Live Nation Delivers Record Earnings In Year-End, Q4 Report
February 25, 2016 at 1:37 PM (PT)
LIVE NATION ENTERTAINMENT's financial results for the three and 12 months ended DECEMBER 31st, 2015, turned in a record year.
Revenue, adjusted operating income, and free cash flow all grew 11% for the year to $7.6 billion (revenue), at constant currency, and AOI to $616 million and operating income to $156 million while delivering record ticket volume of 530 million.
LIVE NATION CONCERTS continued to grow its global market share, adding five million fans globally in 2015, for a total of over 63 million fans while promoting 25,000 concerts, up 12% from last year. The ongoing flow of new artists also continues to re-energize the business and in 2015, 13 of the Top 20 selling artists were new from the previous year.
Through FEBRUARY 19th of this year, ticket sales are up another 5% year-on-year, driven by 18% growth in amphitheaters and 47% growth in stadiums. We are confident we will again see strong growth in fan demand across our business this year.
LIVE NATION's advertising division grew 17% in 2015 at constant currency, increasing both onsite and online advertising as the global sponsor base increased 20% to almost 900 brands. Onsite advertising drove the majority of the growth for the year, with increased advertising per fan by 8%, continuing to develop new products for sponsors, along with the benefit of high growth in the festivals.
LIVE NATION expects continued advertising growth at historical levels in 2016, with over 60% of budgeted advertising for the year already sold, and pacing ahead of last year at this time by double-digit levels.
For the fifth straight year, TICKETMASTER grew its ticketing volume and gross transaction value, or GTV, with GTV up 12% at constant currency. Delivering $25 billion in GTV, TICKETMASTER continues to be one of the top global e-commerce sites, operating in 22 countries.
In 2015, secondary ticketing continued to be a major focus, now operating in 13 countries and delivering 34% growth in GTV for the year to $1.2 billion, at constant currency. As a result, integrated inventory conversion was 38% higher than primary only offerings.
As of the end of 2015, over 21 million fans have downloaded one of LIVE NATION's apps, a 37% increase over last year. This drove a 20% increase in mobile ticket sales for the year to 21% of total tickets.
The company has heavily invested in online and mobile products to increase visits to its sites and conversion. As a result, already in 2016 LIVE NATION has had three days selling over 900,000 tickets, placing them among the top 15 days of all time.
Over the last three years, LIVE NATION has grown AOI by 34% and free cash flow by 45%. With 63.4 million fans, LIVE NATION dwarfs the #2 promoter, AEG, with 14.7 million fans.
Commented LIVE NATION President/CEO MICHAEL RAPINO: "LIVE NATION continues to be the artist's number one choice for touring because we have an unparalleled live platform to service their concerts and drive ticket sales to their fans. Combining a growing global industry with our ability to grow its leadership position, we expect to continue driving long-term value for our shareholders."