Despite a dramatic, but expected third quarter (Q3) decline in revenue, Live Nation Entertainment (LNE) CEO Michael Rapino says he expects the company to bounce back strongly next year.
He says 80 per cent of LNE’s shows have been rescheduled rather than cancelled, 8 per cent of fans globally are holding on to their tickets to rescheduled events, and 95 per cent of fans plan to return to live events as soon as restrictions are lifted.
LNE, which owns Ticketmaster reported a 95 per cent year-on-year fall in revenue during Q3 to $184 million, and an 81 per cent decline to $1.6bn from $8.6bn during the same period last year.
Q3 concert revenue was $154.8m, down 95 per cent from $3.17bn, while the Ticketmaster-owner’s ticketing revenue was -$19.8m compared to $388.5m in 2019. Attendance fell from 31.6m to 269,000 during Q3, but due to new concert formats including drive-ins and socially-distanced shows it was up from the 49,000 in Q2.
“Throughout all this, we remain motivated by the long-term potential of global live events,” says Rapino. “It is in our DNA to gather, socialise and celebrate and, as we provide reassurances on health and safety at the venues, we expect our business to build back.”
LNE says it plans to cut company costs by $900m for the year.
The company’s long-term debt rose from $4.83bn at the end of Q2 to $4.84bn, while short-term debt was down from $64m to $51m.