Q2 Report Suggests Live Nation is on Course for Record Breaking Year
Thursday, August 10, 2017
by Taylor Mims | Amplify
The concert promotion giant is on course for another record breaking year.
Live Nation has announced its earnings for the second quarter of 2017 ending on June 30, 2017. The company saw a 29 percent revenue increase over the same quarter last year to hit $2.8 billion with operating income up 53 percent to 113 million and an adjusted operating income up 22 percent to $221 million. Live Nation is also reporting that net cash provided by operating activities increased to $43 million, and free cash flow – adjusted increased to $154 million, up 42 percent.
“2017 is on track to be another year of growth and record results for the company,” Live Nation President and CEO Michael Rapino wrote in the report. “Our key indicators for our businesses — concert tickets sold for shows this year, contracted sponsorship and fee-bearing ticketing GTV — are all pacing double digits ahead of last year and as a result we expect each of our businesses to deliver record revenue, operating income and AOI this year.”
The company boasts its achievements in the concert world, saying they sold over 68 million tickets in the first half of this year, which is a 12 million increase from 2016.
For their concert business, Live Nation has promoted over seven thousand shows for 24 million fans, an increase of 5.5 million fans from the second quarter last year. Arenas, amphitheaters, stadiums, festivals and theaters all increased attendance by double digits and increased their average show attendance by 11 percent, with every venue type delivering higher attendance per show. Rapino added that he expects Live Nation to grow its fan base by 80 million by the end of the year.
With Ticketmaster, the company saw gross transaction value, or GTV, growth on fee-bearing tickets up 8 percent for the quarter. Year-to-date, fee-bearing GTV is up 13 percent, and the past three quarters have been the highest transacted GTV quarters in the company’s history. As a result, Ticketmaster’s revenue for the quarter was up 9 percent.
By further expanding their primary and secondary integration, Ticketmaster was able to increase the number of events it has listed by 35 percent including shows where they were not the primary ticketer.
Since launching Verified Fan earlier this year, they have worked with 50 artists in the United States and Europe to sell over 1 million tickets to true fans, with a dramatic reduction in these tickets then being sold on secondary sites.
Rapino said, “Our Ticketmaster results are validating our dual strategy of delivering an effective marketplace for fans to buy tickets while providing a great software solution to venues, teams and artists looking to maximize the value of their events. By continuing to do so effectively, I expect us to again deliver high-single-digit growth in ticketing operating income and AOI this year.”
The company also delivered growth in sponsorship and branding with revenue up 31 percent, operating income up 19 percent, and AOI up 21 percent.