Q1 Earnings Off the Ball for Las Vegas Sphere

Posted on: May 8, 2025, 02:22h. 

Last updated on: May 8, 2025, 03:50h.

Corey Levitan Read More
Expertise: Commercial Gaming, Entertainment, Expert Insight, Las Vegas, Restaurants, Las Vegas Myths.
  • Sphere Entertainment’s first-quarter revenue was down 13% from the same time last year
  • CEO James Dolan blames the drop on MSG Networks, and not on the Sphere itself
  • He said that things will turn around in part due to the Sphere’s second immersive film production, “The Wizard of Oz,” which will probably ask higher ticket prices

Revenue was off 13% from last year for the company that owns the Las Vegas Sphere — from $321.3 million to $280 million for 2025’s first quarter. In addition, operating expenses are up nearly 95% for the quarter that ended March 31 — from $40.4 million last year to $78.6 million. However, in Sphere Entertainment’s quarterly earnings call Thursday, CEO James Dolan mollified investors and analysts by attributing most of the problem to an 8% drop in revenue from Sphere Entertainment’s MSG Networks segment.

The Sphere’s emoji, named Orbi, seems more concerned about today’s bad financial news than CEO James Dolan does. (Image: Shutterstock)

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

Dolan said that the Sphere is negotiating with a number of high-profile music acts and has “more demand from artists than we have availability of slots.” He also noted the diverse appeal of the Sphere’s upcoming residencies from singer Kenny Chesney (May 22-June 21) and Backstreet Boys (July 11-Aug. 24), the first country and pop acts to light up the globular wonder.

Sphere Entertainment CEO James Dolan speaks in 2021. (Image: Shutterstock)

Dolan also talked up the “fully immersive” Sphere version of “The Wizard of Oz,” set to premiere sometime this summer, and mentioned that ticket prices would probably be higher than venue’s first feature film production, 2023’s “Postcard from Earth.”

“And along with a better product, yes, comes probably higher ticket prices,” he said.

Finally, Dolan reiterated that his company is looking into building a second venue in Abu Dhabi, as well as smaller versions of the Sphere in other markets.

“It’s all about our ability to take a great product and expand it across the globe,” he said. “With questions about how we use our capital, it’s going to primarily be towards growth so we can make the business bigger, versus necessarily returning capital to shareholders etc. I take a look at this new project of building a smaller Sphere, and there’s a real opportunity.”