Live Nation breaks records with first quarter results and adjusted operating profit of $209 million

Live Nation: Business is booming

LIVE NATION ENTERTAINMENT broke records in its first quarter 2022 earnings report. With the pandemic lifted, the company sold more than 70 million tickets to shows in the calendar year.

CEO/President MICHAEL RAPINO pointed to operating profit of $27 million and adjusted operating profit of $209 million for the quarter, beating the company’s pandemic year of 2021 during which they recorded a loss of $303.2 million in operating profit. This is the highest adjusted operating profit ever for the company, surpassing the first quarter of 2019 by $94 million.

LIVE NATION reported total revenue of $1.803 billion in the quarter, including $480.4 million from ticket sales.

“Artists are back on the road and fan demand has never been higher, which shows that live events remain a clear priority for consumers as our social life restarts,” RAPINO said. “TICKETMASTER’s strong performance in the first quarter boosted the company’s overall profitability and shows how well-positioned our concert and sponsorship businesses are to generate record results this year.”

Not only has fan demand skyrocketed, but the signing of new TICKETMASTER contracts has also increased, leading to increased ticket sales,..

Sponsorships are coming back quickly after drying up during the pandemic, well past the last “normal” year of 2019.

RAPINO added, “We are seeing growth in several dimensions: expanding existing relationships, new categories expanding our range of partners, and new ad units created both on-site and online.

“The number of strategic sponsors that have generated more than $1 million in revenue per year has increased by nearly 30% since 2019, with their incurred spend increasing by 70% and representing 80% of our total sponsorship revenue. Approximately 60% of this growth has come from three particularly prioritized categories over the past two years – technology, telecoms and buyer journey integration – which have collectively more than doubled their sponsorship since 2019.”

RAPINO says all signs point to double-digit concert attendance growth in 2022, compared to the last comparable year in 2019.

With more than 70 million tickets already sold for 2022 shows, volume is up 36% from this point in 2019 and the number of committed shows is up 44% through the end of April compared to 2019. No-shows, which were a concern in 2021, are generally at an average number in 2022.

Per capita spending is also healthy, with average incomes up 30% from the first quarter of 2019.

“Concert fans show no signs of slowing down – they’re paying more for better tickets, attending shows and spending more on-site as they create lasting memories,” RAPINO added.

“I continue to expect this to be the start of our run. The global addressable market for concerts, box office and sponsorship all offer a long avenue for continued growth. We already have over 60 tours under discussion. for 2023 – our first indicator for next year and excellent positioning for continued growth.

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