Live Nation Q2 Results: Concert Revenue, Attendance On The Rise

Live Nation Entertainment, Inc. has released financial results for the quarter ended June 30, 2021.

As communities reopen, Live Nation is seeing the demand for live events. In the U.S. and the U.K., there are strong ticket sales and the restart of concerts and festivals, highlighted recently by Lollapalooza and Rolling Loud in the U.S. and Latitude in the U.K. hosting a combined three quarters of a million fans. This momentum has been building every month, with ticket sales and concert attendance pacing faster than expected, underscoring the strength and resiliency of the concert business and live events in general.

“This progress, combined with our cost discipline, has enabled us to deliver positive adjusted operating income for the second quarter, well ahead of where we thought we would for this quarter. We expect to see further ramp-up accelerate through the rest of the year, with improving operating income and all segments returning to adjusted operating income profitability for the second half of the year, setting us up for a full-scale 2022,” says President and Chief Executive Officer, Live Nation Entertainment, Inc. Michael Rapino in the company’s financial report.

He continues, “Looking forward to 2022 and now also 2023, all our leading indicators continue to point to a roaring era for concerts and other live events. Starting with our concerts division, every major venue type–arenas, amphitheaters, and stadiums–have pipelines indicating double digit growth in show count and ticket sales relative to 2019 levels. In some cases our pipeline is so strong we are extending our planning into 2023 and even beginning to discuss tours that extend into 2024.”

Highlights:

• Operating Income Improved Over $450 Million, Adjusted Operating Income Returned to Profitability
• Event-Related Deferred Revenue at $2.1 Billion, Up $650 Million
• Concerts Pipeline for 2022 Up Double Digits from 2019, With Touring Plans Extending Into 2023 and 2024
• Ticketmaster North America had 4th Best Month in History for Transacted Ticket Volume
• Ticketmaster Added Over 11 Million Net New Fee-Bearing Tickets Year-To-Date
• Sponsorship Commitments for 2022 Up Double Digits from 2019

For the six months ended June 30, 2021:

• As of June 30, 2021, total cash and cash equivalents were $4.0 billion, which includes $1.1 billion in ticketing client cash and $1.1 billion in free cash.
• Event-related deferred revenue was $2.1 billion as of June 30, 2021, compared to $0.9 billion as of June 30, 2020. In addition, the company had long-term deferred revenue of $381 million for events that have been rescheduled more than one year out as of June 30, 2021.
• For the six months ended June 30, 2021, net cash provided by operating activities was $1.2 billion and free cash flow — adjusted was $(307.4) million.
• The company currently expects capital expenditures for the full year to be approximately $170 million in 2021, with over 60% of this spend going into revenue generating projects.

Read the full financial report here.