Live Nation Entertainment Reports Third Quarter 2024 Results
Live Nation Entertainment reported strong Q3 2024 results with revenue of $7.7 billion and operating income of $640 million. The company achieved record concerts profitability with adjusted operating income of $474 million, up 39%, and margins of 7.2%. Through October, 144 million tickets were sold for 2024 concerts, up 3%. Ticketmaster's October sales increased 15% overall and 23% for concert events. The company's 2025 outlook is positive, with double-digit growth in stadium, arena, and amphitheater show pipelines, and over 20 million tickets already sold. On-site spending showed significant growth, with double-digit increases at major festivals and 9% growth at amphitheaters.
Live Nation Entertainment ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi di 7,7 miliardi di dollari e reddito operativo di 640 milioni di dollari. L'azienda ha ottenuto una redditività record nei concerti con un reddito operativo rettificato di 474 milioni di dollari, in aumento del 39%, e margini del 7,2%. Fino a ottobre, sono stati venduti 144 milioni di biglietti per concerti del 2024, un incremento del 3%. Le vendite di Ticketmaster a ottobre sono aumentate del 15% in generale e del 23% per gli eventi concertistici. Le prospettive per il 2025 sono positive, con una crescita a doppia cifra nei pipeline di spettacoli in stadi, arene e anfiteatri, e oltre 20 milioni di biglietti già venduti. La spesa in loco ha mostrato una significativa crescita, con aumenti a doppia cifra nei principali festival e una crescita del 9% negli anfiteatri.
Live Nation Entertainment reportó resultados sólidos para el tercer trimestre de 2024, con ingresos de 7.7 mil millones de dólares y ingresos operativos de 640 millones de dólares. La compañía logró una rentabilidad récord en conciertos con un ingreso operativo ajustado de 474 millones de dólares, un aumento del 39%, y márgenes del 7.2%. Hasta octubre, se vendieron 144 millones de boletos para conciertos de 2024, un aumento del 3%. Las ventas de Ticketmaster en octubre aumentaron un 15% en general y un 23% para eventos de conciertos. Las perspectivas para 2025 son positivas, con un crecimiento de dos dígitos en las producciones de espectáculos en estadios, arenas y anfiteatros, y más de 20 millones de boletos ya vendidos. El gasto en el lugar mostró un crecimiento significativo, con aumentos de dos dígitos en los principales festivales y un crecimiento del 9% en anfiteatros.
라이브 네이션 엔터테인먼트는 2024년 3분기에 77억 달러의 수익과 6억 4천만 달러의 운영 소득을 보고했습니다. 회사는 조정된 운영 소득이 4억 7천 4백만 달러로 39% 증가하며 콘서트 수익성을 기록했습니다. 10월까지 1억 4천 4백만 장의 티켓이 2024년 콘서트를 위해 판매되어 3% 증가했습니다. 티켓마스터의 10월 판매는 전반적으로 15% 증가했으며, 콘서트 이벤트의 경우 23% 증가했습니다. 2025년 전망은 긍정적이며, 경기장, 아레나 및 공연장에서 두 자릿수 성장세를 보이고 있습니다. 이미 2천만 장 이상의 티켓이 판매되었습니다. 현장 지출은 주요 축제에서 두 자릿수 증가와 함께 앰피극장에서 9% 증가하는 등 눈에 띄는 성장을 보였습니다.
Live Nation Entertainment a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus de 7,7 milliards de dollars et un revenu d'exploitation de 640 millions de dollars. L'entreprise a atteint une rentabilité record pour les concerts avec un revenu d'exploitation ajusté de 474 millions de dollars, en hausse de 39%, et des marges de 7,2%. Jusqu'en octobre, 144 millions de billets ont été vendus pour les concerts de 2024, soit une augmentation de 3%. Les ventes de Ticketmaster en octobre ont augmenté de 15% au total et de 23% pour les événements de concert. Les perspectives pour 2025 sont positives, avec une croissance à deux chiffres dans les pipelines de spectacles dans les stades, arènes et amphithéâtres, et plus de 20 millions de billets déjà vendus. Les dépenses sur place ont montré une croissance significative, avec des augmentations à deux chiffres lors des festivals majeurs et une augmentation de 9% dans les amphithéâtres.
