Live Nation Entertainment Reports Third Quarter 2024 Results
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“We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating. While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year. As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy. Momentum continues to build, as we expand the industry’s infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe.”–Michael Rapino, President and CEO, Live Nation EntertainmentQUARTERLY HIGHLIGHTS: MOMENTUM CONTINUES AFTER BIGGEST SUMMER CONCERT SEASON(versus prior year, reported FX)
- Revenue of $7.7 billion
- Operating income of $640 million
- Adjusted operating income of $910 million
- Highest ever concerts profitability with adjusted operating income of $474 million, up 39%, and margins of 7.2%, up more than two hundred basis points
- Venue Nation fans spending more on-site: double-digit increases in on-site spending per fan at major festivals (over 100k fans) and up 9% at amphitheaters (same artist comparison) year-to-date
- 144 million tickets sold for 2024 Live Nation concerts through October, up 3%
- October transacted ticket sales for Ticketmaster up 15% on all ticket volume and up 23% for concert events, including Live Nation shows
- Nearly all expected sponsorship commitments for the year booked, up double-digits
- Growing concerts pipeline in large venues (stadiums, arenas, and amphitheaters), up double-digits compared to this point in 2023; stadium pipeline up double-digits compared to this point in 2022
- Over 20 million tickets already sold for Live Nation concerts in 2025, pacing up double-digits
- Recent 2025 stadium onsales (including Coldplay, Rüfüs Du Sol and Shakira) delivering double-digit average growth in show grosses relative to past tours
- Sponsorship momentum continues with commitments pacing up double-digits
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CONCERTS DELIVERS RECORD PROFITABILITY (Q3 VS SAME PERIOD LAST YEAR)
- Revenue of $6.6 billion
- AOI of $474 million, up 39%
- Record AOI margin of 7.2%, on track to deliver 2024 margins toward pre-pandemic levels
- Show count up 13% to approximately 40k, fueled by arenas and amphitheaters and double-digit growth in theater and club shows
- 112 million fans globally at Live Nation concerts, up 3% driven by double-digit growth in each arena and amphitheater attendance, more than offsetting a 30%+ decline in stadium attendance
- Artists grossed 30% more per show on average when playing the same amphitheaters this year compared to 2022 / 2023, offsetting rising show costs
- Tickets sold globally in September and October up over 20% year-over-year, reflecting continued strong demand
PORTFOLIO EXPANSION DELIVERS ATTRACTIVE RETURNS (YTD THROUGH Q3 VS SAME PERIOD LAST YEAR)
- Venue Nation expects to host approximately 60 million fans this year, up 8% vs 2023
- Three major enhancements to our venue portfolio this year:
- Estadio GNP reopened this summer, with average net per fan spending up 20% compared to pre-renovation levels
- Northwell at Jones Beach amphitheater reopened after a successful renovation: season seat and box suite sales up 50%, food and beverage net per fan spending up double-digits, and VIP club sales up 50%
- Brooklyn Paramount opened earlier this year, and its VIP Club is generating 30% more revenue per show relative to VIP clubs at other top performing theaters in the U.S.
- These venues, along with plans to add or refurbish an additional 14 venues through 2025, are expected to increase capacity by an incremental eight million fans
- Elevating the fan experience:
- At Live Nation amphitheaters, average net per fan spending grew over $3 per fan, up 9%, for the same artists’ shows in 2024 relative to 2022/2023
- Globally, major festivals (over 100k fans) average net per fan spending up double-digits for repeating events
- Fans continue to seek premium offerings:
- VIP ticket premium revenue at major festivals (over 100k fans) up more than 20%
- Revenue for amphitheater VIP clubs increased by 19%
RESULTS REFLECT STRONG ONGOING DEMAND AND IMPACT OF VENUE MIX
- Revenue of $694 million
- AOI of $236 million
- Full-year AOI margin expected to be similar to last year
- October transacted ticket sales up 15% on all ticket volume and up 23% for concert events, including Live Nation shows
- 24 million net new enterprise tickets signed, with two-thirds from international markets
- 238 million fee-bearing tickets sold, growing at an 8% CAGR since 2019, reflecting Ticketmaster’s global platform and ability to serve high demand onsales and global clients
SPONSORSHIP GROWTH DRIVEN BY GLOBAL VENUE PLATFORM (Q3 VS SAME PERIOD LAST YEAR)
Capital Expenditures to Support Venue Expansion
- Revenue of $390 million, up 6%
- AOI of $275 million, up 10%
- Full-year AOI margin expected to be similar to last year
- AOI growth largely driven by on-site platforms, international markets, and ticket access deals
- Number of strategic partners who generate more than $1 million per year increased by 20% and drove majority of the revenue growth
- Expanded beauty and fashion portfolio at more global festivals, including brands such as American Apparel, Wrangler, Ulta Beauty, and American Eagle in Mexico
Capital Expenditures to Support Venue Expansion- 2024 capital expenditures estimated to be $700 million, including the recent addition of an amphitheater project
- Three-quarters of total capex driven by Venue Nation: five venues account for approximately 45% of total venue spend
- Capital committed by third parties, and so reducing required cashflow, is now estimated to be $130 million, e.g., from sponsorship agreements, joint venture partners, and other sources
- Year-to-date net cash provided by operating activities of $680 million and free cash flow—adjusted of $1.3 billion
- Full-year AOI to free cash flow—adjusted conversion expected to be consistent with historical levels
- Q3 ended with $5.5 billion in cash and cash equivalents, including $1.6 billion in ticketing client cash, $2.6 billion of event-related deferred revenue, and $1.7 billion in free cash
- Revolver increased by $400 million to $1.7 billion for global venue development initiatives and general corporate purposes; recently drew on our revolver to repay $575 million of senior notes
- Year-to-date, foreign exchange impact to revenue, operating income and AOI has been approximately 1%. This is expected to accelerate in Q4, notably due to exposure from Latin America currencies, and could impact operating income by over 30% and AOI by mid-teens percentage for the quarter
- 2024 share count not expected to change materially from 2023
- Our reported non-cash income tax expense in certain periods in 2022 and 2023 were incorrect due to errors in the local statutory to consolidated tax provision calculations. We have made adjustments to correct these errors and the changes are not material to our 2022 and 2023 financial statements. This press release reflects the corrected results. A more detailed explanation, together with the restatements, can be found in Note 9 of the Notes to Consolidated Financial Statements (Unaudited) in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024