“Live Nation” (which may be referred to as the “Company,” “we,” “us” or “our”)
means
segments or subsidiaries, as the context requires. You should read the following
discussion of our financial condition and results of operations together with
the unaudited consolidated financial statements and notes to the financial
statements included elsewhere in this quarterly report.
Special Note About Forward-Looking Statements
Certain statements contained in this quarterly report (or otherwise made by us
or on our behalf from time to time in other reports, filings with the
releases, conferences, internet postings or otherwise) that are not statements
of historical fact constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Exchange Act of 1934, as amended, notwithstanding that such statements are not
specifically identified. Forward-looking statements include, but are not limited
to, statements about our financial position, business strategy, competitive
position, potential growth opportunities, potential operating performance
improvements, the effects of competition, the effects of future legislation or
regulations and plans and objectives of our management for future operations. We
have based our forward-looking statements on our beliefs and assumptions
considering the information available to us at the time the statements are made.
Use of the words “may,” “should,” “continue,” “plan,” “potential,” “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “outlook,” “could,” “target,”
“project,” “seek,” “predict,” or variations of such words and similar
expressions are intended to identify forward-looking statements but are not the
exclusive means of identifying such statements.
Forward-looking statements are not guarantees of future performance and are
subject to risks and uncertainties that could cause actual results to differ
materially from those in such statements. Factors that could cause actual
results to differ from those discussed in the forward-looking statements
include, but are not limited to, those set forth below under Part II-Other
Information-Item 1A.-Risk Factors, in Part I-Item IA.-Risk Factors of our 2021
Annual Report on Form 10-K as well as other factors described herein or in our
annual, quarterly and other reports we file with the
“cautionary statements”). Based upon changing conditions, should any risk or
uncertainty that has already materialized, such as, for example, the risks and
uncertainties posed by the global COVID-19 pandemic, worsen in scope, impact or
duration, or should one or more of the currently unrealized risks or
uncertainties materialize, or should any underlying assumptions prove incorrect,
actual results may vary materially from those described in any forward-looking
statements. All subsequent written and oral forward-looking statements
attributable to us or persons acting on our behalf are expressly qualified in
their entirety by the applicable cautionary statements. You are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of
the date on which they are made. We do not intend to update these
forward-looking statements, except as required by applicable law.
Executive Overview
The third quarter of 2022 continued our record year performance. Fan demand
showed no signs of weakening, as almost all our major markets played to our
highest quarterly fan count and ticket sales, leading to a milestone third
quarter for the Company, reinforcing the health of all three of our segments and
live entertainment. Even with inflationary pressures and other macroeconomic
headwinds, the supply and demand dynamic with artists and fans continues to be
strong. This was our second consecutive record quarter for AOI fueled by more
fans attending our shows, selling more tickets on the Ticketmaster platform, and
collaborating with world class sponsorship partners. Our show count, ticket
sales, and sponsor contract pacing this year signals the power of our flywheel
to deliver results not just through the remainder of this year, but also heading
into 2023.
Almost all of our markets and venues were fully open in the third quarter of
2022 and we saw the continued easing of restrictions in our
and expect those territories to have a full touring schedule heading into 2023.
There were limited instances of tours being interrupted or rescheduled in the
third quarter due to COVID-19. We have seen our show cancellation rate return to
near historical levels and our attendance rates have also bounced back to
pre-pandemic levels, returning to more traditional attendance to tickets sold
ratios.
For the three months ended
as compared to the same period of the prior year was
impact of changes in foreign exchange rates. All three of our segments had
revenue growth in the quarter with the largest increase coming from our Concerts
segment as discussed below. We had consolidated operating income of
in the third quarter of 2022, compared to
2021, an improvement of
at levels far exceeding one year ago when show activity was largely limited to
million
compared to the same period of the prior year was
impact of changes in foreign exchange rates. With
notably strengthening over the past six months, it has adversely impacted both
our revenues and adjusted operating income from international operations. We
expect this trend to continue through the remainder of the year.
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For the first nine months of 2022, our consolidated revenue grew
from
to the same period of the prior year was
changes in foreign currency exchange rates. We had consolidated operating income
of
of
billion
Consolidated AOI for the first nine months increased by
million
period of the prior year was
foreign exchange rates.
Having provided the foreign currency exchange impacts for the organization
overall and in light of their relative materiality, all of the segment financial
comments to follow are based on reported foreign currency exchange rates.
Our Concerts segment revenue grew by
third quarter of 2021 to
growth was a result of more shows and fans coming back to venues to enjoy their
favorite artists. The number of events for the quarter was approximately 11,200
compared to 5,579 in the third quarter of 2021. The number of fans for the
quarter was approximately 44.3 million compared to approximately 16.9 million
last year. This was our highest fan count for a quarter ever, powered by growth
across our major divisions as well as the addition of the OCESA business in
compared to the third quarter of 2019. In particular, stadium fan count more
than tripled to nearly 9 million fans globally. Some of the top acts in the
quarter included Coldplay, The Weeknd, Bad Bunny and Red Hot Chili Peppers.
Lollapalooza in
in
fans, reaching passionate fans on a global scale. Concerts AOI for the quarter
increased by
For the first nine months of 2022, Concerts revenue grew
billion
increased by
very strong APF across all of our venue types. Since 2019, our last full year of
operations prior to the global COVID-19 pandemic, APF has increased by nearly
30% at our owned and operated amphitheaters, driven by higher food and beverage
spending and the shift to cashless transactions. In our Theaters and Clubs
across
percentage growth in APF. Lastly, at our festivals, we have also seen growth in
APF, with concessions, camping, and, in particular, VIP sales up substantially
at our marquee events. The increases to APF, along with ticket price increases
for those seats highest in demand, have outpaced higher labor and materials
costs at our venues and festivals this year.
Our Ticketing segment revenue grew by
third quarter of 2021 to
AOI for the quarter decreased slightly by
to
pricing momentum due to higher fan demand, direct costs rose to support higher
operations and enterprise growth. Our fee-bearing ticket sales for the quarter
were 73 million, 30 million higher than in the third quarter of last year. This
was a record quarter for reported ticket sales, exceeding our last record set
just last quarter by over 1 million tickets. Our resale business continued to
grow, with over
than doubling resale GTV in the third quarter of 2019. It was our highest resale
quarter ever, powered by both Concerts and all the major sporting leagues.
For the first nine months of 2022, our Ticketing revenue grew by
from
nine months increased by
in 2022. Through the end of September, our fee-bearing ticket sales are 197
million tickets, 121 million ahead of 2021 and, notably, 38 million ahead of
2019 when all markets were fully open. Resale GTV through the end of
2022
2019. Overall pricing on our fee-bearing tickets for the first nine months of
the year is up 20% compared to 2019 as consumer demand for premium seats and VIP
experiences has continued. Lastly, we have signed nearly 19 million net new
tickets so far this year, which gives us confidence that the Ticketmaster
features and functionality will continue to fuel growth going forward.
Our Sponsorship & Advertising segment revenue grew by
million
2022. The improvement was due to additional revenues from purchase path
integration with various new partners, our biggest ever festival season and the
addition of the
for the quarter increased by
million
Advertising revenue grew
in 2022 for the same reasons as for the three months ended
Sponsorship & Advertising AOI for the first nine months increased by
million
We are optimistic about the long-term potential of our Company and are focused
on the key elements of our business model: expanding our concerts platform and
improving the on-site experience for our fans, driving conversion of ticket
sales
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through development of innovative products to sell more tickets, and developing
unique marketing and content programs for top brands.
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