State Champ Radio CTS Eventim
Now that all the major music companies have reported earnings for the quarter ended March 31, it’s a good time to reflect on the notable performances in the bunch. Most companies posted good results and showed that music is a reliable business during times of uncertainty, with nearly all trending in the right direction (though companies not mentioned here didn’t necessarily have something to crow about). But because companies naturally experience ebbs and flows — a slow new release schedule or heavy sales of low-margin vinyl records can wreak havoc on market perceptions — the results for any one quarter won’t tell the entire story.
Below, I run down a few notable and/or interesting highlights from the latest earnings releases. For a full recap of earnings reports, refer to Billboard’s 2025 Q1 earnings roundup, which provides quick summaries of music companies’ earnings reports issued from April 29 to May 28. Best top-line revenue growth: 22% by CTS Eventim
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German concert promoter and ticketing company CTS Eventim’s top-line revenue got a boost from its 2024 acquisitions of See Tickets and France Billet, as consolidated revenue jumped 22.0% to 499 million euros ($525 million). Growth of the existing business was “slightly higher” than a strong prior-year period, CFO Holger Hohrein said on the May 22 earnings call. Ticketing revenue improved 16.9% to 214 million euros, a record for the first quarter. Retail tickets sold improved 42.1% to 40.5 million. Live entertainment revenue increased 24% to 292 million euros ($316 million), also a first-quarter record. Best streaming growth, record label: 9.5% by Universal Music Group (UMG)
Subscriptions helped offset a lackluster 2.9% increase in other streaming revenue, including ad-supported streaming, resulting in overall streaming growth of 9.5%. UMG executives have told investors they can achieve long-term recorded music subscription growth of 8% to 10% through 2028. While the figure bounces from quarter to quarter — and has fallen well below the target range — UMG landed above the high end of the target by achieving recorded music subscription revenue growth of 11.5% in the first quarter. The subscription growth was “driven primarily by growth in the number of subscribers, and to a much lesser extent, helped by certain price increases,” COO Boyd Muir said during the April 29 earnings call. Best subscription growth, streaming platform: 16.6% by Tencent Music Entertainment (TME)
TME’s subscription growth dominated the quarter for two reasons. First, average revenue per user improved 7.5% to $1.57, in part from the popularity of the Super VIP tier that costs five times as much as a normal subscription. Second, the number of subscribers grew 8.3% to 122.9 million. With more people paying a higher monthly fee, subscription growth rose to 17%. The ripple effects could be seen elsewhere: gross profit margin rose to 44.1% from 40.9% in the year-ago period, and the percentage of paying subscribers versus all music users improved to 22.1% from 19.6% a year earlier. Most surprising new business segment: Tencent Music Entertainment’s physical music sales.
In the first quarter, TME had a 10-day “head-start presale” of the Teens in Times album Beyond Utopia. TME also sold physical albums for One Hundred Thousand Volts by Silence Wang. For the K-pop artist G-Dragon, TME conducted a presale of light sticks and other products and offered limited-edition merchandise to buyers of his digital albums. Most impactful executive quotes: Sphere Entertainment Co. Executive chairman/CEO James Dolan and Vivid Seats CEO Stan Chia
Two vastly different companies provided contrasting takes on the state of live music demand. Amidst reports of falling international tourism to the U.S., Sphere Entertainment Co. CEO James Dolan downplayed concerns about visits to Las Vegas and attendance at the Sphere venue. Even if tourism took a hit, Dolan explained that “demand exceeds capacity, so we have room to absorb any issues from that.”
On the other hand, Stan Chia, CEO of secondary tickets marketplace Vivid Seats, described a more challenging landscape. The quarter “fell short of our expectations,” he said during the May 6 earnings call. Chia blamed the shortfall on “robust competitive intensity” and “softening industry trends amidst consumer uncertainty.” What’s more, he added, “economic and political volatility has impacted consumer sentiment, and this uncertainty can also impact how and when artists and rights holders go to market.” A 14% decline in revenue, combined with Chia’s comments and the company’s suspension of full-year guidance, caused a 38% one-day decline in Vivid Seats’ share price.
