Live Nation Quarterly Revenue Jumps 27% As Concert Business Continues to Soar
Written by djfrosty on July 27, 2023
Live Nation Entertainment continued to profit from the red-hot live music market in the second quarter, beating earnings expectations with $5.6 billion in revenue — up 27.1% year over year and coming in a whopping $680 million over expectations. The company generated earnings per share of $1.02, which was $.40 higher than expected.
The financial results, which marked Live Nation’s strongest second quarter ever, also saw the company’s operating income rise 21% year over year to $386 million this quarter, while adjusted operating income was up 23% to $590 million and operating cash flow came in at $491 million, a 41% increase. The earnings report continues an upward trend at the company, indicating that 2023 will again set a revenue record for the concert promotion giant.
“We believe this is a time on a global basis when live will see incredible growth for years to come,” Live Nation chief executive Michael Rapino said on an earnings call after the company’s financial results were released Thursday (July 27).
The report noted that a record number of fans have attended Live Nation concerts this year, with 117 million tickets sold year-to-date for Live Nation shows — an increase of 20% year-over-year. Ticketmaster clients reported sales of 151 million fee-bearing tickets sold so far this year, with Ticketmaster on track to sell 300 million fee-bearing tickets in 2023. The company also reported a double-digit increase in sponsorship revenue and $4.3 billion in event-related deferred revenue, up 37% over last year, while double-digit attendance growth is expected next quarter.
In terms of venue size, stadiums saw the most growth, with attendance up 28% to 8.0 million fans, led by Europe and Asia Pacific. Arenas saw the second-highest growth rate, up 19% to 10.7 million fans, largely from Canada, Asia Pacific and Latin America. Finally, festivals grew 14% to 4.5 million fans, driven by global demand across all markets.
Capital expenditures at Live Nation totaled $158 million year-to-date, driven by investments in on-site venue enhancement and the expansion of the company’s venue portfolio. The 2023 capital expenditures forecast remains at $450 million, two-thirds of which is allocated for revenue-generating projects.
Despite the rosy earnings report, shares were slightly down Thursday after close to $96.93, marking a drop of less than 1%.
Below is a summary of 2023 Q2 results:
- Total revenue: $5.6 billion, up 27% from 2022 Q2
- Adjusted operating income: $168.1 million, up 37% from 2022 Q2
- Concert revenue: $4.6 billion, up 29% from 2022 Q2
- Ticketing revenue: $709.3 million, up 23% from 2022 Q2
- Sponsorship and advertising: $302.9 million, up 15% from 2022 Q2
- North American concerts: 8,111, up .67% from 2022 Q2
- International concerts: 4,130, down 8% from 2022 Q2
- North American fans: 18.5 million, up 6% from 2022 Q2
- International fans: 18.6 million, up 13% from 2022 Q2
- Fee-bearing tickets: 78.9 million, up 10% from 2022 Q2