Sphere Entertainment details losses following MSG Entertainment spin-off

Featured Image: Gage Reagan on Unsplash

Sphere Entertainment has posted a number of losses during its fiscal fourth quarter and full year that ended June 30, 2023. 

The company, which is behind new Las Vegas venue The Sphere at the Venetian, reported revenues of $573.8m (£454m/€530m) for fiscal 2023, a decrease of $36.2 million compared to last year.

Sphere Entertainment also posted an operating loss of $273m, which is an increase of $107.3m, as well as an adjusted operating loss of $122.5m, an increase of $98.1m compared to the year prior.

For the fiscal 2023 fourth quarter, Sphere Entertainment reported revenues of $129.1m, a decrease of $10.7m compared to the same period last year. Additionally, the company reported an operating loss of $70.3m, an increase of $8.5m, and an adjusted operating loss of $59.8m, an increase of $24.4m, compared to the fourth quarter the year prior.

During the most recent quarter, Sphere Entertainment spun off two thirds of its traditional live entertainment business in April. Then in May, the company completed the sale of its 66.9% majority interest in Tao Group Hospitality.

“Our company completed a number of transactions this past year, including the live entertainment spin-off, that have supported our growth plans,” said executive chairman and chief executive James Dolan. “As we look ahead to our next chapter with the opening of Sphere in Las Vegas, we are confident that our company is well-positioned to generate long-term value for shareholders.”

The Sphere at the Venetian will open next month with a residency from Irish band, U2.

Following its spin-off from Sphere Entertainment, Madison Square Garden Entertainment (MSG Entertainment) has also posted its financial results.

The results did not include all of the expenses that would have been incurred by MSG Entertainment had it been a standalone company during this time.

For fiscal 2023, MSG Entertainment reported revenues of $851.5m, an increase of $198m compared to the year prior. The company also saw its operating income reach $105m, an increase of $110.7m, as well as an adjusted operating income of $175, an increase of $95.9m.

The company hosted more than 5.5 million guests at almost 900 events across its venues. Suites and sponsorship revenues also exceeded pre-pandemic levels for fiscal 2023.

Dolan added: “Throughout fiscal 2023, we saw robust demand for our portfolio of live entertainment offerings. Looking ahead, we see this momentum carrying into fiscal 2024 and believe we are well positioned to generate ongoing growth and value creation for shareholders.”