German concert promoter CTS Eventim’s revenue grew 22.0% to 498.6 million euros ($525 million), nearly doubling its 11.6% growth rate in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortization (EDITDA) rose just 8.9% to 100.3 million euros ($106 million). Adjusted EBITDA margin of 20.1% was more than two percentage points lower than […]
CTS Eventim shares finished the week up 5.3% after the company sounded upbeat about the second half of 2024 in its Thursday (Aug. 22) earnings release.
Based on its performance in the first half of the year, the German promoter and ticket seller expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) “to grow significantly” in the latter half of the year. Second-quarter adjusted EBITDA improved 23.3% to 110.0 million euros ($118.4 million) with the help of the June acquisition of See Tickets from Vivendi.
CTS Eventim is among the best-performing music stocks of 2024, having gained 34.5% year to date. That gain outstrips fellow promoter Live Nation (up 25.0%) and lags behind only Believe (up 43.3%), Sphere Entertainment Co. (up 47.3%) and Spotify (up 82.3%).
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As well as CTS Eventim fared this week, three other music companies had larger gains. iHeartMedia jumped 19.0% to $1.42, continuing its tendency to rise and fall in the absence of any market-moving news or financial releases. SiriusXM rose 6.7% to $3.00, perhaps assisted by news the company signed Gen Z podcaster Alex Cooper (Call Her Daddy) in a move that could help bring a younger audience to its new streaming app. HYBE improved 6.1% to 166,400 won ($125.60).
Chinese music streamer Cloud Music gained 1.4% to 91.60 HKD ($11.75) after the company posted revenue of 4.07 billion RMB ($571 million), up 4.1%, in the first half of 2024, it announced Thursday (Aug. 22). Like the leading Chinese music streamer, Tencent Music Entertainment, Cloud Music has two segments that are headed in opposite directions. Music subscription revenue grew 26.6% to 2.56 billion RMB while social entertainment and other revenue fell 19.9% to 1.51 billion RMB ($212 million).
An unusually large majority of music stocks posted gains this week. The Billboard Global Music Index gained 2.7% to 1,829.18, bringing its year-to-date increase to 19.2%. Of the 20 stocks on the index, 17 were gainers and just three lost ground. Three radio companies (iHeartMedia, Cumulus Media and SiriusXM) led the way with an average gain of 8.8%. Multi-sector companies (including Universal Music Group, Warner Music Group and HYBE) rose an average of 3.4%. Live music companies had an average gain of 3.0%.
Streaming companies fell by an average of 0.2%. In fact, all three companies in the red this week were music streamers: Deezer (down 0.5%), Tencent Music Entertainment (down 2.8%) and Anghami (down 3.3%). Spotify, the index’s largest component, gained 1.5% to $337.38.
Stocks were up in the U.S. on positive economic news. After U.S. Federal Reserve chair Jerome Powell suggested on Friday (Aug. 23) it would soon cut interest rates, both the S&P 500 and Nasdaq finished the week up 1.4%. In South Korea, where trading was closed by the time the Federal Reserve statement made news, the KOSPI composite index rose 0.2% to 2,701.69. Likewise, China’s Shanghai Composite Index fell 0.9% to 2,854.37. In the United Kingdom, the FTSE 100 rose 0.2% to 8,327.78.
Buoyed by its acquisition of See Tickets from Vivendi and strong festival performance, German concert promoter and ticketing company CTS Eventim saw its consolidated revenue jump 21% to 793.6 million euros ($854.4 million) in the second quarter of the year, the company announced Thursday (Aug. 22). Adjusted earnings before interest, taxes, depreciation and amortization fared even better, rising 23.3% to 110.0 million euros ($118.4 million).
The live entertainment division had revenue of 631.1 million euros ($679.5 million), up 19.7% from the prior-year period, and adjusted EBITDA of 36.6 million euros ($39.4 million), up 5.0%. Four of the top five events took place outside CTS Eventim’s home market: Bruce Springsteen in Spain; and Ultimo, Pinguini Tattici Nucleari and Max Pezzali in Italy. The company’s festival portfolio — which includes Rock am Ring, Rock im Park and Nova Rock — is “off to a good start” and advance ticket sales for upcoming festivals “suggest the upward trend is set to continue,” according to a press release.
