Sphere Entertainment Co (SPHR) 2024 Q4 法說會逐字稿

Good morning. Thank you for standing by, and welcome to the Sphere Entertainment Company earnings call for the period ended December 31, 2024. (Operator Instructions). I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.

早安.感謝您的支持，歡迎參加 Sphere Entertainment Company 截至 2024 年 12 月 31 日的收益電話會議。（操作員指令）。現在我想將電話轉給投資者關係部的 Ari Danes。請繼續。

Thank you. Good morning, and welcome to Sphere Entertainment's earnings conference call. Today's call will begin with our Executive Chairman and CEO, Jim Dolan, who will provide an update on Sphere. Robert Langer, our Executive Vice President, Chief Financial Officer and Treasurer, will then review our financial results for the period. After our prepared remarks, we will open up the call for questions.

謝謝。早安，歡迎參加 Sphere Entertainment 的收益電話會議。今天的電話會議將由我們的執行董事長兼首席執行官 Jim Dolan 開始，他將提供有關 Sphere 的最新進展。我們的執行副總裁、財務長兼財務主管羅伯特·蘭格 (Robert Langer) 將審查我們該期間的財務業績。在我們發表準備好的發言後，我們將開始提問。

If you do not have a copy of today's earnings release, it is available in the invention of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties.

如果您沒有今天的收益報告副本，您可以在我們公司網站的發明中找到。請注意以下事項。今天的討論可能包含 1995 年私人證券訴訟改革法案所定義的前瞻性陳述。任何此類前瞻性陳述都不能保證未來的績效或結果，並且涉及可能導致實際結果與前瞻性陳述有重大差異的風險和不確定性。有關風險和不確定性的討論，請參閱本公司向美國證券交易委員會提交的文件。

The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On Pages 5 and 6 of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI, a non-GAAP financial measure.

本公司不承擔更新本次電話會議中可能討論的任何前瞻性陳述的義務。在今天的收益報告的第 5 頁和第 6 頁，我們提供了合併經營報表和營業收入與調整後營業收入或 AOI（非 GAAP 財務指標）的對帳表。

And with that, I'll now turn the call over to Jim.

現在，我將把電話轉給吉姆。

Thank you, Ari, and good morning, everyone. As we begin our calendar 2025, we're focused on a number of core priorities to drive profitable growth. These include developing new productions as we look to build our original content library, showcasing a diverse set of concert residences and other corporate and marquee events, optimizing the go-to-market strategy for the Exosphere and sponsorships and driving operational and cost efficiencies across our business. As you know, another component of our strategy is market expansion.

謝謝你，阿里，大家早安。當我們開始邁入 2025 年時，我們將專注於一些核心優先事項，以推動獲利成長。這些舉措包括在我們尋求建立原創內容庫的同時開發新作品、展示各種音樂會住所和其他企業及大型活動、優化 Exosphere 和贊助的行銷策略以及提高整個業務的營運和成本效率。如您所知，我們策略的另一個組成部分是市場擴張。

In Abu Dhabi, our plans are moving forward. Our team is now working full with our partner, DCT Abu Dhabi in areas that include venue design and preconstruction planning. We are also in discussions with other markets as we pursue our vision for a global network of spheres.

在阿布達比，我們的計畫正在推進。我們的團隊目前正與我們的合作夥伴阿布達比 DCT 展開全面合作，包括場地設計和施工前規劃。在我們追求全球網路願景的過程中，我們也正在與其他市場進行討論。

In Las Vegas, the Sphere experience saw improvements in sell-through and stronger sequential results in December. This reflects our ongoing efforts to refine both our schedule and pricing in order to maximize revenue and enhance the guest experience. The Sphere experience has now generated over $450 million in high-margin revenue.

在拉斯維加斯，Sphere 體驗在 12 月的銷售量有所提升，業績連續表現強勁。這反映了我們不斷努力改進航班時刻表和定價，以實現收入最大化並提升客人體驗。Sphere 體驗現已產生超過 4.5 億美元的高利潤收入。

We continue to make progress on our next experience and look forward to sharing more ahead of its debut this year. We also continue to see interest from a diverse set of ones who want to play the Sphere. Our first country artist, Kenny Chesney, began a 15 show run in May, actually begins the 15th shown in May.