Live Nation Entertainment berichtete über starke Ergebnisse im dritten Quartal 2024 mit Einnahmen von 7,7 Milliarden Dollar und Betriebseinkommen von 640 Millionen Dollar. Das Unternehmen erzielte Rekordgewinne bei Konzerten mit einem bereinigten Betriebseinkommen von 474 Millionen Dollar, was einem Anstieg von 39% und Margen von 7,2% entspricht. Bis Oktober wurden 144 Millionen Tickets für Konzerte im Jahr 2024 verkauft, was einem Anstieg von 3% entspricht. Die Ticketverkäufe von Ticketmaster stiegen im Oktober insgesamt um 15% und um 23% bei Konzertveranstaltungen. Die Aussichten für 2025 sind positiv, mit zweistelligem Wachstum in den Bereichen Stadion-, Arena- und Amphitheater-Veranstaltungen sowie bereits über 20 Millionen verkauften Tickets. Der Vor-Ort-Konsum zeigte ein signifikantes Wachstum mit zweistelligen Zuwächsen bei großen Festivals und einem Anstieg von 9% bei Amphitheatern.
- Record concerts profitability with AOI of $474 million, up 39%
- Ticket sales up 15% overall and 23% for concert events in October
- Over 20 million tickets already sold for 2025 concerts
- Show count up 13% to approximately 40k YTD
- Artists grossed 30% more per show at same amphitheaters vs 2022/2023
- Strategic partners generating >$1M/year increased by 20%
- 30%+ decline in stadium attendance YTD
- Foreign exchange impact expected to affect Q4 operating income by over 30%
- Capital expenditures estimated at $700 million for 2024
- Accounting errors in 2022-2023 tax calculations requiring restatement
Insights
Live Nation delivered strong Q3 results with
- Concert AOI of
$474 million , up39% - 144 million tickets sold through October, up
3% - Double-digit increases in per-fan spending at major festivals
- 20 million tickets already sold for 2025, showing strong forward momentum
The company's venue expansion strategy is paying off with upgraded facilities driving higher per-fan spending and premium offerings. While Q4 faces some currency headwinds, particularly in Latin America, the robust pipeline and growing sponsorship commitments point to continued growth in 2025.
The live entertainment industry's post-pandemic recovery continues to exceed expectations. Notable trends include:
- Strong consumer willingness to spend on premium experiences, evidenced by
20%+ growth in VIP ticket revenue at major festivals - Successful venue renovations driving
50% increases in season seats and significant jumps in food and beverage spending - Geographic expansion with two-thirds of new enterprise tickets coming from international markets
"We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating. While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year. As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy. Momentum continues to build, as we expand the industry's infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe." –Michael Rapino, President and CEO, Live Nation Entertainment
QUARTERLY HIGHLIGHTS: MOMENTUM CONTINUES AFTER BIGGEST SUMMER CONCERT SEASON
(versus prior year, reported FX)
- Revenue of
$7.7 billion - Operating income of
$640 million - Adjusted operating income of
$910 million - Highest ever concerts profitability with adjusted operating income of
$474 million 39% , and margins of7.2% , up more than two hundred basis points - Venue Nation fans spending more on-site: double-digit increases in on-site spending per fan at major festivals (over 100k fans) and up
9% at amphitheaters (same artist comparison) year-to-date - 144 million tickets sold for 2024 Live Nation concerts through October, up
3% - October transacted ticket sales for Ticketmaster up
15% on all ticket volume and up23% for concert events, including Live Nation shows - Nearly all expected sponsorship commitments for the year booked, up double-digits
VIEW HOW OUR OPERATING RESULTS COMPARE TO PAST QUARTERS IN THE 3Q24 TRENDED RESULTS GRID:
https://investors.livenationentertainment.com/financial-information/financial-results
LEADING INDICATORS POINT TO MORE GROWTH IN 2025
(based on leading indicators through early November vs same period last year)
- Growing concerts pipeline in large venues (stadiums, arenas, and amphitheaters), up double-digits compared to this point in 2023; stadium pipeline up double-digits compared to this point in 2022
