The Sphere entertainment venue that dominates the Las Vegas skyline took a massive financial hit in July, August, and September.
Sphere Entertainment’s recent quarterly earnings report said its operating loss was at $98.4 million, News 3 reported Wednesday:
That figure was adjusted to $83.1 million after taking into account costs related to the company’s split from MSG Entertainment.
Revenue for the quarter was $7.8 million, with events making up $4.1 million. The Sphere opened at the end of September with two shows from U2, part of a multi-month residency. Another $2.6 million came from advertising.
Despite the loss, Executive Chairman and CEO James Dolan believes the Sphere will turn a profit in the near future, according to the Las Vegas Review-Journal.
Video footage shows the outside and inside of the Sphere, which is 366 feet tall:
The Review-Journal noted Dolan has this perspective because more entertainers are hoping to play at the venue, additional films are being made, and more Spheres are in the works to be built around the globe.
However, ticket prices may increase. When it opened in September with U2, Dolan noted each performance had sold out, and the company booked more shows for the band into 2024.
In a press release, Dolan said, “We are building positive momentum across Sphere and remain confident that we are well-positioned to drive long-term value for shareholders.”
According to Insider News, the venue cost $2.3 billion. Its exterior is made of an LED canvas and features 1.2 million light units.
“Billed as the world’s largest video screen, the giant ball can display anything,” the outlet said:
The News 3 report noted that CFO Gautam Ranji quit recently, a filing with the Securities and Exchange Commission said. However, a reason was not provided.