Triumphant return to concerts sees Live Nation report third quarter net income of $ 46.9 million; Stocks soar 13%
Driven by festivals, pent-up fan demand and robust ancillary revenue, Live Nation beat Wall Street expectations and reported third-quarter net income of $ 46.9 million, or 19 cents per share, reversing a loss of $ 528.9 million, or $ 2.45 per share. part a year ago when it released its third quarter 2021 financial reports on November 4.
The stock market reacted. Shares of Live Nation climbed 13% to $ 121.92 after-hours trading on November 4 and continued to rise the next day. – hitting a high of $ 127.75 per share before settling at $ 123.88 at the end of trading on November 5.
The soaring share price is nice, but doesn’t tell the story of what happened in the last quarter or even the year. Live Nation reported positive operating income ($ 137 million) and adjusted operating income (306 million) for the first time in two years, said Live Nation President and CEO Michael Rapino , in a press release.
Live Nation reported third quarter net income of $ 46.9 million, or 19 cents per share, offsetting a loss of $ 528.9 million, or $ 2.45 per share from a year ago.
âRevenues increased nearly 15-fold to $ 2.7 billion from $ 184 million a year earlier. The latest figure blew the FactSet analyst consensus of $ 1.92 billion, âRapino wrote. âThe 2021 summer concert season has rebounded quickly, with 17 million fans attending our shows in the quarter as the live comeback reflected huge pent-up demand.
âFestivals have been a big part of our comeback this summer, with many of our festivals selling out in record time and overall ticket sales for major festivals are up 10% from 2019. And we have already had a number of tours that have already sold over 500,000 tickets to shows this year, including sold-out tours by Harry Styles, Chris Stapleton and others.
Live Nation reports that fans have spent money at record levels, with on-site spend per fan up more than 20% at amphitheatres and festivals compared to 2019 – which everyone agreed was in itself a pivotal year for live music.
Rapino addressed the challenges of exiting an ever-dangerous pandemic, noting that vaccination and testing protocols have not negatively impacted ticket sales, none of his events have contributed to flare-ups infection, and even the much-touted staff shortages in many employment sectors did not materialize at Live National Events.
âWe achieved these results in an operating environment that required us to accelerate quickly, institute new health and safety protocols and staff our front line in a tight labor market,â said Rapino. âOn the health and safety front, we’ve set the industry standard by requiring proof of vaccine or testing for our shows, with no change in fan buying behavior. Most importantly, our protocols have proven to be effective in mitigating major disruption of COVID in our operations in the US and UK and have allowed us to work collaboratively with local health authorities to mitigate the risks of transmitting our events. In terms of manpower, we were able to meet the staffing needs for our peak outdoor season without any disruption to the show. “
Ticketmaster also had its highest quarter of operations and AOI in history, reports Live Nation, led by the restart of sports leagues and increased concert sales in 2022.
Sponsorship and advertising also rebounded, generating more than $ 100 million in operating and AOI revenue.
âAs we look to 2022, we are encouraged by all of our leading metrics in every business. Until October, our confirmed number of shows in amphitheatres, arenas and stadiums is up double digits from the same period in 2019 for shows in 2020, and until mid-October we have already sold 22 million tickets for our shows in 2022. Demand has been stronger than ever for many of these sales with one million tickets sold for each Coldplay and Red Hot Chili Peppers tour, and several other tours already selling over 500,000 tickets. Rapino said.
âAs we get closer to turning the page 2021, I remain more convinced than ever of the power and potential of performing arts, and the strength of our position. No industry has been more affected by the pandemic in the past two years, and no industry has so proven its sustainability of demand in the face of such a disruption.
âI expect that we will continue to have obstacles on the road in the months to come, and it will take some time for international artists to tour on a truly global basis, but the fundamental strength of live entertainment and Live Nation has a proven track record, and I expect us to continue to grow from here.