- Over 20 million tickets already sold for Live Nation concerts in 2025, pacing up double-digits
- Recent 2025 stadium onsales (including Coldplay, Rüfüs Du Sol and Shakira) delivering double-digit average growth in show grosses relative to past tours
- Sponsorship momentum continues with commitments pacing up double-digits
CONCERTS DELIVERS RECORD PROFITABILITY (Q3 VS SAME PERIOD LAST YEAR)
- Revenue of
$6.6 billion - AOI of
$474 million 39% - Record AOI margin of
7.2% , on track to deliver 2024 margins toward pre-pandemic levels
ARENA AND AMPHITHEATER SHOWS DRIVE FAN GROWTH (YTD THROUGH Q3 VS SAME PERIOD LAST YEAR)
- Show count up
13% to approximately 40k, fueled by arenas and amphitheaters and double-digit growth in theater and club shows - 112 million fans globally at Live Nation concerts, up
3% driven by double-digit growth in each arena and amphitheater attendance, more than offsetting a30% + decline in stadium attendance - Artists grossed
30% more per show on average when playing the same amphitheaters this year compared to 2022 / 2023, offsetting rising show costs
GLOBAL FAN DEMAND REMAINS ROBUST
- Tickets sold globally in September and October up over
20% year-over-year, reflecting continued strong demand
PORTFOLIO EXPANSION DELIVERS ATTRACTIVE RETURNS (YTD THROUGH Q3 VS SAME PERIOD LAST YEAR)
- Venue Nation expects to host approximately 60 million fans this year, up
8% vs 2023 - Three major enhancements to our venue portfolio this year:
- Estadio GNP reopened this summer, with average net per fan spending up
20% compared to pre-renovation levels - Northwell at Jones Beach amphitheater reopened after a successful renovation: season seat and box suite sales up
50% , food and beverage net per fan spending up double-digits, and VIP club sales up50% - Brooklyn Paramount opened earlier this year, and its VIP Club is generating
30% more revenue per show relative to VIP clubs at other top performing theaters in theU.S.
- Estadio GNP reopened this summer, with average net per fan spending up
- These venues, along with plans to add or refurbish an additional 14 venues through 2025, are expected to increase capacity by an incremental eight million fans
- Elevating the fan experience:
- At Live Nation amphitheaters, average net per fan spending grew over
$3 9% , for the same artists' shows in 2024 relative to 2022/2023 - Globally, major festivals (over 100k fans) average net per fan spending up double-digits for repeating events
- At Live Nation amphitheaters, average net per fan spending grew over
- Fans continue to seek premium offerings:
- VIP ticket premium revenue at major festivals (over 100k fans) up more than
20% - Revenue for amphitheater VIP clubs increased by
19%
- VIP ticket premium revenue at major festivals (over 100k fans) up more than
RESULTS REFLECT STRONG ONGOING DEMAND AND IMPACT OF VENUE MIX
- Revenue of
$694 million - AOI of
$236 million - Full-year AOI margin expected to be similar to last year
BUILDING BASE FOR CONTINUED GROWTH (YTD THROUGH Q3 VS SAME PERIOD LAST YEAR)
- October transacted ticket sales up
15% on all ticket volume and up23% for concert events, including Live Nation shows - 24 million net new enterprise tickets signed, with two-thirds from international markets
- 238 million fee-bearing tickets sold, growing at an
8% CAGR since 2019, reflecting Ticketmaster's global platform and ability to serve high demand onsales and global clients
SPONSORSHIP GROWTH DRIVEN BY GLOBAL VENUE PLATFORM (Q3 VS SAME PERIOD LAST YEAR)
- Revenue of
$390 million 6% - AOI of
$275 million 10% - Full-year AOI margin expected to be similar to last year
GLOBAL PARTNERSHIPS POSITION SPONSORSHIP FOR ONGOING GROWTH (YTD THROUGH Q3 VS SAME PERIOD LAST YEAR)
- AOI growth largely driven by on-site platforms, international markets, and ticket access deals
- Number of strategic partners who generate more than
$1 million 20% and drove majority of the revenue growth - Expanded beauty and fashion portfolio at more global festivals, including brands such as American Apparel, Wrangler, Ulta Beauty, and American Eagle in
Mexico
Capital Expenditures to Support Venue Expansion
- 2024 capital expenditures estimated to be
$700 million - Three-quarters of total capex driven by Venue Nation: five venues account for approximately
