Las Vegas's Sphere: Big Shows, Bigger Losses

Making Waves with High-Profile Shows

Las Vegas's Sphere is making waves with its high-profile shows and movie screenings. The venue has seen a big jump in revenue, thanks to hits like "The Wizard of Oz" and the Backstreet Boys. But even with these successes, the company is still in the red.

The Numbers Tell an Interesting Story

• Revenue for the third quarter was up by 15%, reaching $262.5 million.
• Operating loss: Nearly $130 million.
• Adjusted operating income: Turned around from a loss of $10.2 million to a gain of $36.4 million.

A Hotspot for Artist Residencies

Since opening in 2023, Sphere has hosted big names like:

• U2
• Phish
• The Eagles

Recent and upcoming acts include:

• Backstreet Boys (extended residency)
• Illenium
• No Doubt

The Sphere Experience

• Movie screenings have seen a 37% revenue boost.
• Immersive "The Wizard of Oz" adaptation sold over 1 million tickets and brought in more than $130 million.
• Shows like "Postcard from Earth" and the U2 concert film contributed to the increase.

Operating Expenses on the Rise

• Operating expenses for the Sphere segment rose by about $10 million.
• Overall increase in expenses: 26%.

Signs of Growth Amid Losses

• Sphere segment's operating loss improved by $40.6 million compared to last year.
• CEO James Dolan sees potential in the venue's ability to adapt and grow.

The Big Question

Can Sphere turn these big shows into sustainable profits?