Live Nation Q2 Report: It’s A GREAT Time To Be A Major Concert Promoter
Live Nation Entertainment has released its latest financial report showing continued strong revenue growth for the second fiscal quarter and first six months of 2019. Live Nation stock rose 2.34% in after-hours trading Thursday.
The company recorded overall revenue of $3.157 billion for the quarter, up by 10% from the previous year’s Q2 results. Operating income improved by 27% for the quarter, while adjusted operating income improved by 23%.
Live Nation’s concert division reported 11% for the quarter, with 27 million fans attending 10,000 shows during the three month period. Ticket sales and attendance are both up by 7% and 9%, respectively, from the previous year, making for the concert division’s best second quarter ever.
“We continue to benefit from a strong tailwind in the live event, experience-based economy of today. The global ticket revenue from our concerts is up 16% for the first half of the year, as we continue to see a strong supply of artists touring matched with global consumer demand. And within this, the ticket revenue from concerts outside our top 100 artists is up 32% so far this year, demonstrating that the demand for live music is strong and growing from the largest stadiums to the local clubs,” said Live Nation Chairman & CEO Michael Rapino.
Live Nation’s Ticketmaster division also reported its highest second-quarter gross transaction value, with revenue increasing by 6% for the quarter along with income, which was up 31%, and AOI improved by 20% for the quarter.
“The addition of major clients such as Evenko in Canada, Chase Center in the U.S., the O2 in Prague, and 150 others worldwide further validates that Ticketmaster is content’s choice as the most effective ticketing platform in the world, with leading technology to service venues, sports teams and artists, and with an efficient marketplace that attracts and converts ticket buyers. Our industry-leading digital ticketing rollout is ahead of schedule, with Presence now expected to be installed at over 600 venues in the U.S. this year, including over 80% of major sports buildings and Live Nation amphitheaters,” Rapino said.
Live Nation’s sponsorship and advertising operation saw a banner quarter as well, with operating income up by 14%, AOI by 12% and revenue by 8% for the quarter.
“Our sponsorship business leverages our platform of nearly 100 million fans, providing brands a unique opportunity to connect directly with music fans at scale. By continuing to attract new brand partners and expand relationships with existing ones, we grew operating income by 14%, AOI by 12% and revenue by 8% for the quarter,” Rapino said.