45% of total venue spend - Capital committed by third parties, and so reducing required cashflow, is now estimated to be
$130 million
- Three-quarters of total capex driven by Venue Nation: five venues account for approximately
Focused on Maintaining Liquidity and Prudent Balance Sheet Management
- Year-to-date net cash provided by operating activities of
$680 million $1.3 billion - Full-year AOI to free cash flow—adjusted conversion expected to be consistent with historical levels
- Q3 ended with
$5.5 billion $1.6 billion $2.6 billion $1.7 billion - Revolver increased by
$400 million $1.7 billion $575 million
Additional Financial Information
- Year-to-date, foreign exchange impact to revenue, operating income and AOI has been approximately
1% . This is expected to accelerate in Q4, notably due to exposure fromLatin America currencies, and could impact operating income by over30% and AOI by mid-teens percentage for the quarter - 2024 share count not expected to change materially from 2023
- Our reported non-cash income tax expense in certain periods in 2022 and 2023 were incorrect due to errors in the local statutory to consolidated tax provision calculations. We have made adjustments to correct these errors and the changes are not material to our 2022 and 2023 financial statements. This press release reflects the corrected results. A more detailed explanation, together with the restatements, can be found in Note 9 of the Notes to Consolidated Financial Statements (Unaudited) in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024
The company will webcast a teleconference today, November 11, 2024, at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the "News / Events" section of the company's website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the "Financial Info" section of the website. A replay of the webcast will also be available on the Live Nation website. The link to the 3Q24 Trended Results Grid is provided above for convenience and such grid is not a part of, or incorporated into, this press release or any SEC filings that include this press release.
Notice Regarding Financial Statements
The company has provided certain financial statements at the end of this press release for reference. These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 to be filed with the Securities and Exchange Commission on November 12, 2024 and available on the SEC's website at sec.gov.
About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com.
FINANCIAL HIGHLIGHTS – THIRD QUARTER (unaudited; $ in millions) | |||||||||||
Q3 2024 | Q3 2023 As Revised1 | Growth | Q3 2024 | Q3 2024 | Growth at | ||||||
Revenue | |||||||||||
Concerts | $ 6,580.6 | $ 6,971.8 | (6 %) | $ 34.1 | $ 6,614.7 | (5 %) | |||||
Ticketing | 693.7 | 837.6 | (17 %) | 4.8 | 698.5 | (17 %) | |||||
Sponsorship & Advertising | 390.3 | 366.8 | 6 % | 9.6 | 399.9 | 9 % | |||||
Other and Eliminations | (13.5) | (21.6) | * | 0.0 | (13.5) | * | |||||
$ 7,651.1 | $ 8,154.6 | (6 %) | $ 48.5 | $ 7,699.6 | (6 %) | ||||||
Consolidated Operating Income | $ 639.5 | $ 653.7 | (2 %) | $ 4.2 | $ 643.7 | (2 %) | |||||
Adjusted Operating Income (Loss) | |||||||||||
Concerts | $ 474.1 | $ 340.9 | 39 % | $ (3.7) | $ 470.4 | 38 % | |||||
Ticketing | 235.7 | 351.6 | (33 %) | 2.9 | 238.6 | (32 %) | |||||
Sponsorship & Advertising | 275.3 | 250.3 | 10 % | 7.1 | 282.4 | 13 % | |||||
Other and Eliminations | (7.1) | (6.9) | * | 0.0 | (7.1) | * | |||||
Corporate | (68.2) | (64.7) | (5) % | 0.0 | (68.2) | (5) % | |||||
$ 909.8 | $ 871.2 | 4 % | $ 6.3 | $ 916.1 | 5 % | ||||||
FINANCIAL HIGHLIGHTS – NINE MONTHS (unaudited; $ in millions) | |||||||||||
9 Months | 9 Months As Revised1 | Growth | 9 Months | 9 Months | Growth at | ||||||
Revenue | |||||||||||
Concerts | $ 14,447.0 | $ 13,886.3 | 4 % | $ 69.5 | $ 14,516.5 | 5 % | |||||
Ticketing | 2,147.6 | 2,219.7 | (3 %) | 7.8 | 2,155.4 | (3 %) | |||||
Sponsorship & Advertising | 913.9 | 839.8 | 9 % | 7.1 | 921.0 | 10 % | |||||
Other and Eliminations | (34.5) | (38.2) | * | 0.0 | (34.5) | * | |||||
$ 17,474.0 | $ 16,907.6 | 3 % | $ 84.4 | $ 17,558.4 | 4 % | ||||||
Consolidated Operating Income | $ 1,064.0 | $ 1,166.4 | (9) % | $ 25.5 | $ 1,089.5 | (7) % | |||||
Adjusted Operating Income (Loss) | |||||||||||
Concerts | $ 742.9 | $ 504.7 | 47 % | $ 12.1 | $ 755.0 | 50 % | |||||