Ticketing revenue rose 28.5% to 175.2 million euros ($188.6 million) while the division’s adjusted EBITDA climbed 29.5% to 156.6 million euros ($168.6 million). Notably, See Tickets has been included in CTS Eventim’s accounting since that deal was completed in June. Three out of the top five ticketed events, including concerts by Italian rapper Ultimo and South American reggae group Natiruts, took place outside of Germany.
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“Through See Tickets and its associated live entertainment activities, we have not only enhanced our market position in two of our focus markets — the UK and the US — but also expanded our team to include additional highly motivated and highly qualified units,” CEO Klaus-Peter Schulenberg said in a statement.
Based on the company’s performance in the first half of the year, the CTS Eventim executive board expects adjusted EBITDA “to grow significantly” in the latter half of 2024. The current quarter will get a boost from CTS Eventim’s role as an official ticketing partner for the recently concluded Paris 2024 Olympics and the Paralympic Games, which run from Aug. 28 to Sept. 8.
Following that optimistic guidance, shares of CTS Eventim rose as much as 10.6% before closing at 87.25 euros ($93.94), up 5.8%. The day’s improvement brought the stock’s year-to-date gain to 39.4%.
Looking further into the future, CTS Eventim is building a sustainable arena in Milan, Italy. Construction began in November and remains on schedule, according to the earnings release. Bidding for the naming rights and VIP suites will begin this fall.
CTS Eventim completed the acquisition of Vivendi’s festival business and ticketing company, See Tickets, for 300 million euros ($327 million), Vivendi announced Thursday (June 6). The German concert promoter and ticketing company had entered into a put option to acquire the businesses from Vivendi on April 2.
The acquisition includes such festivals as the Junction 2 in the United Kingdom and Garorock in France. Vivendi’s performance hall business, See Tickets France and Brive Festival in France, were not included in the deal.
The two acquired businesses had 137 million euros ($148 million) of revenue in 2023. See Tickets, which counts Glastonbury Festival and Tomorrowland as clients, had revenue of 105 million euros ($114 million) and earnings before interest, taxes, amortization and depreciation (EBITDA) of 26 million euros ($28 million). The festival business had revenue of 32 million euros ($35 million).
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The acquisition will provide a big boost to CTS Eventim’s existing ticketing sales. In 2023, Vivendi’s ticketing business sold 44 million tickets in Belgium, Denmark, Germany, the Netherlands, Portugal, Spain, Switzerland, the United States and its largest market, the United Kingdom. That was roughly half of CTS Eventim’s 2023 internet ticket volume of 82.9 million tickets, according to the company’s 2023 annual report.
“The acquisition supports our internationalization strategy and will also benefit artists and their managers, as we will be able to offer even more seamless services on a global scale,” said CTS Eventim chief executive Klaus-Peter Schulenberg in a statement announcing the acquisition in April.
CTS Eventim’s ticketing business had revenue of 717.3 million euros ($776 million) in 2023, up 32% from the prior year, with EBITDA of 382.4 million euros ($414 million), up 47%. Its concert promotion business had revenue of 1.67 billion euros ($1.8 billion) and EBITDA of 111.6 million euros ($121 million).
Live entertainment executive Jason Miller is leaving operational responsibilities at ELA, the joint venture he launched with global entertainment leader CTS Eventim in 2021. Miller continues to hold an ownership stake in the concert promotion company. During his nearly three years as CEO, Miller, based in Los Angeles, led ELA to produce shows in all […]
German concert promoter and ticketing company CTS Eventim agreed to buy French media company Vivendi‘s festival and international ticketing businesses, the companies said in a joint statement on Tuesday (April 2).
CTS Eventim and Vivendi have signed a put option agreement for the deal, which includes leading U.K. ticket merchant See Tickets along with Vivendi festivals Junction 2 in the U.K. and Garorock in France. The financial details of the deal, including price, were not disclosed.
