Live Nation Reports Drop In Concert Attendance
Live Nation announced their third-quarter results last week, revealing a 1.4% rise in Q3 earnings, despite a decrease in revenue from lower concert attendance. According to their Q3 filing, Live Nation saw worldwide concert attendance decline from 16,489,000 in Q3 2010 to 15,561,000 in Q3 2011 and a similar drop in estimated U.S. attendance from 12,820,000 in 2010 to 12,257,000.
Revenue wise, Live Nation posted solid gains of 9.9% in ticketing, an eye-popping 41.9% in e-commerce, 9.4% at Artist Nation and a 4.6% improvement in sponsorship. These gains however, were offset by concerts, resulting in a net revenue loss of 2.5% for the quarter.
The company posted a net profit of $51.7 million, or 27 cents a share, compared with $51.4 million, or 30 cents a share in the same period 2010. Live Nation narrowly missed analysts estimates compiled by Thomson Reuters of 38 cents a share and revenue of $1.91 billion.
"I am delighted that we continue to deliver improved financial results and are well on track to drive strong growth in profitability for the year," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "Across our portfolio this year, we have delivered growth while also improving operating margins. This is reflected in the healthy gains in free cash flow from our operations while investing in new products including festivals, re-platforming of Ticketmaster, social media and mobile apps."
"We believe the stabilization of consumer demand for live events will continue into 2012 and, looking ahead, we are increasingly optimistic about our opportunities," Rapino continued. "Given the continued fan demand for concerts and a growing supply of artists hitting the road, we are optimistic about the future growth of the global concert industry. Based on this, we believe we are well positioned to generate improved returns from our business and deliver shareholder value." via CelebrityAccess