LN Q1: Ticket resale still biggest growth area

Ticketmaster’s biggest-ever month and high-profile tours including Beyoncé’s Formation, Coldplay’s A Head Full of Dreams, Rihanna’s Anti, Drake’s Summer Sixteen and the Guns N’ Roses reunion contributed to double-digital revenue growth for Live Nation Entertainment in the first quarter (Q1) of 2016.

The multinational concert, ticketing, management and sponsorship giant reported a 10 per cent increase in revenue to US$1.2 billion and seven per cent rise in adjusted operating income in its Q1 financial results, released yesterday, although losses were also up: $34 million compared to $24m in Q1 2015.

Ticketmaster was the biggest success story of the three months up to 31 March, increasing its gross transaction value (GTV) by 18 per cent on a constant-currency basis, driven by continued strength in its ticket resale operations: GTV for Ticketmaster/Live Nation-owned secondary-ticketing marketplaces, such as TicketsNow and TicketsExchange in North America and Get Me In! and Seatwave in the UK, was up 43 per cent, reflecting a trend seen in Live Nation’s record-breaking 2015 yearly results.

Ticketmaster sold over 17 million tickets globally in February – its most in a single month ever.

In the concerts business, ticket sales for shows are up 10 per cent, with over 35 million already sold. Live Nation is also promoting 13 per cent more shows than in the same period last year

In the concerts business, ticket sales for shows are up 10 per cent on the last four months of 2015 (up to 29 April), with over 35 million already sold. Live Nation is also promoting 13 per cent more shows than in the same period last year.

“At the same time, we are expanding our global footprint, most recently adding South Africa as the 37th country we promote in and our acquisition of Founders Entertainment, which builds our presence in New York and adds Governors Ball to our global festival portfolio,” said CEO Michael Rapino in the earnings release.

The sponsorship/advertising business reported revenue growth of 13 per cent on a constant-currency basis.

Rapino concluded: “2016 is on track to be another year of growth and record results for the company. All of the leading indicators for our concerts, sponsorship and ticketing businesses are performing ahead of last year and we expect each of the businesses to deliver revenue, AOI and free cashflow growth this year.

“Our results are demonstrating the fundamental strength and growth trajectory of live events and Live Nation’s positioning to deliver long-term profit and cashflow growth.”