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Another record year for Live Nation, and debt falls $13m

UNITED STATES -
World News
March 28, 2018

Live Nation Entertainment (LNE) has posted its seventh consecutive year of record revenue with its fourth quarter (Q4) and 2017 annual report.

Q4 revenue increased 42 per cent to $2.5 billion, driven by a 53 per cent increase in concert revenue to $1.8bn. Sponsorship and online advertising revenue was up 11 per cent to $98.6 million. Primary and secondary ticketing revenue combined was up 21 per cent to $633m, while its resale business alone rose by 18 per cent.

A $110m legal settlement with Songkick (see Audience issue 217) reduced Q4 operating income and helped to produce a Q4 loss of $202m.

For the year ended 31 December 2017, overall revenue was $10.3bn, a 24 per cent increase over 2016, with all three divisions – Concerts, Ticketing and Sponsorship & Advertising – producing double-digit revenue growth, says the company. Concerts were up 26 per cent at $7.9 bn from 3,317 more shows and 15 million more attendances globally.

In North America, 19,333 concerts were staged – an increase of 2,379 and 6.3 million more attendances than in 2016. Internationally, 935 more shows were staged (up 11 per cent), resulting in a 39 per cent, 8.7m increase in attendance.,

Globally, LNE invested $5.6bn to promote 30,000 shows in 40 countries.

During 2017, the company grew its festival portfolio, adding 12 events to a new total of 97 festivals in 14 countries, with an overall attendance of eight million.

Ticketing revenue for the year was up 17 per cent and increased by $315.9m to $2.143bn. This was driven by higher global primary ticket volume and average ticket prices rising by 5 per cent. Secondary ticketing was up 16 per cent and mobile ticket sales were up 35 per cent, accounting for 33 per cent of ticket sales.

Sponsoring & Advertising was up 18 per cent to $445.1m, with festival sponsorship alone up 20 per cent.

“[Our] strategy has consistently delivered results for several years now, creating shareholder value through increasing operating results and cash flow growth as we have continued expanding our global business,” says LNE co-chairman and CEO Michael Rapino.
LNE’s long-term debt is $1.952 bn, down from $2.260bn the preceding year, while short-term debt rose to $347.593m from $53.317m in 2016. Overall, debt during 2017 fell by $13.094m.

LNE’s long-term debt is $1.952 bn, down from $2.260bn the preceding year, while short-term debt rose to $347.593m from $53.317m in 2016. Overall, debt during 2017 fell by $13.094m.

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