Sphere Entertainment Co.

Good morning. Thank you for standing by and welcome to the Sphere Entertainment Company fiscal 2023 fourth quarter and year-end earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Ari Daines, Investor Relations. Please go ahead.

Thank you. Good morning and welcome to Sphere Entertainment's fiscal 2023 fourth quarter earnings conference call. Today's earnings call will begin with our Executive Chairman and CEO, Jim Dolan, who will provide an update on Sphere. This will be followed by an update from Andrea Greenberg, President and CEO of MSG Networks. And then Gautam Ranji, our Executive Vice President, Chief Financial Officer and Treasurer, will conclude with a review of our financial results for the period. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the investor section 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. 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. And with that, I'll now turn the call over to Jim.

Thank you, Ari, and good morning, everyone. I am pleased to be here today as we embark on our next chapter as a leading live entertainment media and technology company. We've recently completed a number of important transactions, starting with the two-thirds spinoff of MSG Entertainment, which was finalized in April. This was followed in May by the sale of our majority interest in Tao Group Hospitality. And in June, we sold approximately 40% of our retained equity interest in MSG Entertainment. These transactions have supported our growth plans for Sphere, a next generation entertainment medium that we believe will disrupt the traditional venue model. We remain on track to open our first Sphere in Las Vegas at the end of September. And I'd like to share our progress towards that highly anticipated opening. In June, we finished primary construction of the venue and are currently putting the finishing touches on the interior spaces as well as the exterior grounds. And this month, we completed installation and testing of the majority of the technological systems inside the venue. That includes our next generation immersive technologies such as our interior display plane, Sphere Immersive Sound, an advanced concert-grade audio system, and 4D multisensory technologies that enable effects such as vibration, wind, scent, and changing temperatures. Taken together, these technologies will engage the senses and enable a fully immersive experience. This is essentially a new medium, which we call experiential. While it takes some time to reach its full potential, we have designed SPHERE to be busy 365 days a year with multiple events per day. On October 6th, we will debut the SPHERE experience. The SPHERE experience will come in two parts. The first part consists of a series of exhibits that chronicle technology's impact on the development of human potential. It will begin with a replica of Gutenberg's printing press and take you through the creation of a metaverse and the development of AI. The visitor will be guided through this experience by animatronic robots that will utilize holographs, beam-forming sound, and a 50-foot translucent video wall. It will then continue in the main venue bowl, where guests will be fully immersed in a multisensory cinematic journey from Academy Award-nominated director Darren Aronofsky. And with more than 40 million visitors annually, and over 2 million local residents, Las Vegas is the ideal market to debut this unique content. In addition to the Sphere experience, we plan to host a wide variety of event types, including concert residencies. As you likely are aware, global rock band U2 will open the venue on September 29th with the first of their 25 shows. We expect to announce additional residency shortly, which are slated to take place later this fiscal year. SPHERE will also host marquee sporting events as well as corporate events with our first taking place in November with Formula One's inaugural Las Vegas Grand Prix. F1 will have a multi-day takeover of SPHERE's exterior and interior as well as feature SPHERE prominently as part of the track. This will be a high-profile opportunity to showcase the venue to the millions of race fans watching around the world. Our event schedule through the remainder of the calendar year is now in place, and we look forward to sharing more on calendar 24 in the coming months. Another significant opportunity is advertising and sponsorship, led by Sphere's exterior, the Exosphere. Last month, the Exosphere's capabilities were unveiled in a July 4th show that lit up the skyline. It featured a range of dynamic content that generated media coverage across the world and was shared widely on social media. To date, our estimated total reach is over 5 billion, a number that will continue to grow as we increase our engagement with audiences through new announcements and creative content. Following our demonstration of the exosphere's capabilities, We've seen a significant increase in inbound interest from potential advertisers and marketing partners. In terms of premium hospitality offerings, Sphere in Las Vegas will have 23 VIP suites, as well as other unique hospitality spaces. We expect to license a number of these suites in multi-year agreements and are making progress towards this goal. In summary, Sphere is brand new, never-before-seen medium. and we believe it will take the world by storm. We are excited for next month's opening in Las Vegas of what we hope is the first of many Spheres. You should not expect the venue to reach its full economic potential right from the start, but we're confident that we will get there over time as guests, artists, advertisers, and sponsors experience Spheres and all of its unique capabilities. And with that, I will now turn the call over to Andrea.