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Las Vegas Sphere reports $98.4M loss; CFO quits

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Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#31

Post by glitcher »

t3rabytes wrote: post #3

I gotta be honest, I'm not sure what was expected? They spent $2b building this thing, it's brand new tech, it didn't host many shows last quarter (it was open for 1? full month of the quarter). I still think The Sphere is super damn cool and I can't wait to go to an event there.

Same reaction here. For such a huge investment wouldn't you expect it to take some time before it becomes profitable?

Live shows are only one piece of the puzzle. I really want to go see the "postcard from earth" short film they made especially for the Sphere. The filming required all kinds of specialized camera gear to take full advantage of the resolution and 3d viewing inside, so it's no wonder there isn't going to be an immediate catalog of titles to choose from for selling more tickets.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#32

Post by jeffnappi »

LastTrain wrote: post #23
aplummer wrote: post #10

Earlier quoted context omitted.

Yeah if this was a stock, I’d be buying it today. The thing is great.

It is, which is why they have to report the loss. SPHR - let us know how it goes!

Fascinating, a brand new entity that effectively went public the day it began generating revenue. Are there other examples of this?

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#34

Post by munk-a »

nightski wrote: post #25
munk-a wrote: post #20

Earlier quoted context omitted.

Still, the involvement of ticketmaster will scare off a lot of potential customers - that company is more toxic than saying "Brought to you by Comcast and Bank of America".

Taylor swift used ticketmaster and I'd say her eras tour was quite successful despite it. So I wouldn't blame that as the factor for the Sphere's success or failure even if I dislike the choice.

If Taylor Swift had required fans to register in person at a DMV in a series of three different appointments two weeks apart she still would have sold out - when the demand is that high it becomes a bad data point for comparison.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#35

Post by LastTrain »

toomuchtodo wrote: post #13
aplummer wrote: post #10

Earlier quoted context omitted.

Yeah if this was a stock, I’d be buying it today. The thing is great.

You'd want to wait to be part of recapitalization after a reorg is required. The deal is made on the buy, not buying someone else's bags. EDIT: See gosub100's comment [1]. (not investing advice, educational purposes only) [1] https://news.ycombinator.com/item?id=38206727

I have a feeling this one’s a bit different, the operating costs to keep that ball of one-off technology running have to be insane.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#36

Post by boeingUH60 »

bsenftner wrote: post #24
gosub100 wrote: post #18

The vegas strip is full of real estate stories where a major undertaking flops initially but gets turned around. The stratosphere was built, sold at a huge loss, and then flipped for an enormous profit (I'm sure there's way more to the story that others are aware of). I wouldn't be surprised if the Sphere ends up the same. I'm really excited to see it, it's very cool thinking about the potential for promoting visual…

Something tells me there is a tax avoidance scheme whereby these investments are intentionally engineered failures that generate the financial manipulators shockingly high paybacks.

You're reading too many conspiracy theories. Life is more mundane; investors bet money on grandiose stuff and some of their bets fail.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#38

Post by joezydeco »

jeffnappi wrote: post #32
LastTrain wrote: post #23

Earlier quoted context omitted.

It is, which is why they have to report the loss. SPHR - let us know how it goes!

Fascinating, a brand new entity that effectively went public the day it began generating revenue. Are there other examples of this?

Pixar IPOed a week after Toy Story was released in theatres.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#39

Post by goatforce5 »

lvspiff wrote: post #8

How is this thing not filling nightly with $1000 tickets to Laser Floyd? Vegas has dispensaries - this seems like a no brainer.

I visited Vegas for the first time this year and I enjoyed it way more than I thought I would.

I was surprised to learn that, despite its reputation as a party city, it isn't technically legal to consume cannabis on the Strip. I guess it's in the interests of MGM and Caesars to keep the alcohol flowing, and all of the profit that comes from that.

Re: Las Vegas Sphere reports $98.4M loss; CFO quits

#40

Post by alexstore06 »

extraduder_ire wrote: post #9
t3rabytes wrote: post #3

I gotta be honest, I'm not sure what was expected? They spent $2b building this thing, it's brand new tech, it didn't host many shows last quarter (it was open for 1? full month of the quarter). I still think The Sphere is super damn cool and I can't wait to go to an event there.

The loss seems surprisingly low, considering the cost of building the thing. I don't expect this to end up like Brand-Briesen Airfield, or other massive buildings built and quickly sold at bankruptcy, anytime soon.

I would assume that operating loss wouldn't include the initial cost of building. Could be wrong though.
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