Sphere Entertainment Co (NYSE:SPHR) shares rose in early Friday trading following a bad week for the company after its recently-opened iconic Sphere venue in Las Vegas reported a $98.4 million first-quarter operating loss and its chief financial officer quit.
In a filing with the Securities and Exchange Commission, the company announced Gautam Ranji’s resignation, saying it was “not a result of any disagreement with the company’s independent auditors or any member of management on any matter of accounting principles or practices, financial statement disclosure or internal controls.”
However, the New York Post reported that Ranji’s departure followed an angry bout of “yelling and screaming” from the company’s CEO and executive chairman, James Dolan.
For the quarter to September 30, 2023, the company reported a 4.1% decline in total revenues to $118 million and a total operating loss of $69.8 million on the back of a $98.4 million loss at Sphere.
MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, reported operating income of $28.7 million.
Diluted earnings per share improved to $1.89 from a $1.30 loss a year earlier.
“Sphere’s opening in Las Vegas in September represented a significant milestone, generating worldwide attention and marking the beginning of a new chapter for our company,” Dolan commented in a November 8 statement.
“We are building positive momentum across Sphere and remain confident that we are well positioned to drive long-term value for shareholders.”
Sphere’s shares were up 1.7% at $34.83 in late morning trade in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com