Ticketing | 812.4 | 904.0 | (10 %) | 5.3 | 817.7 | (10 %) | |||||
Sponsorship & Advertising | 627.9 | 548.9 | 14 % | 7.8 | 635.7 | 16 % | |||||
Other and Eliminations | (22.4) | (32.9) | * | 0.0 | (22.4) | * | |||||
Corporate | (172.2) | (160.5) | (7) % | 0.0 | (172.2) | (7 %) | |||||
$ 1,988.6 | $ 1,764.2 | 13 % | $ 25.2 | $ 2,013.8 | 14 % | ||||||
* Percentages are not meaningful | |
(1) | For the three and nine months ended September 30, 2023, revenue, consolidated operating income and AOI were restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
Reconciliation of Adjusted Operating Income to Operating Income (unaudited; $ in millions) | |||||
Q3 2024 | Q3 2023 As Revised1 | 9 Months 2024 | 9 Months 2023 As Revised1 | ||
(in millions) | |||||
Adjusted Operating Income (1) | $ 909.8 | $ 871.2 | $ 1,988.6 | $ 1,764.2 | |
Acquisition expenses | 94.6 | 40.9 | 95.1 | 79.1 | |
Amortization of non-recoupable ticketing contract advances | 17.0 | 16.9 | 62.2 | 58.5 | |
Depreciation and amortization | 137.0 | 130.7 | 407.3 | 382.4 | |
Gain on sale of operating assets | (4.0) | (1.6) | (5.4) | (8.1) | |
Astroworld estimated loss contingencies | — | — | 279.9 | — | |
Stock-based compensation expense | 25.7 | 30.6 | 85.5 | 85.9 | |
Operating income (1) | $ 639.5 | $ 653.7 | $ 1,064.0 | $ 1,166.4 | |
(1) | For the three and nine months ended September 30, 2023, AOI and operating income were restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
Reconciliations of Certain Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (unaudited; $ in millions)
| |||
Reconciliation of Free Cash Flow — Adjusted to Net Cash Provided by Operating Activities | |||
($ in millions) | Q3 2024 | Q3 2023 As Revised (1) | |
Net cash used in operating activities | $ (720.9) | $ (884.4) | |
Add: Changes in operating assets and liabilities (working capital) | 1,433.3 | 1,636.3 | |
Free cash flow from earnings | $ 712.4 | $ 751.9 | |
Less: Maintenance capital expenditures | (31.9) | (27.8) | |
Distributions to noncontrolling interests | (27.9) | (16.2) | |
Free cash flow — adjusted | $ 652.6 | $ 707.9 | |
Net cash used in investing activities | $ (208.4) | $ (164.8) | |
Net cash used in financing activities | $ (49.5) | $ (28.6) | |
(1) | For the three months ended September 30, 2023, changes in operating assets and liabilities were restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. | |||
Reconciliation of Free Cash Flow — Adjusted to Net Cash Provided by Operating Activities | |||
($ in millions) | 9 Months 2024 | 9 Months 2023 As Revised1 | |
Net cash provided by operating activities | $ 680.1 | $ 754.6 | |
Add: Changes in operating assets and liabilities (working capital) | 608.6 | 748.9 | |
Add: Changes in accrued liabilities for Astroworld estimated loss contingencies | 279.9 | — | |
Free cash flow from earnings | $ 1,568.6 | $ 1,503.5 | |
Less: Maintenance capital expenditures | (81.5) | (72.5) | |
Distributions to noncontrolling interests | (199.8) | (153.8) | |
Free cash flow — adjusted | $ 1,287.3 | $ 1,277.2 | |
Net cash used in investing activities | $ (642.8) | $ (464.0) | |
Net cash provided by (used in) financing activities | $ (692.5) | $ 44.9 | |
(1) | For the nine months ended September 30, 2023, net cash provided by operating activities and changes in operating assets and liabilities were restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
Reconciliation of Free Cash to Cash and Cash Equivalents | |
($ in millions) | September 30, |
Cash and cash equivalents | $ 5,489.9 |
Client cash | (1,644.7) |
Deferred revenue — event-related | (2,586.7) |
Accrued artist fees | (321.2) |
Collections on behalf of others | (124.0) |
Prepaid expenses — event-related | 931.2 |
Free cash | $ 1,744.5 |
Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:
