Shares of Sphere Entertainment Co. rose 22.3% this week after the company’s fourth-quarter results on Wednesday (Aug. 14) showed the Las Vegas theater brought in $151 million in the quarter and $489 million in the first three full quarters. Total revenue of $273 million — a figure that includes MSG Networks — was in line with analysts’ estimates, while earnings per share beat estimates.
During the conference call on Wednesday, the CEO said James Dolan said the company is trying to make the most of the $2.3 billion venue, not just with concerts, but also with corporate and sporting events and Sphere’s current cash cow, movies. “Our plan for Sphere is to create broad demand for our offerings and drive occupancy well beyond traditional venues,” Dolan said.
Following performances by U2, Phish and Dead & Company, Sphere will host a series of Eagles concerts from September to November and will host its first EDM events with Italian producer Anyma in December. Dolan did not specify any further performances, but said he could expect an artist in the “country category” in 2025.
LiveOne shares rose 16.3% this week after the Los Angeles-based music streamer reported its first-quarter results on Tuesday (Aug. 13). A 29% increase in paying members to 653,000 helped drive revenue up 19% to $33.1 million from $27.8 million in the year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization rose 31% to $2.9 million.
The 20-company Billboard Global Music Index (BGMI) fell 0.7% to 1,780.54, although most stocks gained and the market enjoyed one of its best weeks of 2024 thanks to a slew of positive news. Boosted by stronger-than-expected retail sales data on Thursday (Aug. 15) and encouraging inflation news earlier in the week, the tech-heavy Nasdaq rose 5.3% to 17,631.72 and the S&P 500 ended its best week of the year, up 3.9% to 5,524.25.
The BGMI’s largest companies landed 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). Losers included Warner Music Group, down 0.4 percent to $28.22, and Spotify, down 0.7 percent to $337.38.
Stock prices rose around the world. In the UK, the FTSE 100 rose 1.8% to 8,311.41. South Korea’s KOSPI Composite Index jumped 4.2% to 2,697.20. China’s Shanghai Composite Index rose 0.6% to 2,879.43.
Tencent Music Entertainment (TME) fell 18.8% this week after reporting second-quarter results on Tuesday (August 13). TME’s revenue fell 1.7% as gains in the music division were overshadowed by losses in the social entertainment division. Despite the sharp decline, TME shares are still up 16.9% year-to-date.
TME’s latest quarterly results were no different from last year’s. Strong growth in music subscriptions on music apps QQ Music, Kugou Music and Kuwo Music helped offset a decline in the karaoke business. While average music revenue per user rose 10% and TME ended the quarter with 117 million music subscribers, the company’s weak forecasts for future subscriber growth are likely to send the share price lower.
JYP Entertainment’s 11.3% drop following its second-quarter results was the second-worst performance of BGMI stocks. The K-pop company’s revenue fell 37% as album sales fell 82%. Other K-pop companies saw smaller declines: HYBE fell 3.4%, SM Entertainment fell 3.8% and YG Entertainment fell 1.3%. These losses further exacerbated the already significant losses for K-pop companies in 2024. Year-to-date, the four South Korean companies have lost an average of 34.8%, while the overall KOSPI index has gained 1.6%.
