-a-kind-venue is showing promise despite increases in expenses.
Sphere Entertainment Co., which operates the Las Vegas entertainment venue, reported on Wednesday that it lost $200.6 million during the 2024 fiscal year, including $46.6 million in losses during the fourth quarter that ended on June 30. The company, though, posted $273.4 million in revenue during the same period, a 112% increase year-over-year. This jump was felt on the stock market as shares were up more than 6% before the opening bell.
“While we know it is still early days, we’re positive about what we have achieved with Sphere and remain optimistic about what the future holds for this next generation medium,” Sphere Entertainment Co. executive chairman and CEO James Dolan said on an investor call.
The Sphere segment (not including MSG Networks) generated $151.2 million during the fourth quarter, in which it hosted Grateful Dead tribute band Dead & Company for a 30-day residency. The Sphere Experience’s Postcard from Earth attraction generated over $1 million in average daily ticket sales during the same period. It also sprinkled in other non-music events in June, including hosting the 2024 NHL Draft and its first corporate keynote event with Hewlett Packard Enterprise.
The Sphere alone had direct operating expenses of $67.9 million during the fourth quarter, compared to just $1.1 million during the same time in 2023. This includes $22.2 million in event-related expenses and $22.1 million in expenses associated with The Sphere Experience.
Revenue earned from signage, sponsorship and Exosphere advertising was $15.9 million, down from last quarter when it posted $32.9 million due in large part to the record-setting week of advertising revenue around the Super Bowl in February.
“We’re really getting used to the marketplace,” Dolan said. “It’s the first year of this product and we’re learning more about it. Our approach right now is going in the direction where we’re putting together conventions and other things going on in the marketplace and our pitches are much more branded [now].”
Sphere Co. (NYSE: SPHR) shares have risen 25% this year. Other prominent finance titans in the sports world, like New York Mets owner Steve Cohen and other billionaire Ken Griffin, have taken notice of the growth and have made investments in recent months. Following the NHL Draft, the Sphere is set to host its first live sporting event in UFC 306 in September, with The Eagles’ 20-show residency set to begin the same month.
Dolan mentioned that there’s still plans to take The Sphere concept to a new location after the city of London rejected MSG’s long-standing proposal to build a twin last year. “We remain focused on executing our global vision for Sphere,” he said. “Expansion discussions with international markets continue to progress and we look forward to sharing more.”