Sphere Entertainment Reports Losses in Q3 2024 Despite a Busy Year

When the Las Vegas Sphere launched on September 29^th, 2023, it wore the promise of exciting, endless possibilities. And when Sphere Entertainment, the holding company of the iconic venue and MSG Network’s RSN business, reported losses of about $100 million, critics were quick to crop out.

The project was blasted as obnoxious and criticized online for such low numbers. However, many fault-finders failed to note that Sphere had only begun commercial operations two days prior to the Q3 2023 earnings call. Accordingly, expenses were bound to overshadow revenue generated by a significant amount.

Now, a year later, Sphere management has even bigger losses in the books compared to the third quarter of the previous year. The company admits it is still learning the ropes for running such a new venture despite stock plummeting in daily trading.

Market Performance

During Sphere Entertainment’s earnings call on Tuesday, CEO James Dolan announced the company revenue was $127.1 million in Q3 2024. This figure is down from $151.2 million and $170.4 million in Q1 and Q2, respectively. Operating losses for Q3 2024 were $125.1 million, a downturn compared to the $98.4 million loss recorded in Q3 2023.

Sphere’s stock also took a hit and was down 11% in daily trading by market close on Tuesday. However, it remains 15% higher than last year, mainly due to its announcement about launching a second Sphere in Abu Dhabi.

An Eventful Year

From the Sphere’s opening US concert on September 29^th, 2023, fans have flocked to the $2.3 billion marvel for numerous events. The venue hosted the first live sporting event, UFC 306, which was its highest-grossing event in 2024. It was followed by The Eagles and Dead & Co., who are running a 28-show residency. Also, there were 207 Sphere Experience shows, including a V-U2 film concert. These events accounted for 56% of the venue’s revenue.

Anticipated Progress

However, Sphere Entertainment didn’t manage to turn a profit on the business boom. Speaking during the earnings call on Tuesday, Dolan referred to the venture as “the first pancake” with plenty to learn about running it.

“I wish that the day we lit it up that we knew exactly how to run it, exactly how to sell it and exactly how to program it, et cetera, but that’s not the case.” He told investors during the call. “That’s just part and parcel of starting something new. It’s the first pancake. It’s the first time we’ve done it, and we’ve learned and we’re getting better at it. And I do think also that there are seasonal issues that come into play.”