我們將繼續在下一次體驗中取得進展，並期待在今年首次亮相之前分享更多資訊。我們也繼續看到來自不同群體的對玩這個球體的興趣。我們的第一位鄉村歌手肯尼·切斯尼 (Kenny Chesney) 在 5 月開始了 15 場演出，實際上是在 5 月開始了第 15 場演出。

And the Backstreet Boys will start an 18 show residency this summer. In terms of core partners, we saw solid advertising demand for the Exosphere at the end of 2024, which has continued into the new year. Operationally, we have brought our sponsor-driven advertising sales efforts back in-house. And as we build our team, we will also be evaluating our go-to-market strategy for the Exosphere and for our sponsorship assets.

後街男孩將於今年夏天開始 18 場駐場演出。在核心合作夥伴方面，我們看到 2024 年底對 Exosphere 的廣告需求強勁，而這種需求一直持續到新的一年。在營運上，我們已將贊助商驅動的廣告銷售工作重新轉回公司內部。在組建團隊的同時，我們也將評估 Exosphere 和贊助資產的行銷策略。

I'd now like to introduce Robert Langer, our new EVP, Chief Financial Officer and Treasurer; Robert was previously with Disney where he served in a range of financial leadership goals for over 25 years. His finance and strategy experience in Media and Entertainment is an asset to our business, and we're pleased to have him on Board.

現在，我想介紹我們的新任執行副總裁、財務長兼財務主管羅伯特·蘭格 (Robert Langer)；羅伯特曾在迪士尼任職 25 年，擔任過多項財務領導職務。他在媒體和娛樂領域的財務和策略經驗對我們的業務來說是一筆寶貴的財富，我們很高興他能加入我們。

With that, I'll turn the call over to Robert.

說完這些，我會把電話轉給羅伯特。

Thank you, Jim, and good morning, everyone. I'm pleased to join you all here today in my new role at Sphere Entertainment.

謝謝你，吉姆，大家早安。我很高興今天能以 Sphere Entertainment 的新職位與大家相聚。

For the December quarter, we generated total company revenues of $308.3 million and adjusted operating income of $32.9 million. Our CS segment generated revenues of $169 million in an adjusted operating loss of $800,000. These results were primarily driven by our original content category with Sphere experience, which generated $87 million in revenue across 190 shows in the December quarter.

12 月季度，我們公司總營收為 3.083 億美元，調整後營業收入為 3,290 萬美元。我們的CS部門創造了1.69億美元的收入，調整後的營業虧損為80萬美元。這些業績主要得益於我們擁有 Sphere 體驗的原創內容類別，該類別在 12 月季度的 190 場演出中創造了 8,700 萬美元的收入。

Our results already reflected performances from the Eagles as well as five Anima shows at the end of the quarter. In addition, December quarter results included Formula 1 take over for the Las Vegas Grand Prix and additional multi-day corporate takeover, ongoing advertising campaigns on Exosphere and revenues related to our plans to bring the world's second Sphere to Abu Dhabi.

我們的業績已經反映了 Eagles 樂團以及本季末五場 Anima 演出的成績。此外，12 月季度的業績還包括對拉斯維加斯大獎賽的 F1 接管和額外的多日企業接管、在 Exosphere 上持續進行的廣告活動以及與我們將世界第二個 Sphere 帶到阿布扎比的計劃相關的收入。

SG&A expenses for the December quarter were $119 million. This includes the impact of $12.4 million of executive management transition cost and nonrecurring costs related to MSG Networks. Excluding the $4.6 million cash component of executive management transition cost, the Sphere segment would have generated adjusting operating income of $3.8 million.

12 月季度的銷售、一般及行政開支為 1.19 億美元。這包括 1,240 萬美元的高階主管過渡成本和與 MSG Networks 相關的非經常性成本的影響。除去高階主管管理層過渡成本的 460 萬美元現金部分，Sphere 部門將產生 380 萬美元的調整後營業收入。

With respect to the March quarter, I would like to remind you that the Sphere segment benefited from the Super Bodegas last year, which included a record-setting advertising week for the Exosphere. However, and as discussed earlier, we continue to see solid underlying demand for the Exosphere so far this calendar year.

關於三月季度，我想提醒您，Sphere 部門去年受益於 Super Bodegas，其中包括為 Exosphere 創紀錄的廣告週。然而，正如前面所討論的，今年到目前為止，我們仍然看到對外逸層的潛在需求強勁。

Turning to MSG Networks. The segment generated $139.3 million in revenues and $33.7 million in AOI in the December quarter. This compares to the $146.4 million in revenue and $37.3 million in AOI in the prior year period. The decreases in revenue and AOI mainly reflect lower distribution revenue driven by an approximately 11.5% decrease in subscribers, inclusive of the impact of MSG Plus.

