Sphere Entertainment Co. (NYSE:SPHR) delivered a blockbuster fiscal second-quarter report for the period ending June 30, 2025, fueled by a major debt restructuring gain and improved performance at its flagship Las Vegas venue. Shares jumped 11.7% in pre-market trading Monday on the news.
The company posted adjusted earnings of $3.39 per share, a dramatic swing from Wall Street’s forecast for a $1.55 per share loss. Revenue totaled $282.7 million, slightly shy of the $286.59 million consensus but up 3% from a year earlier. A $346.1 million gain from extinguishing debt tied to its MSG Networks (NYSE: MSGN) credit facilities played a key role in the bottom-line surge.
Revenue from the Sphere segment climbed 16% year over year to $175.6 million, driven by an uptick in corporate bookings and expanded concert residency schedules. “Postcard from Earth,” the venue’s signature Sphere Experience, has now surpassed four million tickets sold since its October 2023 debut.
“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.”
Adjusted operating income more than doubled to $61.5 million from $25.7 million in the prior-year quarter, helped by higher revenue and reduced selling, general, and administrative costs, partially offset by increased direct expenses.
MSG Networks revenue fell 12% to $107.1 million, reflecting a 13% drop in subscribers. However, the segment’s adjusted operating income rose 17% to $36.5 million.
The debt overhaul involved replacing MSG Networks’ $804 million term loan with a new $210 million facility and amending media rights agreements with professional sports franchises, including the New York Knicks and New York Rangers.
Sphere Entertainment stock price
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