Executive Administrative Assistant

Las Vegas Sphere drove Sphere Entertainment's Q2 revenues up 11% to $314M; operating loss ballooned 22%. August 5, 2026 Sphere Entertainment Co. grew its revenues by 11% YoY, or USD $31.0 million, to $313.6 million in the second quarter of 2026. The Las Vegas Sphere venue drove that growth. The company's MSG Networks regional sports TV business, meanwhile, continued to shrink. The NYSE-listed company also reported a wider operating loss and lower adjusted operating income, and swung to a net loss, for the three months ended June 30. It reported the results last Thursday (July 30). The operating loss widened by $11.1 million, or 22% YoY, to $61.3 million. Adjusted operating income fell by $10.5 million, or 17% YoY, to $50.9 million. The company swung to a net loss of $38.8 million attributable to shareholders, versus net income of $151.8 million a year earlier. The prior-year profit had been inflated by a $346.1 million gain on the extinguishment of debt. No comparable gain occurred in the latest quarter. "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. "Today's results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year." James L. Dolan, Sphere Entertainment "We are also advancing our long-term vision for a global network of Sphere venues, including in Abu Dhabi and National Harbor." The Sphere segment, which runs the Las Vegas venue, generated revenues of $226.4 million, up $50.8 million, or 29%, year-over-year. Revenues tied to the Sphere Experience rose $53.8 million, driven mainly by higher per-show revenue for The Wizard of Oz at Sphere, the immersive production that opened in Las Vegas on August 28, 2025. The quarter featured 220 performances of The Wizard of Oz at Sphere, compared with 215 performances of Postcard from Earth and V-U2 An Immersive Concert Film a year earlier. Revenues from sponsorship, Exosphere advertising and suite license fees rose $10.5 million. Event-related revenues fell $11.7 million YoY on two fewer brand events, partly offset by six additional concert residency shows. On a reported basis, the Sphere segment still ran an operating loss of $69.6 million, though that was an improvement of $13.9 million, or 17%, year-over-year. Stripping out depreciation and other items, the segment's adjusted operating income climbed 60% to $39.9 million, from $24.9 million. The segment's selling, general and administrative expenses rose $29.2 million to $125.6 million, which Sphere Entertainment tied partly to mark-to-market adjustments on share-based compensation awards after its stock price rose during the quarter. At MSG Networks, the regional sports networks that broadcast New York-area teams, revenues fell $19.8 million, or 18% YoY to $87.3 million. Distribution revenue dropped $13.7 million, which the company attributed to an approximately 16.5% YoY decline in subscribers. Advertising revenue fell a further $6.0 million YoY, on fewer live postseason professional sports telecasts. The unit's operating income sank 75% YoY to $8.3 million, while its adjusted operating income fell 70% YoY to $11.0 million. That $25.5 million YoY drop in MSG Networks' adjusted operating income more than offset the $15.0 million gain at Sphere - the reason the company's total adjusted operating income fell despite the venue's growth. A day earlier, on July 29, MSG Networks and the YES Network announced a partnership making DAZN their exclusive direct-to-consumer streaming home for the 2026-2027 NBA and NHL seasons. The results follow a first quarter in which Sphere Entertainment generated $386.4 million in revenue, up 38% year-over-year, with the Sphere segment up 69%. On the earnings call, Dolan said The Wizard of Oz at Sphere had by then sold nearly 3.6 million tickets for approximately $450 million. That was up from the $400 million and three million tickets the company reported in mid-June, and from the roughly $290 million disclosed with its full-year 2025 results. "The show is performing very well," Dolan told analysts on the call. "It is subject to, as basically everything in Vegas is, to seasonality, and we're in the middle of the summer, which is definitely the low season for it. It's still doing very well. I anticipate we could run Wizard of Oz for a long time and do very well with it." Dolan said the show could "easily go 10 years," playing across multiple Sphere venues, and that an enhanced version, The Wizard of Oz 2.0, was slated for September, featuring a ride with a witch and new flying monkeys. A new production, The Rocky Horror Picture Show at Sphere, based on the 1975 film, is expected to debut in 2027, which Dolan said would let the venue program families by day and an adult audience at night. "The strategy here is to create reusable content that goes from Sphere to Sphere," he said. The company is also becoming faster at making that content, Dolan said. "Wizard of Oz really took 2 years to make. Rocky Horror Picture Show is going to take less than 12 months," he said. "We're getting better at it, particularly when it comes to the use of AI and the production techniques that we developed for Wizard of Oz." He estimated the venue could have three to four Sphere Experiences playing by the end of 2027, with a further production, From The Edge, also in development. On expansion, construction is underway on Sphere Abu Dhabi - a Yas Island venue funded by a $1.7 billion investment from Abu Dhabi's Department of Culture and Tourism - and is expected to be completed by the end of 2029. In the US, plans continue for a smaller-scale, 6,000-capacity venue at National Harbor, in the Washington, D.C. area. Dolan said the company expected to complete an agreement for third-party financing "in the near term," on top of approximately $200 million in state, local and private incentives, and that the venue could open in under four years. He said he wanted five or more venues operating within five to six years, with another five under construction, and that a further expansion announcement was possible in 2026 or by the first quarter of 2027. In July, Sphere Entertainment and the Formula 1 Las Vegas Grand Prix announced a five-year agreement extending their partnership through 2030. President and COO Jennifer Koester said the Exosphere and sponsorship business had posted significant growth in the quarter and remained a growth driver into 2027. "Large brands like Verizon coming in on the World Cup, or Adobe coming in to do a takeover when they were in Vegas for their multi-day summit," she said. "We have got a very strong pipeline of official partnerships in the works, and what that means is we will continue to secure more multi-year sponsorship deals," said Koester. On the balance sheet, Sphere Entertainment ended the quarter with $552.0 million in cash, cash equivalents and restricted cash. Its Sphere business held approximately $534 million of unrestricted cash, against $259 million of convertible debt and a $275 million term loan tied to the Las Vegas venue. MSG Networks carried approximately $98 million of net debt, including $116 million outstanding on its term loan, which Dolan said was non-recourse to Sphere. Across the first six months of 2026, the company generated $102.6 million in cash from operations, compared with $52.7 million used a year earlier.Music Business Worldwide

Sphere Entertainment reported second-quarter revenue of $313.6 million and adjusted operating income of $50.9 million. CEO Jim Dolan outlined expansion plans for a global network of venues. The company is building a venue on Yas Island in Abu Dhabi, expected to be completed by the end of 2029. In the US, Sphere is advancing plans for a National Harbor, Maryland location with third-party financing to supplement $200 million in state, local and private incentives. Sphere is evaluating a build-to-suit and leaseback arrangement for National Harbor, where a third party would fund construction and own the venue whilst Sphere maintains operational control. The venue could open in less than four years. Dolan said the company aims to have five or more venues operating within five to six years.

Sphere Entertainment reported a 30% year-over-year revenue increase in its Sphere segment for Q2 2026, driven by strong ticket sales for "The Wizard of Oz at Sphere". The company is expanding globally, with construction underway for a new venue in Abu Dhabi, expected to complete by end of 2029. The company is developing new content, including "The Rocky Horror Picture Show at Sphere" debuting in 2027. Production efficiency has improved, with the new show taking under 12 months to produce compared to two years for "The Wizard of Oz". However, the MSG Networks segment saw revenues decline from $107.1 million to $87.3 million year-over-year, due to a 16.5% subscriber decrease and lower advertising revenue. SG&A expenses increased by $29.2 million to $125.6 million, partly due to share-based compensation adjustments.