Live Nation Entertainment Revenues, Income Continue Pandemic-Related Woes In Third Quarter

Tough Year So Far

The continued shutdown of traditional live events led to another tough quarter for LIVE NATION ENTERTAINMENT, which saw a 95% year-to-year dip in revenue to $184 million for third quarter. Concert revenue went from $3.2 billion to $154.8 million, also a 95% decrease, while ticketing went from $388.5 million to a loss of $19.8 million and sponsorship/advertising fell 78% to $47.9 million. Operating income went from a $260 million gain to a $504.4 million loss, and Adjusted Operating Income fell from $427.1 million to a $319.2 million loss.

On the positive side, Pres./CEO MICHAEL RAPINO pointed to 83% of fans who bought tickets for concerts before the pandemic hit are keeping the tickets and awaiting rescheduling rather than asking for refunds. "Our sales and survey data tell us fan demand will be there when the time is right," wrote RAPINO in the company's earnings release, adding, "Our recent global survey indicates that 95% of fans are planning to return to live music events when restrictions are lifted, the highest point of confidence since the start of the pandemic." He also noted strong advance sales for 2021 festival shows, including a quick sell-out of EDC LAS VEGAS 2021 and sales for READING, CREAMFIELDS, and ISLE OF WIGHT pacing ahead of last year's sales.

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