Live Nation Q1 Shows Impact Of Ticketmaster Merger
Revenue Way Up, Concert Losses Minimized
May 10, 2010 at 2:30 PM (PT)
It was a soft Q1 for the newly merged LIVE NATION, with the revenue from TICKETMASTER helping the concert promotion giant stave off for more significant losses. Thanks to TICKETMASTER's revenue stream, LIVE NATION's revenue in Q1 jumped almost 50% to $723 million.
That's the good news, along with he fact that the average concertgoer spent almost $60 at each event, which is 1.2% more in Q1 '10 than they did in '09. The less-than-stellar news was that a 16% drop in concert attendance from a year ago (attributed to staging fewer concerts) led to a drop in concert revenue by 1.2% The Adjusted Operating Income paints a starker picture, in that the Concerts lost $42.5 million, while Ticketing made $45.8 million Add the results from other divisions, such as Artist Nation, E-Commerce, Sponsorship and Corporate and LINVE NATION came out of Q1 $1.4 million in the black.
LIVE NATION's powers-that-be expect much bigger things as the merger streamlines operations. "During the first quarter, we moved forward with integrating our operations, streamlining our cost structure and strengthening our balance sheet," Pres./CEO MICHAEL RAPINO said. "We remain on track in eliminating redundancies and driving a minimum of $40 million in merger synergies across our operations in 2010.
"In addition, we believe that our recently closed debt refinancing will further improve our financial position by providing operating benefits through a simplified capital structure and substantially improved liquidity. Our core concert and ticketing businesses are entering the busiest time of the year and show count and ticket sales globally remain on track to achieve our plan for 2010."
"Our current artist pipeline is strong and we are excited about the upcoming tour cycles for several of our key artists, including THE EAGLES, CHRISTINA AGUILERA, JOHN MAYER, KINGS OF LEON and KE$HA," Exec. Chairman IRVING AZOFF said. "We have expanded our artist management operations by opening an office in LONDON and adding new artist relationships including the GLEE tour. With the completion of the merger, we are focused on streamlining our combined merchandise businesses to drive profitability."