Las Vegas Sphere venue drives Sphere Entertainment's revenue up 11% to $314M

Sphere Entertainment's revenue rose 11% year over year to $313.6 million in the second quarter, with the Las Vegas Sphere venue driving nearly all of the growth. The Sphere segment brought in $226.4 million, up $50.8 million, or 29%, largely on higher per-show revenue from The Wizard of Oz at Sphere. Operating loss still widened 22% to $61.3 million, and the company swung to a $38.8 million net loss, against a year-earlier profit that had been inflated by a one-time $346.1 million gain on debt extinguishment.

The company's other main business, the MSG Networks regional sports channels, kept shrinking: revenue there fell 18% to $87.3 million as subscribers dropped roughly 16.5% and the unit had fewer live postseason broadcasts to air. That drop in MSG Networks' adjusted operating income more than offset Sphere's gains, pulling down the company's total adjusted operating income even as the venue grew. "Today's results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year," said executive chairman and CEO James L. Dolan.

The Wizard of Oz at Sphere, which opened August 28, 2025, had by the prior earnings call sold nearly 3.6 million tickets worth about $450 million, and Dolan said the show could "easily go 10 years" across multiple venues. An enhanced version, Wizard of Oz 2.0, was slated to debut in September with a new ride sequence and flying monkeys, while a separate production, The Rocky Horror Picture Show at Sphere, is expected in 2027 and is taking under 12 months to build, versus roughly two years for Wizard of Oz.

Sphere Entertainment is building on that momentum with a global expansion. Construction is underway on a Sphere venue in Abu Dhabi, backed by a $1.7 billion investment from the emirate's Department of Culture and Tourism and due to finish by the end of 2029, alongside plans for a smaller, 6,000-capacity venue at National Harbor near Washington, D.C. Dolan said he wants five or more Sphere venues operating within five to six years, with a further expansion announcement possible by early 2027.

The Las Vegas venue's other revenue lines grew too: sponsorship, Exosphere advertising and suite license income rose $10.5 million, with president and COO Jennifer Koester citing deals with brands including Verizon and Adobe. Sphere Entertainment also extended its partnership with the Formula 1 Las Vegas Grand Prix through 2030 in July, and ended the quarter with $552 million in cash, cash equivalents and restricted cash. The venue's residencies have grown alongside it: the Eagles recently added more Sphere dates for January 2027, extending what is already the longest-running act at the venue.