Live Nation posts its sixth consecutive record growth – to US$8.4b

The global concert and tour empire Live Nation Entertainment showed a sixth consecutive record growth in the 12 months to the end of 2016, up 15% to US$8.4 billion (A$10.95 billion).

That’s more than the two largest major companies put together, analysts said, and more than the three largest American sporting codes.

Live Nation shares passed the $30-per-share mark for the first time in the company’s history.

The world’s largest entertainment company has three core divisions – concerts, ticketing and advertising.

Throughout last year, it added offices in Germany, South Africa, and Israel. The Beverly Hills-headquartered firm is now operating in 40 countries. It invested $4.4 billion (A$5.73 billion) to stage 26,000 shows worldwide.

Year end financials showed adjusted operating income up a staggering 48% to $195 million (A254.2 million).

Concert attendance rose 12% to 71 million, adding 7 million new customers across the globe. Average ticket prices were up 5%, “with high single- to double-digit growth at amphitheaters, arenas and stadiums.”

Spending by fans at concerts was up 9% to $22 (A$28.70) a head.

Revenue from sponsorships and advertising showed a growth of 13%.

Sponsorship alone totalled $245 million (A$319.4 million), up 20%, as Live Nation emphasised to brands that its acts now see concerts as the best way to connect with fans – and that more acts are playing newer music markets that were financially risky ten years ago.

“We continue to see the tremendous power of live events, with strong global consumer demand,”Live Nation President/CEO Michael Rapino said.

“Live is a truly unique entertainment form – it cannot be duplicated. It is elevated, not threatened, by technology and is borderless.

“Fans around the world can now discover, follow, share and embrace artists, creating greater demand for live shows.

“We believe the live business will continue to have strong growth for years to come as fans globally drive demand, artists are motivated to tour, and technology drives conversion.”

The last quarter of 2016, despite being a slow concert period in the northern hemisphere, rose 4% to $179.8 million (A$234.4 million) – with concerts alone making up $109.8 million (A$143.1 million).

Already 2017 is off to a strong start, Rapino said, revealing that ticket sales are up double digits year-on-year through February 17, driven by sales for arena and stadium shows.

“We plan on holding more concerts for more fans in more countries than ever before,” he revealed.

“We expect to sell more advertising, both onsite and online.

“And through continued product innovation and expanded distribution at Ticketmaster, we plan on selling more tickets and driving increased conversion.”

Ticketmaster was responsible for the sale of 480 million tickets across 28 countries. That equated to $28 billion (A$36.5 billion) in gross transaction value, an increase of 11%. The integration of Ticketmaster into new partner sites, including Spotify and Facebook, led to the sale of 10 million more tickets.

Secondary ticketing GTV posted a strong 26% upswing, “driven by the premise that we should safely and transparently provide all options to fans at Ticketmaster, which has been embraced by ticket buyers,” Rapino said.