Live Nation reported a year-over-year drop in third quarter revenue despite experiencing what it says was its “most active summer concert season ever.”
The concert giant on Monday (November 11) published its latest financial results, showing a 6% YoY decline in Q3 revenue to USD $7.65 billion, from $8.15 billion in the same quarter a year earlier.
Nonetheless, Live Nation’s earnings per share of $1.66 beat Wall Street estimates, sending the company’s stock price higher in after-hours trading on Monday night. The stock was set to open at around $133 per share on Tuesday morning, up from a closing price of $123.85 on Monday.
In Q3, overall revenue was weighed down by a 17% YoY drop in ticketing revenue to $693.7 million, and a 6% decline in concerts revenue to $6.58 billion.
While the company said concerts delivered “record profitability” in Q3, it acknowledged a 30% decline in stadium attendance. This, however, was offset by a 3% YoY jump in overall concert attendance to 112 million fans in Q3. Live Nation said it recorded “double-digit growth” in attendance at arena and amphitheater shows.
Meanwhile, Live Nation’s revenue from sponsorships and advertising grew 6% YoY to $390.3 million.
“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,” Michael Rapino, President and CEO, Live Nation Entertainment, said.
“While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year.”
Michael Rapino, Live Nation
In Q3, the company posted adjusted operating income (AOI) of $909.8 million, up 4% from $871.2 million in the same quarter a year earlier. This was driven by a 39% jump in AOI from its concerts division to $474.1 million. The division’s AOI margin stood at 7.2%, which the company says is “on track to deliver 2024 margins toward pre-pandemic levels.”
Live Nation also recorded a 10% increase in AOI at its sponsorship and advertising division, further offsetting the 33% drop in ticketing AOI to $235.7 million.
Venue Nation, the company’s venue operation division, registered double-digit increases in on-site spending per fan, and up 9% at amphitheaters year-to-date.
A total of 144 million tickets were sold for 2024 Live Nation concerts through October, up 3% from a year earlier. In September and October alone, tickets sold globally surged 20% YoY. Live Nation also noted that Ticketmaster’s ticket sales were up 15% overall in Q3, with ticket sales for concert events alone rising 23%.
Joe Berchtold, President and Chief Financial Officer of Live Nation, told analysts during an earnings call on Monday that the company expects a “great stadium and arena pipeline to start to manifest itself in Q4 and deliver a very strong Q4 in Ticketmaster.”
“We expect next year’s Ticketmaster to look more like a ’23 where you’ve got that great volume of stadium activity that you get with the on sale, but then you also get as it plays off and some of the deferred events that you have in Europe that you recognize as the events play off.”
Joe Berchtold, Live Nation
“Next week alone we have over 200 stadium and arena shows going on sale. So, we’re, I think, in a period of unprecedented level of activity for Ticketmaster in Q4. And then that will continue into Q1 and through next year.
“We expect next year’s Ticketmaster to look more like a ’23 where you’ve got that great volume of stadium activity that you get with the on sale, but then you also get as it plays off and some of the deferred events that you have in Europe that you recognize as the events play off.”
Looking ahead, Venue Nation expects to host about 60 million fans in 2024, up 8% from 2023. Live Nation attributed the forecast to “major enhancements” to its venue portfolio in 2024 including the reopening of Mexico City’s Estadio GNP in the summer, the reopening of New York’s Northwell at Jones Beach amphitheater following a renovation, and the opening of Brooklyn Paramount earlier this year, with its VIP Club generating over 30% of revenue per show.
For 2025, Live Nation has already sold more than 20 million tickets, including stadium shows for Coldplay, Rüfüs Du Sol, and Shakira. Rapino expressed optimism about continued growth, citing plans to expand music-focused venues globally.
“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,” Rapino said.
Regarding the ongoing US Department of Justice antitrust lawsuit against Live Nation and Ticketmaster, Berchtold expressed hope for “a return to the more traditional antitrust approach” with targeted remedies. He noted that certain aspects of the case, including the proposal to break up Live Nation and Ticketmaster, reflect a “much more interventionist philosophy.” The company expects to begin engagement with the DOJ in early 2025.
“We’ll obviously be ready to engage as soon as they are. They need to get through the appointments and get things settled on their end, but we’d certainly be hopeful that we could start engaging with them early in next year,” Berchtold said.
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