Sphere Entertainment posts Q1 revenues of $280.6m

Sphere Entertainment revenue reported first quarter revenues of $280.6 million (€249.3m) as CEO James Dolan gave an update on the firm’s global expansion plans.

The financial results for the three-month period ending 31 March 2025 represented a decrease of $40.8m (13%) year-on-year.

In addition, it reported an operating loss of $78.6m (Q1 ’24 losses: $40.4m), while AOI of $36m was down from $61.5m in the same period 12 months ago.

“Our Sphere segment generated positive adjusted operating income in the first quarter as we make progress on our strategic priorities for the business,” said Dolan. “We remain confident in the opportunities ahead for Sphere and our ability to drive growth this calendar year.”

The Sphere segment had revenues of $157.5m (-8% y-o-y), and posted an operating loss of $93.8m compared to $83.5m in Q1 2024.

Speaking to investors, Dolan emphasised the importance of original content – which has brought in over $500m in takings since October ’23 via Darren Aronofsky’s Postcard from Earth – to the Las Vegas venue’s business model, and also referenced upcoming concert runs by Kenny Chesney and the Backstreet Boys.

“We have multiple projects in development, and we remain on track to debut our next Sphere experience this year,” he said. “We’re also making progress in attracting a variety of music genres to the Sphere this year, including our first country and pop residencies.”

“We’re in discussions with multiple artists. We have more demand from artists than we have availability of slots”

Last month, Sphere Entertainment announced a new AI partnership with Google, which will see the companies use generative AI to help bring an immersive version of The Wizard of Oz, originally released in 1939, to the Sphere from 28 August. A new documentary, From the Edge, is also currently in production from Sphere Studios and is set to debut in 2026.

“The Postcard from Earth was our what we call around here our ‘first pancake’,” said Dolan. “We’re expecting the second pancake to be better – maybe we’ll add some blueberries in. But I think both productions take better advantage of the medium, are going to be more experiential, more impactful. And so therefore, a better product. And along with better products comes probably higher ticket prices, etc. We’re expecting great things from both of those products.”

Dolan said that ongoing residencies from Dead & Company and the Eagles are each on pace for more than 40 performances – which he described as “the equivalent of national arena tours” – noting that Sphere is “gaining traction as a platform for brands”.

“We still are in a great position,” he added. “We’re in discussions with multiple artists. We have more demand from artists than we have availability of slots, which is good for us, but we’re trying to accommodate everything. The other thing that’s going on is that the artists who have been here are extending.

“Once they get used to playing the Sphere, for an artist, it’s a pretty good situation. They don’t have to travel. They don’t have all the overhead costs that go along with that. They get similar kind of revenues that they do for when they mount a tour, but without a lot of the expenses and a lot of the headache. And then, of course, probably most important is the experience that they’re providing for their own fans, which is really over the top. So I don’t want to get ahead of ourselves in terms of announcements, but the pipeline is very full.”

“It’s all about growth. It’s all about our ability to take what we see as a great product and then expand it out across the globe”

He continued: “With the Eagles and with Dead, we’re running two original content shows on the same day as the concert, and that makes for a very profitable day. And so when you look at the company and its development, it’s all about growth. It’s all about our ability to take what we see as a great product and then expand it out across the globe.”

On that subject, it was confirmed last autumn that the world’s second Sphere will be built in Abu Dhabi in partnership with the Department of Culture and Tourism – Abu Dhabi, and is expected to be similar in scale to the 20,000-cap Las Vegas original. But during the company’s previous earnings call in March, Dolan teased that future expansion could also involve 5,000-cap mini-Spheres.

Speaking yesterday (8 May), Dolan said: “We’re definitely talking worldwide about Sphere. But we do have another initiative that I think is very important that we’re undertaking this year, and that is we’re right in the middle of designing a smaller Sphere that would be deployable to markets inside and outside the US. The strategy there is to build faster, cheaper, have ROI that not only justifies it, but makes hopefully investors enthusiastic.

“I expect that by the end of the year, we’ll be talking about that new smaller Sphere product as another way of expanding the business, as well as continuing to build Spheres like we are in Abu Dhabi and in other markets.”

Sphere Entertainment’s share price was up 3% to $32.60 at press time, giving the firm a $1.17 billion market cap.

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