Live Nation outperforms – share price soars
Gig booking ticket seller Live Nation reported a stellar first quarter for the year last week, sending its share price up by double-digits. The company saw revenue rise to $1.5 billion – that’s an increase of 19% over the same period in the previous year – and saw an even greater increase in the number of shows it put on. In the first three months of 2018, Live Nation staged 4,900 live events – a 22% rise year on year. And its Ticketmaster division did even better, having its highest-ever selling quarter and shifting almost 60 million tickets.
Live Nation’s share price soared on the back of a strong first quarter
Source: Yahoo Finance
The company’s CEO, Michael Rapino, spoke to the future, saying: “We have now booked enough concerts, sold enough tickets and have enough sponsorship commitments to be confident that we will have a successful 2018, delivering double-digit operating income and AOI growth for the year. We continue to benefit from a global concerts industry that is structurally growing, with strong tailwinds for both supply and demand.”
Here are some more highlights: adjusted operating income rose by 24%, pricing optimization has led to a “double-digit” increase across “amphitheaters, area and stadium tickets” so far this year, and the company expects average spend per fan at amphitheaters to rise by $2.50 over the summer. Rapino says, of this last statistic, that it is a reflection of “enhancing our VIP offerings, adding points of sale and improving product selection”. The company also acquired the Rock in Rio festival during the first three months of 2018, increasing its reach in South America.
Concluding his public statement positively, Rapino reiterated a rosy outlook for the year. He said: “2018 is on track to deliver double-digit operating income and AOI growth along with expected strong gains in revenue, operating cash flow, and free cash flow. Our key leading indicators for our concerts, sponsorship & advertising and ticketing segments are ahead of last year, and we currently expect each of our businesses to deliver record revenue, operating income, and AOI this year.”
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