Live Nation sees highest-ever adjusted operating income in strong first quarter
Live entertainment provider Live Nation logged a strong set of quarterly results for the first quarter of 2019 that saw it break its own records on income. The company struck a positive note over the trajectory this implies for the rest of the year, saying that investors should now expect to see “double-digit” operating income growth thanks to the number of concerts it’s booked and tickets it’s sold for the rest of the year.
Live Nation’s share price has appreciated by % so far this year
Source: Yahoo Finance
Despite an operating loss of $24 million, Live Nation’s revenue rose by 17% year on year to $1.7 billion. It also delivered its highest-ever adjusted operating income, at $115 million. The driving force behind this growth was outperformance of both its concerts and sponsorship segments. Underlying this positive financial performance was an influx of demand for the company’s market-leading provision of live entertainment. Live Nation said that 15 million people attended its concerts during the quarter – a 22% rise from the same period in the previous year.
In a statement, the company’s president and CEO, Michael Rapino, said: “We are pleased with our first quarter results as a start to what we expect to be another year of growth in 2019. All of our key indicators speak to continued strong consumer demand for our concerts — our attendance growth in the first quarter, acceptance of market pricing, and solid sales for upcoming shows.
“As a result, we expect an acceleration of our growth in the second quarter, with overall operating income and AOI increasing in the high teens and each segment to deliver double-digit operating income and AOI growth for the quarter.
“With the combination of this near-term view plus concert ticket sales for the year, sponsorship commitments, and the continued success of the Ticketmaster platform, we expect that Live Nation will deliver double-digit operating income and AOI growth for the full year.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
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