Live music giants enjoy big stock market gains
It has been a strong week for touring power players on the stock market, with Live Nation, CTS Eventim and Madison Square Garden (MSG) Entertainment all seeing significant gains.
Billboard‘s Global Music Index increased 4.4% to 1,256.06, with 15 of the 21 stocks showing an upswing over the past week. Shares in concert giants LN and CTS were up 8.4% and 9.2% respectively, spurred by recent positive financial results for Q1 2023.
Live Nation posted revenue of $3.1 billion (€2.8bn) for the first quarter – up 73% on the corresponding period 12 months ago – with record results across all divisions. The earnings call prompted a notable uptick in the company’s share price, increasing from $66.76 to $75.91. The stock has since soared a further 12%, standing at $85.13 at press time, boosted by a bullish forecast by CEO Michael Rapino.
“What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights – demand has been growing for a long time and is showing no signs of letting up,” said Rapino. “We expect to host a record number of fans this year, even against a 2022 comparison which benefited from rescheduled shows attended by 20 million fans.”
“The results show that live entertainment remains as popular as ever”
It is a similar story at pan-European giant CTS, which reported last week that ticket sales were up 58% on 2022, while consolidated revenue rocketed 163% year-on-year to €366.2m. Shares in the German-headquartered firm jumped 3% to €62.60 and have continued on an upward curve to €64.75.
“The results show that live entertainment remains as popular as ever,” said CEO Klaus-Peter Schulenberg. “Our customers have high expectations when it comes to buying tickets – especially for tours featuring top acts – and we have comfortably met these expectations. Both in Germany and internationally, we are pursuing organic growth and anticipate that our business performance will continue on its successful course.”
But it was MSG Entertainment, which reported a 4% year-on-year rise in revenues to $201.2m for the fiscal 2023 third quarter – its first as a standalone company following its spin-off from Sphere Entertainment – that experienced the biggest uplift. Shares leapt a huge 19.4% amid rumours it is negotiating a $1 billion deal to sell the former Hulu Theater, as Guggenheim initiated coverage of the company with a buy recommendation. The share price increased a further 2% today to $36.54.
“With the completion of our spin-off, MSG Entertainment begins its new chapter as a standalone, pure-play live entertainment company,” said executive chairman and CEO James L. Dolan. “We remain confident in the strength of our assets and brands and believe that we are well-positioned to create long-term value for shareholders.”
“We remain confident that this next chapter for our company will drive long-term shareholder value”
Shares in Sphere Entertainment also improved 6.1% last week and a further 1% today to $24.97. The firm reported an operating loss of $70.3m for fiscal Q3 on revenues of $363.3m.
“As we approach the opening of Sphere in Las Vegas, we remain confident that this next chapter for our company will drive long-term shareholder value,” said Dolan.
Billboard also reports that share prices for HYBE, SM Entertainment, YG Entertainment and JYP Entertainment have increased by an average of 75% year to date.
Elsewhere, Anghami, the largest music streaming service in the Middle East and North Africa (MENA), which acquired Dubai-based event management company Spotlight Events, climbed 1.7% and stands at $1.26.
UK-based music company ATC, which on the Aquis Growth Market in London in December 2021, has also seen its share price rise from £90 (€103.50) to £92.50 over the past month. The firm bettered its own expectations to record a profit on revenue of £12.1 million (€13.9m) in its first full year as a a public company.
“We are delighted with the progress we have made in our first year as a PLC, delivering 33% top line growth and profitability earlier than expected, whilst also investing in a number of important strategic developments for the group,” said ATC Group plc CEO Adam Driscoll.
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Vegas Sphere costs rise, U2 extend residency
U2 have revealed an additional eight dates for their U2:UV Achtung Baby Live At Sphere residency, bringing the total number of shows to 25.
More than one million ticket requests have been received for the run, which will launch Madison Square Garden (MSG) Entertainment’s 17,500-seat/20,000-cap Sphere at The Venetian in Las Vegas venue in September.
Sphere Entertainment and Live Nation initially announced five nights from 29-30 September and 5, 7-8 October, before confirming an additional 12 (11, 13-14, 18, 20-21, 25, 27-28 October and 1, 3-4 November). The latest concerts have been announced for 1-2, 6, 8-9, 13 and 15-16 December.
Based around U2’s classic 1991 album Achtung Baby, the series will be the band’s first live shows since The Joshua Tree 30th anniversary stadium tour of 2017-19.
Tickets start at US$140 (€127) and will reflect all-in pricing. Promoters say the larger capacity allows for 60% of tickets to be priced under $300, while there will also be a limited number of premium priced tickets per show.
