SFX expansion results in half-year losses

SFX Entertainment, owners of Stereosonic, have reported a net loss of US$107.2m for the six months ending June 30, against income of US$115.3m.

Second quarter festival attendance, meanwhile, rose more than 70% year-on-year to approximately 675,000.  The company staged more than 17 festivals during April/May/June versus 14 in the comparable period in 2013.

Attendance at events other than festivals, however, declined 15% to approximately 353,000. According to a statement, this reflects SFX’s strategy to continue to focus on larger events, while hosting fewer smaller events. EBITDA rose by 39% at comparable festivals stage on a year-on-year basis.

The company invested in three new festivals over the period. It claims that net losses can be attributed to it absorbing start-up costs relating to the launch of those events in new territories. The operating results also reflect the fact that SFX moved several successful festivals to the second half of 2014, and as such, the benefit of those events will be reflected in the operating results for the 2014 third and fourth quarters.

SFX currently has in place partnership deals with Anheuser-Busch InBev, Clear Channel Media and Entertainment, Syco Entertainment, Viagogo, T-Mobile US and, unveiled only last week, MasterCard.

Robert F.X. Sillerman, Chairman and CEO of SFX said, “With the additional proof of concept of our ability to expand our existing powerful festival brands, with, for instance, Tomorrowland coming to Brazil and Rock in Rio coming to Las Vegas in 2015, we are now well-positioned to grow all aspects of our business.”

He added, “The EMC Revolution is just beginning. With an absolute dictum to keep our fans first, the next few periods should see significant impact from our investments in our core business, successful partnerships, and additional events.”