Live Nation Q3 2023 Earnings Report
Key Takeaways
Live Nation Entertainment reported a record third quarter in 2023, with revenue up 32% to $8.2 billion and operating income up 22% to $619 million. The company is on pace for a record year, driven by the globalization of its business and a shift in consumer spending towards experiences.
Revenue increased by 32% to $8.2 billion in Q3, and by 36% to $16.9 billion year-to-date.
Operating income increased by 22% to $619 million in Q3, and by 35% to $1.1 billion year-to-date.
The company sold 140 million tickets year-to-date, surpassing the full year 2022 total of 121 million.
Event-related deferred revenue increased by 39% to $2.6 billion, reflecting continued momentum into 2024.
Live Nation
Live Nation
Live Nation Revenue by Segment
Forward Guidance
Live Nation expects continued momentum through 2023 and into 2024, based on leading indicators through mid-October.
Positive Outlook
- Record number of fans: 140 million tickets sold year-to-date for Live Nation shows this year, up 17% year-over-year and already surpassing full year 2022 total of 121 million
- Record Ticketmaster volume expected: 257 million fee-bearing tickets sold year-to-date, up 22% year-over-year; on track to manage over 600 million tickets this year, including well over 300 million fee-bearing tickets
- Record Sponsorship results expected: On pace for double-digit AOI growth this year
- Strong Projected Free Cash Flow — Adjusted: Percentage conversion for the full-year is now projected to be in the mid-60s
- Strong concert calendar: Event-related deferred revenue up 39% to $2.6 billion (vs 3Q22), reflecting continued momentum into 2024
Challenges Ahead
- operational challenges in achieving strategic objectives and executing on the company's plans
- the risk that the company's markets do not evolve as anticipated
- the potential impact of any economic slowdown
- operational challenges associated with selling tickets
- operational challenges associated with staging events
Revenue & Expenses
Visualization of income flow from segment revenue to net income