Business was booming at Live Nation in the third quarter. The concert-promotion behemoth saw a 39% jump in profitability to $474m and overall revenue of $7.7b.
Live Nation President/CEO Michael Rapino said it was the company's "most active summer concert season ever," with 144m tickets sold through October (a 3% increase) and double-digit increases in on-site spending per fan at major festivals.
Artists grossed 30% more per show on average when playing the same amphitheaters in 2024 compared to the past two years, which helped offset rising production and logistical costs.
“Our show pipeline has never been bigger, and brand sponsorships are accelerating. While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year," Rapino said. "As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy. Momentum continues to build as we expand the industry’s infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe.”
Live Nation has already sold more than 20m tickets for 2025 tours by Coldplay, Shakira and RÜFÜS DU SOL, and sponsorship commitments are up double digits YOY.
Meanwhile, Ticketmaster posted revenue of $694m and through Q3 sold 238m fee-bearing tickets, which has grown at an 8% compound annual rate since 2019.
On the venue side, Live Nation reopened Estadio GNP in Mexico City and realized a 20% increase in average net per-fan spending there, while Northwell at Jones Beach Amphitheater in Wantagh, New York, has experienced a double-digit jump in food & beverage net per-fan spending.
During the earnings call, Live Nation President Joe Berchtold said the company is "hopeful" that Donald Trump's impending second U.S. presidential administration will mark "a return to the more traditional antitrust approach, where the agencies have generally tried to find ways to solve problems with targeted remedies that minimize government intervention in the marketplace."
Berchtold was referring to the ongoing Justice Department antitrust suit against Live Nation, which seeks to split the company off from concurrently owned Ticketmaster. U.S. Attorney General Merrick Garland previously said, "Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live-events industry."
"Obviously, the request to break up Live Nation and Ticketmaster would be an example of a highly interventionist approach" less common in Republican administrations, Berchtold said.
DANIEL NIGRO:
CRACKING THE CODE The co-writer-producer of the moment, in his own words (12/12a)
| ||
NOW WHAT?
We have no fucking idea.
COUNTRY'S NEWEST DISRUPTOR
Three chords and some truth you may not be ready for.
AI IS ALREADY EATING YOUR LUNCH
The kids can tell the difference... for now.
WHO'S BUYING THE DRINKS?
That's what we'd like to know.
|