Sphere Revenue Falls, MSG Networks bankruptcy at the table

Sphere Entertainment reported the financial results for the three months on December 31, which was 2% to $ 308 million. The low loss of the quarter was 126 million US dollars and 231 million US dollars for the six months because the company changed from one financial year in June to December.

Sphere, whose two business segments are the venue of the same name in Las Vegas and the MSG networks, also warned that bankruptcy is an option for the regional sports network if its debts, which are due on October 11, cannot refinance. The company and its lenders have concluded several forbearance to reduce the office for the office on March 26th. The company on March 26, March 26, the company on March 26 with the retention of retention on March 26 from the fever. at $ 804 million.

According to the quarterly results of Sphere Entertainment: “If MSG networks are not successful in negotiating refinancing or training his debt, the company is of the opinion that MSG networks and/or its subsidiaries in bankruptcy or lending would catch up with the colloral acid facilities in the MSG network.”

MSG Networks’s sales fell 5% to 139 million US dollars in the quarter, as they continue to struggle with the cutting of users. Advertising revenue rose easily, but the income from the sales decreased decreased by $ 7.1 million because the total samples decreased by 11.5%.

Some investors trudge for MSG networks to operate bankruptcy. “We believe that MSGN contributed a negative equity value of $ 300 to $ 400 million,” Brandon Ross, Lightshed Partners Analyst, wrote in a research note in January.

The RSN debts are due exclusively by the MSG arm, which means that the creditors cannot claim the sphere, even though it is the parent. The Sphere would also benefit to convince the debters to take less money than the $ 804 million $ 804.

The Sphere segment recorded sales of $ 169 million for the quarter, an increase of only 1%. The revenue of spher experience is half of the segment and fell by 7%, since the average income per show at 190 services is less Postcard from Earth And V-U2 an urgent concert film. The event turnover of 54 million US dollars was flat with six fewer concerts compared to the previous year, partly by a multi -day takeover of corporate events. The turnover of advertising and sponsorship was 20.3 million US dollars.

Sphere had a loss of business of $ 107.9 million compared to a loss of 35 million US dollars for the MSG segment. The adjusted operating result, which supplements the depreciation, amortization and reduction fees, was -801,000 $ (sphere) and USD 33.7 million (MSG networks).

“I think there is the opportunity to cover the great costs,” said Jim Dolan, CEO of Sphere Entertainment, during the profit in relation to the Sphere segment. “We are becoming more efficient and efficient with content, we are more efficient with the way we do the business, how we plan the shows across the board.”

Steve Cohen, owner of New York Mets, recently added more than 400,000 shares to his position in Sphere Entertainment by his Point72 Asset Management Hedge. It put the billionaire’s share in the ball to 7.3%. Last year Point72 acquired 1.56 million shares in the sphere in the second quarter, which corresponds to a share of 5.5%, and the fund added another 110,000 shares in autumn.

The Sphere shares fell 13.6% to $ 37.69 a day.

(This story was updated in the seventh paragraph to remove Delta Air Lines as a company that organized the takeover and in the last paragraph with the final protocke course of the day.)