Live Nation reports “best quarter ever”
For Live Nation, the market leading live music and entertainment promoter, November started with a bang. The company has just reported its “best ever” quarter, bringing in record revenues for the three-month period, and stating that it’s now on track to sell as many as 90 million tickets this year. That’s an incredible level of attendance, and it translates directly into strong metrics across the board.
Live Nation’s share price has appreciated by 27% so far this year
Source: Yahoo Finance
The company broke its own revenue records in the three months ending September. Live Nation reported an 11% rise, year on year, to $3.8 billion, as it brought its number of tickets sold over the full 9 months of 2018 so far to an incredible 85 million. Looking to the rest of the year, Live Nation says it now expects to sell 90 million tickets for the full year.
This increase in sales and attendance is direct proof that the company’s core business is outperforming. In the nine months that ended September 30, Live Nation has seen 71 million fans attend 24,000 shows in 40 countries. That’s an increase of 8% against the first nine months of 2017. That’s also great news for its on-site, ticketing, and sponsorship businesses.
Concerts remain Live Nation’s main draw, bringing in the overwhelming majority of its revenue (this quarter, $3.3 billion). But its much smaller sponsorship business is an important element in future growth. Speaking to that fact, the company said that it now has 1,000 sponsors across its on-site and online platforms – and for 2018 so far, sponsorship net revenue has increased by 12% against the comparable period. Revenue from concerts, similarly, saw a 12% year on year rise over the first nine months of the year.
Michael Rapino, Live Nation’s president and CEO, made the following comment: “As we approach the end of 2018, we are confident that our strong performance will deliver another record year of results. All of our businesses — concerts, sponsorship and ticketing — have delivered growth year-to-date through September, and based on their key operating metrics, we expect each to deliver record revenue, operating income, and AOI for the full year. As we look forward, we see tremendous opportunities to continue the global expansion of our concerts and ticketing businesses, and for further growth in sponsorship and ticketing from the concerts flywheel.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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