Sphere's Revenue Soars: 'Wizard of Oz,' Eagles, and Illenium Drive 70% Growth
The Sphere Entertainment Company's first-quarter revenue jumped to $386 million, fueled by the success of 'The Wizard of Oz at Sphere' and residencies from The Eagles and Illenium.
The Sphere Entertainment Company has reported a significant surge in revenue for the first quarter, reaching $386 million. This growth is primarily attributed to a nearly 40% increase in income generated by The Wizard of Oz at Sphere and the highly successful residencies of The Eagles and Illenium. Illenium's residency is titled Odyssey.
Overall, the company experienced a 38% revenue increase, amounting to $105.8 million, for the quarter ending March 31 compared to the same period last year. This data was reported on Tuesday (May 5). The Sphere segment alone contributed $266 million to the total revenue. This was driven by higher per-show revenues from The Sphere Experience film showings, brand events, concert residencies, and sponsorship and suite licensing fees.
The Wizard of Oz at Sphere has proven to be a major draw, selling nearly 3 million tickets and generating $370 million in ticket revenue since its opening last August. Executives noted that average ticket prices and per-capita spending have remained consistent since the fourth quarter, despite a contraction in Las Vegas tourism.
According to Jennifer Koester, Sphere’s president and chief operating officer in charge of business operations, The Sphere is proving to be a significant driver of tourism. Despite fluctuations in Las Vegas tourism, The Sphere's product has remained resilient.
Koester also highlighted the strong market demand for Sphere residencies, citing Phish selling out its recent nine-show run, Metallica selling out 24 concerts this fall (an expansion from the initially planned 8-show run), and the Backstreet Boys' plans for a second 21-show residency this summer. The success of Phish and Metallica's residencies has also contributed to robust suite sales.
Sphere CEO James Dolan mentioned the ongoing development of more films for the Sphere Experience, including collaborations with U2's The Edge and other rights holders.
Dolan emphasized that the Las Vegas Sphere serves as the blueprint for the company’s global vision. The next Sphere, a 20,000-seat venue slated for Abu Dhabi, remains on track despite regional conflicts.
"The project has been minimally impacted to date by the conflict in the wider region," Dolan stated, adding that the Abu Dhabi government has selected the venue site and will announce it "at the appropriate time. We look forward to the groundbreaking in Abu Dhabi."
The National Harbor Sphere in Maryland, a smaller, 6,000-seat version of the Vegas and planned Abu Dhabi Spheres, is progressing with financing discussions, design finalization, and the acquisition of necessary approvals from state and county officials. Dolan anticipates an opening within the next four years.
Despite MSG Networks reporting a revenue decline to $120.4 million from $123 million in the year-ago quarter, attributed to a decrease in advertising revenue and a 16% reduction in subscribers, Sphere’s stock has seen a positive trend, rising 2.4% over the past 5 days to $143.35.
Earnings snapshot:
-Total revenue: $386.4 million
-Operating income rose $85.8 million compared to last year’s first quarter to $7.2 million.
-Adjusted operating income rose $74 million to $110.0 million.
-The Sphere segment generated $266 million in revenue, up 70% from last year.
-MSG Networks revenue down nearly 2.5% to $120.4 million from $123 million in revenue in 1Q2025.
-Sphere stock is up 4% so far this week to $145.60.
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