LOS ANGELES (CelebrityAccess) — The live events industry came booming back for Live Nation in third fiscal quarter of 2021 as they reported positive results across all of the company’s divisions.
Overall, Live Nation reported revenue of $2.6bn for the quarter, up substantially from the same period last year, where, languishing in the COVID-19 doldrums, Live Nation recorded revenue of just 184.0.
Revenue for concerts in the quarter was $2.151bn, up from $154.8m in the same period last year, and adjusted operating income was $59.6 million after marking down a loss of $173.4mn in Q3 2020.
Live Nation’s Michael Rapino attributed the rebound to strong performance in the company’s festival portfolio, with many events selling out in record time and overall ticket sales for major festivals up by 10% compared to pre-pandemic 2019.
Rapino also reported that multiple tours have already sold more than 500,00o tickets for shows this year, including sell-out tours by Harry Styles, Chris Stapleton and others.
According to Rapino, the strong demand for event tickets allowed the company to “improve pricing” with the average amphitheater and major festival pricing up double-digits versus 2019. Fan spending at events increased substantially as well, with Live nation reporting spending per fan at amphitheaters and festivals up by more than 20% from 2019.
Live Nation’s ticketing segment also benefited from the rebound and the company’s Ticketmaster division reported one of its best quarters for operating income and AOI. Live Nation’s ticketing operation posted revenue of $374.2m for the quarter, up from a loss of $19.8m in 2020 and AOI of $171.8m after enduring losses of $141.9m in 2020.
“Third quarter was Ticketmaster’s fourth highest fee-bearing GTV quarter ever excluding refunds, led by sports leagues restarting and concert on-sales for 2022 ramping up. In addition, Ticketmaster’s secondary business delivered its highest GTV month in September, showing continued growth in the segment even as artists and content owners continue shifting more of the value to primary sales,” Rapino said in the company’s Q3 press release.
The promoter giant’s Sponsorship & Advertising business prospered as well, growing revenue from $47.9 in Q3 2020 to $174.4 for the same period this year. AOI increased from $22.9m in 2020 to $111.2 in Q3 2021.
“As fans came back, so too did our brand partners who continue to seek to connect to the live music fans. As a result, our sponsorship and advertising business delivered over $100 million in operating income and AOI in the quarter, the first time at this level since third quarter of 2019. The return of sponsorship and advertising has been largely driven by our historical major partners, along with the addition of new brands including Truly Hard Seltzer, as well as Coinbase and Solana in the fintech space,” Rapino said.
Rapino was also upbeat on the future, stating:
“As we get close to turning the page on 2021, I remain more convinced than ever on the power and potential of live entertainment, and the strength of our position. No industry was more impacted by the pandemic over the last two years, and no industry has so proven its durability of demand in the face of such disruption.”
“I fully expect we will continue to have bumps in the road in the coming months, and it will take some time for international artists to be touring on a truly global basis, but the fundamental strength of live entertainment and Live Nation has proven out, and I expect we will only continue to grow from here.”