Meanwhile, the construction costs of the “next generation” Sphere project, which is on track to open this September, have escalated by a further US$125 million to $2.3 billion (€2.1bn).
“As construction nears completion of Sphere in Las Vegas, the company has adjusted its construction cost estimate”
“The company continues to make significant progress in its final phases of construction of Sphere in Las Vegas,” Sphere Entertainment revealed in its fiscal Q3 2023 results this week. “This includes completing LED installation on the Exosphere earlier in the third quarter, and the interior LED display plane this month, while continuing to build out the venue’s interior spaces, including the suites and hospitality areas.
“As construction nears completion of Sphere in Las Vegas, the company has adjusted its construction cost estimate, inclusive of core technology and soft costs, to approximately $2.3 billion, from its prior estimate of $2.175 billion, with the increase primarily reflecting the overall complexity of the project. Actual construction costs paid through May 9, 2023 were approximately $2.08 billion, which was net of $65 million received from The Venetian Resort.”
The firm reported an operating loss of $70.3m, down from $71.1m a year earlier, on revenues of $363.3m (up 3% YOY) .
“With the completion of the spin-off of our traditional live entertainment business and the sale of our interest in Tao Group Hospitality, our company has enhanced flexibility to execute its business strategy,” says executive chairman and CEO James L. Dolan. “As we approach the opening of Sphere in Las Vegas, we remain confident that this next chapter for our company will drive long-term shareholder value.”
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Ticket requests for U2 Sphere residency top 1m
U2 have added a further five dates to their U2:UV Achtung Baby Live At Sphere residency after receiving more than one million ticket requests for the shows.
The run will launch Madison Square Garden (MSG) Entertainment’s 17,500-seat/20,000-cap Sphere at The Venetian in Las Vegas venue in September.
The Irish group initially announced five nights from 29-30 September and 5, 7-8 October, before confirming an additional seven (11, 13-14, 18, 20-21 and 25 October). Now, Sphere Entertainment and Live Nation have revealed five more dates – 27-28 October and 1, 3-4 November – bringing the total number of concerts to 17.
Tickets start at US$140 (€127) and will reflect all-in pricing. Promoters say the larger capacity allows for 60% of tickets to be priced under $300, while there will also be a limited number of premium priced tickets per show.
Based around U2’s classic 1991 album Achtung Baby, the series will be the band’s first live shows since The Joshua Tree 30th anniversary stadium tour, which was seen by 3.28 million fans worldwide from 2017-19 and grossed US$390.8 million.
The $2.18 billion Sphere is a “next-generation entertainment medium” that promises to “redefine the future of live entertainment”. It will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies.
“There’s nothing else like it in the world and won’t be for many, many years”
“The idea behind U2 is always to make the worst seat in the house the best seat in the house,” Bono told Apple Music’s Zane Lowe. “This changes the whole dynamic on that. Most music venues [bigger than theatres] are sports venues. They’re built for sports, they’re not built for music. They’re not built for art. So this building was built for immersive experience in cinema and performance. You can’t come here for an ice hockey game.”
“The sound has been designed as a priority from the beginning,” added The Edge. “There’s nothing else like it in the world and won’t be for many, many years. I think the truth is that depending where you are in the venue, you will get your own very unique show.”
The pair also commented on the possibility of their residency expanding further still.
“I don’t know,” said Bono. “We’ll have to see if we like this. We’ll have to see if our audience love this. I think it’s going to be hard to get us out of here. We’re not touring Achtung Baby anyway. With The Joshua Tree, we took that album around the world. This will only be here.”
“Don’t forget it’s 18,000 to 20,000 people a night so you’re not going to be doing 100 shows,” noted The Edge. “I mean, it’s impossible.”
Last week, MSG announced “Sphere Experiences” as part of its opening programming at MSG Sphere at The Venetian in Las Vegas. The concept will launch this October with a “first-of-its-kind” immersive production Postcard from Earth.
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MSG Entertainment announces ‘Sphere Experiences’
Madison Square Garden Entertainment has announced “Sphere Experiences” as part of its opening programming at MSG Sphere at The Venetian in Las Vegas.
One of the core content categories to be featured at the 20,000-cap venue, the experiences concept will launch this October with a “first-of-its-kind” immersive production Postcard from Earth.
The result of collaborations between Sphere Studios – Sphere’s in-house creative and production studio – and acclaimed storytellers and creatives, Sphere Experiences are original immersive productions designed exclusively for the facility. Each Sphere Experience will be approximately 60 minutes in length, and productions are slated to run multiple times per day, year-round.
