Live Nation posts eighth record year of results
Market leading live entertainment specialist Live Nation has posted its eighth year of record-breaking results for revenue, demonstrating that there is an increasing demand for live entertainment around the world. The company is best known for (and by far does the most business in) musical events, like gigs and festivals. But Live Nation has been expanding into other forms of live event too. Last year, it announced a speaking tour with Bill and Hillary Clinton, and just a few days ago, news broke that the company would be putting on the debate between two leading (and controversial) public intellectuals: Slavoj Zizek and Jordan Peterson.
Live Nation’s share price has risen by 27% so far this year
Source: Yahoo Finance
Live Nation said that 93 million people attended its concerts and other events last year. That’s an 8% rise against the previous year. As a result, revenue soared by 11% (also reported year on year) to $10.8 billion – a new high. Operating income rose by 61%, AOI increased by 22%, and sponsorship and advertising revenue rose by 13%, when compared with 2017. Speaking to that last figure, the company’s CEO, Michael Rapino, said: “Our top strategic sponsors have been a key driver of this growth, with 75 sponsors collectively spending over $350 million to reach our fans, up 11% over 2017.”
The company’s other businesses are also performing strongly, with ticketing revenue increasing 14% year on year, and Live Nation’s new film and television division knocking it out of the park with blockbuster “A Star is Born” starring Bradley Cooper and Lady Gaga. Rapino said: “We’re thrilled with this division, we have scale, artist relationships and great stories to tell. We’ve got 10-15 projects in the pipeline, so we think that division is a much higher-margin business than the concerts space but it ultimately is a great marketing platform for our artists and our shows and our [company].”
Concluding his prepared statement with no ambiguity for the future, Rapino said: “In 2019, I expect us to further extend our global concerts position while enhancing our on-site hospitality business and capturing additional pricing opportunities. We believe that the combination of macro trends and our demonstrated ability to execute are strong indicators of our capability to continue to grow the business for many years to come.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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