轉向 MSG 網路。該部門在 12 月季度創造了 1.393 億美元的收入和 3,370 萬美元的 AOI。相比之下，去年同期的營收為 1.464 億美元，AOI 為 3,730 萬美元。收入和 AOI 的下降主要反映了由於訂閱用戶數量減少約 11.5%（包括 MSG Plus 的影響）而導致的分銷收入下降。

As you know, on January 1, Altice USA dropped MSG Networks from its lineup. However, February 22, MSG Networks reached a new multiyear agreement with Altice that returned its programming to the over 1 million subscribers impacted.

如您所知，1 月 1 日，Altice USA 將 MSG Networks 從其產品線中剔除。然而，2 月 22 日，MSG Networks 與 Altice 達成了一項新的多年期協議，將其節目恢復給受影響的 100 多萬用戶。

In connection with the preparation of our 10-KT filing and in light of the ongoing industry challenges facing MSG Networks, we reassessed the fair market value of the MSG Networks business and recently took a $61.2 million noncash goodwill impairment charge, which you can see in today's operating income results.

在準備我們的 10-KT 文件時，考慮到 MSG Networks 面臨的持續行業挑戰，我們重新評估了 MSG Networks 業務的公平市場價值，並最近計提了 6120 萬美元的非現金商譽減值費用，您可以在今天的營業收入結果中看到這一點。

Turning to balance sheet. As of December 31, we had approximately $502 million of unrestricted cash and cash equivalents, including approximately $104 million at MSG Networks. Our debt balance was approximately $1.36 billion at quarter end.

轉向資產負債表。截至 12 月 31 日，我們擁有約 5.02 億美元的無限現金和現金等價物，其中包括 MSG Networks 的約 1.04 億美元。截至季末，我們的債務餘額約為 13.6 億美元。

This reflected $259 million in convertible debt and a $275 million credit it related to Sphere in Las Vegas. It also reflected approximately $829 million outgoing on the MSG Networks term loan, which, as a reminder, a step that is recourse-only machine networks.

這反映了 2.59 億美元的可轉換債務和與拉斯維加斯 Sphere 相關的 2.75 億美元信貸。它還反映了 MSG Networks 定期貸款約 8.29 億美元的支出，提醒一下，這是僅有追索權的機器網路的一步。

In February, MSG Networks made a principal repayment of $25 million using cash at MSG Networks, bringing total principal outstanding on the term loan to approximately $804 million. As you know MSG Networks is pursuing a refinancing through a workout with its lenders.

2 月份，MSG Networks 使用現金償還了 2,500 萬美元的本金，使定期貸款未償還本金總額達到約 8.04 億美元。如您所知，MSG Networks 正在透過與貸方的合作尋求再融資。

And since October has been in our forbearance period, which currently runs through March '26. Before I conclude, I would like to remind you that we have shifted to a new fiscal ending December 31. This morning, we filed a transition report for the six months period, which ended December 31, 2024. The next full 12 months fiscal year from January 1, 2025, through December 31, 2025.

從十月起，我們就處於寬限期，目前持續到 2026 年 3 月。最後，我想提醒大家，我們已經轉向新的財政年度結束於 12 月 31 日。今天早上，我們提交了截至 2024 年 12 月 31 日的六個月過渡報告。下一個完整的 12 個月財政年度，從 2025 年 1 月 1 日至 2025 年 12 月 31 日。

And with that, we'll now open the call for questions.

現在，我們可以開始提問了。

(Operator Instructions). David Karnovsky, JPMorgan.

（操作員指令）。摩根大通的戴維‧卡諾夫斯基 (David Karnovsky)。

Jim, for the Sphere experience, is there any incremental detail you can give around the planned third show how you plan to launch or market that? And then related to this, just as that new content rolls on, what's your vision in terms of adjusting the overall show count or maybe the availability of post cards in BU2?

吉姆，對於 Sphere 體驗，您能否提供有關計劃中的第三場演出的任何細節，以及您計劃如何推出或行銷它？與此相關，隨著新內容的不斷推出，您對調整整體節目數量或 BU2 中明信片的可用性有何看法？

Thanks, David. Well, I don't want to let the cat out of the bag. I'm going to have to dance around the first part of your question. The new experience, which we will not name, will take advantage of the different features that we built inside the Sphere, more so than anything we've done in the past. So the immersive nature of it but the experiential nature of it will be significantly more and significantly enhanced from the post card experience that we put together.

謝謝，大衛。好吧，我不想洩漏秘密。我必須對你問題的第一部分做出一些解釋。我們不會透露這種新體驗的名稱，它將充分利用我們在 Sphere 內部構建的不同功能，比我們過去所做的任何事情都要多。因此，它的沉浸感和體驗性將比我們整合的明信片體驗更顯著增強。

Let's see, what else can I tell you about it? It will be iconic. The -- we expect to have announcements about it next month or later this month is the -- I guess, it's March. As far as the BU2 goes, that's an interesting product because we -- it is essentially attending the concert without having a band there.

