Entertainment giant Live Nation revealed its third quarter earnings this week, showcasing an increase in operating income amid a dip in revenue.
During the third quarter Live Nation reported that revenue reached $7.7 billion — a decrease from last year’s record-breaking $8.2 billion during the same period. Concerts made up for $6.6 billion of the reported revenue this year, with the company noting that 112 million fans attended Live Nation concerts across the globe.
“We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating,” Live Nation CEO Michael Rapino said in a statement. “While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year.”
Live Nation assured that the “momentum continues after biggest summer concert season,” with the following key indicators:
- Revenue of $7.7 billion
- Operating income of $640 million
- Adjusted operating income of $910 million
- Highest ever concerts profitability
- Venue Nation fans spending increased
- 144 million tickets sold for Live Nation concerts through October
- October transacted ticket sales for Ticketmaster up 15%
- Nearly all sponsorship commitments booked for the year
This year, Live Nation expanded its venue portfolio, as Estadio GNP reopened, Northwell at Jones Beach amphitheater reopened following renovations, and the Brooklyn Paramount opened its doors. Live Nation said that these venues, as well as plans to refurbish an additional 14 venues next year, is “expected to increase capacity by an incremental eight million fans.”
The company is already pointing to more growth in 2025, noting that over 20 million tickets have already sold for concerts next year and recent 2025 stadium onsales have delivered double-digit average growth in show grosses relative to past tours.
“As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy,” Rapino said. “Momentum continues to build, as we expand the industry’s infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe.”
While Live Nation has seen a record increase in numbers following the re-emergence from the global COVID-19 pandemic shutdown, its revenue and market share has also soared amid 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.
The company has also been criticized for its alleged monopolistic and anti-competitive business practices alongside its ticketing subsidiary Ticketmaster. Both Ticketmaster and Live Nation have been targeted in an antitrust lawsuit by the Department of Justice and 39 states, as well as the District of Columbia, which aims to break-up the pair.
Find Live Nation’s full Q3 earnings report here.
