Live Nation Entertainment Fourth Quarter, Full Year 2020 Revenue, Income Slammed By Pandemic, But CEO Optimistic For 2021 Rebound

Q4, 2020 Down A Lot

The pandemic's effect on live entertainment had its predictable results for LIVE NATION ENTERTAINMENT, which ended 2020 with fourth quarter revenue off 92% year-to-year to $178.4 million and Adjusted Operating Income down from a gain of $80.8 million in 2019 to a loss of $244.3 million in 2020. For the year, revenue was off 84% from 2019 to $1.9 billion, with Adjusted Operating Income down from a gain of $942.5 million to a loss of $1 billion.

Pres./CEO MICHAEL RAPINO wrote that 2020 was "clearly not the year anyone predicted" but praised his company for focusing on "turning this challenge into an opportunity to improve our business." He cited cost reductions and the development of live concert streaming and direct-to-consumer businesses among the highlights of 2020, and expressed confidence that consumer spending will rebound after the pandemic and noted that "surveys demonstrate the high demand for concerts globally, with 95% of fans likely to attend a show when restrictions are lifted. This is proving out in fan behavior as well, with 83% of fans continuing to hold onto their tickets for rescheduled shows."

"Given the massive social and economic toll that the lockdown has had on the public," RAPINO wrote, "we believe there will be strong momentum to reopen society swiftly as soon as vaccines are readily available. And we believe outdoor activities will be the first to happen."

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