Live Nation Entertainment (NYSE: LYV) reported second-quarter results after the closing bell on Wednesday. Here's what you need to know about this business update from the parent company of event arranger and ticket vendor Ticketmaster.
Live Nation's second-quarter results: The raw numbers
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What happened with Live Nation this quarter?
- Live Nation sold 68 million concert tickets in the second quarter, a 21% increase over the year-ago period and a company record.
- Average ticket prices rose from $30 to $33 per ticket stub, including ancillary revenues such as on-site food and T-shirt sales.
- Concert sales accounted for 80% of the company's total revenue, up from 77% a year ago.
- The smaller non-concert ticketing and sponsorship divisions saw sales rising 9% and 31%, respectively.
What management had to say
"We have built the industry's most scalable and unparalleled live platform, bringing over 550 million fans in 40 countries to live events each year," said Live Nation CEO Michael Rapino in a prepared statement. "With key metrics in each of concerts, sponsorship, and ticketing pacing double digits ahead of last year, we are confident that 2017 will be another record year of results for Live Nation."
The company is looking to increase the ancillary spend per concert attendant by approximately $2 for the next quarter, driven by better food and beverage options at this summer's live events.
The sponsorship segment's operating income is up 15% year over year in the first half of 2017, and management expects that growth rate to hold firm in the second half as well.
Ticketmaster's global marketplace should continue growing both sales and operating income in the high single digits, in percentage terms. Fans are responding to an updated mobile Ticketmaster app, the new Verified Fan program, and other recent improvements.
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