Live Nation exceeds expectations, almost doubles profit to $62.6 million in second quarter

Live Nation Entertainment has cashed in on the buoyancy of the global live music market by exceeding analyst expectations.

It posted a profit of US$62.6 million in the second quarter ending July 30, which of course took in the busy northern summer circuit.

According to figures released his week, the world’s largest entertainment company generated revenues of $2.82 billion, translating to a rise of 29% from Q2 2016.

Operating income went up 53% to $113 million, and adjusted operating income (AOI) rising 22% to $221 million.

Nine analysts surveyed by Zacks expected the figure to be $2.35 billion.

Live Nation reported that it has already sold over 68 million tickets, 12 million more than its second quarter in 2016.

It also increased the volume of ticket buyers to 24 million (a rise of 5.5 million from that period) to over 7000 shows.

CEO Michael Rapino told investors, “This demonstrates that we have built the industry’s most scalable and unparalleled live platform, bringing over 550 million fans in 40 countries to live events each year.

“With key metrics in these concerts, sponsorship, and ticketing pacing double-digits ahead of last year, we are confident that 2017 will be another record year of results for Live Nation.”

The concert division alone increased revenue by 36%, operating income to $38 million, and AOI by 52% to $88 million.

Rapino added, “We extended our position as the leading promoter in the world as we delivered growth across all markets and venue types.

“We increased attendance in North America and international by 2 million fans each; and arenas, amphitheaters, stadiums, festivals, and theaters increased attendance by double-digits.

“As we attract more fans to concerts, we continue to focus on maximizing the revenue and profitability of each show.

“This starts with attracting more fans to each show and, during the quarter, we increased our average show attendance by 11%, with every venue type delivering higher attendance per show.”

Ticketmaster business was strong, with revenue for the quarter was up 9% to $484.6 million.

By adding “secondary tickets to shows “for which Ticketmaster is not the primary ticketer,” the volume of Ticketmaster’s listed events went up by 35%.

The report said that 120 million users visit the company’s online sites per month.

More and more fans are using mobile sites and apps to buy tickets, now responsible for 31% of sales in the quarter, and 27% for 2017.

Spending by patrons at concerts on food and beverages is expected to be up by $2 each this year, after the company widened its choices and the number of outlets at each show.

Ticketmaster’s Verified Fan scheme introduced this year has also been a success. By scoring algorithm fan behaviour, artists can ensure that actual fans can get tickets first.

Verified Fan woreds with 50 artists in then US and Europe and, the company says, sold 1 million tickets to what Rapino called true fans, with a dramatic reduction in the s tickets then being sold on secondary sites.”

Sponsorship and adv revenue was at $124.6 million, up 31% over Q2 2016.

Live Nation continues to use technology to expand fan experience and widen its reach.

In a partnership with Samsung, Coldplay’s August 17 show at Chicago Soldier Field (8.30 pm local time) will be broadcast to 50 countries in virtual reality.

All fans need to get the 360º experience is a Gear VR headset with a comparable Samsung smartphone and to navigate to the Samsung VR service.