NYSE$SPHR

Sphere Entertainment Co · Q2 2024 earnings

Q2 2024 earnings · · Before market open · Investor relations

Briefing

Sphere Entertainment Co reported Q2 results with $314.2M revenue, a net loss of $173.2M, and an operating loss of $159.7M.

Q2 revenue nearly doubled year over year to $314.2M, driven by Sphere's first full quarter of operations, but the company recorded a GAAP net loss of $173.2M. Adjusted operating income reached $51.4M, reflecting strong Sphere segment revenue and continued profitability at MSG Networks.

  • Total Q2 revenue was $314.2M, up 97% year over year.
  • GAAP diluted EPS was -$4.91 for the quarter.
  • Adjusted operating income was $51.4M versus a loss of $13.2M in the prior year quarter.
  • Sphere segment revenue reached $167.8M, including $92.9M from The Sphere Experience and $55.2M in event-related revenues.

Headline financials

Total Revenue

$314M

Previous: $642M-51.1%
EPS

-$4.91

Previous: $1.95-351.8%
Adjusted Operating Income

$25.7M

Previous: $124M-79.3%
Free Cash Flow

-$173M

Previous: -$222M+22.0%
Net Income

-$173M

Previous: $67.6M-356.3%
Operating Income

$1.23M

Previous: $74M-98.3%
Gross Profit

$235M

Previous: $293M-19.9%
Cash & Equivalents

$615M

Previous: $432M+42.2%
Total Assets

$4.88B

Previous: $5.85B-16.5%
Stock-Based Comp

$12M

Previous: $20.5M-41.6%

Revenue & EPS history

Sphere Entertainment Co · Revenue · Quarterly

$314M

Q2 2024-51.1%vs Q2 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Sphere Entertainment Co · $110M total across 1 segment · Q1 2024

  • MSG Networks
    $110M-10.0%

Forward guidance

Management expects continued strong demand for Sphere Las Vegas programming, including upcoming residencies and events, while MSG Networks faces headwinds from subscriber declines.

Tailwinds

  • Sphere achieved positive adjusted operating income in its first full quarter.
  • High daily ticket sales from The Sphere Experience averaging over $1M on operating days.
  • Strong event pipeline including upcoming shows from Phish and Dead & Co.
  • Expanded brand campaigns on the Exosphere, including presence during F1 Las Vegas Grand Prix.
  • MSG Networks profitability supported by lower SG&A expenses.

Headwinds

  • No numerical forward guidance provided.
  • Sphere segment posted a large GAAP operating loss due to impairment, depreciation, and high operating costs.
  • MSG Networks revenue fell 8% year over year due to subscriber losses.
  • Impairment charge of $116.5M related to halting London Sphere project.
  • Ongoing competitive and cost pressures in media and live entertainment segments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.5%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.7%

Avg return

30 days after

46%

12 / 26 earnings

Positive

+22.1%

Q4 2025

Best reaction

-15.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+22.1%+21.0%+11.5%
Q3 2026+4.7%+16.2%+24.8%
Q1 2026+4.7%+16.2%+24.8%
Q1 2025+9.2%+26.1%+26.5%
Q2 2026-2.0%-18.8%-23.3%
Q4 2024+0.7%+21.5%+3.6%
Q3 2024+0.9%-8.4%-11.0%
Q2 2024-0.3%+13.8%+35.9%
Q1 2024+2.2%+2.9%-2.2%
Q4 2023+4.0%-7.9%-1.1%
Q3 2023-15.1%-25.9%-11.3%
Q2 2023+8.3%+13.8%+6.6%
Q1 2023-2.2%-4.0%-9.3%
Q4 2022-7.1%-3.3%-12.3%
Q2 2022-7.1%-3.3%-12.3%
Q3 2022-11.3%-11.9%-5.0%
Q1 2022-8.5%-9.8%-17.3%
Q4 2021+17.9%+26.7%+21.7%
Q2 2021+17.9%+26.7%+21.7%
Q3 2021+5.2%-3.2%+4.2%
Q1 2021-1.2%-4.3%+0.1%
Q1 2020-1.2%-4.3%+0.1%
Q2 2020-0.3%+4.8%-8.8%
Q4 2020-0.3%-8.3%+6.1%
Q4 2019-1.6%-3.9%-2.2%
Q3 2020-1.6%-3.9%-2.2%
Q3 2019

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