In this expanded role, Ms. Koester will continue working together with executive leadership, and across the broader Sphere team, to grow the business and optimize its operations. Ms. Koester will now also provide strategic oversight for Sphere Studios – the immersive content studio in Burbank dedicated to developing multisensory experiences exclusively for Sphere – including further developing the Studios' capabilities as a fullservice production studio. She will continue to focus on maximizing venue utiliz ...

Venue and Event Operations - Sphere Entertainment's first venue opened in Las Vegas in September 2023, accommodating up to 20,000 guests and hosting various events year-round[193]. - The Sphere segment's operating results depend on attracting audiences, advertisers, and artists for events[201]. - The company expects continued growth in revenues driven by The Sphere Experience and event-related activities in the upcoming quarters[223]. - The Sphere Experience contributed $100,505 to revenue for the three months and $194,635 for the nine months ended March 31, 2024, with 257 and 449 performances respectively[223]. - The Company opened Sphere in Las Vegas in September 2023, which is expected to generate substantial revenue and adjusted operating income over time[261]. Financial Performance - Revenues for the three months ended March 31, 2024, increased by 98% to $321,330 compared to $162,062 in the same period of 2023[206]. - For the nine months ended March 31, 2024, revenues increased by 69% to $753,494 compared to $444,732 in the same period of 2023[207]. - Net loss attributable to Sphere Entertainment Co.'s stockholders decreased by 17% to $47,240 for the three months ended March 31, 2024, from $56,847 in the prior year[206]. - Adjusted operating income for the three months ended March 31, 2024 increased by $80,239 to $61,521, while for the nine months it increased by $117,759 to $55,074[219]. - Operating income for the three months ended March 31, 2024, increased by $32,661, or NM, compared to the prior year period, primarily due to decreased selling, general, and administrative expenses[247]. Expenses and Costs - Direct operating expenses decreased by 64% to $154,040 for the three months ended March 31, 2024, down from $93,665 in the prior year[206]. - Selling, general, and administrative expenses rose by $25,595 for the three months and $55,599 for the nine months ended March 31, 2024, mainly due to higher employee compensation and related benefits[229]. - Direct operating expenses increased by $57,880 for the three months and $133,023 for the nine months ended March 31, 2024, primarily due to expenses associated with The Sphere Experience[225]. - Restructuring charges for the three months ended March 31, 2024, were $4,667, a decrease of 75% from $18,670 in the same period of 2023[211]. - Interest expense increased by $27,119 for the three months ended March 31, 2024, due to the discontinuation of capitalization of interest expense[213]. Debt and Financing - The company faces risks related to substantial debt, including the need to refinance MSG Networks' existing debt before its maturity in October 2024[187]. - The principal balance of the company's total debt outstanding as of March 31, 2024, was $1,404,125, including $870,375 classified as short-term[250]. - The Company is in advanced stages of negotiating a refinancing of the MSG Networks Credit Facilities, which includes a reduction in the existing term loan and an extension of the maturity date to October 10, 2025[255]. - The Company anticipates making required quarterly amortization payments of $41,250 on the MSG Networks Credit Facilities prior to maturity in October 2024[254]. - The minimum liquidity level for Sphere Entertainment Group is set at $50,000, with $25,000 required to be held in cash or cash equivalents[271]. Impairment and Losses - The company recognized impairment and other losses, net of $115,738 for the nine months ended March 31, 2024, compared to gains of $3,000 in the prior year[210]. - An impairment loss of $116,541 was taken due to the decision to no longer pursue the development of a Sphere in the United Kingdom[262]. - The company recognized an impairment loss of $115,738 for the nine months ended March 31, 2024, compared to a gain of $3,000 in the prior year period[232]. - The Company performed its annual goodwill impairment tests and determined no impairments were identified for any reporting units as of the impairment test date[293]. Cash Flow and Liquidity - As of March 31, 2024, cash, cash equivalents, and restricted cash totaled $693,946, an increase from $429,114 as of June 30, 2023[285]. - Net cash provided by operating activities for the nine months ended March 31, 2024 was $52,780, a decrease of $85,044 compared to the prior year period[286]. - Net cash used in investing activities for the nine months ended March 31, 2024 decreased by $805,244 compared to the prior year period, primarily due to reduced capital expenditures for Sphere in Las Vegas[287]. - Net cash provided by financing activities for the nine months ended March 31, 2024 increased by $32,525, driven by proceeds of $251,634 from the issuance of 3.50% Convertible Senior Notes[288]. Market and Economic Conditions - Economic conditions may impact demand for entertainment offerings, affecting advertising, sponsorship, and merchandise sales[202]. - The MSG Networks segment typically earns a higher share of its annual revenues in the second and third quarters due to advertising revenue from live NBA and NHL programming[289]. - The company is exploring additional opportunities to expand its presence in the entertainment industry, although new investments may not initially contribute to operating income[203]. Stock and Shareholder Information - The company distributed approximately 67% of the outstanding common stock of Madison Square Garden Entertainment Corp. to its stockholders on April 20, 2023[197]. - The Company has not repurchased any shares under the $350,000 share repurchase program authorized by the Board of Directors[259]. - The Company completed a private offering of $258,750 in aggregate principal amount of its 3.50% convertible senior notes due 2028, with net proceeds designated for general corporate purposes and Sphere-related growth initiatives[272]. - The 3.50% Convertible Senior Notes bear interest at a rate of 3.50% per year, payable semi-annually, and will mature on December 1, 2028[275].