Certain statements in this press release, including the Supplemental Information that follows, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to statements regarding more growth ahead, with momentum continuing to build; the impact of one-time accruals on operating income in 2024, and the company's pacing toward double-digit adjusted operating income growth for the year; the company's concerts pipeline and sponsorship commitments for 2025; anticipated delivery of Concerts 2024 adjusted operating income margin toward pre-pandemic levels; anticipated Venue Nation fans in 2024; the company's plans to add or refurbish 14 additional venues through 2025 and the expectation that this and 2024 enhancements to the company's venue portfolio will increase capacity by an incremental 8 million fans; expectations that Ticketmaster's full-year adjusted operating income margin will be similar to 2023; Ticketmaster's positioning for continued growth; the company's expectation that full-year adjusted operating income margin for Sponsorship & Advertising will be similar to 2023, with the business positioned for ongoing growth due to global partnerships; estimated 2024 capital expenditures, driven by Venue Nation, as well as the amount of capital committed by third parties; the company's expectation that full-year 2024 adjusted operating income to free cash flow—adjusted conversion will be consistent with historical levels; the company's expectation that the approximately
Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company's plans, the risk that the company's markets do not evolve as anticipated, the potential impact of any economic slowdown and operational challenges associated with selling tickets and staging events.
Live Nation refers you to the documents it files from time to time with the
This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that we define as operating income (loss) before certain acquisition expenses (including ongoing legal costs stemming from the Ticketmaster merger, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. We also exclude from AOI the impact of estimated or realized liabilities for settlements or damages arising out of the Astroworld matter that exceed our estimated insurance recovery, due to the significant and non-recurring nature of the matter. Ongoing legal costs associated with defense of these claims, such as attorney fees, are not excluded from AOI. We use AOI to evaluate the performance of our operating segments. We believe that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.
AOI margin is a non-GAAP financial measure that we calculate by dividing AOI by revenue. We use AOI margin to evaluate the performance of our operating segments. We believe that information about AOI margin assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI margin is not calculated or presented in accordance with GAAP. A limitation of the use of AOI margin as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI margin should be considered in addition to, and not as a substitute for, operating income (loss) margin, and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI margin as presented herein may not be comparable to similarly titled measures of other companies.
Constant Currency is a non-GAAP financial measure when applied to a GAAP financial measure. We calculate currency impacts as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior period's currency exchange rates. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less changes in operating assets and liabilities, less maintenance capital expenditures, less distributions to noncontrolling interest partners. We use FCF among other measures, to evaluate the ability of operations to generate cash that is available for purposes other than maintenance capital expenditures. We believe that information about FCF provides investors with an important perspective on the cash available to service debt, make acquisitions, and for revenue generating capital expenditures. FCF is not calculated or presented in accordance with GAAP. A limitation of the use of FCF as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of our ability to fund our cash needs. Accordingly, FCF should be considered in addition to, and not as a substitute for, net cash provided by (used in) operating activities and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, FCF as presented herein may not be comparable to similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and cash collected on behalf of others, plus event-related prepaids. We use free cash as a proxy for how much cash we have available to, among other things, optionally repay debt balances, make acquisitions and fund revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.
LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS (unaudited) | |||
September 30, | December 31, 2023 As Revised1 | ||
(in thousands) | |||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 5,489,919 | $ 6,231,866 | |
Accounts receivable, less allowance of | 2,693,998 | 2,024,649 | |
Prepaid expenses | 1,446,397 | 1,147,581 | |
Restricted cash | 10,884 | 7,090 | |
Other current assets | 133,956 | 122,163 | |
Total current assets | 9,775,154 | 9,533,349 | |
Property, plant and equipment, net | 2,375,868 | 2,101,463 | |
Operating lease assets | 1,642,298 | 1,606,389 | |
Intangible assets | |||
Definite-lived intangible assets, net | 1,047,987 | 1,161,621 | |
Indefinite-lived intangible assets, net | 380,458 | 377,349 | |
Goodwill | 2,670,008 | 2,691,466 | |
Long-term advances | 577,229 | 623,154 | |
Other long-term assets | 1,278,068 | 934,849 | |
Total assets | $ 19,747,070 | $ 19,029,640 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Accounts payable, client accounts | $ 2,081,034 | $ 1,866,864 | |
Accounts payable | 294,765 | 267,493 | |
Accrued expenses | 3,454,183 | 3,030,812 | |
Deferred revenue | 3,034,514 | 3,398,028 | |
Current portion of long-term debt, net | 582,088 | 1,134,386 | |
Current portion of operating lease liabilities | 167,035 | 158,421 | |
Other current liabilities | 66,959 | 128,430 | |
Total current liabilities | 9,680,578 | 9,984,434 | |
Long-term debt, net | 5,672,804 | 5,459,026 | |
Long-term operating lease liabilities | 1,766,897 | 1,686,091 | |
Other long-term liabilities | 673,141 | 488,159 | |
Commitments and contingent liabilities | |||
Redeemable noncontrolling interests | 1,023,907 | 859,930 | |
Stockholders' equity | |||
Common stock | 2,310 | 2,298 | |
Additional paid-in capital | 2,214,938 | 2,367,918 | |
Accumulated deficit | (1,747,806) | (2,443,106) | |
Cost of shares held in treasury | (6,865) | (6,865) | |
Accumulated other comprehensive income (loss) | (174,611) | 27,450 | |
Total Live Nation stockholders' equity | 287,966 | (52,305) | |
Noncontrolling interests | 641,777 | 604,305 | |
Total equity | 929,743 | 552,000 | |
Total liabilities and equity | $ 19,747,070 | $ 19,029,640 | |
(1) | Prior period consolidated balance sheet was restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
As Revised1 | As Revised1 | ||||||
(in thousands, except share and per share data) | |||||||
Revenue | $ 7,651,087 | $ 8,154,563 | $ 17,474,032 | $ 16,907,636 | |||
Operating expenses: | |||||||
Direct operating expenses | 5,780,188 | 6,297,883 | 12,839,737 | 12,589,606 | |||
Selling, general and administrative expenses | 1,005,418 | 974,150 | 2,913,199 | 2,533,066 | |||
Depreciation and amortization | 137,001 | 130,653 | 407,324 | 382,352 | |||
Gain on disposal of operating assets | (3,968) | (1,583) | (5,398) | (8,092) | |||
Corporate expenses | 92,923 | 99,802 | 255,216 | 244,295 | |||
Operating income | 639,525 | 653,658 | 1,063,954 | 1,166,409 | |||
Interest expense | 87,961 | 86,215 | 248,622 | 257,425 | |||
Loss on extinguishment of debt | — | — | — | 18,366 | |||
Interest income | (36,067) | (78,107) | (123,749) | (174,872) | |||
Equity in losses (earnings) of nonconsolidated affiliates | 13,987 | (5,382) | 8,527 | (15,047) | |||
Other expense (income), net | (12,268) | 19,251 | (110,064) | 24,235 | |||
Income before income taxes | 585,912 | 631,681 | 1,040,618 | 1,056,302 | |||
Income tax expense | 70,229 | 50,269 | 191,412 | 127,070 | |||
Net income | 515,683 | 581,412 | 849,206 | 929,232 | |||
Net income attributable to noncontrolling interests | 63,878 | 59,932 | 153,906 | 139,405 | |||
Net income attributable to common stockholders of Live Nation | $ 451,805 | $ 521,480 | $ 695,300 | $ 789,827 | |||
Basic net income per common share available to common stockholders of Live Nation | $ 1.72 | $ 2.01 | $ 2.21 | $ 2.70 | |||
Diluted net income per common share available to common stockholders of Live Nation | $ 1.66 | $ 1.93 | $ 2.18 | $ 2.66 | |||
Weighted average common shares outstanding: | |||||||
Basic | 230,374,307 | 228,787,263 | 229,923,989 | 228,497,712 | |||
