Vegas Sphere reports revenue decline; CEO promises several new venues

The Las Vegas Sphere saw a decline in revenue last quarter but executives say the venue is making progress.
During an earnings call Tuesday, Sphere Entertainment Co. revealed that segment revenue slipped to $127.1 million in the quarter ending on Sept. 30. The two previous quarters garnered around $151.2 million and $170.4 million in revenue, respectively.
Event revenue was at around $40.9 million, down from the prior quarter’s $58.4 million. However, CEO James Dolan said they have no shortage of events and are “struggling with how to squeeze everybody in through the fall.”
Through advertising and suite license fees charged using its 580,000 square-foot exterior, the company generated $8.5 million, a decline from $15.9 million. Dolan said the venue faced a “structural issue” with advertising that the company is working on and is making progress.
“That’s just part of starting something new. I wish the day we lit it up that we know exactly how to run itand exactly how to sell it and exactly how to program it,” Dolan told investors. “But that’s just not the case.”
The venue celebrated its one-year anniversary in September, marking an entire year of hosting concerts and immersive experiences through the technical wonder. That same month the venue hosted UFC 306, its first live sports event that marked the venue’s highest grossing single event so far, while rock band the Eagles kicked off their residency.
The Sphere’s immersive events, including the “Postcard from Earth” and the new “V-U2: An Immersive Concert Film,” reached $71.5 million, down from the last two quarters of $74.5 million and $100.5 million.
Dolan boasted about the company providing original content while adding that executives are working on finding the best ways to market and schedule it.
“But I do think that the product is valuable and I also think that it’s going to be evergreen. You’re not going to be able to see Bono 20 years from now,” he said. “I mean, I wish we could go back to 1965 and capture the Beatles. I’m pretty sure you’d all love to see a live Beatles concert.”
After revealing last month that a second Sphere arena will arrive in the United Arab Emirates capital of Abu Dhabi, executives emphasized that the company plans to create several Spheres across the planet.
“We’ve built an organization that can handle the construction of multiple spheres at the same time,” Dolan said.
Sphere Abu Dhabi will emulate the size of the original Vegas venue, with standing room for 20,000 people.
Executive Vice President David Granville-Smith said Tuesday he expects Sphere experiences to be a major driver of revenue in Abu Dhabi, as well. Executives did not disclose a timeline for the construction of the new Sphere or an opening date.
“We built this company not to operate one building in Las Vegas,” Dolan said. “The more of these that we do the more we utilize the investment we made into the company itself.”