Sphere Entertainment (SPHR) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Good morning, and thank you for standing by. Welcome to the Spear Entertainment Company First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Ari Daines, Investor Relations. Please go ahead. Speaker1 Thank you. Good morning and welcome to Sphere Ent ...

Sphere Entertainment (SPHR) came out with a quarterly loss of $2.27 per share versus the Zacks Consensus Estimate of a loss of $2.48. This compares to loss of $1.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.47%. A quarter ago, it was expected that this company would post a loss of $2.15 per share when it actually produced a loss of $3.49, delivering a surprise of -62.33%.Over the last four quarters, the company has sur ...

Company Overview - Sphere Entertainment (SPHR) is expected to report a year-over-year decline in earnings, with a projected loss of $2.48 per share, reflecting a decrease of 86.5% compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $277.07 million, down 13.8% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 2.93% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Sphere Entertainment is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +8.27% [10][11] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8] - Sphere Entertainment currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Sphere Entertainment was expected to post a loss of $2.15 per share but actually reported a loss of $3.49, resulting in a surprise of -62.33% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Media Conglomerates industry, Paramount Global-B (PARA) is expected to report earnings of $0.30 per share, indicating a year-over-year decline of 51.6% [17] - Paramount Global-B's revenue is projected to be $7.1 billion, down 7.6% from the previous year [17] - The consensus EPS estimate for Paramount Global-B has been revised 1.2% higher, but a lower Most Accurate Estimate results in an Earnings ESP of -31.65%, making it difficult to predict an earnings beat [18]

I took a mostly cautious stance on Sphere Entertainment (NYSE: SPHR ) stock when I covered it last October. At the time, the stock was on a superb run, driven by the impressive early numbers and disruptive growth potential of its flagshipMuslim Farooque is a leading financial journalist and market analyst with over five years of expertise in covering the stock and cryptocurrency markets. His work has been widely featured on platforms such as Seeking Alpha, InvestorPlace, GuruFocus, BarCharts, TipRanks, and ...

Core Insights - Google has been named the official AI partner for The Wizard of Oz at Sphere, marking a significant collaboration that merges immersive entertainment with advanced technology [1][2] - The project aims to utilize generative AI to enhance the visual storytelling experience, drawing parallels to the historical impact of Technicolor in cinema [1][4] Group 1: Partnership and Technology - Google Cloud and Google DeepMind are deploying advanced AI models, including Gemini, Veo 2, and Imagen 3, to enhance the film's resolution and recreate characters [2][5] - The project is processing 1.2 petabytes of data, showcasing the extensive computational demands of creating an immersive experience [2] - Sphere's collaboration with Google is seen as a pioneering effort in the entertainment industry, pushing the boundaries of generative AI [3][5] Group 2: Technical Innovations - The use of Super Resolution technology will create ultra-crisp 16k images, essential for Sphere's high-resolution display [5] - Outpainting techniques will extend backgrounds and characters, enhancing the immersive environment for audiences [5] - Performance Generation will allow multiple characters to remain on screen longer, enhancing audience immersion [5] Group 3: Company Backgrounds - Google Cloud provides enterprise-grade solutions that facilitate digital transformation for organizations globally [6] - Sphere is redefining live entertainment with cutting-edge technologies, hosting original experiences and events [7]

Core Insights - Sphere Entertainment Co. announced two new immersive projects: The Wizard of Oz at Sphere and From The Edge, enhancing its original content slate [1][2] - The Wizard of Oz at Sphere will open on August 28, 2025, while From The Edge is set to debut in 2026 [1] Group 1: The Wizard of Oz at Sphere - The project will present the original 1939 film as a fully immersive experience, utilizing advanced technologies in collaboration with Warner Bros. Discovery, Google, and Magnopus [2] - The creative team includes notable figures such as producer Jane Rosenthal, visual effects specialist Ben Grossmann, editor Jennifer Lame, and Creative Director Zack Winokur [3] Group 2: From The Edge - Directed by Academy Award winners E. Chai Vasarhelyi and Jimmy Chin, this project will showcase premier athletes in extreme sports [4] - Filming is taking place in various locations including Jordan, Dubai, Switzerland, the Bahamas, Austin, Las Vegas, and Maui, using Sphere's proprietary Big Sky camera system [5][6] Group 3: About Sphere - Sphere is positioned as a next-generation entertainment medium, redefining live entertainment with extraordinary experiences that enhance storytelling [7] - The first Sphere venue opened in Las Vegas in September 2023, featuring cutting-edge technologies that create immersive experiences [7]