CTS Eventim is the world’s second-largest provider of ticketing and live entertainment services, and acquiring the businesses could help it maintain an edge over rival Live Nation in its home market of Europe.
“The acquisition supports our internationalization strategy and will also benefit artists and their managers, as we will be able to offer even more seamless services on a global scale,” said CTS Eventim chief executive Klaus-Peter Schulenberg in a statement.
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Vivendi’s festival and ticketing businesses, housed under the subsidiary Vivendi Village, generated 137 million euros ($151.2 million) in 2023. See Tickets sold around 44 million tickets last year, generating 105 million euros ($115.8 million). It is the second-largest ticketing company in the United Kingdom and also operates in the United States and seven European nations.
The festival activities that CTS Eventim is set to acquire generated 32 million euros ($35.3 million) last year. Vivendi will retain its stake in the performance hall L’Olympia in Paris, See Tickets France and the Brive Festival.
“We at Vivendi are convinced that CTS Eventim will be the right company to bring our ticketing and festival activities to new heights, supporting See Tickets to remain a state-of-the-art company … while fostering the growth of the festivals and preserving their unique identities and audience,” said Hala Bavière, CEO of Vivendi Village, in a statement.
CTS Eventim is coming off a banner year. The Munich-based company’s revenue topped 2 billion euros for the first time ever in 2023, rising 22% to 2.36 billion euros ($2.53 billion at the average exchange rate in 2023). Normalized earnings before interest, taxes, depreciation and amortization (EBITDA) was also up 32% to 501.4 million euros ($542.7 million).
The companies said they expect to finalize the deal within a few months, pending approval from each of their employee works councils.
CTS Eventim’s stock briefly hit a new 52-week high of 83.85 euros ($90.28) following the news on Tuesday before closing at 82.70 euros ($89.04), up 0.3%.
CTS Eventim, the German concert promoter and ticketing company, surpassed 2 billion euros in annual revenue for the first time in 2023. Revenue jumped 22% to 2.36 billion euros ($2.53 billion at the average exchange rate in 2023) while normalized earnings before interest, taxes, depreciation and amortization (EBITDA) grew 32% to 501.4 million euros ($542.7 million).
Earnings per share increased by a third to 2.86 euros ($3.05) from 2.12 euros ($2.29) in 2022. In light of the record performance, the company’s executive board and supervisory board will propose at the annual shareholders meeting a dividend of 137.3 million euros ($148.7 million at the current exchange rate). The largest dividend payment in CTS Eventim history is equal to 50% of net income.
”These excellent results are proof that live entertainment is once again driving the arts and creative sectors,” said CEO Klaus-Peter Schulenberg in a statement. “We owe this primarily to the creativity of the artists who delight their fans around the world day in, day out. It is also thanks to the countless promoters who, with their boldness and entrepreneurial spirit, stage events and create unforgettable experiences. And last but not least, our team and our technologies ensure that live cultural events can thrive and that everyone involved can make a living from their work.”
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Live entertainment revenue rose 18.9% to 1.68 billion euros ($1.82 billion). The company experienced higher costs in 2023 and “partially” passed on those costs to the market, Schulenberg wrote in the annual report. As a result, normalized EBITDA dropped 1.8% to 117.0 million euros ($126.6 million). The company cited a boost it received from new North American partnerships with Mammoth and AG Entertainment, created to sign international acts for U.S. and global tours. Another collaboration, The Touring Co, a partnership with promoter Walter McDonald announced in December 2023, will help CTS Eventim’s expansion in North America in 2024.
In the ticketing segment, revenue rose 32% to 717.3 million euros ($776.4 million) and EBITDA jumped 47% to 384.4 million ($416.1 million). The number of internet tickets sold rose 19.6% to 82.9 million from 69.3 million in 2022. The company touted its ticketing platform’s reliability in handling heavy demand for concerts by Taylor Swift, Rammstein, Bruce Springsteen, Coldplay, Apache 207 and Paul McCartney. International expansion also provided a lift to ticketing growth: In 2023, CTS Eventim, along with Sony Music Latin Iberia, acquired ticketing companies Punto Ticket in Chile and Teleticket in Peru.
