Shares of Sphere Entertainment Co. rose 22.3% this week after the company's fourth-quarter earnings on Wednesday (Aug. 14) showed the Las Vegas venue brought in $151 million in the quarter and $489 million in its first three full quarters. Total revenue of $273 million – a number that includes MSG Networks – was in line with analysts' estimates, while earnings per share beat estimates.
During Wednesday's earnings call, CEO James Dolan he said the company is learning how to make the most of the $2.3 billion venue not only with concerts, but with corporate and sporting events and the Sphere's current cash cows, motion pictures. “Our plan for the Sphere is to create widespread demand for our offerings and promote usage far beyond traditional venues,” Dolan said.
After hosting residencies from U2, Phish and Dead & Company, Sphere will kick off a series of concerts from the Eagles from September to November and host the first EDM events in December with Italian producer Anyma. Dolan did not elaborate on additional residencies, but said he expects an artist in the “country category” in 2025.
LiveOne shares are up 16.3% this week after the Los Angeles-based music streamer reported first-quarter earnings on Tuesday (August 13). A 29% increase in paid members, to 653,000, helped revenue improve 19% to $33.1 million from $27.8 million in the prior period. Adjusted earnings before interest, taxes, depreciation and amortization rose 31% to $2.9 million.
The Billboard 20 Global Music Index (BGMI) fell 0.7 percent to 1,780.54 despite most stocks gaining and the market enjoying one of its best weeks of 2024 thanks to a slew of positive news. Driven by stronger-than-expected retail sales data on Thursday (Aug 15) and encouraging inflation news earlier in the week, tech heavyweight Nasdaq rose 5.3% to 17,631.72 and the S&P 500 finished best week of the year, gaining 3.9% to 5,524.25.
BGMI's biggest companies fell in the middle of the pack. Live Nation shares rose 3.2 percent to $95.18 and Universal Music Group rose 0.9 percent to 22.35 euros ($24.66). Among the losers were Warner Music Group down 0.4% to $28.22 and Spotify down 0.7% to $337.38.
Stock gains were seen globally. In the UK, the FTSE 100 rose 1.8% to 8,311.41. South Korea's KOSPI composite jumped 4.2 percent to 2,697.20. China's Shanghai Composite rose 0.6 percent to 2,879.43.
Tencent Music Entertainment ( TME ) fell 18.8% this week after releasing second-quarter earnings on Tuesday (Aug 13). TME's revenue was 1.7% lower as gains in music were overshadowed by losses in social entertainment. Despite the sharp drop, TME shares are still up 16.9% year-to-date.
TME's latest quarterly results were no different from those before it, with strong growth in music subscriptions to music apps QQ Music, Kugou Music and Kuwo Music helping to offset the decline in the karaoke industry. While average music revenue per user rose 10% and TME ended the quarter with 117 million music subscribers, the company's weak guidance on future subscriber growth likely sent its stock price down.
JYP Entertainment's 11.3% drop following its second-quarter earnings results marked the second-worst performance for BGMI shares. The K-pop label's revenue fell 37% due to an 82% drop in album sales. Other K-pop companies saw lighter declines: HYBE fell 3.4%, SM Entertainment fell 3.8%, and YG Entertainment dropped 1.3%. These losses deepened the already significant losses of K-pop companies in 2024. Year to date, the four South Korean companies have lost an average of 34.8%, while the KOSPI composite index has risen 1.6%.
