Sphere Entertainment Co. Q2 FY2025 earnings call

• Jim Dolan highlighted the goal of a busy 365-day Sphere venue, with progress in Las Vegas including over 120,000 tickets sold for The Wizard of Oz at Sphere, expecting 200,000 by opening; over 100 concerts planned this year vs 70 in 2024; corporate events like HP keynote, and expansion of Exosphere advertisers.
• Robert Langer discussed financial results, MSG Networks debt restructuring (term loan replaced, cash payment made), and balance sheet changes post-debt restructuring.

Sphere segment: Generated revenues of $175.6 million in Q2 2025, compared to $151.2 million in the prior year period. This growth was driven by increased event-related revenues from additional corporate events and 9 more residency shows, partially offset by lower Sphere Experience revenues. Adjusted operating income for the Sphere segment was $24.9 million, an increase of $30.4 million year-over-year. MSG Networks: Generated revenues of $107.1 million in Q2 2025, down from $122.2 million in the prior year period, due to a ~13% decrease in subscribers but offset by higher affiliation rates. Adjusted operating income (AOI) was $36.5 million, up from $31.1 million, with lower direct operating expenses partially offset by revenue decrease and higher SG&A expenses.

No specific numerical guidance provided, but emphasized progress on driving profitable growth at Sphere segment, long-term growth potential, and ongoing expansion plans for Sphere Abu Dhabi and small spheres.

Q: Brandon Ross asked about small spheres, including business model, cost, potential markets.

A: Jim Dolan said small spheres are less expensive and faster to build, follow the same content model as large spheres, with a franchise-like business model and looking at potential locations.

Q: David Karnovsky asked about Wizard of Oz ticket sales context and library content.

A: Jim Dolan said over 127,000 tickets sold to date for Wizard of Oz, expecting 200,000 by opening; existing shows like Postcard From Earth are evergreen and will be used in small spheres.

Q: Stephen Laszczyk asked about future Sphere Experiences based on owned IP and AI in Wizard of Oz production.

A: Jim Dolan said indifferent to IP ownership, focused on great shows; AI was crucial for Wizard of Oz production and will be used again, with easier implementation for future projects.

Q: Peter Supino asked about ticket price of Wizard of Oz vs Postcard From Earth.

A: Jim Dolan said initial Postcard From Earth pricing was to attract familiarity, Wizard of Oz pricing reflects proven product value.

Q: Peter Henderson asked about international expansion and MSG Networks strategic transaction.

A: Jim Dolan said in discussions with international markets, considering strategic transaction for MSG Networks.

Q: David Joyce asked about sponsorship/ad trajectory and Vegas visitation impact.

A: Jennifer Koester said making progress on Exosphere sponsorship with new packages and multiyear deals; Vegas visitation fluctuations are expected with nascent business but long-term growth is anticipated.