Sphere Entertainment (SPHR) Reports 98% Revenue Increase

Sphere Entertainment Co. (NYSE: SPHR) has reported its fiscal 2024 third-quarter results, indicating a significant increase in revenues and a positive trend in adjusted operating income for the quarter ended March 31, 2024.

The company reported total revenues of $321.3 million for the fiscal third quarter, marking an impressive increase of $159.3 million, or 98%, compared to the prior year quarter. Additionally, the sphere segment reported revenues of $170.4 million, reflecting a substantial increase of $169.7 million compared to the prior year quarter.

While the sphere segment experienced a significant increase in revenues, it also reported direct operating expenses of $62.3 million, compared to $4.4 million in the prior year quarter. This increase was primarily driven by expenses associated with the sphere experience and event-related costs related to concerts held at Sphere in Las Vegas during the quarter.

Furthermore, the fiscal 2024 third-quarter operating loss for the sphere segment improved by $28.9 million compared to the prior year quarter, amounting to $83.5 million. This improvement was attributed to the increase in revenues and a decrease in restructuring charges, partially offset by higher depreciation and amortization, direct operating expenses, and selling, general, and administrative expenses.

On the other hand, MSG Networks, a segment operated by Sphere Entertainment, reported total revenues of $151.0 million for the fiscal 2024 third quarter, representing a decrease of $10.5 million, or 6%, compared to the prior year quarter. The decrease in revenues was primarily driven by lower distribution and advertising revenue.

Despite the decrease in revenues, MSG Networks reported an operating income of $43.1 million, reflecting an increase of $32.7 million compared to the prior year quarter. This increase was primarily due to a decrease in selling, general, and administrative expenses, partially offset by the decrease in revenues and an increase in direct operating expenses.

Overall, the company reported an operating loss of $40.4 million for the fiscal 2024 third quarter, representing a significant improvement of $61.5 million compared to the prior year quarter. Additionally, the adjusted operating income for the same period was $61.5 million, compared to an adjusted operating loss of $18.7 million in the prior year quarter.

As a result of these announcements, the company's shares have moved -3.5% on the market, and are now trading at a price of $39.83. If you want to know more, read the company's complete 8-K report here.

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