After Thursday’s market close, Live Nation Entertainment reported earnings of 13 cents, beating analysts’ expectations of 8 cents.
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During the quarter, Ticketmaster added almost 400 new clients globally, “making us confident that for the seventh consecutive year we will have a net renewal rate of over 100%”, Rapino said.
Based on leading indicators in concerts, sponsorship & advertising, and ticketing, the company expects revenue and adjusted operating income growth in each of these businesses and overall for Live Nation in 2016.
Wall Street rewarded the report, pushing Live Nation stock up 11% in after hours trading.
Second-quarter revenue were up 23% to $2.18 billion.
Live Nation’s concert business grew revenue in the second quarter by 26% operating income by $25 million and AOI by 61% on the strength of an 18% increase in confirmed stadium, arena and amphitheater show count for the year, as well as an expanded festival and club presence. Its “secondary product” delivered gross transaction value growth of over 20% for the ninth consecutive quarter, and it is up 49% year-on-year in the second quarter, tomore than $300 million.
Meanwhile, in the company’s sponsorship & advertising business, revenue was up 17% to $95m, as operating income grew 9% and AOI grew 12%.
Selling tickets through partners like Facebook helped boost sales 30 percent for Ticketmaster, Rapino said.
“We have built the industry’s most scalable and unparalleled live platform, bringing over 500 million fans in 40 countries to live events each year”.
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During the Q&A period, Rapino spoke about the company’s acquisition of Big Concerts in South Africa, allowing Live Nation to “have a local office so we can capture all of the revenue and economics when that tour comes to town”.
