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Live Nation Returns to Profit With Summer Concert Season
Live Nation Returns to Profit With Summer Concert Season
05 Nov 2021, 03:04 AM IST
(Bloomberg) -- Live Nation Entertainment Inc., the world’s largest concert promoter, returned to profit last quarter after about two years of losses, citing the return of summer shows following Covid-19 lockdowns.
(Bloomberg) -- Live Nation Entertainment Inc., the world’s largest concert promoter, returned to profit last quarter after about two years of losses, citing the return of summer shows following Covid-19 lockdowns.
- Adjusted operating income amounted to $305.7 million in the third quarter, Live Nation said Thursday, rebounding from a $319.2 million loss a year earlier. Analysts were forecasting $204.9 million. Revenue soared to $2.7 billion, compared with Wall Street estimates of $2.12 billion.
- See details here.
Key Insights
- The company, which counts media billionaire John Malone’s Liberty Media as a major investor, was all but shut down a year ago. It registered just $184 million in revenue. That all changed with the easing of Covid-19 restrictions and the return of summer music festivals. The company is now selling out its events faster than ever.
- Higher ticket prices account for much of the growth. The company is selling more premium tickets and raising prices for its VIP tickets. Amphitheater shows and major festivals fetched double-digit increases from 2019. Spending per-fan on food, drink and merchandise increased more than 20% over levels two years ago.
- The U.S. and U.K. are the major markets where business is back. Live music won’t return to Latin America or Asia until the middle of next year.
- The Ticketmaster business delivered its highest profit ever and overall ticket sales to major shows were up 10% from prepandemic levels in 2019. Ticket sales are a leading indicator of future concert revenue. Live Nation projects concertgoing will return to prepandemic levels in 2022.
Market Reaction
- Live Nation fluctuated between gains and losses in extended trading after the results were announced. The stock was up 46% this year through the close Thursday in New York after trading at a record high.
Get More
- See the estimates here.
- Read the statement here.
©2021 Bloomberg L.P.
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