Sphere Entertainment (SPHR) - 2025 Q2 - Quarterly Results

Revenue Performance - For the three months ended December 31, 2024, Sphere Entertainment reported revenues of $308.3 million, a decrease of$5.9 million or 2% compared to the prior year quarter[1]. - For the six months ended December 31, 2024, total revenues increased by $104.0 million or 24$536.2 million compared to the prior year period[2]. - The Sphere segment reported revenues of $169.0 million for the three months ended December 31, 2024, an increase of$1.2 million or 1% compared to the prior year quarter[4]. - MSG Networks segment reported total revenues of $139.3 million for the three months ended December 31, 2024, a decrease of$7.1 million or 5% compared to the prior year quarter[12]. - Revenues for the three months ended December 31, 2024, were $308,290, a decrease of 1.4$314,157 for the same period in 2023[26]. - Total revenues for the six months ended December 31, 2024, were $536,203,000, a 24$432,164,000 in the same period of 2023[36]. Operating Income and Loss - Adjusted operating income for the three months ended December 31, 2024, decreased by $18.6 million or 36$32.9 million compared to the prior year quarter[2]. - Adjusted operating income for the three months ended December 31, 2024, was $32,856, compared to$51,434 for the same period in 2023, reflecting a decline of 36.1%[30]. - Operating loss for the three months ended December 31, 2024, was $142,941, an improvement from the operating loss of$159,682 for the same period in 2023[30]. - Operating loss for the six months ended December 31, 2024, was $(260,560,000), compared to an operating loss of$(229,471,000) in the same period of 2023[36]. Expenses - Direct operating expenses for the Sphere segment increased by $5.3 million or 8$72.7 million for the three months ended December 31, 2024[9]. - Selling, general and administrative expenses increased by $21.2 million or 22$119.0 million for the three months ended December 31, 2024, primarily due to higher employee compensation and executive management transition costs[10]. - Direct operating expenses for the three months ended December 31, 2024, were $167,175, up from$159,766 in the same period of 2023, representing an increase of 4.3%[27]. - Interest expense for the three months ended December 31, 2024, was $30,414, compared to$25,828 for the same period in 2023, reflecting an increase of 17.5%[27]. - The company reported share-based compensation of $17,827 for the three months ended December 31, 2024, compared to$11,916 for the same period in 2023, an increase of 49.5%[30]. - The company incurred restructuring charges of $4,251 for the three months ended December 31, 2024, compared to$1,287 for the same period in 2023, indicating increased restructuring efforts[30]. Net Loss and Earnings Per Share - The net loss for the six months ended December 31, 2024, was $231,233, compared to a net loss of$106,823 for the same period in 2023, indicating a significant increase in losses[27]. - Basic loss per common share for continuing operations was $(3.49) for the three months ended December 31, 2024, compared to$(4.91) for the same period in 2023, showing an improvement[27]. Cash Flow and Assets - Cash, cash equivalents, and restricted cash decreased to $515,633,000 as of December 31, 2024, down from$573,233,000 at the end of June 2024[38]. - Net cash provided by operating activities was $40,827,000 for the six months ended December 31, 2024, compared to a net cash used of$(48,238,000) in the same period of 2023[41]. - Total assets decreased to $4,515,300,000 as of December 31, 2024, from$4,787,892,000 as of June 30, 2024[38]. - Total current liabilities were $1,371,667,000 as of December 31, 2024, slightly down from$1,373,676,000 at the end of June 2024[38]. - Total stockholders' equity decreased to $2,201,419,000 as of December 31, 2024, from$2,415,552,000 as of June 30, 2024[38]. Impairment and Other Losses - The total impairment and other losses for the three months ended December 31, 2024, were $61,200, a decrease from$117,235 in the same period of 2023[30]. - The company reported impairment and other losses of $(65,233,000) for the six months ended December 31, 2024, compared to$(115,738,000) in the same period of 2023[36]. Future Plans - The Sphere Experience featuring Postcard from Earth surpassed 1,000 showings in early January 2025, indicating strong audience engagement[3]. - Sphere plans to expand with the introduction of the world's second Sphere venue in Abu Dhabi, United Arab Emirates[8].