讓我們看看，我還能告訴你什麼？這將是標誌性的。我們預計將於下個月或本月晚些時候發布有關該消息的公告——我想，應該是三月吧。就 BU2 而言，這是一款有趣的產品，因為我們——它本質上是在沒有樂團在場的情況下參加音樂會。

And so the BU2 was the first of those. But we have been recording other bands. And the sort of interesting part about this is it's not expensive at all. In fact, to record a full performance of the band roughly less than $0.5 million. And then there's editing costs, et cetera. So the cost of that product is quite low. And I expect that we'll continue to build up the library with that and you'll be seeing those kinds of experiences for years to come in the Sphere.

BU2 就是其中第一位。但我們一直在錄製其他樂團。有趣的是，它一點也不貴。事實上，錄製樂團的一場完整演出的費用大約不到50萬美元。然後還有編輯費用等等。所以該產品的成本相當低。我希望我們能繼續擴大這個圖書館，在未來的幾年裡，你們會在 Sphere 中看到類似的體驗。

Let's see, what was your -- what was the rest of your question? Or did that cover it?

讓我們看看，您的其餘問題是什麼？或者說這樣就涵蓋了它了？

It was about how the overall kind of show count might change or how we might see maybe the postcard show count change once the new show starts?

這是關於整體演出數量可能會如何變化，或者新演出開始後我們可能會看到明信片演出數量如何變化？

Well, likely is that you'll see a significantly reduced show count for post cards, but it won't go away. And in fact, I expect that move on post cards in Abu Dhabi as well as BU2. It is evergreen products and there's no reason for it to disappear.

嗯，您可能會看到明信片的數量明顯減少，但這種情況不會消失。事實上，我預期阿布達比和 BU2 的明信片上也會有這樣的舉動。它是常青產品，沒有理由讓它消失。

Having said that, that the way that we designed the Spear business is for our competition to occur between concerts, attractions, corporates, et cetera. And of course, the winner is the one who brings us the most amount of AOI. So that's how the decisions will be made.

話雖如此，我們設計 Spear 業務的方式是讓我們的競爭發生在音樂會、景點、企業等之間。當然，獲勝者是為我們帶來最多 AOI 的人。決定就是這樣做出來的。

Brandon Ross, LightShed Partners.

布蘭登‧羅斯 (Brandon Ross)，LightShed Partners。

Jim, on networks, you did get the Altice deal done, but the landscape remains very challenged. In your view, what's the best way to go about fixing your RSN business and setting it up for long-term success? Do license fees need to come down? What's the right capital structure? Or does the industry just need a totally different local rights model?

吉姆，在網路方面，你確實完成了 Altice 交易，但情況仍然十分嚴峻。您認為，修復 RSN 業務並為其長期成功的最佳方法是什麼？許可證費用是否需要降低？什麼是正確的資本結構？或者該行業只是需要一個完全不同的本地權利模式？

Good question. I don't think we know the answer to that question. The -- and I don't think it's a question that's unique to MSG Networks. I think it's a question that really goes through all of the content providers right across the landscape.

好問題。我認為我們不知道這個問題的答案。我不認為這是一個 MSG Networks 獨有的問題。我認為這是全世界所有內容提供者都面臨的問題。

And we're still seeing it, right? I mean, obviously, there's a reduction in cable subscribers, right? There's the launch of the streaming product. But in the end, it comes down to monetization of product and what's the best way to monetize the product.

我們仍然看到它，對嗎？我的意思是，顯然有線電視用戶數量正在減少，對吧？串流媒體產品已經發布。但最終，它還是取決於產品的貨幣化以及產品貨幣化的最佳方法是什麼。

Clearly, the traditional methods which really did a great job of monetizing the product are no longer as viable as they used to be. So we do have to find under way, but I don't think that that's as clear yet.

顯然，那些確實能很好地實現產品貨幣化的傳統方法已經不再像以前那麼可行了。所以我們確實必須找到辦法，但我認為目前還不清楚。

Okay. And then in the prepared, you mentioned your aim to drive cost efficiencies. Could you operate on that? You've been running the business for, what, 18 months now and presumably have a better handle on what the cost structure at the Sphere segment needs to be? Are there opportunities to take cost out at this point?

