Member Since: 7/9/2010
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Gaga and Madonna tours to save concert industry
Quote:
Live Nation Reports Strong Quarterly Earnings
Two years ago, the concert industry was shaken by the thought that it was not, as it had long believed, “recession-proof.” After a 15-year run of steadily growing returns, ticket sales in 2010 plunged 15 percent and caused the cancellations of a number of high-profile tours.
For Live Nation Entertainment, the concert and ticketing giant that includes Ticketmaster, earnings have gradually improved since then, and on Monday the company reported strong results for the third quarter, with just less than $2 billion in revenue, up 10 percent from the same period last year. Its net income was $58 million, or 31 cents per share, beating analysts’ estimates by 3 cents.
As Michael Rapino, Live Nation’s chief executive, suggested in a conference call with investors, the scare of 2010 was more about high ticket prices than people’s willingness to see their favorite acts, even when times are tough. Ticket prices, which dropped somewhat in the fallout of the 2010 season, have crept back up again, but there have also been various efforts to lure fans to shows, like discounted ticket programs.
Attendance at Live Nation’s concerts around the world was 15.8 million for the quarter, up 1.6 percent compared to the same period last year, and 36.8 million for the year to date, up 3.6 percent. July, August and September are usually the crucial months of the annual concert calendar, when the most big tours are on the road.
Earnings in the third quarter were driven by Live Nation’s ticketing and sponsorship divisions. The company, chiefly through Ticketmaster, sold 36 million tickets worth $2.1 billion, generating $82.1 million in adjusted operating income, up 51 percent for the year. (Much of the value of those tickets is typically passed on to performers and other parties.)
Its sponsorship division had $96 million in revenue, generating $74 million in adjusted operating income, which excludes depreciation, amortization and expenses related to Live Nation’s merger with Ticketmaster in early 2010.
For the fourth quarter of 2012, and for next year, Live Nation expects sales to continue to be strong. It believes that ticket sales for the fourth quarter will be up by more than one million from last year, driven by Lady Gaga’s and Madonna’s tours. Through last month, the company said it had already sold 3 million tickets for events next year, compared to 900,000 by the same point in 2011.
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Touring queens.
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to these winning women
