Concert giant Live Nation Entertainment just delivered its “best first quarter ever”.
Live Nation has published its financial results for Q1 2022 (ended March 31), and within the filing, the company reports quarterly revenues of $ 1.8 billion across all divisions, including concerts, ticketing and advertising & sponsorship.
That overall revenue figure was up on the $ 290.6 million the company posted in Q1 2021, when the concert business was still operating a reduced number of shows due to the pandemic.
Now, in a letter to investors, Live Nation CEO Michael Rapino notes that, “artists are back on the road and fan demand has never been stronger”.
Rapino added that “live events remain a clear priority for consumers as our social lives restart”.
Approximately 11 million fans attended Live Nation shows in Q1 compared to 15 million in Q1 2019.
Live Nation’s concerts business generated revenues of $ 1.2 billion in Q1, versus the $ 239.4 generated in the same quarter last year.
The firm’s ticketing business made $ 480.4 million in the three months ended March 31, compared to $ 28.3 million in Q1 2021.
Live Nation’s Sponsorship and Advertising Revenue, meanwhile, reached $ 115.7 million in Q1, versus $ 22.6 million in the same quarter last year.
Across concerts, ticketing and advertising & sponsorship, Live Nation’s operating income was $ 27 Million and Adjusted Operating income was $ 209 Million.
Rapino added that ticket buying serves as a “leading indicator” to Live Nation’s overall business, and as such, strong first quarter performance delivered by the firm’s ticketing business, Ticketmaster, “drove the company’s overall profitability”.
He added that Ticketmaster’s performance “shows how well [Live Nation’s] concert and sponsorship businesses are positioned to deliver record results this year ”.
Live Nation says the quarter was Ticketmaster’s second highest ever for gross transaction volume, excluding refunds (see below).
Live Nation says that it has already sold over 70 million tickets for shows in 2022, up 36% compared to this point in 2019.
According to Rapino, “all leading indicators point to double-digit growth in fan attendance at our concerts this year relative to 2019”.
Live Nation says it has sold almost 20 million more tickets to its concerts this year than at this point in 2019, with a large number of tours still to go on-sale.
Looking ahead to the summer and the rest of the year, Rapino told investors that Live Nation “remains optimistic that we are just getting going as all leading indicators reinforce record activity levels and financial results”.
“Our concert and sponsorship businesses are positioned to deliver record results this year.”
Michael Rapino, Live Nation
Added Rapino: “We are also continuing to build Venue Nation, our platform of operated venues, with a pipeline of 20 venues, including the recently opened Moody’s Center arena in Austinin addition to adding 38 more festivals this year.
Sponsors are looking to spend more than ever on live entertainment and Live Nation’s scale and global platform is making us the partner of choice. While the US and UK have driven much of our activity over the past year, the rest of the world is now rapidly opening up.
“OCESA’s financial performance for the quarter exceeded its 2019 Q1 results, and both Latin America spirit Western Europe are expected to have record attendance for our concerts this year.
“I continue to expect this to be the start of our run. The global addressable market for concerts, ticketing and sponsorship all provide a long runway for continued growth. We have over 60 tours already under discussion for 2023 – our earliest indicator of next year, and great positioning for ongoing growth. ”Music Business Worldwide