好的。然後在準備好的時候，您提到了提高成本效率的目標。你能對此進行手術嗎？您已經經營該業務 18 個月了，想必您已經更清楚 Sphere 部門的成本結構應該是什麼樣的了？此時是否有機會降低成本？

Yes. Well, not been -- so I guess it has just about 18 months to the day that. And remember that it's a brand-new business. No one's ever operated a business like this before. So yes, I think there's opportunities to take -- to take costs out. I think actually that you should expect a lot of that this year with an improved bottom line.

是的。嗯，還沒有——所以我想，到今天為止已經有 18 個月了。請記住，這是一項全新的業務。以前從來沒有人經營過這樣的生意。所以是的，我認為有機會降低成本。事實上，我認為今年你應該對這一點抱有很大的期待，因為底線將會有所改善。

And the I think will become -- and are becoming more efficient more efficient with content. We're more efficient with how we operate the business, how we schedule the shows they really across the Board. And so I think that this upcoming year will obviously be our best year yet, but it will reflect a significant change in our efficiency and our results to the bottom line. That's what we're expecting.

我認為，內容將會變得更有效率。我們的業務運作方式、演出安排方式都更有效率。因此我認為，即將到來的一年顯然將是我們迄今為止最好的一年，但這將反映出我們的效率和績效的重大變化。這正是我們所期待的。

Peter Henderson, Bank of America.

美國銀行的彼得‧亨德森 (Peter Henderson)。

Good morning and thanks for taking the question. Two, just on the expansion opportunities, if I may. First, can you provide us with an update regarding the planned Abu Dhabi Sphere, including estimated construction costs when the venue is expected to open et cetera.

早上好，感謝您回答這個問題。二，如果可以的話，我只想談談擴張機會。首先，您能否向我們介紹阿布達比球體規劃的最新情況，包括預計的建造成本、場館預計開放的時間等等。

And then the second one is, I think you mentioned discussions with other markets in your prepared remarks. And just curious if you can provide an update on expansion efforts and whether or not you're considering expanding or currently in discussions to expand domestically?

第二個問題是，我認為您在準備好的發言中提到了與其他市場的討論。我很好奇，您是否可以提供有關擴張計劃的最新進展，以及您是否正在考慮擴張或目前正在討論國內擴張？

All right, I think I'll have a bigger answer as part of that one.

好吧，我想我會對此有一個更詳細的答案。

Maybe I'll take the second part.

也許我會選擇第二部分。

Sure. With respect to Abu Dhabi, we're working very closely with DCT Abu Dhabi, our partner, on venue design and preconstruction planning. We expect to share more details including site location, as you mentioned, an estimated opening timing once DCT has finalized plans, so we're not prepared to do that yet and we need to do that in conjunction with them.

當然。至於阿布達比，我們正與合作夥伴阿布達比文化旅遊部密切合作，進行場館設計與施工前規劃。我們希望在 DCT 最終確定計劃後分享更多細節，包括場地位置（正如您所說）和預計開業時間，因此我們尚未準備好這樣做，但我們需要與他們一起這樣做。

In terms of construction costs, we continue to work with DCT to finalize those plans. Look, we've learned -- and Jim has mentioned this before, we learned a lot during the construction of the Sphere in Las Vegas, and we'll apply that obviously, to those learnings to Abu Dhabi. Most importantly, as a reminder, our partner in Abu Dhabi is fully named the construction project.

在建設成本方面，我們將繼續與 DCT 合作以最終確定這些計劃。看，我們已經學到了——吉姆之前提到過，我們在拉斯維加斯建造球體時學到了很多東西，我們顯然會把這些經驗應用到阿布扎比。最重要的是，提醒一下，我們在阿布達比的合作夥伴已經完全命名了這個建設計畫。

As far as expansion goes beyond Abu Dhabi, we're currently working on the architecture for a smaller Sphere, which we think will be deployable to more markets somewhere in the 5,000-seat range. But we're looking to take advantage of the content we've created already and the business we've created already and bringing it out to other markets. So I anticipate by year-end, we'll have more to say about that. But right now, we're in the planning and design phase.

至於在阿布達比以外的擴張，我們目前正在設計一個規模較小的 Sphere 架構，我們認為它將可以在更多擁有 5,000 個座位的市場部署。但我們希望利用我們已經創建的內容和已經創建的業務，並將其推向其他市場。因此我預計到年底我們將對此有更多討論。但現在，我們正處於規劃和設計階段。

Peter Supino, Wolfe Research.

彼得‧蘇皮諾 (Peter Supino)，沃爾夫研究公司。

A question about the residency business. In the first half of 2025 the Sphere set to host 55 shows. I think there were 37 in the first half of last year. wondering what you've learned that might have allowed you to host more residency shows this year? And then I'll have another one, if you would.