“We are redefining the future of entertainment through Sphere,” says James L. Dolan, executive chairman and CEO, MSG Entertainment. “Sphere provides a new medium for directors, artists, and brands to create experiences that cannot be seen or told anywhere else, and Sphere Experiences are just one of the ways we will use the venue’s technologies to engage the senses and transport audiences to places both real and imagined.
“Postcard from Earth will set a new bar for multi-sensory storytelling possibilities”
“Postcard from Earth will set a new bar for multi-sensory storytelling possibilities, and we look forward to having audiences experience it at Sphere this fall.”
According to the Las Vegas Review-Journal, the Postcard from Earth project will be directed by filmmaker Darren Aronofsky, with production currently underway. As the first Sphere Experience, it will “utilise the full breadth of Sphere’s technological capabilities to create a multi-sensory storytelling journey”.
MSG Sphere will introduce the first 16K screen that wraps up, around, and behind the audience, and also boasts Sphere Immersive Sound and 4D technologies. U2 will launch the venue this autumn with the U2:UV Achtung Baby Live At The Sphere residency.
Earlier this year, MSG promoted long-serving executive Josephine Vaccarello to EVP, live. Vaccarello will lead the company’s live entertainment bookings across all of its venues, including MSG Sphere Las Vegas
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MSG ups Josephine Vaccarello to EVP, live
Madison Square Garden Entertainment (MSG) has promoted long-serving executive Josephine Vaccarello to executive vice-president, live.
Vaccarello, who began her MSG in 1998 as an administrative assistant, previously served as SVP, MSG live and business operations.
In her new role, she will lead the company’s live entertainment bookings business across all of its venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre, and The Chicago Theatre. She will also be responsible for booking concert residencies at the new MSG Sphere, which is scheduled to open in Las Vegas in the second half of this year.
“Over her tenure at MSG Entertainment, Josephine has been instrumental in growing our live event business by pursuing innovative opportunities including multi-night bookings and unique residencies, and bringing unforgettable events featuring the world’s biggest artists to our venues,” says James Dolan, MSG executive chairman and CEO. “In this new leadership role, I am confident she will continue to raise the bar within the live entertainment industry by leveraging her unparalleled relationships and expertise across our portfolio and in booking our newest venue – the state-of-the-art MSG Sphere.”
“We have a lot of big ideas for the future that will make an indelible mark on live entertainment”
Vaccarello was most recently responsible for booking concerts, comedy, all family entertainment and theatrical properties, and special events, in addition to overseeing the live division’s business strategy. She has been instrumental in bringing residencies and shows to MSG venues including Billy Joel’s ongoing run; 15 nights of Harry Styles and Phish’s annual New Year’s Eve run.
As EVP, live, she will focus on optimising the use of MSG venues and developing strategies that maximise growth by introducing new signature events, conceptualising artist residencies, and delivering unique experiences for artists and fans.
“Throughout my 25 years at this company, I’ve had unique opportunities to grow and evolve my career within the organisation, and I’m honoured to take on this elevated leadership role, particularly as MSG Entertainment expands its live entertainment business,” says Vaccarello. “We have a lot of big ideas for the future that will make an indelible mark on live entertainment and I’m looking forward to continuing to create iconic moments with artists for our fans in New York, Chicago and soon, Las Vegas.”
Earlier this week, MSG announced that it expects to complete its proposed spin-off its live entertainment and MSG Networks divisions by the end of March.
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MSG spin-off expected to be completed in March
Madison Square Garden (MSG) Entertainment says it expects to complete its proposed spin-off its live entertainment and MSG Networks divisions by the end of March.
Structured as a tax-free spin-off to all MSGE shareholders, the move would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses, creating a separately-traded public company.
MSG filed plans for the spin-off with the US Securities and Exchange Commission in November last year.
Alongside New York City’s 20,000-cap Madison Square Garden, the live entertainment and media firm is expected to include The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the New York Knicks and New York Rangers.
MSG previously completed the spin-off of its entertainment businesses from its sports company in 2020.
MSG Entertainment would then comprise the MSG Sphere venues, a majority interest in TAO Group Hospitality, an approximately one-third economic interest in the live entertainment and media company; and the majority of the company’s cash on hand.
In the first step of the transaction, which remains subject to various conditions, record holders of MSGE Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in aggregate, to an approximately 67% economic interest in the live entertainment company, which would take on the name Madison Square Garden Entertainment Corp. The remaining 33% economic interest would be retained by the current parent firm, which would be renamed MSG Sphere Corp.
Last month, it was revealed that Madison Square Garden Company is using facial recognition technology to prevent anyone who works for a firm that is suing it from entering its venues.
