During its inaugural three months of operation, the Las Vegas Sphere achieved a noteworthy milestone by generating $167.8 million in revenue, as per the latest quarterly financial report released by Sphere Entertainment.
Sphere Entertainment, the entity behind the Las Vegas Sphere, divulged financial results from October to December 2023. While the venue recorded an operating loss of $193.9 million, a substantial portion of this figure was attributed to a “non-cash impairment charge of $116.5 million,” primarily associated with shelving plans for a London-based Sphere venue. After accounting for one-time expenses and liabilities, the adjusted operating income for the Las Vegas Sphere stood at $14.1 million.
In terms of overall company performance, including MSG Networks’ broadcast of New York Knicks and New York Rangers games, total revenue reached $314.2 million. Despite reporting a total operating loss of $159.7 million, the adjusted operating income amounted to $51.4 million.
James Dolan, Chairman and CEO of Sphere Entertainment, expressed optimism about the transformative potential of the Sphere, describing it as a “next-generation medium” poised to disrupt conventional venue models. Dolan emphasized the positive adjusted operating income recorded by the Sphere segment during its initial full quarter of operations in Las Vegas, underscoring the company’s confidence in future global opportunities.
Since its launch in late September, the Las Vegas Sphere has showcased its versatility by hosting concerts featuring U2, screening films like “Postcard from Earth” by director Darren Aronofsky on non-event days, and serving as a focal point during the Las Vegas Grand Prix’s racing circuit in November.
The earnings report revealed that revenue sources for The Sphere Experience included $92.9 million from overall experiences, $55.2 million from events, and $17.5 million from sponsorship and advertising. Total operating expenses amounted to $67.3 million.
The first quarterly earnings report reflects a promising start for the Las Vegas Sphere, indicating its potential to redefine the entertainment landscape. Despite initial operational challenges, the adjusted operating income and diverse revenue streams illustrate a positive trajectory for this innovative venue.