Sphere Entertainment Co. (NYSE:SPHR) Q3 2024 Earnings Conference Call May 10, 2024 10:00 AM ET Company Participants Ari Danes - Investor Relations James Dolan - Executive Chairman and Chief Executive Officer David Byrnes - Executive Vice President, Chief Financial Officer and Treasurer Andrea Greenberg - President and Chief Executive Officer, MSG Networks Conference Call Participants Brandon Ross - LightShed Peter Henderson - Bank of America Benjamin Swinburne - Morgan Stanley David Karnovsky - JPMorgan Log ...

SPHERE ENTERTAINMENT CO. REPORTS FISCAL 2024 THIRD QUARTER RESULTS Executive Chairman and CEO James L. Dolan said, "With the second consecutive quarter of robust revenues and positive adjusted operating income at the Sphere segment, our early results continue to demonstrate Sphere's potential to disrupt the traditional venue model. We are encouraged by the demand for this new medium and remain confident in our future growth opportunities." Segment Results for the Three and Nine Months Ended March 31, 2024 a ...

Sphere Entertainment Co. (NYSE:SPHR) Q2 2024 Earnings Call Transcript February 5, 2024 10:00 AM ET Company Participants Ari Danes - IR Jim Dolan - Executive Chairman and CEO Andrea Greenberg - President and CEO, MSG Networks Dave Byrnes - EVP and CFO Conference Call Participants Brandon Ross - LightShed Partners Paul Golding - Macquarie Capital Ben Swinburne - Morgan Stanley David Karnovsky - JPMorgan Logan Angress - Wolfe Research David Joyce - Seaport Research Partners Operator Good morning, and thank you ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39245 SPHERE ENTERTAINMENT CO. (Exact name of registrant as specified in its charter) Delaware 84-3 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39245 SPHERE ENTERTAINMENT CO. (Exact name of registrant as specified in its charter) Delaware 84- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _____________ Commission File Number: 001-39245 SPHERE ENTERTAINMENT CO. (Exact name of registrant as specified in its charter) | Delaware | 84-3755666 ...

Financial Data and Key Metrics Changes - For the fiscal 2023 fourth quarter, the company generated revenues of $129 million and reported an adjusted operating loss of $60 million, which included a $90 million adjusted operating loss in the Sphere segment primarily due to corporate overhead expenses related to Sphere Studios and venue preparation costs [25][29]. - The MSG Networks segment generated $128 million in revenues and $31 million in adjusted operating income, reflecting decreases of 8% and 22% respectively compared to the prior year period [29]. Business Line Data and Key Metrics Changes - The Sphere segment's adjusted operating loss was significantly impacted by costs associated with the Las Vegas venue and content development, with expectations for increased operating costs as operations ramp up [25][27]. - MSG Networks experienced a decline in affiliate revenue due to ongoing subscriber losses, although advertising revenue showed strong growth driven by sports gaming and returning advertisers [18][29]. Market Data and Key Metrics Changes - The company anticipates that the Sphere venue in Las Vegas will host a variety of events, including concert residencies and marquee sporting events, with the first major event being the Formula 1 Las Vegas Grand Prix in November [12][13]. - The Exosphere's advertising capabilities have generated significant media coverage and interest from potential advertisers, with an estimated total reach of over 5 billion [14][15]. Company Strategy and Development Direction - The company aims to disrupt the traditional venue model with the Sphere, designed to operate year-round with multiple events daily, leveraging immersive technologies to create a new entertainment medium [8][10]. - Future Spheres are planned to be constructed with a franchise model to reduce capital expenditure, learning from the experience of building the first venue [39][41]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Sphere's potential to generate significant returns despite initial high capital investment, emphasizing the shift from a landlord model to a high-margin experiential business [36][37]. - The company is optimistic about the upcoming launch of the Sphere and expects to see financial impacts from events and experiences starting in the fiscal second quarter [25][26]. Other Important Information - The total construction costs for the Sphere project are expected to be approximately $2.3 billion, with $2.25 billion already paid as of August 18 [32]. - The company has approximately $341 million in unrestricted cash and a debt balance of approximately $1.2 billion, positioning it for future growth [27]. Q&A Session Summary Question: Why does the investment in Sphere make sense despite high costs? - Management acknowledged the unexpected high costs but believes the investment is warranted due to the potential for a new entertainment model that operates year-round and generates higher margins compared to traditional venues [36][37]. Question: What is the plan for additional Spheres and their capital expenditure? - The company plans to adopt a franchise model for future Spheres, which will be less capital-intensive than the first venue, leveraging lessons learned from the initial construction [39][41]. Question: What is the demand for original content like "Postcard from Earth"? - Early demand indicators are not yet available as marketing has not started, but management expects ticket sales to follow a similar pattern to other successful shows, with significant sales occurring close to the event date [48][49]. Question: How will Sphere's cash flows impact MSG Networks' refinancing? - The performance of Sphere will significantly influence decisions regarding MSG Networks' refinancing, with all options being considered as the company monitors the situation [57][69].

