Live Nation Entertainment’s concert business, through mid-July, has sold over 73 million tickets for shows this year. Compared to the same time last year, their sale is up by 6% or approximately 4.5 million tickets. Nearly 100 million fans attended approximately 38,000 concerts this year.
Live Nation delivered strong growth for the quarter ending June 2019. The operating income is up by 27%, adjusted operating income (AOI) by 23%, and revenue by 10%.
Michael Rapino, President and Chief Executive Officer, Live Nation Entertainment said,
“Each of our businesses contributed to these results, with all of them delivering double-digit operating income and AOI growth in the second quarter.”
Live Nation has a strong supply of touring artists coupled with global consumer demand which involuntarily boosted their global ticket revenue by 16%. Also, apart from the Top 100 artists, their concerts for other artists has also seen an upscale of 32% so far this year. The organisation’s growing sales and AOI is proof of high demand for live music and a growing audience for live concerts.
Live Nation’s revenue has increased to $3.2 billion in the second quarter of 2019. This is a massive increase from Q1/2019 revenue of $1.7 billion.
Also, the increase in operating income for the quarter has grown to $172 million along with the company’s AOI to $319 million compared to $115 million from Q1/2019.
All good in Live Music World?
In spite of Live Nation’s revenues from both the quarters of 2019 combined sums up to $4.9 billion, the live music business has been witnessing a rough patch. If we compare the 2018 and 2019 mid-year reports released by Pollstar, the business in 2018 indicated a stronger live act market. 2018 grossed $972.2 million just in the first half of the year from the Top 10 acts alone. While the Top 10 acts within the first half of 2019 grossed $660.8 million. That is a difference of $311.4 million or a 32% (app) dip in business. Additionally, the average ticket price for the Top 10 live acts in 2019 ($111.5) was lower than in 2018 ($127.1).
This year, the Top 10 live tours did not feature Live Nation whereas, in 2017 and 2018, they were a constant feature.
However, Rapino is also confident that in 2019, the company will again deliver double-digit operating income and AOI growth due to its sponsorships, ticketing and detailing in concerts.
The sponsorship business leverages Live Nation’s platform of nearly 100 million fans. This, in turn, provides brands with an opportunity to connect directly with music fans at scale. Through a massive influx of new brands, their operating income also grew by 14% this quarter.
Further, the organisation is expecting the ancillary revenue per fan at amphitheatres to grow approximately by $2.50 this year. They believe their average per fan spending is enhanced by the fan experience, providing reasons for them to arrive early, spend less time in queues and better food and beverage offerings.
Recently, Live Nation acquired OCESA, one of the top global promoters in Mexico. This acquisition has furthered its goal of building a global fan base to over 125 million fans. The organisation sees tremendous opportunity to grow as a global market share through targeted acquisitions and organic methods.
The unison of global festival organisers will provide opportunities for sponsors to engage fans at a time to encourage brands and endorsements. Also, Rapino is sure that their revenue per fan will increase by double-digits this year.
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