Live Nation Fourth-Quarter Revenue Up 4%, Loss Widens
February 23, 2017 at 3:20 PM (PT)
LIVE NATION ENTERTAINMENT fourth quarter 2016 revenue rose 4% to $1.8 billion, with concert revenue up 2% to $1.1 billion, sponsorship and advertising up 20% to $88.7 million, and ticketing rising 9% to $522.4 million. Adjusted operating loss widened 55% to $35.7 million, driven by a 45% widening of the deficit for concerts and an 85% drop in operating income for the Artist Nation division. For the full year, revenue was up 15% to $8.35 billion.
"We continue to see the tremendous power of live events, with strong global consumer demand," said President/CEO MICHAEL RAPINO. "Live is a truly unique entertainment form - it cannot be duplicated. It is elevated, not threatened, by technology and is borderless. Fans around the world can now discover, follow, share and embrace artists, creating greater demand for live shows. We believe the live business will continue to have strong growth for years to come as fans globally drive demand, artists are motivated to tour, and technology drives conversion." He noted that average ticket prices for the company's shows increased by 5% for the year, and average per fan spending grew as well, including a 9% jump at amphitheaters to over $22 per head.