NYSE$SPHR

Sphere Entertainment Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sphere Entertainment Co reported a decline in revenue and a wider operating loss in Q4 2023 compared to the prior year.

In Q4 2023, Sphere Entertainment Co posted $129.1 million in revenue, down 8% year-over-year, with a net income of $536.8 million driven by gains from discontinued operations. Operating loss widened to $70.3 million, and adjusted operating loss increased to $59.8 million. The Sphere segment remained in a pre-revenue phase with minimal revenue, while MSG Networks experienced declines in both revenue and adjusted operating income.

  • Q4 revenue decreased by $10.7 million year-over-year to $129.1 million.
  • Net income reached $536.8 million, largely due to discontinued operations gains.
  • Operating loss widened to $70.3 million; adjusted operating loss rose to $59.8 million.
  • Sphere segment revenue remained minimal at $0.7 million while MSG Networks revenue declined 8%.

Headline financials

Total Revenue

$129M

Previous: $140M-7.6%
EPS (adj)

$10.21

Previous: -$3.01+439.2%
Adjusted Operating Income

-$59.8M

Previous: -$35.4M-68.9%
Net Income

$537M

Previous: -$99.2M+641.1%
Operating Income

-$70.3M

Previous: -$54.3M-29.5%
Gross Profit

$45.4M

Previous: $169M-73.1%
Cash & Equivalents

$429M

Previous: $747M-42.6%
Total Assets

$4.97B

Previous: $5.57B-10.7%
Stock-Based Comp

$6.57M

Previous: $14.8M-55.7%

Revenue & EPS history

Sphere Entertainment Co · Revenue · Quarterly

$129M

Q4 2023-7.6%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Sphere Entertainment Co · $128M total across 1 segment · Q4 2023

  • MSG Networks
    $128M-7.7%

Forward guidance

The company expects to open Sphere in Las Vegas on September 29, 2023, with strong demand anticipated for initial events and experiences, though final construction costs are projected to be approximately $2.3 billion.

Tailwinds

  • Sphere Las Vegas opening scheduled for September 29 with U2 residency.
  • October 6 debut of immersive production 'Postcard from Earth'.
  • Formula 1 event to feature a multi-day takeover in mid-November.
  • Exosphere fully illuminated for the first time in July with global media attention.
  • Construction nearing completion with most technological systems installed.

Headwinds

  • Final construction costs projected at $2.3 billion.
  • Sphere segment still incurring high operating losses.
  • MSG Networks facing ongoing revenue decline due to subscriber loss.
  • Rights fees expense increasing in MSG Networks segment.
  • High selling, general and administrative expenses impacting profitability.

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 Q4 2023

Historical avgQ4 2023

+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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