Live Nation Entertainment announced second quarter results, and while there are positive signs of improvement, the numbers are well below 2019.
“We expect to see further ramp-up accelerating throughout the year.”
According to yesterday’s financial filings, Live Nation $575.9 million for the quarter, which is unsurprisingly well ahead of the second quarter of 2020, but a fraction of the $3.15 billion the company announced for the second quarter of 2019.
The breakdowns reveal that the lion’s share – or $526.4 million of revenue came from the concert division, while box office and sponsorships contributed $272.3 million and $67.2 million, respectively.
Live Nation’s adjusted operating profit for the second quarter shows the company managed to turn black for the quarter, with the concert division losing $84 million for the quarter, while box office and sponsorship generated an AOI of $99.4 million and $13 million respectively.
“Momentum for the return to live events has strengthened each month, with ticket sales and concert attendance coming in faster than expected, underscoring the strength and resilience of the concert and live event industry in general. This progress, combined with our cost discipline, allowed us to deliver positive adjusted operating income for the second quarter, well above what we had expected for this quarter. power through the remainder of the year, with operating profit improving and all segments returning to adjusted operating profit profitability for the second half, setting us up for a full-scale 2022,” said Live Nation’s Michael Rapino in the publication of the company’s results.
As part of its earnings release, Live Nation shared statistics on the company’s operations for the quarter, indicating that it held 1,124 events during the period, with 48,561 tickets sold.
Live Nation also revealed that deferred event-related revenue rose sharply, reaching $2.1 billion as of June 30, 2021, from $0.9 billion as of June 30, 2020. Additionally, Live Nation reported deferred revenue long-term liability of $381 million for events deferred for more than one year as of June 30, 2021.
Despite the slow recovery, Live Nation touted success in several key areas, including the concert pipeline, which is up double digits from 2019, supported by touring plans that stretch into 2024. Additionally, Ticketmaster had its fourth best month in the business. history of the value of notes exchanged during the quarter.
“As we put more shows on sale this year and next, ticket sales are the best early indicator for concerts and our overall business. To that end, June was the 4th best month in Ticketmaster North America history for ticket volume transacted, thanks in part to our US concert division putting the most shows on sale ever. recorded in a single month – 50% higher than the next highest month back. March 2019,” Rapino said.
via Celebrity Access