關於居住業務的一個問題。2025 年上半年，Sphere 將舉辦 55 場演出。我認為去年上半年有37個。想知道您學到了什麼可以讓您今年舉辦更多的駐場表演嗎？如果你願意的話，我還想再來一杯。

Sure. I mean the it's really -- I mean we have a desire to do those concepts. And the artist has the desire to play the sphere. And it's driven by a bunch of different factors. Probably one is, most importantly, is the experience that the fans have industry, particularly having to do with the (inaudible) which is really the best sound in the world. So bands value that, which is honestly most bands really want to come and play the Sphere.

當然。我的意思是，我們確實渴望實現這些概念。而藝術家有玩這個領域的願望。這是由多種不同因素引起的。可能其中最重要的一個是粉絲的行業經驗，特別是與（聽不清楚）有關的，這確實是世界上最好的聲音。所以樂團很重視這一點，說實話大多數樂團真的很想來 Sphere 演出。

Now we know that the content costs are high for a band, but they're offset by the fact that it's a residency. So a band that is a touring band has to go to 50 cities. Pay for all the transportation, all of the lighting, everything. Move to place to place. And you compare that cost up against the cost of content, and I actually think content is less expensive. And so the bottom line for the band is they do better. And so that's part of what drives the band.

現在我們知道，對於樂團來說，內容成本很高，但由於它是駐場演出，所以可以抵消這些成本。因此，巡迴演出的樂團必須去 50 個城市。支付所有交通費用、所有照明費用以及一切費用。從一個地方移動到另一個地方。如果你將該成本與內容成本進行比較，我實際上認為內容成本較低。因此，樂團的底線是他們做得更好。這正是推動樂團發展的因素之一。

On the same subject, I wonder if longer term, if the main gating factor to residency and content growth event volumes at even higher levels is the produced content. Is that right? And if so is there an opportunity to make progress on making it easier to make the content?

關於同一主題，我想知道從長遠來看，居住和更高水平的內容增長事件量的主要限制因素是否是製作的內容。是嗎？如果是這樣，是否有機會在使內容製作變得更容易方面取得進展？

Yes and no and yes. The -- I already kind of answered the content question, right? So the -- I mean, I don't really see that as being a big barrier. What I really see as the barrier to more concerts, and it's not -- it's I don't know, barriers the right way. Is this competition is going to continue to go on, right? The new show, like corporates, et cetera, all buying for use days the inside of the Sphere. And so if there's anything that's going to limit concerts, it's probably going to be that.

是也不是，是也不是。——我已經回答過內容問題了，對吧？所以——我的意思是，我並不認為這是一個很大的障礙。我真正看到的是，舉辦更多音樂會的障礙是——我不知道，這不是正確的障礙。這場競爭還會持續下去嗎？新展會，如企業等，都會購買球體內部以供使用。所以，如果有什麼因素會限制音樂會，那很可能就是這個了。

Ben Swinburne, Morgan Stanley.

摩根士丹利的本‧斯威伯恩 (Ben Swinburne)。

Wanted to continue this sort of topic of kind of mix of revenues and sort of optimizing monetization at the Sphere. When you think about the longer-term revenue growth drivers for the business, how do you sort of -- I don't know if you'll rank them for us, but now that you've ramped up the residencies, but you're continuing to invest in experiences, what do you think as we look at the 2024 revenue base really drives the top line for the company on the Sphere side?

想要繼續討論這種有關收入組合和 Sphere 貨幣化優化的話題。當您考慮業務的長期收入成長動力時，您會如何考慮——我不知道您是否會為我們對它們進行排名，但現在您已經增加了駐留時間，但您仍在繼續投資於體驗，當我們展望 2024 年的收入基礎時，您認為什麼真正推動了 Sphere 方面公司的收入增長？

And do you think that the residency -- that answer to that question in Vegas is going to be different for the Abu Dhabi and sort of the network of Sphere over time.

您是否認為，隨著時間的推移，拉斯維加斯對於阿布扎比和 Sphere 網路的居住權——這個問題的答案將有所不同？

Okay. Let's try and parse that question apart. Between Abu Dhabi and Las Vegas, I do not think that Abu Dhabi will be a carbon copy. Las Vegas went up to things like resident seats, et cetera, although I definitely believe there will be residencies in Abu Dhabi.

