Live Nation Q3 2021 Earnings Report
Key Takeaways
Live Nation Entertainment reported a strong third quarter, marking a return to live events at scale. All business segments achieved positive operating income and AOI, with Ticketmaster delivering record results. Fan demand drove double-digit growth in pricing and on-site spending, and leading indicators point to a record 2022.
All business segments returned to positive operating income and AOI.
Ticketmaster delivered its highest operating income and AOI quarter ever.
Fan demand led to double-digit growth in pricing and on-site spending.
Show count is up double-digits for 2022 relative to 2019.
Live Nation
Live Nation
Live Nation Revenue by Segment
Forward Guidance
Live Nation anticipates a record 2022, driven by strong leading indicators across all business segments. The company expects a record fourth quarter for Ticketmaster's transacted fee-bearing GTV and is focused on cost savings to enable future growth.
Positive Outlook
- Confirmed show count across amphitheaters, arenas and stadiums is up double-digits relative to the same time in 2019 for 2020 shows.
- Through mid-October, 22 million tickets have already been sold for shows in 2022.
- Ticketmaster expects a record fourth quarter transacted fee-bearing GTV, even after already selling 65 million fee-bearing tickets for events next year.
- Ticketmaster has added clients representing 14 million net new fee-bearing tickets so far this year.
- Confirmed pipeline for sponsorship and advertising business for 2022 is up double-digits relative to this time in 2019 for 2020.
Challenges Ahead
- The company expects to continue to have bumps in the road in the coming months.
- It will take some time for international artists to be touring on a truly global basis.
- The company had an operational burn of $384 million.
- One-time items impacted the operational contribution margin.
- The company had non-operational cash uses, including capital expenditures, acquisition activity, net advances and interest payments of $197 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income