Do Millennials love concerts? Check out Live Nation’s results
It is well known that Millennials are all about experiences, not things. And ticket seller Live Nation’s latest set of quarterly earnings demonstrates how true that is of concerts. The company’s earnings and revenue beat Wall Street estimates, and it saw revenue growth in concerts, advertising, and ticketing. Live Nation also said that the drivers of this growth – Millennials obsession with live music events – remain strong beyond the first quarter: bookings through April have risen by 10% against April 2016, and the number of tickets sold has risen by 25%. That’s 46 million tickets to some of the world’s premier live music events.
Live Nation’s share price is up 30% so far this year
SOURCE: Yahoo Finance
The strength of Live Nation’s results caused the share price to rise by 8.8% last Friday, and the company’s management was eager to discuss some of the success it was having in previously weak areas of the business. Live Nation’s CEO, Michael Rapino, told analysts on the earnings call that its resale ticket business – a rival to eBay’s StubHub – was making significant inroads: “Ticketmaster historically was late to this party, but the pie has been getting bigger, and we’ve been increasing our market share continually.”
Rapino also believes that Millennials’ preference for experiences is creating “tailwinds” for the concert industry, as they choose to go out to live events over staying in listening to records. He said:
“Artists are touring now more than ever as live is their primary source of income. And on the demand side, between the Millennial shifting of spend to experiences and the globalization of artists on social media, we see continued long-term growth as fans attend more concerts.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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