Logan Angress

Logan Angress asked about the potential for cannibalization or competition between Spheres in a broader franchise rollout, specifically if a future East Coast franchisee would be concerned about demand competition from the newly announced National Harbor Sphere.

Answer

Executive Chairman and CEO Jim Dolan expressed no concern about cannibalization, highlighting the vast global and domestic market opportunities. He cited Las Vegas's approximately 4 million annual attendees and National Harbor's 15 million annual visitors, suggesting that individual markets are large enough to support multiple Spheres without significant competitive overlap.

Logan Ang, on behalf of Peter Supino, questioned the potential for cannibalization or competition between Spheres in the context of a broader franchise rollout, specifically whether a potential East Coast franchisee would be concerned about competing with the newly announced National Harbor Sphere for demand.

Answer

James Dolan, Executive Chairman and CEO of Sphere Entertainment, expressed no concern about cannibalization, citing the vast market opportunity and high annual visitor numbers in target locations, such as National Harbor's 15 million annual visitors. He believes that individual markets can sustain demand without one Sphere negatively impacting another, noting the Las Vegas Sphere's total attendance is around 4 million.

Logan Angress, on behalf of Peter Supino, asked if it's fair to assume continued double-digit AOI growth in 2026, given strong leading indicators, or if there are any mitigating factors to consider, referencing the company's reiteration of long-term AOI compounding expectations.

Answer

Joe Berchtold, President and CFO, stated there are no mitigating factors, but the company traditionally defers specific 2026 guidance until February, when full data is available. He emphasized that current leading indicators—such as the show pipeline, tickets sold, committed sponsorships, and deferred revenue—are extremely positive. Michael Rapino, CEO and President, added that the business has incredible global growth ahead, mirroring its historical performance.

Logan Angress noted Live Nation's reiteration of long-term AOI compounding but absence of specific 2026 guidance. Given strong leading indicators, he asked if double-digit AOI growth is a fair assumption for next year or if there are mitigating factors.

Answer

President and CFO Joe Berchtold stated there are no mitigating factors, but Live Nation traditionally provides full-year guidance in February after the year has started. He highlighted extremely positive leading indicators, including the show pipeline, tickets sold, committed sponsorship, and deferred revenue. CEO and President Michael Rapino reiterated that the business has incredible global growth ahead, expected to mirror its historical performance.

The analyst inquired about demand drivers for the teams, specifically which revenue streams are seeing the most benefit, and asked for details on the cost forecast and the relationship between revenue and cost growth for the year.

Answer

The company is seeing strong demand across all key areas, with a 94% season ticket renewal rate, record suite revenues, and a nearly 10% increase in per capita spending on merchandise and concessions. While robust revenue growth is expected to continue, AOI will be impacted by higher team operating costs, including increased salary caps and revenue-sharing expenses.