Revenues at ticketing giant Ticketmaster for the quarter ended March 31, 2008, rose 15 percent compared to the same period last year to $349 million, according to financial reports parent company IAC/InterActiveCorp released today.
Despite the good news on revenue growth, Ticketmaster’s operating income dropped 21 percent to $51 million for the quarter, down from $64.8 million in 2007, which the company attributed in part to “higher expenses associated with product and technology initiatives and higher overall royalty rates,” but the company did not elaborate.
Revenue growth was partially as a result of a 3 percent increase in tickets sold and a 7 percent jump in the average overall revenue per ticket, officials said. In addition, the company’s recent acquisitions of Paciolan and TicketsNow also contributed to the revenue growth, and Ticketmaster considers all of its recent purchases contributed $18.4 million for the quarter.
“With this quarter’s results, it couldn’t be clearer that we are on the right course in separating IAC into 5 distinct public entities. Each of the businesses have their own unique opportunities – some with current challenges and others with wind at their backs,” IAC Chairman and CEO Barry Diller said in a statement. “Ticketmaster grew revenue strongly and continues to invest for the future.”
IAC is preparing to break up the company by the end of the year, despite a legal challenge to the move by major shareholder Liberty Media. IAC’s overall revenues grew 8 percent for the quarter to $1.6 billion, but operating income decreased 18 percent to $70 million, and net income also fell 13 percent to $52.8 million, according to the company.