The new Sphere location in Las Vegas posted a loss of $98.4 million.
The multibillion-dollar venue, run by the company that owns Madison Square Garden, opened Sept. 29 with a concert by U2. According to the New York Post, the company reported revenue of $118 million, down 71% from the previous year.
Venue revenue includes $4.1 million from U2 concerts and $2.6 million from licensing and advertising. Wall Street analysts had forecast a quarterly loss of $1.27 per share.
Also, The Sphere’s Chief Financial Officer Gautam Ranji has resigned, according to a Securities and Exchange Commission statement. According to this document, his resignation “Not due to disagreement with the Company’s independent auditors or any member of management on any matter concerning accounting policies or procedures, financial statement disclosures or internal controls.”
However, the New York Post reported that he abruptly resigned after being succeeded by CEO James Dolan “knife screamed” Against Ranji. “They did a great job of burying the message.” A source told the newspaper. “A finance director resigning within a week of the results is unheard of.”
Requested by NME For comment, Spear referred to a press release on their financial situation.
In this release, Executive Chairman and CEO James L. Dolan said: “Sphere’s opening in Las Vegas in September was a milestone that drew global attention and marks the beginning of a new chapter for our company. We are building positive momentum in the combined sphere and we are confident that we are well-positioned to create long-term value for shareholders.”
Despite the venue’s financial loss, U2’s revenue is likely to increase following the announcement of an extension to their residency, which will see the group perform their 1991 album in its entirety, Achung babyUntil 2024.
It will also host the Las Vegas Grand Prix next week, a multi-day event.
A similar center was planned to open in Stratford, east London, but Michael Gove temporarily shelved the plan earlier this year, following opposition from residents and AEG, which runs the O2. was constructed.
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