Live Nation sees strong 2017, adding 15 million customers in 12 months
Global gig organizer and ticket seller Live Nation revealed this week that 2017 was yet another record year. The company continued to outperform financially, reporting full-year revenue of $10.3 billion – a 24% rise over the previous year.
Looking deeper into the company’s growth, revenue from concerts rose by 26% from 2016. Sponsorship and advertising revenue also continued to increase (+18%), and so is the company’s Ticketmaster segment (gross transaction value, +15%). Perhaps most importantly, in 2017 Live Nation saw more people at its concerts than ever before. Attendance was up 21% year on year to 86 million.
Over 12 months, Live Nation’s share price has appreciated by 55%
SOURCE: Yahoo Finance
The company has worked hard in exchange for this growth. Live Nation invested $5.6 billion in promoting 30,000 concerts in 40 countries over the year. It’s also managed to push its ticket prices higher by 5% in the same period. This raise in ticket prices contributed an additional $250 million in revenue last year, and, along with rising spending at the company’s events (up 9% over the full 12 months), is a significant part of Live Nation’s strategy going forward. Speaking about the coming year, Live Nation’s CEO Michael Rapino said:
“Overall, we expect a very strong year across our amphitheaters, arenas and festivals, with some decline in stadium show count on a year-over-year basis. Given our plans to further monetize our fan relationships, I expect this will translate into continued strong growth in concerts operating results in 2018.”
“In 2018, I expect us to further consolidate our global concerts position while enhancing our on-site hospitality business and capturing additional pricing opportunities. We believe that our sponsorship business will continue driving double-digit growth as more brands look for that direct connection with music fans. And a more effective Ticketmaster marketplace, along with further alignment with artists, should continue to build on Ticketmaster’s success.”
Dominion holds Live Nation in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.