Corporate Structure and Financial Position - The Company distributed approximately 67% of the outstanding common stock of MSG Entertainment to its stockholders on April 20, 2023, retaining about 33%[169]. - The Company has classified Tao Group Hospitality as held for sale, resulting in two reportable segments: Entertainment and MSG Networks[173]. - The total debt outstanding as of May 9, 2023, was $1,227,875, reflecting the company's financial obligations post-MSGE Spinco Distribution[244]. - The MSG Networks Credit Facilities include a $1,100,000 term loan facility and a $250,000 revolving credit facility, with no borrowings under the revolving credit facility as of March 31, 2023[257]. - The company entered into a delayed draw term loan facility of up to $65,000 on April 20, 2023, which will mature on October 20, 2024[263]. Revenue and Performance - Revenues for the three months ended March 31, 2023, increased by $10,763 to $363,297, representing a 3% growth compared to the same period in 2022[188]. - For the nine months ended March 31, 2023, revenues rose by $211,050 to $1,139,492, marking a 23% increase year-over-year[189]. - Revenues for the three months ended March 31, 2023 increased by $7,276 to $201,861, and for the nine months ended March 31, 2023, revenues increased by $229,047 to $705,481, representing a 48% increase[207]. - The increase in revenues for the nine months ended March 31, 2023 was primarily driven by a $45,516 increase in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements[207]. - The increase in advertising revenue for the three months ended March 31, 2023 was $4,476, attributed to higher sales related to professional sports telecasts[232]. Expenses and Losses - Direct operating expenses for the three months ended March 31, 2023, increased by $12,174 to $210,141, a 6% rise compared to the prior year[188]. - Selling, general and administrative expenses surged by $61,082 to $179,870 for the three months ended March 31, 2023, reflecting a 51% increase year-over-year[188]. - The net loss for the three months ended March 31, 2023, was $58,555, compared to a net loss of $19,306 in the same period of 2022, indicating a significant increase in losses[188]. - Restructuring charges for the three months ended March 31, 2023, rose by $5,808 to $20,498, attributed to workforce reductions in the Entertainment segment[193]. - The operating loss for the three months ended March 31, 2023 was $81,140, an increase of $36,324 compared to the prior year period, attributed to higher direct operating and administrative expenses[222]. Cash Flow and Investments - As of March 31, 2023, cash, cash equivalents, and restricted cash totaled $327,245, down from $822,885 as of June 30, 2022[269]. - Net cash provided by operating activities for the nine months ended March 31, 2023, improved by $31,623 to $137,824 compared to the prior year period[270]. - Net cash used in investing activities increased by $277,558 to $825,484 for the nine months ended March 31, 2023, primarily due to capital expenditures for the Sphere in Las Vegas[271]. - Net cash provided by financing activities increased by $278,005 to $200,485 for the nine months ended March 31, 2023, mainly due to proceeds from the LV Sphere Term Loan Facility[272]. Future Projects and Developments - The Company is completing construction of its first Sphere venue in Las Vegas, which is expected to enhance its entertainment offerings[174]. - The estimated cost for the Sphere in Las Vegas is approximately $2,300,000, with actual construction costs paid through May 9, 2023, being around $2,080,000[252]. - The company expects to open the Sphere venue in September 2023, although construction is subject to potential delays[251]. - The company plans to finance the completion of the Sphere construction from cash-on-hand and cash flows from operations, potentially accessing proceeds from the sale of MSGE Retained Interest if needed[253]. Market and Economic Conditions - The demand for MSG Networks programming is influenced by the popularity of sports teams and the ability to renew affiliation agreements with distributors[167]. - The Company’s future performance is dependent on general economic conditions, which may affect demand for entertainment offerings and advertising revenues[183]. - The impact of COVID-19 on operations has diminished, but concerns regarding new variants and government restrictions remain[181]. Operational Metrics - The Company had 181 Christmas Spectacular performances during the holiday season, with approximately 930,000 tickets sold, representing over a 25% increase in attendance on a per-show basis compared to the prior year[211]. - For the nine months ended March 31, 2023, adjusted operating loss improved to $20,650 from $71,739 in the prior year, primarily due to an increase in revenues[224]. - The effective income tax benefit for the three months ended March 31, 2023, was 14%, compared to an effective tax expense of (46)% in the same period of 2022[199].