Live Nation beats the street to deliver a crowd pleaser
Live entertainment specialist Live Nation reported second quarter results this week that topped analysts’ expectations and sent the share price rocketing upwards. At time of writing, the company’s up 54.25%, with 6.7% of that coming after hours on Wednesday.
Live Nation saw net income for the quarter of $81.5 million compared to $37.7 million in the year-ago quarter. That works out as earnings of $0.29 per share this time round, and $0.13 in 2016. Revenue also rose in the second quarter, to a figure of $2.82 billion. According to FactSet, analysts had expected to see revenue of $2.37 billion, and earnings of $0.19 per share.
Live Nation’s share price jumped this week
SOURCE: Yahoo Finance
In a press release, the company made the following statement:
“We extended our position as the leading promoter in the world as we delivered growth across all markets and venue types. We increased attendance in North America and internationally by over 2 million fans each; and arenas, amphitheaters, stadiums, festivals and theaters all increased attendance by double digits. As we attract more fans to concerts, we continue to focus on maximizing the revenue and profitability of each show. This starts with attracting more fans to each show, and during the quarter we increased our average show attendance by 11%, with every venue type delivering higher attendance per show.”
On an earnings call, the company’s CEO, Michael Rapino, said:
“Given the strong performance of our shows to-date and the pipeline of shows for the rest of the year, I expect us to grow our fan base to 80 million this year. And this, with additional fans, I'm confident that we will deliver strong growth in our concerts results, providing the flywheel to grow our sponsorship and ticketing business.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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