Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - On Monday, Sphere Entertainment Co. (NYSE:SPHR) reported a stunning earnings beat for its fiscal second quarter ended June 30, 2025, driven by a significant gain on debt restructuring and improving operational performance at its Sphere venue in Las Vegas.
The company’s shares surged 11.7% in pre-market trading after the release.
The entertainment company reported adjusted earnings of $3.39 per share, dramatically exceeding analyst expectations of a $1.55 per share loss. Revenue came in at $282.7 million, slightly below the consensus estimate of $286.59 million but up 3% from the same quarter last year. The company recorded a $346.1 million gain on extinguishment of debt following a major restructuring of its MSG Networks (NYSE:MSGN) credit facilities.
Sphere segment revenues increased 16% YoY to $175.6 million, primarily due to more corporate events and additional concert residency shows. The Sphere Experience, featuring "Postcard from Earth," surpassed four million total tickets sold since opening in October 2023.
"We continue to execute our strategic priorities to drive long-term profitable growth for our Sphere business," said Executive Chairman and CEO James L. Dolan. "At the same time, we have been making progress with our expansion plans and remain confident in the global opportunity ahead."
The company’s adjusted operating income jumped 140% to $61.5 million compared to $25.7 million in the prior year quarter. This improvement reflected higher revenues and lower selling, general and administrative expenses, partially offset by increased direct operating expenses.
MSG Networks segment revenues declined 12% to $107.1 million due to a 13% decrease in subscribers, though the segment still contributed $36.5 million in adjusted operating income, up 17% from the prior year.
The company’s debt restructuring included replacing MSG Networks’ $804 million term loan with a new $210 million facility and amendments to media rights agreements with several professional sports teams, including the New York Knicks and New York Rangers.
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