Live Nation sees strong fourth quarter
Live Nation, seller of tickets to concerts and other premier events, reported fourth quarter earnings for 2016 last week. Despite traditionally being the slowest quarter of the year for concerts, the company showed solid performance figures. Ticket sales rose by 9%, and revenue climbed by 4% to $179.8 million against 4Q2015.
For the year, revenue rose 15% to $8.4 billion from 2015. Adjusted operating income was up by 48% to $195 million, concert attendance rose by 12%, and sponsorship and advertising revenue climbed by 13%, all against the previous year. This marks Live Nations sixth consecutive year of record results.
Speaking to both the results released, and the strength of Live Nation’s business model, CEO Michael Rapino said:
“Live is truly a unique entertainment form that cannot be duplicated and creates lifetime memories that fans today are craving more than ever in this experienced economy. We believe the live business will continue to have strong growth for years to come as fans drive demand, artists are motivated to tour, and technology drives conversion.”
Drivers of the business last year include the more than 7 million live music fans it added in 2016 and an average 5% rise in ticket prices.
“Our success in 2016 reaffirms that Live Nation has created an unparalleled live platform, bringing 550 million fans in 40 countries to those unrivaled 2-hour events each year. The live business continues to have a strong growth opportunity with artists touring as their primary source of income and using concerts as the best way to engage and connect with their fans.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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