Diluted | 245,319,968 | 244,163,678 | 235,928,752 | 235,146,395 | |||
Reconciliation to net income available to common stockholders of Live Nation: | |||||||
Net income attributable to common stockholders of Live Nation | $ 451,805 | $ 521,480 | $ 695,300 | $ 789,827 | |||
Accretion of redeemable noncontrolling interests | (54,536) | (60,882) | (186,970) | (172,436) | |||
Net income available to common stockholders of Live Nation—basic | $ 397,269 | $ 460,598 | $ 508,330 | $ 617,391 | |||
Convertible debt interest, net of tax | 10,790 | 10,877 | 6,971 | 7,835 | |||
Net income available to common stockholders of Live Nation—diluted | $ 408,059 | $ 471,475 | $ 515,301 | $ 625,226 | |||
(1) | Prior period consolidated statement of operations was restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
As Revised1 | |||
(in thousands) | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 849,206 | $ 929,232 | |
Reconciling items: | |||
Depreciation | 221,841 | 193,654 | |
Amortization of definite-lived intangibles and indefinite-lived intangibles impairment loss | 185,483 | 188,698 | |
Amortization of non-recoupable ticketing contract advances | 62,237 | 58,518 | |
Deferred income tax benefit | (14,059) | (10,419) | |
Amortization of debt issuance costs and discounts | 13,168 | 13,707 | |
Loss on extinguishment of debt | — | 18,366 | |
Stock-based compensation expense | 85,450 | 85,905 | |
Unrealized changes in fair value of contingent consideration | (22,453) | 42,092 | |
Equity in losses of nonconsolidated affiliates, net of distributions | 20,586 | 7,013 | |
Provision for uncollectible accounts receivable | (1,101) | 35,707 | |
Gain on mark-to-market of investments in nonconsolidated affiliates | (100,048) | (46,720) | |
Other, net | (11,618) | (12,249) | |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||
Increase in accounts receivable | (565,093) | (1,030,453) | |
Increase in prepaid expenses and other assets | (341,941) | (479,434) | |
Increase in accounts payable, accrued expenses and other liabilities | 586,960 | 903,597 | |
Decrease in deferred revenue | (288,566) | (142,593) | |
Net cash provided by operating activities | 680,052 | 754,621 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Advances of notes receivable | (92,895) | (129,532) | |
Collections of notes receivable | 22,789 | 9,550 | |
Investments made in nonconsolidated affiliates | (34,479) | (45,439) | |
Purchases of property, plant and equipment | (491,750) | (304,882) | |
Cash acquired from (paid for) acquisitions, net of cash paid (acquired) | (49,456) | 29,151 | |
Purchases of intangible assets | (8,390) | (36,653) | |
Other, net | 11,383 | 13,841 | |
Net cash used in investing activities | (642,798) | (463,964) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from long-term debt, net of debt issuance costs | 2,038 | 988,310 | |
Payments on long-term debt | (384,567) | (625,659) | |
Contributions from noncontrolling interests | 3,000 | 15,488 | |
Distributions to noncontrolling interests | (199,834) | (153,789) | |
Purchases of noncontrolling interests, net | (69,935) | (89,819) | |
Payments for capped call transactions | — | (75,500) | |
Proceeds from exercise of stock options | 19,342 | 8,343 | |
Taxes paid for net share settlement of equity awards | (40,873) | (9,001) | |
Payments for deferred and contingent consideration | (21,581) | (13,690) | |
Other, net | (50) | 249 | |
Net cash provided by (used in) financing activities | (692,460) | 44,932 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (82,947) | (421) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (738,153) | 335,168 | |
Cash, cash equivalents and restricted cash at beginning of period | 6,238,956 | 5,620,194 | |
Cash, cash equivalents and restricted cash at end of period | $ 5,500,803 | $ 5,955,362 | |
(1) | Prior period consolidated statement of cash flow was restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
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SOURCE Live Nation Entertainment
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