{"id":41259,"date":"2024-08-19T17:07:45","date_gmt":"2024-08-20T00:07:45","guid":{"rendered":"https:\/\/www.casino.org\/vitalvegas\/?p=41259"},"modified":"2024-10-18T03:32:34","modified_gmt":"2024-10-18T10:32:34","slug":"brutal-sphere-loses-104-million-in-three-months-480-million-over-past-year","status":"publish","type":"post","link":"https:\/\/www.casino.org\/vitalvegas\/brutal-sphere-loses-104-million-in-three-months-480-million-over-past-year\/","title":{"rendered":"Brutal: Sphere Loses $104 Million in Three Months, $480 Million Over Past Year"},"content":{"rendered":"

Sphere at Venetian released its financial results for the fiscal quarter ending June 30, 2024, and it’s ugly.<\/p>\n

During the three month period (April to June, 2024), Sphere lost $104.5 million. For the fiscal year ending June 30, 2024, Sphere lost a jarring $480 million.<\/p>\n

Apparently, you can’t make money by building a $2.4 billion IMAX movie theater. Let’s dive in, shan’t we?<\/p>\n

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As losses mount, can Sphere stay afloat?<\/figcaption><\/figure>\n

Sphere Entertainment Co. is a public company, so we get to go all up inside their business at the end of each quarter.<\/p>\n

Public companies have lots of ways of spinning their results, but ultimately, the numbers don’t lie.<\/p>\n

Here’s a news release with Sphere’s financial results<\/a> for “fiscal 2024 fourth quarter,” as the kids say.<\/p>\n

For the fiscal 2024 fourth quarter, the Sphere reported revenues of $151.2 million, which sounds awesome without any context. The context comes a few paragraphs later in the Sphere’s news release: “Fiscal 2024 fourth quarter selling, general and administrative expenses of $102.1 million increased $11.8 million, or 13%, as compared to the prior year quarter, primarily due to higher employee compensation and related benefits and, to a lesser extent, higher professional fees.”<\/p>\n

A giant red flag, “selling, general and administrative expenses of $102.1.” This reeks of poor management, and you don’t even have to read between the lines. It’s right out there in plain sight.<\/p>\n

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Math is the world’s most boring thing besides sports, but it’s part of the Las Vegas conversation, so.<\/figcaption><\/figure>\n

Caution: The follow-up may cause nausea, dizziness or disorientation. From the news release, “Fiscal 2024 fourth quarter operating loss of $104.5 million increased by $9.3 million, as compared to the prior year quarter.”<\/p>\n

In other news, Sphere generated about $15 million from advertising fees in fiscal 2024 fourth quarter. Again, that doesn’t sound too bad if you’re cherry-picking fun facts. Ultimately, though, Sphere aspired to making $100 million-plus a year from its “Exosphere.”<\/p>\n

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MSG thinks it\u2019s going to get \u201cfar beyond $100 million\u201d a year in Sphere ad revenue. Related: Is The Onion writing LinkedIn job postings now? pic.twitter.com\/ehucWsjdKQ<\/a><\/p>\n

— Vital Vegas (@VitalVegas) March 23, 2023<\/a><\/p><\/blockquote>\n