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Sphere Entertainment Co. (SPHR+1.36%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $227,913,000 from $118,007,000 in the same quarter the previous year. This increase is attributed to the opening of Sphere in Las Vegas and the associated events and productions.
Direct operating expenses for the quarter were $139,696,000, compared to $84,499,000 in the same quarter of the previous year. This increase is due to the costs associated with the new venue operations.
The company reported an operating loss of $117,619,000 for the quarter, compared to $69,789,000 in the previous year, with the increase attributed to higher depreciation and operating expenses.
Interest expense for the quarter was $26,974,000, up from no interest expense in the previous year, reflecting the company's increased debt levels.
Net loss for the quarter was $105,283,000, compared to a net income of $66,425,000 in the previous year. The loss is primarily due to increased operating expenses and interest costs.
Cash provided by operating activities was $34,094,000, while cash used in investing and financing activities was $19,586,000 and $35,622,000, respectively.
The filing also details the company's liquidity position, highlighting the challenges posed by the maturity of the MSG Networks (MSGE+0.58%) Credit Facilities and the ongoing work-out with lenders.
Sphere Entertainment is focusing on expanding its Sphere venues, with plans to open a second location in Abu Dhabi, United Arab Emirates, in partnership with DCT Abu Dhabi.
The company continues to face risks related to its substantial indebtedness and the need to generate sufficient cash flow from its operations, particularly from its new Sphere venue in Las Vegas.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sphere Entertainment Co. Class A quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.