好的。讓我們試著分析一下這個問題。在阿布達比和拉斯維加斯之間，我不認為阿布達比會是翻版。拉斯維加斯的常駐席位等增加，儘管我相信阿布達比肯定會有常駐席位。

But I think that the content has to be customized to the marketplace. And the marketplace in Abu Dhabi is going to be different probably than the marketplace in Las Vegas. So I think that there will be some differences. The -- I think bottom line, the -- it's going to be just as robust of a product, and Abu Dhabi, it is in Vegas, but probably with a different mix of content. All right. Let's see that. What was the rest of your question?

但我認為內容必須根據市場進行客製化。阿布達比的市場可能與拉斯維加斯的市場有所不同。所以我認為會存在一些差異。我認為最重要的是，它將是一款和阿布達比一樣強大的產品，它在拉斯維加斯，但內容組合可能有所不同。好的。讓我們看看。您的其他問題是什麼？

Basically, just trying to understand how you see Vegas' revenue growth over time? You did over $600 million in calendar '24.

基本上，只是想了解您如何看待拉斯維加斯隨著時間的推移收入的增長？在 24 日曆年，您的收入超過 6 億美元。

So short term, meaning like this year, right, the -- I think that the biggest opportunities are in the operating efficiencies and how well we exploit the marketplace. The nuts and bolts of operating the business. I think that short term is going to provide a boost.

所以短期內，也就是像今年一樣，我認為最大的機會在於營運效率以及我們如何善用市場。經營業務的具體細節。我認為短期內這將會起到促進作用。

Longer term, the -- it's an interesting competition right, about but if I had to pick one, I would probably say that the expansion of more spears is probably my -- one I think will deliver the most. I mean essentially, it's a bit of a franchise model, right? The what we make to play in Las Vegas will play everywhere else.

從長遠來看，這是一場有趣的競爭，但是如果必須選擇一個的話，我可能會說，擴大更多的長矛可能是我認為最有成效的。我的意思是，本質上這有點像是特許經營模式，對吧？我們在拉斯維加斯製作的作品將會在其他地方上映。

So therefore, you get to spread the capital cost out across the base and -- so as far as like the overall business equation goes, I think that problem the best opportunity. But there are plenty of other opportunities that are there and probably some we don't know yet. But that would be my noble one.

因此，你可以將資本成本分攤到整個基礎上——就整體業務方程式而言，我認為這個問題是最好的機會。但還有許多其他機會，有些可能我們還不知道。但那將是我的高貴身分。

That's very helpful. If I could ask a follow-up, maybe to Robert, on the sort of liquidity free cash flow front. Obviously, we'll see how networks plays out here in the next couple of months, but that's still a cash-generating asset for the company today.

這非常有幫助。如果我可以問一個後續問題，也許是問羅伯特，關於流動性自由現金流的問題。顯然，我們將在未來幾個月看到網路如何發展，但這仍然是該公司目前的現金創收資產。

Can you just talk about how we should think about your liquidity position and kind of funding Sphere particularly if we sort of remove networks from the equation as we look at the next year or two?

您能否談談我們應該如何看待您的流動性狀況和融資領域類型，特別是如果我們在未來一兩年內將網路從等式中剔除？

Sure, Ben. As I mentioned kind of earlier in the prepared remarks, we're actually quite comfortable with our liquidity position. We had year-end, we ended the year end with a slightly above $500 million in cash balance, $104 million was at MSG network. So we have $400 million in unrestricted cash and equivalents at the Sphere segment.

當然，本。正如我之前在準備好的演講中提到的，我們對我們的流動性狀況實際上非常滿意。我們有年終獎，年末的現金餘額略高於 5 億美元，其中 1.04 億美元來自 MSG 網路。因此，我們在 Sphere 部門擁有 4 億美元的無限現金和等價物。

As Jim pointed out, we're actually optimistic in regard to both the revenue side kind of for our calendar year this year. Driven by kind of new offerings at the Sphere segment, but all the residence in the Exosphere, which we see on a good track as well as kind of cost initiatives, which we're putting in place, both on the operational side as well as kind of on the overhead side.

正如吉姆指出的那樣，我們實際上對今年的收入方面都持樂觀態度。受到 Sphere 部門的新產品的推動，但 Exosphere 中的所有住宅都處於良好的軌道上，並且我們正在實施成本計劃，包括營運方面和間接費用方面。

So we do believe that we have the potential to drive our adjusted operating income in a meaningful way this year. And this will put us in a great position to invest both short and longer term in content and technology. So kind of overall, we think we are kind of in a very sound position here.

因此，我們確實相信，今年我們有潛力以有意義的方式推動調整後的營業收入。這將使我們在內容和技術的短期和長期投資方面處於有利地位。所以總的來說，我們認為我們目前處於非常有利的地位。

Operator, we have time for one last caller.

