Sphere Entertainment Co. Q1 FY2026 earnings call

Jim mentioned today's financial results demonstrate continued success moving out spheres business model. Focused on maximizing model's potential in Las Vegas and global network of sphere venues. Abu Dhabi project minimally impacted by region conflict, early stage procurement work ongoing. Announced second sphere in U.S. to National Harbor, financing discussions and venue design progressing. In Vegas, business on track for substantial growth led by Wizard of Oz and Sphere, working on next sphere experience from the edge and other projects, increasing demand from artists and brands.

Sphere segment: Revenues of $266 million in first quarter, an increase of nearly 70% compared to prior year period. Adjusted operating income was $74.3 million. MSG networks segment: Generated $120.4 million in revenues and $35.7 million in AOI in the March quarter, compared to $123 million in revenues and $22.8 million in AOI in the prior year period.

Abu Dhabi project has early stage procurement work ongoing, looking forward to groundbreaking. Financing discussions for National Harbor sphere progressing as planned, venue design finalizing. Continuing to discuss with markets worldwide on building spheres.

Q: Brandon Ross asked about owning/operating vs franchise model for future spheres and choosing locations to avoid cannibalization.

A: Jim said wouldn't discount owning/operating, capital light tactic helps speed up, not worrying about cannibalization as it's global expansion.

Q: David Karnofsky asked about progress on large/small market spheres and impact of macro volatility.

A: Many markets reaching out, process involved but prospects good.

Q: Peter Cepino asked about learnings from Wizard of Oz and revenue growth drivers.

A: Learning is can do multiple shows in a day, revenue growth from multiple shows, better sellout or higher pricing.

Q: Steven Lasik asked about Wizard of Oz attendance and leverage for IP deals.

A: Wizard of Oz still performing well, leverage is being unique venue for IP.

Q: Ryan Sigdahl asked about Exosphere advertising partners and utilization.

A: Exosphere 50% advertising 50% art and promotion, seeing returning brands, on track to grow repeat advertisers.

Q: Peter Henderson asked about SG&A for remainder of year.

A: Robert said focused on managing SG&A, adjusting for share-based awards, will see quarter-over-quarter fluctuations but look for cost savings.

Q: Joseph asked about residency strategy.

A: Residency demand high, out of dates for this year with some expansion in Wednesdays and Thursdays