J.P. Morgan analyst David Karnovsky reiterated an Overweight rating on the shares of Sphere Entertainment Co SPHR and lowered the price target from $57.00 to $54.00.The analyst has revised the estimates for SPHR following their fourth-quarter earnings report.The Sphere segment’s AOI came in at -$1 million (or +$4 million excluding management transition costs), which was better than the analyst’s forecast of -$10 million, primarily due to stronger contributions from residencies.During the call, management ex ...

Financial Data and Key Metrics Changes - For the December quarter, the company generated total revenues of $308.3 million and adjusted operating income of $32.9 million [15] - The Sphere segment generated revenues of $169 million with an adjusted operating loss of $800,000 [15] - SG&A expenses for the December quarter were $119 million, including $12.4 million of executive management transition costs [17] Business Line Data and Key Metrics Changes - The Sphere experience generated $87 million in revenue across 190 shows during the December quarter [16] - MSG Networks generated $139.3 million in revenues and $33.7 million in adjusted operating income, down from $146.4 million and $37.3 million in the prior year [19] Market Data and Key Metrics Changes - The Sphere experience has generated over $450 million in high-margin revenue to date [11] - The company experienced a decrease in MSG Networks' revenue due to an 11.5% decrease in subscribers [19] Company Strategy and Development Direction - The company is focused on developing new productions, expanding market presence, and optimizing operational efficiencies [8] - Plans for market expansion include a new Sphere in Abu Dhabi and discussions for additional markets [9][10] - The company aims to refine its go-to-market strategy for the Exosphere and sponsorships [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about underlying demand for the Exosphere and expects operational efficiencies to improve the bottom line [18][41] - The company is confident in its liquidity position, with over $500 million in cash and plans for meaningful revenue growth driven by new offerings [70][72] Other Important Information - The company took a $61.2 million noncash goodwill impairment charge related to MSG Networks [20] - The company has shifted to a new fiscal year ending December 31, with the next full fiscal year running from January 1, 2025, to December 31, 2025 [23] Q&A Session Summary Question: Details on the planned third show and overall show count adjustments - Management indicated that the new experience will leverage the Sphere's features and enhance the immersive nature of the shows, with a likely reduction in postcard show counts [25][31] Question: Fixing the RSN business and long-term success - Management acknowledged the challenges in the RSN business and emphasized the need for better monetization strategies across the industry [35][37] Question: Expansion opportunities in Abu Dhabi and other markets - Management confirmed ongoing collaboration with DCT Abu Dhabi for venue design and preconstruction planning, with a focus on a smaller Sphere model for other markets [44][50] Question: Residency business growth and content production - Management noted that the desire from artists to perform at the Sphere is driven by the superior fan experience and sound quality, which offsets high content costs [54][56] Question: Long-term revenue growth drivers and differences between markets - Management highlighted that while both Las Vegas and Abu Dhabi will have robust offerings, the content will need to be tailored to each market's unique characteristics [61][63] Question: Sponsorship strategy and untapped opportunities - Management discussed bringing sponsorship sales in-house and focusing on targeted efforts aligned with the convention market, while maintaining brand integrity [77][82]

Sphere Entertainment Co. (NYSE:SPHR) Q2 2025 Earnings Conference Call March 3, 2025 10:00 AM ET Company Participants Ari Danes - SVP, IR, Financial Communications & Treasury James Dolan - Executive Chairman & CEO Robert Langer - EVP, Chief Financial Officer Jennifer Koester - Chief Operating Officer Conference Call Participants David Karnovsky - JPMorgan Brandon Ross - LightShed Peter Anderson - Bank of America Merrill Lynch Peter Supino - Wolfe Research Benjamin Swinburne - Morgan Stanley David Joyce - Sea ...

Sphere Entertainment (SPHR) came out with a quarterly loss of $3.49 per share versus the Zacks Consensus Estimate of a loss of $2.15. This compares to loss of $4.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -62.33%. A quarter ago, it was expected that this company would post a loss of $3.32 per share when it actually produced a loss of $2.95, delivering a surprise of 11.14%.Over the last four quarters, the company has su ...