Live Nation Entertainment, which reportedly is going to be targeted by a federal antitrust lawsuit from the Department of Justice in the coming weeks, announced its first quarter 2024 earnings after the markets closed on Thursday.
The live entertainment and ticketing giant reported yet another jump in revenue, with its reported $3.8 billion in the quarter 21% above the previous year. Operating income, however, was reported as a loss of $37 million – compared to an operating income of $142.7 million in Q1 2023 – a swing of $179.7 million.
CEO Michael Rapino chalked the losses up to “one-time accruals” in the earnings announcement.
“Our Q1 results demonstrate that live events remain a priority for fans around the world. Global fan demand is stronger than ever, more artists are out on the road, and more venues are being added to bring them together. While operating income will be impacted by one-time accruals, we’re on track to deliver another record year with double-digit AOI growth and years of momentum still to come,” Rapino said in the press release.
The company highlighted multiple indicators showing its strong and continued growth:
- Revenue up 21% to $3.8 billion
- Operating loss of $37 million
- Adjusted operating income up 15% to $367 million
- Fan growth up 21% to 23 million fans
- Food and beverage spending up 10% at U.S. theaters and clubs
- 77 million fee-bearing tickets sold
- Sponsorship revenue up 24%, highest Q1 ever
Live Nation Entertainment has been on an unbelievable streak of massive earning numbers since entertainment re-emerged following the COVID-19 shutdowns across the globe. The company, which many argue controls far too significant of a slice of the global entertainment business for any meaningful competition to be possible, has seen revenue and market share soar due to “pent-up demand” for live entertainment, but also through the widespread use of controversial programs such as “dynamic” ticket pricing algorithms and restrictive ticketing systems that are designed to eliminate competition from secondary marketplaces.
While many lawmakers and fan organizations have called for stronger protections for consumers and competition against such business practices – if not an outright break-up of the companies by the DOJ – Live Nation’s lobbying apparatus continues to push for its preferred set of legislative changes.
FURTHER READING | Live Nation Parties With D.C. Insiders as DOJ Lawsuit Looms
FURTHER READING | Hundreds of Artists Throw Support Behind Live Nation’s Favored Federal Legislation
FURTHER READING | Live Nation, Industry Forces Seek to Kill California Ticket Reforms
The full Live Nation Entertainment press release regarding its Q1 2024 earnings is here.
