Financial Data and Key Metrics Changes - The company reported total revenues of $280.6 million and adjusted operating income of $36 million for the quarter [12] - The Sphere segment generated revenues of $157.5 million, a decrease from $170.4 million in the prior year period, primarily due to lower revenues from the Sphere experience and advertising campaigns [12] - Adjusted operating income for the Sphere segment was $13.1 million, slightly up from $12.9 million in the prior year period, reflecting a decrease in revenues offset by lower SG&A expenses [13] Business Line Data and Key Metrics Changes - The Sphere experience welcomed over half a million guests, contributing to total revenues of over $500 million since its debut in October 2023 [7] - MSG Networks generated $123 million in revenues and $22.8 million in adjusted operating income, down from $151 million and $48.6 million respectively in the prior year period, due to a non-carriage period and a decrease in subscribers [14] Market Data and Key Metrics Changes - The Las Vegas market continues to attract over 40 million visitors annually, with international guests accounting for over 20% of Sphere attendees [22] - The company has seen strong consumer demand, with acts like Dead and Company and the Eagles scheduled for over 40 performances at the Sphere [9] Company Strategy and Development Direction - The company aims to drive growth by hosting concerts and events, optimizing the go-to-market strategy for the Exosphere, and enhancing operational efficiencies [6] - Plans are underway to develop a smaller Sphere model for faster and cheaper deployment in various markets [39] - The company is focused on creating a diverse slate of original content and has multiple projects in development [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite macroeconomic concerns, noting that demand for concerts exceeds capacity [23] - The company is optimistic about the potential of new productions and the expansion of concert residencies, indicating a strong pipeline of artist demand [34] Other Important Information - The company has entered into new marketing partnerships with major brands like Pepsi and Google, enhancing its sponsorship opportunities [10][61] - As of the end of the quarter, the company had approximately $465 million in unrestricted cash and cash equivalents, with a debt balance of approximately $1.34 billion [14][15] Q&A Session Summary Question: Can you elaborate on the relationship with Google and the new product? - Management acknowledged the question but noted connectivity issues, indicating they would circle back later [18][19] Question: What is the current state of the tourism market in Vegas? - Management reported no significant changes in visitation or spending, with international guests making up over 20% of Sphere attendees [22][23] Question: What are the revenue expectations for new Sphere experience shows? - Management expects higher revenues from new productions, indicating they will be more experiential and impactful [31] Question: What is the strategy for MSG Networks moving forward? - Management discussed pursuing a hybrid model between traditional linear and streaming distribution, exploring strategic partnerships [44] Question: How is the company managing costs moving forward? - Management emphasized a focus on driving profitable growth and optimizing infrastructure to identify cost efficiencies [47] Question: Can you provide an update on the Exosphere and sponsorship strategy? - Management highlighted progress in pricing and packaging, establishing relationships with media agencies, and building a recurring sponsorship business [60][61]

Financial Data and Key Metrics Changes - The company reported total revenues of $280.6 million and adjusted operating income of $36 million for the quarter [10] - The Sphere segment generated revenues of $157.5 million, a decrease from $170.4 million in the prior year period, primarily due to lower revenues from the Sphere experience and advertising campaigns [10][11] - Adjusted operating income for the Sphere segment was $13.1 million, slightly up from $12.9 million in the prior year period, reflecting a decrease in revenues offset by lower SG&A expenses [11] Business Line Data and Key Metrics Changes - The Sphere experience welcomed over half a million guests, contributing to total revenues exceeding $500 million since its debut in October 2023 [6] - MSG Networks generated $123 million in revenues and $22.8 million in adjusted operating income, down from $151 million and $48.6 million respectively in the prior year period, mainly due to a non-carriage period and a decrease in subscribers [13] Market Data and Key Metrics Changes - The Las Vegas market continues to attract over 40 million visitors annually, with international guests accounting for over 20% of Sphere attendees and 10% for concerts [22] - The company has seen strong consumer demand, with acts like Dead and Company and the Eagles scheduled for over 40 performances at the Sphere [7] Company Strategy and Development Direction - The company aims to drive growth by hosting a variety of concerts and events, optimizing the go-to-market strategy for the Exosphere, and enhancing operational efficiencies [5] - Plans are underway to develop a smaller Sphere model for faster and cheaper deployment in various markets, alongside the ongoing project in Abu Dhabi [37] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic concerns, there has not been a significant change in visitation or spending in Las Vegas [23] - The company remains optimistic about the demand for concerts, stating that demand exceeds capacity [23] Other Important Information - The company has entered into new marketing partnerships with major brands like Pepsi and Google, enhancing exposure on the Exosphere [8] - The company is focused on creating a diverse slate of original content and has multiple projects in development [6] Q&A Session Summary Question: Inquiry about the partnership with Google - Management acknowledged the question but noted connectivity issues and promised to circle back later [18] Question: Observations on the tourism market in Vegas - Management reported that international guests account for over 20% of Sphere attendees and noted no significant changes in visitation or spending [22][23] Question: Opportunities for new Sphere experience shows - Management expressed optimism about new shows driving higher revenues, expecting better performance compared to previous productions [30] Question: Update on concert residencies - Management confirmed ongoing discussions with multiple artists and noted that demand exceeds available slots [31][33] Question: Sphere expansion and geopolitical tensions - Management confirmed global discussions for Sphere expansion and mentioned designing a smaller Sphere for various markets [37] Question: Long-term plan for MSG Networks - Management discussed pursuing a hybrid model between traditional and streaming distribution, with potential strategic partnerships [42] Question: Cost management moving forward - Management emphasized a focus on driving profitable growth and optimizing infrastructure to identify cost efficiencies [44]

