Sphere Entertainment Co. Q3 FY2025 earnings call

• Technology: The company has a proprietary technology portfolio with over 60 U.S. patents, spanning Sphere, venue design, audio delivery, etc. They continue to invest in technology, like introducing Sphere Immersive Sound at Radio City Music Hall and exploring AI for content. • Venue Expansion: Nearing completion of preconstruction phase in Abu Dhabi, with discussions on domestic and international markets for various sized Spheres (3,000 - 18,000 seating capacities) and an economic model expected to generate attractive ROI. • Content: Wizard of Oz at Sphere was successful, and they plan to use AI for future content with Google partnership, and upcoming From the Edge which is a different content creation approach using live capture.

For the September quarter, total company revenues were $262.5 million. The Sphere segment generated revenues of $174.1 million, a 37% increase compared to the prior-year period. This growth was driven by higher revenues from the Sphere Experience, including the successful Wizard of Oz production which had over 1 million tickets sold and $130 million in ticket sales by mid-October. The MSG Networks segment generated $88.4 million in revenues in the September quarter.

• Expect to provide more updates on AI and technology monetization in the coming months. • Look forward to updating on venue expansion progress, including Abu Dhabi and other markets. • Plan to continue optimizing content and venue usage, such as launching Wizard of Oz 2.0 and exploring more concert and content opportunities.

• Risks related to market demand for Sphere experiences and concerts. • Competition in the entertainment and venue technology space. • Uncertainties in international venue expansion and financing.

Q: Brandon Ross asked about the original content program beyond Oz and tech licensing.

A: Jim Dolan talked about lessons from Oz (4D importance), From the Edge being a different content creation approach, and technology like AI infrastructure having monetization potential.

Q: David Karnovsky asked about optimizing Oz revenue and From the Edge launch.

A: Jim Dolan said From the Edge isn't finished yet, plans to run Oz until demand falls, and mentioned Wizard of Oz 2.0 in the future.

Q: Stephen Laszczyk asked about Oz trajectory in 2026.

A: Jim Dolan compared Oz to Postcard, said Oz can go long, and discussed optimal venue usage with concerts and Oz shows.

Q: Logan Angress asked about small Sphere announcement and impact of Oz on partner conversations.

A: Jim Dolan said the company is flexible on capital, and Oz success increased interest from partners globally.

Q: Ryan Sigdahl asked about concerts in 2026 and upper limit of concerts.

A: Jim Dolan said expecting more concerts, discussing optimal day combination in Sphere.

Q: Peter Henderson asked about Exosphere sponsorship and MSG Networks strategic acquisition.

A: Jennifer Koester updated on Exosphere sponsorship progress with in-house sales team and upcoming announcements, Jim Dolan talked about MSG Networks challenges with streaming shift but strong product