Las Vegas Sphere Entertainment Reports Growing Losses in Q3 2024
Las Vegas Sphere reports mounting losses in Q3 2024, with revenue falling and operational challenges persisting.
Revenue dropped to $127.1 million in the quarter ended September 30, down from $151.2 million in Q2 and $170.4 million in Q1. Event revenue, including Eagles concerts and UFC 306, declined to $40.9 million from $58.4 million in the previous quarter.
Operating losses increased to $125.1 million, compared to $98.4 million in the same quarter last year.
CEO James Dolan acknowledged operational challenges, stating, "I wish that the day we lit it up that we knew exactly how to run it, exactly how to sell it and exactly how to program it, et cetera, but that's just not the case."
Despite these challenges, Sphere's stock remains up 15% year-over-year, largely due to announced expansion plans in Abu Dhabi. The company maintains ambitious growth plans, with Dolan confirming they've built an organization capable of constructing multiple Spheres simultaneously.
Recent developments include:
- Strong artist booking interest for fall performances - Termination of partnership with Oak View Group - Continued focus on international expansion despite London setback
The venue faces ongoing challenges with advertising revenue and operational efficiency, but management remains optimistic about future growth potential, with each new property potentially adding up to $700 million in value according to Wolfe Research.