Next generation music venue, Sphere in Las Vegas, has posted huge losses for its first few months of operations.
Sphere’s owner, Sphere Entertainment Co, announced that the venue had revenues of $167.8 million in the last three months of 2023, but made an operating loss of $193.9 million.
Since it opened last September, Sphere has grabbed attention around the world, with its ability to show different images on its outside – showcased at the Formula 1 Las Vegas Grand Prix last year – and will surely do similar when the Super Bowl takes place in the city this weekend.
More than half of Sphere’s revenue so far – $92.9 million – has come from The Sphere Experience, which includes a tour of the venue, culminating in a viewing of the film Postcard From Earth. Meanwhile concerts have brought in $55.2 million, and advertising and suit licence fees came to $17.5 million.
U2 currently have a residency at Sphere – the band’s first two concerts brought in $4.1 million – which ends on 2 March and will be followed by runs by Phish and Dead & Company. The calendar of events for the venue is also full for 2024 and is expected to be for 2025 too, according to executive chairman/CEO Jim Dolan.
Since opening, the venue has garnered enthusiastic reviews for its audio-visual experience and presence on the Vegas skyline.
The company behind Sphere is also confident of turning it into a franchise and having other similar venues established around the world in the future. While talks to set up a venue in London have ended, Dolan has said that discussions are going on to set up venues in other countries.
Investors don’t seem worried by the losses either as after the financial announcement, the share price for Sphere Entertainment, which also runs MSG Networks, rose by more than 10%.
