Any lingering doubts as to whether concert giant Live Nation could turn its fractured global live event business into a profitable company were erased this week, as the company reported another round of solid financials for Q2 2017, with strong increases in both revenue and profit.
Wall Street rewarded a strong report from Live Nation with an after hours bump on Wednesday. The stock [NYSE: LYV] opened Thursday at $40.25, up from a closing the night before at $37.50.
According to new financial filings, Live Nation booked a revenue of 2.8 billion for the quarter, up by 29% over the same period last year. Operating income for the quarter was up substantially as well, with the company posting income of $113.4 million, and adjusted operating income of $221.4 million, up by 53% and 22% respectively when measured against 2016.
Live Nation's concert business drove increases in revenue, increasing to $2.24bn for Q2, up by 34% over 2016. The company reported that they promoted over 7 thousand shows for 24 million fans, an increase of 5.5 million fans from the second quarter last year.
Live Nation reported that their concert business grew both domestically and internationally in the quarter, with attendance in both arenas increasing 2 million fans, and arenas, amphitheaters, stadiums, festivals and theaters all saw attendance increase by double digits.
In the sponsorship & advertising business, Live Nation posted a 31% increase in revenue, while operating income and AOI were up by 19% and 21% respectively. The segment was propelled by the company's festival sponsorship business, which saw improvement in revenue by 32% for the quarter.
Ticketmaster also reported gains, with revenue up by 9%, though operating income slid by 6% for the quarter, dropping to $43.7 million from the same period in 2016.
"2017 is on track to be another year of growth and record results for the company. Our key indicators for our businesses — concert tickets sold for shows this year, contracted sponsorship, and fee-bearing ticketing GTV — are all pacing double digits ahead of last year and as a result we expect each of our businesses to deliver record revenue, operating income and AOI this year," Live Nation President/CEO Michael Rapino said in a statement.
via Celebrity Access