The ban covers venues including Madison Square Garden, Radio City Music Hall, the Beacon Theatre and the Chicago Theatre, reported Rolling Stone.
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MSG moves forward with spin-off proposal
Madison Square Garden (MSG) Entertainment has filed plans with the US Securities and Exchange Commission to spin-off its live entertainment and MSG Networks divisions.
The proposed move, which remains subject to various conditions, would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses, creating a separately-traded public company.
Alongside New York City’s 20,000-cap Madison Square Garden, the live entertainment and media firm is expected to include The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the New York Knicks and New York Rangers.
MSG Entertainment would then comprise the MSG Sphere venues, a majority interest in TAO Group Hospitality, an approximately one-third economic interest in the live entertainment and media company; and the majority of the company’s cash on hand.
If the company proceeds with the separation, it would be structured as a tax-free spin-off to all MSGE shareholders. MSG previously completed the spin-off of its entertainment businesses from its sports company in 2020.
“Looking ahead, we expect fiscal 2023 to be a defining year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off”
MSG revealed the latest development as part of its financial report for fiscal Q1 2023, the three-month period ending 30 September 2022.
The company reported revenues of $401.2 million, up 36% on the prior year quarter, and an operating loss of $44.8m (an improvement of 46%), and adjusted operating income of $2.8m, a decrease of $7.5m, or 73%, compared to the prior year period.
“We are pleased with our start to the year, with first quarter results reflecting robust ongoing demand for our portfolio of assets and brands,” says executive chairman and CEO James Dolan. “Looking ahead, we expect fiscal 2023 to be a defining year as we make progress toward the completion of MSG Sphere in Las Vegas and our potential spin-off, both of which we believe will deliver long-term value for our shareholders.”
The fiscal quarter was highlighted by a busy calendar of events at MSG venues, strength in Tao Group Hospitality’s key markets, including Las Vegas and New York, and robust sales and renewal activity within marketing partnerships and suites.
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MSG raises banner to mark Harry Styles’ residency
Harry Styles has become only the third music artist to have a banner raised to the rafters at New York’s Madison Square Garden in celebration of his 15 consecutive nights at the 20,000-cap arena.
The banner was unveiled and presented to Styles during the encore of the final show of his sold-out Love on Tour residency, which ran from 20 August to 21 September. Every fan in attendance received a feather boa to mark the occasion.
“Selling out 15 consecutive nights at Madison Square Garden is a massive accomplishment and reinforces Harry Styles as one of the most impactful artists of his generation,” says MSG Entertainment executive chairman and CEO Jim Dolan.
The Live Nation-promoted 15-night run saw MSG transformed into “Harry’s House”, with interactive photo activations placed around the venue; custom postcards distributed at each show; and exclusive specialty food and beverage options created specifically for the run. A merch pop-up was also set up at MSG throughout the run and was accessible to all fans, regardless of whether they had tickets.
“It is a testament to Harry and his fans that a banner celebrating this remarkable achievement will hang from the rafters alongside some of the most legendary artists and athletes in history”
Billy Joel and Phish are the only two other musical acts to have banners hanging from The Garden’s rafters. Last week it was announced that Joel has added another show to his record-breaking MSG residency, with the star’s 13 January show marking Joel’s 87th monthly and 133rd lifetime show at the venue.
“It is a testament to Harry and his fans that a banner celebrating this remarkable achievement will hang from the rafters alongside some of the most legendary artists and athletes in history,” adds Dolan.
Styles and Live Nation will be donating more than $1 million in proceeds from the tour to Everytown for Gun Safety Support Fund – the education, research and litigation arm of Everytown for Gun Safety, the largest gun violence prevention organisation in the US.
The 28-year-old was 2021’s top worldwide ticket seller according to Pollstar‘s year-end rankings, selling 669,051 tickets for his Love on Tour arena dates, generating $86,723,984 (€80,530,991). The tour heads to Latin America later this year following the conclusion of Styles’ US dates, and continues in 2023 with stadium dates in Australasia and Europe.
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MSG Entertainment mulls new spin-off plan
Madison Square Garden (MSG) Entertainment is exploring a potential spin-off that would create a separately-traded public company comprised of its traditional live entertainment business.
The board of director’s has authorised management to look into the proposed spin-off, which would separate those businesses from the firm’s MSG Sphere and Tao Group Hospitality businesses.
The group says the move would provide shareholders with “greater investment choice and visibility into each company’s businesses and growth prospects, while enabling both companies to pursue distinct business and capital allocation strategies”.
