Sphere Entertainment Reports $17.1M Operating Income Driven by Wizard of Oz Ticket Sales

Sphere Entertainment Co. announced a solid fiscal third quarter, propelled by the hit of its immersive production, The Wizard of Oz, at Sphere and healthy ticket sales across live entertainment events. The Sphere segment of the company generated $174.1 million in revenue, up 37% compared to the prior year. Adjusted operating income increased to $17.1 million as attendance remained steady and new concerts were added, partially offset by lower event-related expenses.

"Our Sphere segment generated revenues of $174.1 million, an increase of 37% against the prior year period. This growth was mainly driven by higher revenues from the Sphere Experience and reflects approximately one month's impact from The Wizard of Oz at Sphere," Robert Langer, Sphere Entertainment Co.'s Executive Vice President, Chief Financial Officer, and Treasurer, said.

By mid-October, The Wizard of Oz had surpassed 1 million tickets sold and generated over $130 million in ticket sales. The company anticipates extending the show's run beyond one year if demand continues. A Wizard of Oz 2.0 version is already in development, incorporating new interactive elements to commemorate the anniversary of its premiere.

"This is likely going to include some new features to the film, such as we might take you for a ride on a witch's broom during the show. How much more life that will breathe into Wizard of Oz, I'm not really sure, but I think it might be pretty good," Dolan shared.

Residencies at Sphere remain in high demand, with bookings now extending through September 2027. Sphere's leadership highlighted the scalability of its technology and its ability to host multiple daily events — afternoon screenings like The Wizard of Oz alongside evening concerts — to optimize cash flow.

"The best combination is a concert like the Eagles or Zac Brown or whatever in the evening, with at least two to three shows like The Wizard of Oz in the afternoon. That generates the most amount of cash flow in a day. Honestly, the problem that we're having, and it's what my old manager used to call a first-class problem, is that we're trying to find more opportunity to put more into Sphere," Dolan said.

The company continues to explore new revenue streams beyond Sphere, including monetizing Sphere Studios and expanding its patented audio and AI-driven content technologies globally.