adminTicketmaster parent company Live Nation Entertainment delivered its strongest quarter ever, on pace for a record 2023 on the backs of concert darlings Taylor Swift and Beyoncé.
Higher ticket prices and pent-up demand for live shows helped boost revenue up 32% to $8.2 billion in the third quarter, significantly higher than the $6.99 billion expected, according to LSEG, formerly known as Refinitiv.
Shares of the company jumped more than 3% after the closing bell Thursday.
The majority of its revenue, about $6.97 billion, came from the company’s concerts business, which consists of merchandise sales and production of live music events, followed by $833 million from ticketing.
Here are the results:
- Earnings per share: $1.78 vs. $1.27 per share expected, according to LSEG
- Revenue: $8.15 billion vs. $6.99 billion expected, according to LSEG
For the period ending Sept. 30, Live Nation posted earnings of $483.5 million, or $1.78 a share, up from $361.4 million, or $1.39 a share, a year earlier.
Live Nation sold a record 140 million tickets so far in 2023, up 17% from the same period last year and more than the 121 million tickets the company sold in all of 2022.
Many of those tickets were for overlapping tours from Swift and Beyoncé. The powerhouse singers have generated billions in revenue for the concert industry as well as billions for the domestic economy in the past year.
Not to mention, both are taking turns at the movie box office. Swift’s The Eras Tour concert film broke records in the space during its theatrical release in October, generating more than $200 million globally. Beyoncé is up next with the release of her Renaissance Tour documentary in December.
This year also saw tours from the likes of Harry Styles, Billy Joel and Stevie Nicks, Journey, Bruce Springsteen and the E Street Band, Paramore, The Jonas Brothers, Carrie Underwood, SZA, Red Hot Chili Peppers, Reba McEntire, Lizzo, Blink-182 and Blackpink.
Fans are spending more once they are at these concerts, too. Live Nation said per-fan profitability jumped double digits, outpacing cost inflation.
Live Nation expects 55 million fans will have ventured to its venues by the end of 2023, up double digits from 49 million fans in 2022.
There will be more for them to see in 2024. Live Nation reported Thursday that about half the expected show count for next year is booked for large venues, up double digits from the year prior. While Beyoncé has wrapped up her Renaissance World Tour, Swift is set to begin the international leg of her The Eras Tour in late November.
Also on the docket for 2024 is Coldplay, Metallica, Pink, Bruno Mars, Aerosmith, Foo Fighters and Ed Sheeran. The Rolling Stones are expected to go on tour, too.
Around 17 million net new client tickets were added so far in 2023, with half coming from international markets, the company said.
Don’t miss these stories from CNBC PRO:
Read the full article here