CTS Eventim’s annual results are further proof the concert business has been booming since COVID-19 restrictions were lifted. The company’s total revenue was 63.4% higher than in 2019, the last full year before the pandemic temporarily halted the touring industry. Last year’s live entertainment revenue was 70.1% above 2019 and ticketing revenue was 48.9% greater. While CTS Eventim has grown by nearly two-thirds since before the pandemic, its growth rate is about a third lower than Live Nation, the world’s largest concert promoter and ticketing company, which grew revenue by 93.9% from 2019 to 2023.
In 2024, CTS Eventim expects “a moderate rise” in total revenue and believes EBITDA will remain at the level seen in 2023. Demand is “rising continuously,” wrote Schulenberg, and the company expects the recent decline in inflation to provide “new, consumption-driven impetus for growth in the future.”
Shares of CTS Eventim rose 5.1% to 77.50 euros ($83.96) on Tuesday (Mar. 26). The stock gained 5.0% in 2023, slightly below the 8.0% increase of the MDAX, an index of stocks traded on the Frankfurt Stock Exchange.
Here is a recap of some financial metrics for CTS Eventim’s 2023 earnings results:
Revenue of 2.36 billion euros ($2.53 billion)
Normalized EBITDA of 501.4 million euros ($542.7 million).
Ticketing revenue of 717.3 million euros ($776.4 million) and EBITDA of 384.4 million ($416.1 million).
Concert revenue of 1.68 billion euros ($1.82 billion) and EBITDA of 117.0 million euros ($126.6 million).
iHeartMedia shares dropped 19.6% to $2.01 this week as the company warned investors of continued softness in radio advertising dollars. Fourth quarter results “will be weaker than we originally anticipated,” said CEO Bob Pittman during Thursday’s earnings call. In October, consolidated revenue was down 8% from the prior-year period. For the fourth quarter, iHeartMedia expects consolidated revenue excluding political ad revenue to decline in the low single digits.
Still, iHeartMedia’s third-quarter results were in line with previous guidance. Revenue of $953 million was down 3.6% from the prior-year period, a bit better than the guidance of a low single-digit decrease. Adjusted earnings before interest, taxes, depreciation and amortization of $204 million was within the guidance of $195 million to $205 million.
The week’s sharp decline brought iHeartMedia’s year-to-date loss to 67.2%, far deeper than the declines of broadcast radio company Cumulus Media (-21.9%) and satellite radio company SiriusXM (-20.7%). Not only has broadcast radio suffered from weak national advertising, it lacks the high growth rates of music streaming and podcasting. PwC’s latest forecasts call for U.S. radio advertising revenues to rise just 4% from 2023 to 2027 while U.S. podcast advertising — where iHeartMedia has a large footprint — will grow 41% to $2 billion.
Next year’s elections should provide a shot in the arm, though. “As we look forward to 2024, we expect to generate significantly better free cash flow driven in part by an improving macro environment, as well as the impact of political dollars,” said CFO Rich Bressler. In 2020, the company generated $167 million in political revenues, he noted.
The Billboard Global Music Index mostly held steady this week, dropping just 0.3% to 1,390.68. Of the index’s 20 stocks, seven gained this while while 13 finished in negative territory. Most stocks had low-single-digit gains or losses and iHeartMedia was the only stock with a double-digit move in either direction.
French company Believe was the index’s greatest gainer of the week after improving 7.4% to 9.93 euros ($10.64). German concert promoter CTS Eventim, which will release third-quarter earnings on Nov. 21, gained 5.5% to 62.75 euros ($67.24). Music streaming company LiveOne gained 4.7% to $1.12. Chinese music streamer Cloud Music, which has not yet announced the date of its third-quarter earnings release, gained 3.3% to 99.50 HKD ($12.74).
