NYSE$SPHR

Sphere Entertainment Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported financial results for the fiscal third quarter ended March 31, 2021.

Madison Square Garden Entertainment Corp. reported revenues of $43.1 million, a decrease of $138.8 million compared to the prior year quarter, with an operating loss of $108.6 million and an adjusted operating loss of $69.4 million.

  • Capacity restrictions continued to ease in the Company’s markets.
  • The Company welcomed fans back to Madison Square Garden Arena for New York Knicks and New York Rangers home games at 10% capacity.
  • MSG Entertainment announced plans to acquire MSG Networks in an all-stock, fixed exchange ratio transaction.
  • Tao Group Hospitality announced that it acquired Hakkasan Group utilizing equity from one of Tao Group Hospitality’s subsidiaries.

Headline financials

Total Revenue

$43.1M

Previous: $200M-78.4%
EPS (adj)

-$0.78

Previous: -$5.52+85.9%
Capital Expenditures

-$102M

Previous: -$327M+68.7%
Free Cash Flow

-$182M

Previous: -$455M+60.0%
Net Income

-$79.6M

Previous: -$129M+38.1%
Operating Income

-$109M

Previous: -$146M+25.4%
Gross Profit

$7.16M

Previous: -$133M+105.4%
Cash & Equivalents

$1.28B

Previous: $1B+27.3%
Total Assets

$4.1B

Previous: $3.83B+7.2%
Stock-Based Comp

$8.11M

Previous: $8.84M-8.2%

Revenue & EPS history

Sphere Entertainment Co · Revenue · Quarterly

$43.1M

Q3 2021-78.4%vs Q3 2020
Beat estimate in 4 of 10 quarters(40%)
ActualEstimate

Revenue by segment

Sphere Entertainment Co · $31M total across 1 segment · Q3 2021

  • Sphere
    $31M

Forward guidance

The proposed transaction would create a leading entertainment and media company and deliver numerous strategic and financial benefits.

Tailwinds

  • The combined company would be well positioned to capitalize on the significant revenue opportunity related to the expansion of legalized mobile sports gaming in its market.
  • The new company would also be able to more efficiently utilize MSG Entertainment’s approximately $350 million federal net operating loss as of March 31, 2021 and future bonus depreciation related to MSG Sphere at The Venetian to offset the taxable income of all of its businesses, including MSG Networks, which is a full cash taxpayer.
  • The combined company’s enhanced financial flexibility would better position it to pursue current and future growth initiatives across both entertainment and media, including its planned state-of-the-art MSG Sphere venue in Las Vegas.

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 Q3 2021

Historical avgQ3 2021

+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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