SPHERE ENTERTAINMENT CO. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2024

Core Insights - Sphere Entertainment Co. reported a revenue of $308.3 million for the three months ended December 31, 2024, a decrease of$5.9 million or 2% compared to the prior year quarter, while for the six months, revenues increased by $104.0 million or 24$536.2 million [1][2][30] - The company experienced an operating loss of $142.9 million for the three months, an improvement of$16.7 million or 10% from the previous year, but a larger operating loss of $260.6 million for the six months, an increase of$31.1 million or 14% [1][2][12] - Adjusted operating income for the three months was $32.9 million, down$18.6 million or 36% year-over-year, while for the six months, it increased by $29.1 million to$22.7 million [1][2][28] Segment Performance - The Sphere segment generated revenues of $169.0 million for the three months, up$1.2 million or 1% year-over-year, and $296.1 million for the six months, an increase of$120.5 million or 69% [2][4][33] - MSG Networks reported revenues of $139.3 million for the three months, a decrease of$7.1 million or 5%, and $240.1 million for the six months, down$16.5 million or 6% [2][13][33] Revenue Breakdown - Revenues from The Sphere Experience were $86.5 million, a decrease of$6.4 million due to lower average per-show revenues across performances [5] - Event-related revenues were $54.4 million, down$0.8 million, reflecting fewer concerts held [6] - Sponsorship and advertising revenues increased by $2.7 million to$20.3 million, driven by higher sponsorship revenues and advertising campaigns [7] - Other revenues rose by $5.6 million to$7.8 million, influenced by the acquisition of Holoplot and plans for a new Sphere venue in Abu Dhabi [8] Expense Analysis - Direct operating expenses for the Sphere segment increased by $5.3 million or 8$72.7 million, primarily due to higher average per-show expenses [10] - Selling, general and administrative expenses rose by $21.2 million or 22$119.0 million, largely due to increased employee compensation and professional fees [11] - The MSG Networks segment saw direct operating expenses increase by $2.1 million or 2$94.5 million [15] Impairment and Losses - The company recorded a non-cash goodwill impairment charge of $61.2 million for the three months ended December 31, 2024, compared to no impairment in the prior year [17] - Total operating loss for MSG Networks was$35.0 million, a decrease of $69.3 million due to the impact of impairment and other losses [18] Financial Position - As of December 31, 2024, the company had total assets of$4.515 billion and total liabilities of $2.314 billion, resulting in stockholders' equity of$2.201 billion [36] - The company reported a net cash decrease of $57.6 million for the six months ended December 31, 2024, with cash and cash equivalents at$515.6 million [38]