Live Nation Fourth Quarter 2022 Revenues Rise; Company Wants Artists To Set Their Own Ticket Resale Rules

Q4 Results And Ticket Resales

LIVE NATION ENTERTAINMENT's fourth quarter 2022 revenue benefited from the rebound in live events last year, with a 59% year-over-year jump to $4.29 billion (65% in constant currency), fueled by a 66% increase in concert revenue to $3.4 billion, a 34% rise in ticketing revenue to $651.3 million, and a 44% increase in sponsorship and advertising revenue to $245.6 million. Consolidated operating loss narrowed 4% (7% in constant currency) to $119.9 million, but adjusted operating income took a 39% hit (33% in constant currency), falling to $97.8 million.

The revenue increase came from a sharp rise in live events as the pandemic eased, jumping from 8,117 in 2020 and 17,412 in 2021 to 43,644 in 2022, with a commensurate jump in ticket sales. Concert attendance was up 24% for the year, with over 121 million fans attending.

The company is responding to the controversies arising from problems with major artist ticket sales, including TAYLOR SWIFT and BRUCE SPRINGSTEEN, by launching what it calls the "FAIR Ticketing Act," an initiative that puts the onus on artists to decide resale rules for their own shows, making selling of speculative tickets (which the seller does not actually possess) illegal, expanding the BOTS Act, and "industry-wide all-in pricing so fans see the full cost they are paying up front."

Pres./CEO MICHAEL RAPINO said, "In 2022, we saw fans around the world continue to prioritize their spending on attending live events, particularly concerts.  Our research consistently tells us that concerts are a top priority for discretionary spending, and one of the last experiences fans will cut back on - and we are seeing this play out in both our results for 2022 and early indicators for 2023." He touted the "Verified Fan" program while contending that LIVE NATION's ticketing market share has gone down since merging with TICKETMASTER and pointing the finger at venues who "regularly take more of the economics on every renewal, as they set and keep a majority of the service fees." "Since signing the extended consent decree related to the TICKETMASTER merger," RAPINO said, "we remain in constant conversation with the DEPARTMENT OF JUSTICE's monitors, and do not believe there have been any violations."

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