Stock Woes Grow Live Nation 4Q Deficit
March 2, 2009 at 4:00 PM (PT)
Due to a 70% drop in share price in 2008, LIVE NATION took a heavy impairment charge that dramatically increased its 4Q loss, the world's largest concert and artist promoter said MONDAY. The LA BUSINESS JOURNAL reports that LIVE NATION waited until the markets closed before reporting a net loss of nearly $338 million (-$4.33 per share), compared with a loss of $18.4 million (-25 cents) a year ago. Revenue fell 0.7% to $916 million.
LIVE NATION’s 2008 net loss jumped 1,841% to $232 million (-$3.04), largely due to a $270 million impairment charge, as revenues for the year grew 11% to $4.16 billion. What's more, the number of concerts produced rose 33% in the fourth quarter and 32% year-over-year, with total attendance up 14% in the quarter and 12% over last year.
Because of that, CEO MICHAEL RAPINO was encouraged by the company's prospects for 2009. "Our fourth quarter results capped an outstanding year for LIVE NATION," he said in a statement. "Looking ahead, we believe that the live music business remains resilient despite the global economic turndown and that we are well positioned to benefit from this."