Losses Grow as Las Vegas Venue Prepares 2024 Calendar – Billboard

In its first full quarter of operation, Sphere, the next-generation music venue in Las Vegas, misplaced $193.9 million on income of $167.8 million, its proprietor, Sphere Entertainment Co., introduced Monday (Feb. 5). The firm posted an adjusted working acquire of $14.1 million if “certain corporate overhead expenses” have been excluded.

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In the quarter ended Dec. 31, practically half of Sphere’s income — $92.9 million — got here from The Sphere Experience’s 191 performances. (The Sphere Experience features a tour of the venue and a viewing of the movie Postcard From Earth.) Concerts accounted for practically the entire $55.2 million of event-related revenues. Advertising on the skin of the venue and suite license charges totaled $17.5 million.

After U2’s residency ends on Mar. 2, the venue will host runs by Phish and Dead & Company. Executive chairman/CEO Jim Dolan didn’t announce any new residencies however mentioned throughout Monday’s earnings name that “pretty much our calendar is full for this calendar year.” Demand from artists continues to develop, Dolan added, and the corporate expects 2025 to be “another full year.”

Including MSG Networks, Sphere Entertainment had $314.2 million of income and an working lack of $159.7 million. MSG Networks had income of $146.4 million, a 12.5% decline from the prior-year interval.

Sphere opened on Sept. 29 and posted $4.1 million from two U2 concert events, and $7.8 million in complete income, within the earlier quarter. The venue has obtained rave evaluations and worldwide consideration for its charming audio-visual expertise and presence on the Las Vegas skyline. It featured prominently in Las Vegas’s Formula 1 race in November and can seize extra consideration this weekend as Las Vegas hosts Super Bowl LVIII on Sunday (Feb 11).

Although Sphere ended its bid to increase into London, the corporate is having “substantive discussions about expanding to international markets,” mentioned Dolan. The plan is to have a franchise mannequin for extra venues that may generate revenues instantly via development and improvement, Dolan added.