接線員，我們還有時間接聽最後一位來電。

Dave Joyce, Seaport Research Partners.

戴夫‧喬伊斯（Dave Joyce），海港研究夥伴。

A couple related to sponsorship. Jim, you alluded to earlier that you brought the sponsorship sales efforts back in-house. But how does that change the go-to-market strategy for the sponsorship and for the Exosphere, if you could drill down on that a bit more. And then also kind of related to that, what are the largest untapped opportunities for sponsorship, including various types of naming rights.

與贊助有關的一對夫婦。吉姆，你之前提到過，你將贊助銷售工作帶回了公司內部。但是，如果您可以更深入地探討一下，這將如何改變贊助商和 Exosphere 的行銷策略。與此相關的是，尚未開發的最大的贊助機會是什麼，包括各種類型的冠名權。

So I'm going to turn that over to my Chief Operating Officer, Jen, who's in charge of making it all work.

所以我將把這個任務交給我的營運長 Jen，她負責讓一切正常運作。

Thank you, David. So as Jim mentioned earlier, we've brought ourselves back in-house, and we're building out that team. So that in combination with a year of learnings under our belt we think we're positioned well for long-term success.

謝謝你，大衛。正如吉姆之前提到的，我們已經將自己帶回公司內部，並且正在組建團隊。因此，結合我們一年來所累積的經驗，我們認為我們已經為長期成功做好了準備。

We really continue to see a lot of solid interest from brands to advertise on the Exosphere. And with all earnings, we're going to take a fresh look at our go-to-market strategy. So we will be looking at adjusting pricing and packaging. We're going to focus on establishing and expanding relationships with CMOs and media agencies directly.

我們確實看到許多品牌對在 Exosphere 上做廣告表現出濃厚的興趣。有了所有的收益，我們將重新審視我們的行銷策略。因此我們將考慮調整價格和包裝。我們將專注於直接建立和擴大與 CMO 和媒體機構的關係。

And we're going to look at more targeted efforts that are aligned with the convention market in Vegas. So it's premature to say, but we are definitely more confident in the upside from here. Let me get your -- you had a second question?

我們將研究與拉斯維加斯會議市場相適應的更有針對性的努力。現在說還為時過早，但我們對目前的上行潛力肯定更有信心。讓我回答一下—您還有第二個問題嗎？

Just what the largest untapped opportunities are, including various types of naming rights.

最大的尚未開發的機會到底是什麼，包括各種類型的命名權。

So we've announced a number of deals already, Verizon, Ticketmaster, Experience Abu Dhabi. There's a lot of opportunity. And in terms of ongoing discussions, the Exosphere is always going to be a big draw when we have those conversations, as well as other premium inventory opportunities like entitlements and integration when we think about the various spaces within that within that beautiful venue.

我們已經宣布了一些合作，包括與 Verizon、Ticketmaster、Experience Abu Dhabi 合作。有很多機會。就正在進行的討論而言，當我們進行這些對話時，Exosphere 始終會具有很大的吸引力，當我們考慮這個美麗場地內的各個空間時，還有其他優質庫存機會，例如權利和整合。

And Sphere is a premium global brand. So we're going to continue to be protective of that brand and thoughtful in terms of who we partnership, partner with from a sponsorship standpoint. Naming rates and the potential there still remains, but I think that's going to be a pretty high bar if we move forward there.

Sphere 是全球高端品牌。因此，我們將繼續保護品牌，並從贊助的角度慎重選擇合作夥伴。命名率和潛力仍然存在，但我認為如果我們繼續前進，這將是一個相當高的標準。

I don't really think, to be honest, that you're going to ever see a name in front of The Sphere. You may see -- right now, you see a name after the Sphere. The -- but I don't think that you'll ever see a name in front of it, just like there's no name in front of Madison square Garden. The value of the brand equity is too high, right, to sacrifice that to a naming opportunity.

老實說，我真的不認為你會在“The Sphere”前面看到一個名字。您可能會看到—現在，您看到的是球體後面的名字。——但是我認為你永遠不會在它前面看到名字，就像麥迪遜廣場花園前面沒有名字一樣。品牌資產的價值太高了，不要為了命名機會而犧牲它。

And that concludes our question-and-answer session. I will now turn the call back over to Ari Danes for closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給阿里·丹尼斯 (Ari Danes)，請他作最後發言。

Thank you all for joining us. We look forward to speaking with you on our next earnings call. Have a good day.

感謝大家加入我們。我們期待在下次財報電話會議上與您交談。祝你有美好的一天。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。