“This potential transaction would create two companies, each with a distinct value proposition for investors”
“This potential transaction would create two companies, each with a distinct value proposition for investors,” says executive chairman and CEO James Dolan. “The live entertainment and media company would include Madison Square Garden, the Christmas Spectacular production and MSG Networks and would generate substantial free cash flow.
“The second company, comprised of MSG Sphere and Tao Group Hospitality, would be focused on unique shared experiences, innovation and global opportunities for growth.”
Alongside New York City’s 20,000-cap Madison Square Garden, the live entertainment and media firm is expected to include The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, along with the firm’s entertainment and sports bookings business and long-term arena licence agreements with the New York Knicks and New York Rangers.
MSG Entertainment would then comprise the MSG Sphere venues, a majority interest in TAO Group Hospitality, an approximately one-third economic interest in the live entertainment and media company; and the majority of the company’s cash on hand.
If the company proceeds with the separation, it would be structured as a tax-free spin-off to all MSGE shareholders.
“The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences”
Meanwhile, the company has also reported its latest financial results. For fiscal 2022, MSG Entertainment reported revenues of US$1.7 billion as compared to revenues of $814.2 million in the prior year. In addition, the firm had an operating loss of $102.7 m and adjusted operating income of $133.6m in fiscal 2022, compared to an operating loss of $188.2m and adjusted operating income of $40.2m in the prior year.
For the fiscal 2022 fourth quarter, it reported revenues of $453.5m as compared to $260.6m in revenues in the prior year quarter. The company posted an operating loss of $56.8m and adjusted operating income of $700,000 in the fiscal 2022 Q4, compared to an operating loss of $44m and adjusted operating income of $2.5m in the prior year quarter.
“The past year demonstrated the resiliency of our business and the robust demand for our portfolio of live experiences,” adds Dolan. “We continue to make significant progress on the construction of MSG Sphere in Las Vegas, which remains on track to open in the second half of calendar 2023.”
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Jonas Brothers to star in intimate MSG concert
Madison Square Garden (MSG) Entertainment Corp and Delta Air Lines have announced a collaboration to present a first-of-its-kind intimate performance by the Jonas Brothers.
Delta Jet Set with the Jonas Brothers will take place on the floor of New York’s Madison Square Garden on Monday 20 June.
The concert forms part of MSG Entertainment’s Staged By MSG live music partnership platform, which has featured unique experiences including private on stage wedding proposals, concerts that supported healthcare heroes during the pandemic, virtual events in support of emerging artists and local charities, and livestream concerts.
“This exclusive event at The Garden is a first for The World’s Most Famous Arena,” says Ron Skotarczak, EVP, chief sales and marketing officer, MSG Entertainment. “Delta Jet Set is another example of how, through the Staged By MSG partnership platform, MSG Entertainment continues to utilise our portfolio of best-in-class venues and our unmatched artist relationships to conceptualise and create unique events that add tremendous value for our brand partners and their customers.”
Delta Jet Set with the Jonas Brothers is the latest event for Delta SkyMiles Members as part of a longstanding partnership between MSG Entertainment and Delta Air Lines, the Official Airline partner of Madison Square Garden, Hulu Theater at MSG, Beacon Theatre, Radio City Music Hall, the Christmas Spectacular Starring the Radio City Rockettes and Boston Calling Music Festival.
“Delta’s partnership with MSG Entertainment allows us to connect people to their passions”
Previously, MSG Entertainment and Delta Air Lines collaborated to present “MAX: Breaking Through” in the Delta Sky360 Club at MSG, a listening party where fans exclusively heard select songs from MAX’s upcoming album; and a “Tweet 2 Meet” in the Delta Sky360 Club at MSG with Anderson .Paak where the artist surprised his biggest fans with an exclusive meet-and-greet.
“As the Official Airline of MSG and the No. 1 Airline in New York, Delta’s partnership with MSG Entertainment allows us to connect people to their passions – whether that is through travel or exclusive events like Delta Jet Set,” adds Emmakate Young, MD of brand marketing and sponsorships, Delta Air Lines. “This is one of many ways we are working to provide unparalleled experiences for our SkyMiles Members and reinforce our investment to New York.”
The Staged By MSG partnership platform has produced events with brands and artists including AJR, Alicia Keys, Anthony Ramos, Bastille, Bebe Rexha, Brett Eldredge, Dermot Kennedy, Florida Georgia Line, Jake Owen, Janelle Monae, Jason Mraz, Kane Brown, Liam Payne, Lil Yachty, Mary J. Blige, Miguel, Natalie Merchant, Post Malone, Rascal Flatts, Swae Lee, Tori Kelly, X Amabassadors, Zedd, and 24Kgldn.
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