Shares of Sphere Entertainment Co. dropped 1.5% to $35.95 after a roller-coaster week. Following the company’s Nov. 3 announcement that CFO Gautum Ranji had left the company, Sphere Entertainment shares dropped 9.6% to $32.97 on Monday. The share price fell an additional 4.5% to $31.87 on Wednesday following the quarterly earnings release. But Sphere Entertainment picked up momentum in the latter half of the week, gaining 12.8% over Thursday and Friday to close at $35.95.
U.S. stocks were broadly up this week despite news that consumer sentiment declined in November and expectations for future inflation reached their highest level since 2011. The Nasdaq composite rose 2.4% while the S&P 500 improved 1.3%. Many major U.S. tech stocks posted big gains. Microsoft hit an all-time high of $370.09 on Friday and finished the week at $369.67, up 4.8%. Apple rose 5.5% to $186.40. Amazon improved 3.6% to $143.56. Meta jumped 4.5% to $32.8.77. In the United Kingdom, the FTSE 100 fell 0.8%. South Korea’s KOSPI composite index gained 1.7%.
Abu Dhabi-based music streamer Anghami led all music stocks this week after gaining 17.6% to $0.82. On Thursday, the company announced through an SEC filing it had received a written notification from the Nasdaq Stock Market regarding its closing share price being below $1.00 for the previous 30 days. The Nasdaq gives companies 180 days to regain compliance or face de-listing from the exchange.
The warning appeared to spur a 16.5% gain on Thursday as investors saw signs the share price won’t remain under $1. In its SEC filing, Anghami stated if the share price remains under the $1 threshold it will “consider available options to cure the deficiency,” including a reverse share split (which would increase the share price by reducing the number of shares outstanding while the market capitalization remains unchanged).
SiriusXM gained 5.7% on Friday (Oct. 13) and finished the week up 11.8%. Its $4.85 closing price was the highest for the satellite radio company since Aug. 9. The typically steady stock has fallen 17% this year as self-pay satellite radio subscribers stagnated at or around 32 million for eight straight quarters. SiriusXM will host a Nov. 8 presentation to unveil a new streaming app and preview upcoming in-car innovations and new programming.
The 21-stock Billboard Global Music Index fell 1.3% to 1,355.65 this week as 13 stocks were in negative territory and only eight stocks gained ground. Year to date, the index has gained 16.1%. Led by SiriusXM’s gain and a 7.6% increase from Cumulus Media, the index’s three radio stocks had an average improvement of 5.5%. Eight record labels and publishers had an average weekly gain of 0.3%. HYBE improved 6.8% while Believe climbed 3.6% and Universal Music Group added 0.6%. Streaming companies were, on average, flat this week.
Live music stocks dropped an average of 4.8%. Shares of Sphere Entertainment Co. dropped 11.1%, effectively offsetting the 11% gain on Oct. 2 following U2’s debut performances at Sphere in Las Vegas. Live Nation dropped 3.9%, MSG Entertainment fell 3.5% and CTS Eventim shares fell 0.7%. If investors are curious what’s next for Sphere Entertainment, clues comes from an interview published Thursday. Executive chairman and CEO James Dolan said the company is “actively pursuing other markets” and “has six different kinds of spheres down to a 3,000-seater.” A Las Vegas-style Sphere may not work in London, where according to reports residents are concerned about the location and light pollution that could arise from a massive external display similar to the Las Vegas venue.
Music stocks underperformed numerous indexes. In the United States, the S&P 500 gained 0.1% and the Nasdaq composite fell 0.3%. In the United Kingdom, the FTSE 100 gained 1.4%. South Korea’s KOSPI composite index rose 2%.
Stocks faded after the release of consumer sentiment data for October by the University of Michigan showed a decline from September based on “a substantial increase” in concerns about inflation. Expectations for inflation in one year rose from 3.2% in September to 3.8% this month. That’s the highest mark since May 2023 and substantially above the 2.3% to 3% range seen in the two years before the pandemic.
Also a factor in stock prices, the U.S. Federal Reserve expects to raise interest rates one more time, according to minutes released from its September policy meeting. Interest rates have an inverse relationship with equity prices. Higher interest rates make borrowing more expensive and cut down on corporate profits.