分组1 - Sphere Entertainment reported a quarterly loss of $2.27 per share, better than the Zacks Consensus Estimate of a loss of $2.48, but worse than a loss of $1.33 per share a year ago, indicating an earnings surprise of 8.47% [1] - The company posted revenues of $280.57 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.26%, but down from $321.33 million year-over-year [2] - Sphere Entertainment shares have declined approximately 26.1% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$1.99 on revenues of $282.18 million, and for the current fiscal year, it is -$5.40 on revenues of $1.19 billion [7] - The Zacks Industry Rank indicates that the Media Conglomerates sector is in the bottom 37% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8]

Exhibit 99.1 SPHERE ENTERTAINMENT CO. REPORTS FIRST QUARTER 2025 RESULTS NEW YORK, N.Y., May 8, 2025 - Sphere Entertainment Co. (NYSE: SPHR) ("Sphere Entertainment" or the "Company") today reported financial results for the first quarter ended March 31, 2025. (1) Recent Sphere operating highlights include: For the three months ended March 31, 2025, the Company reported revenues of $280.6 million, a decrease of $40.8 million as compared to the prior year quarter. In addition, the Company reported an operatin ...

Core Insights - Sphere Entertainment Co. reported a total revenue of $280.6 million for Q1 2025, a decrease of $40.8 million or 13% compared to the same quarter last year [1][2] - The company experienced an operating loss of $78.6 million, which is an increase of $38.2 million or 95% from the prior year quarter [1][2] - Adjusted operating income was reported at $36.0 million, down $25.6 million or 42% year-over-year [1][2] Financial Performance - Sphere segment revenues were $157.5 million, down $12.8 million or 8% from $170.4 million in Q1 2024 [2][4] - MSG Networks segment revenues decreased to $123.0 million, a decline of $27.9 million or 19% from $151.0 million in the prior year [2][12] - Total operating loss for the company was $78.6 million, compared to a loss of $40.4 million in the same quarter last year [2][11] Segment Analysis - Sphere's direct operating expenses increased by $8.2 million or 13% to $70.5 million, primarily due to additional concerts and higher employee compensation [9] - MSG Networks faced a significant drop in distribution revenue, decreasing by $29.9 million, largely due to the absence of revenues from Altice during a non-carriage period [12][14] - Adjusted operating income for the Sphere segment was $13.1 million, a slight increase of $0.2 million or 2% from the previous year, while MSG Networks' adjusted operating income fell to $22.8 million, down $25.8 million or 53% [2][11] Strategic Developments - The company announced new multi-year marketing partnerships with Pepsi and Google, and plans to host multiple corporate events in Las Vegas [5] - Sphere is set to host the 'Unity' electronic dance music event with nine shows scheduled between August and October [5] - MSG Networks is pursuing a refinancing of its credit facilities, which includes a Transaction Support Agreement with lenders to restructure existing debt obligations [19][20] Cash Flow and Balance Sheet - For Q1 2025, net cash provided by operating activities was $6.3 million, a significant decrease from $101.0 million in Q1 2024 [38] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $37.4 million, ending the quarter with $478.2 million [39] - Total assets as of March 31, 2025, were $4.45 billion, down from $4.52 billion at the end of the previous year [36]

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]

Core Insights - Sphere Entertainment (NYSE: SPHR) stock was previously viewed with caution due to its impressive early performance and growth potential [1] Company Overview - Sphere Entertainment is experiencing a significant run in its stock price, attributed to its flagship product's disruptive growth potential [1] Analyst Background - The analysis is provided by a financial journalist and market analyst with over five years of experience in stock and cryptocurrency markets, contributing to various financial platforms and reaching over 200,000 readers monthly [1]

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]

Core Viewpoint - J.P. Morgan analyst David Karnovsky maintains an Overweight rating on Sphere Entertainment Co (SPHR) shares, while lowering the price target from $57.00 to $54.00 following the fourth-quarter earnings report [1] Financial Performance - The Sphere segment's AOI was reported at -$1 million, or +$4 million when excluding management transition costs, which exceeded the analyst's forecast of -$10 million due to stronger contributions from residencies [1] - SPHR shares experienced a decline of 14%, contrasting with the S&P 500's drop of 2%, despite improved AOI and anticipated higher consensus estimates [3] Management Insights - Management expressed confidence in the upcoming Experience show set to launch in the third quarter and noted strong year-end demand for Exosphere, which has continued into the current quarter [2] - There is growing artist interest in performing at the venue, and management highlighted opportunities for cost reduction and operational efficiency improvements [2] Expansion Plans - SPHR is in discussions for additional international locations, potentially adding one or two venues similar to Abu Dhabi, and is considering developing smaller venues in U.S. markets [3] - The company's financial performance since its opening supports confidence in securing additional international franchise partners, with potential growth from this expansion not yet fully reflected in the stock price [6] Market Position - The Las Vegas Sphere has established itself as a key attraction in the destination tourism sector, drawing both visitors and artists, which strengthens the favorable risk/reward outlook for the company [5]