Live Nation earnings beat estimates as live performance rebound continues unabated

Analysts polled by FactSet anticipated Live Nation to earn 65 cents a share, on gross sales of $4.95 billion.

After initially gaining about 2% after hours Thursday, shares retreated and ended the prolonged session down 0.8%.

Executives stated that greater than 117 million tickets have been offered to date this 12 months, up 20% from final 12 months. They additionally stated they anticipated “record” Ticketmaster gross sales for 2023, and that the corporate was on observe to handle 600 million tickets for the 12 months.

“Live music is bigger than ever, with global demand driving the industry to record levels,” Live Nation Chief Executive Michael Rapino stated in an announcement.

“There’s a more diverse pipeline of artists breaking from all corners of the world, and at the same time tours are going to more markets — particularly in Latin America and Asia,” he continued. “This was our strongest second quarter ever, with 2023 on pace to be a record year, and early indicators for 2024 giving us confidence in continued growth.”

Live Nation reported earnings because the live performance “revenge-spending” growth continues, after largely shutting down in 2020 and a part of 2021 because of the pandemic. Analysts have been questioning when that demand would possibly run out of gasoline, as inflation continues to eat into client financial savings. Musicians themselves have handled larger touring prices over the previous 12 months.

In latest months Live Nation has confronted larger authorities scrutiny — together with a Justice Department investigation — over its dominance of the live-entertainment enterprise. That scrutiny additionally comes after ticket demand for Taylor Swift’s “Eras” crashed Ticketmaster and as President Joe Biden tries to crack down on so-called “junk fees.”

Live Nation executives lately met with Biden to debate methods to spice up transparency, and Live Nation final month unveiled a plan to indicate prospects the total ticket worth. Some advocates have stated that including transparency didn’t resolve the basic concern at play — that Live Nation oversees an excessive amount of of the business.

But Wall Street analysts say the regulatory dangers have pale, after executives made an effort to work with the federal government on charges. Shares of Live Nation are up 40.8% to date this 12 months, as these considerations subside.

“We believe that by proactively working with lawmakers to implement tighter ticketing regulations in consumers’ best interest (All-in Pricing and FAIR Ticketing Act), LYV will appease politicians’ concerns while avoiding a DOJ lawsuit,” Oppenheimer analysts stated this month.