US-based EDM promoter SFX – which runs festivals and events as well as being a controlling stakeholder in digital platform Beatport – has posted an annual net loss for calendar 2014 of $130.5m.
The company recorded annual revenues of $354.4m in the period. Speaking to investors, CEO Robert Sillerman reiterated his plan to buy back the company and take it private, but was light on detail.
In the final quarter of SFX’s year, the company recorded a $40.8m net loss on revenues that rose 14% year-on-year to $95.9m.
The 2014 net loss is bigger than the net loss posted in 2013, which stood at $110m.
SFX predicted a strong 2015, with revenues growing to in excess of $500m.
The company’s CFO, Richard Rosenstein, admitted to investors that ticket sales didn’t hit expectations for the company’s five-city Australian festival Stereosonic.
On March 10, SFX named independent members of its Board of Directors, John Miller, Michael Meyer, and D Geoffrey Armstrong to serve on a Special Committee. These figures are evaluating a proposal from Robert Sillerman to acquire all of the outstanding shares of SFX that he does not already own, at a price of $4.75 per share in cash.
Sillerman currently owns approximately 37.8% of the outstanding common stock of SFX Entertainment.
According to Rosenstein, the Special Committee has been tasked with ‘considering alternatives to the proposed transaction that will enhance shareholder value, including any other offers to acquire the company’.
“The Special Committee will consider and advise shareholders of its recommendations to enhance shareholder value in accordance with applicable legal requirements,” he added. “No assurance can be given that an agreement on terms satisfactory to the Special Committee will result from the proposal submitted by Mr. Sillerman or any transaction will be consummated.”
When pressed on when a decision surrounding Sillerman’s bid may be made, Rosenstein said: “I don’t really think it would be appropriate to speculate on timing around this. As we’ve said, we’re not going to answer any questions about the process.”
SFX produced and promoted a total of 937 events in 2014, which attracted approximately 4 million attendees, including 77 festivals.
80% of the company’s fourth quarter revenues came from festivals and live events that were produced, promoted, licensed or managed by SFX.Music Business Worldwide
