Live Nation, Parent Company of Ticketmaster, Reports Exceptional Earnings
Live Nation Entertainment, the parent company of Ticketmaster, has achieved a remarkable milestone by delivering its most successful quarter to date, setting the stage for a potentially record-breaking year in 2023, all thanks to the star power of Taylor Swift and Beyoncé.
The surge in revenue, a substantial 32% increase to $8.2 billion in the third quarter, was driven by a combination of elevated ticket prices and the resurgent demand for live concerts, surpassing the expectations of $6.99 billion, as reported by LSEG (formerly Refinitiv).
Following this announcement, Live Nation's shares experienced a notable 3% post-closing bell surge on Thursday.
The lion's share of revenue, approximately $6.97 billion, stemmed from the company's concerts division, encompassing merchandise sales and the production of live music events, with an additional $833 million generated from ticketing services.
Here's a breakdown of the results:
Earnings per share: $1.78, surpassing the projected $1.27 per share as per LSEG.
Revenue: $8.15 billion, significantly exceeding the $6.99 billion forecasted by LSEG.
For the period ending on September 30, Live Nation posted earnings of $483.5 million, or $1.78 per share, marking a notable increase from the previous year's figures of $361.4 million, or $1.39 per share.
The year 2023 has seen Live Nation shatter records by selling a remarkable 140 million tickets, a 17% surge compared to the same period in 2022, surpassing the entire 2022 ticket sales of 121 million.
A considerable portion of these tickets can be attributed to the overlapping tours of Taylor Swift and Beyoncé. Both iconic artists have not only contributed significantly to the concert industry but have also had a substantial economic impact on the domestic economy over the past year.
Moreover, they have ventured into the movie box office arena, with Taylor Swift's "The Eras Tour" concert film setting new records during its theatrical release in October, raking in more than $200 million globally. Beyoncé is gearing up for the release of her "Renaissance Tour" documentary in December.
2023 has also witnessed tours from a plethora of renowned artists including Harry Styles, Billy Joel, Stevie Nicks, Journey, Bruce Springsteen and the E Street Band, Paramore, The Jonas Brothers, Carrie Underwood, SZA, Red Hot Chili Peppers, Reba McEntire, Lizzo, Blink-182, and Blackpink.
Notably, fans are spending more during these concerts, with Live Nation reporting a double-digit increase in per-fan profitability, surpassing inflation-related cost hikes.
The company anticipates that by the end of 2023, approximately 55 million fans will have attended events at its venues, marking a double-digit increase from the 49 million fans in 2022.
The outlook for 2024 is promising, with Live Nation revealing that about half of the expected show count for the next year is already booked for large venues, reflecting a double-digit increase from the previous year. While Beyoncé has concluded her "Renaissance World Tour," Taylor Swift is gearing up for the international leg of "The Eras Tour" in late November.
The 2024 lineup also promises to be spectacular, featuring acts such as Coldplay, Metallica, Pink, Bruno Mars, Aerosmith, Foo Fighters, and Ed Sheeran. Additionally, there are expectations for a Rolling Stones tour.
Live Nation reported that around 17 million net new client tickets have been added in 2023, with half of them originating from international markets.
