LOS ANGELES (CelebrityAccess) — Live Nation reported record results in the first quarter of 2023, delivering revenue of $3.1 billion, up by 73% from the same period in 2021.
The company’s revenue gains generated and operating income of $143 million, and adjusted operating income of $320 million, up 73%, 5.3x, and 53% respectively when measured against results from 2021.
“What is clear as we look at our results and operating metrics is that global demand for live events continues to reach new heights – demand has been growing for a long time and is showing no signs of letting up. Talking to fans, they say that live experiences are the number one leisure category where they expect to spend more in the future. Naturally, this is leading to record levels of activity in both our concerts and ticketing businesses,” stated Live Nation CEO Michael Rapino.
According to Live Nation, the concert business was a key driver of revenue for the quarter, adding 2,281.2 million during the period, up by 89% from the same period in 2021.
“First, in concerts we have sold nearly 90 million tickets for shows this year, tracking more than 20% ahead of this point last year. These early sales have been driven by a record number of stadium shows and continued strong growth in arena tours. With many major tours – from Beyoncé to Drake to Bruce Springsteen – demand was so strong that even when artists added a number of additional shows, they still were not able to meet all of the fan demand,” Rapino noted.
Live Nation’s ticketing segment also contributed to the company’s success in the quarter, generating $677.7 million in revenue, up by 41% from the previous year’s Q1.
“Our ticketing business benefits from the same structural tailwinds as concerts, with further growth driven by our success in adding new clients, notably in international markets. As a result, we sold 73 million fee-bearing tickets in the first quarter, up 40% and delivered $7.7 billion in fee-bearing gross transaction value, up 60% vs first quarter 2022. We are seeing growth in both volume and pricing across our global markets. This holds true across all event types from concerts to sports; and from the biggest superstars to new artists,” Rapino stated.
Live Nation’s sponsorships and advertising segment also saw explosive growth in Q1 2023, contributing $170.1 million in revenue to the company’s bottom line, 47% ahead of the segment’s results in Q1 2021.
“Our brand partners recognize that the passion for live music has never been greater, and that Live Nation provides a unique on-site and on-line platform to connect with fans in meaningful ways on a global scale. In the first quarter, we continued adding partners for 2023 and beyond including Google Pixel, PayPal, and Levi’s. With this, we have commitments for over 80% of our planned sponsorship for the year,” Rapino stated.
According to Rapino, the company’s positive results in the first quarter set the company on track for a record-breaking fiscal year in 2023.
“Our results for the first quarter demonstrate the success of our strategy and sets us up for strong growth in 2023. We expect to host a record number of fans this year, even against a 2022 comparison which benefited from rescheduled shows attended by 20 million fans. Ticketmaster should also deliver record activity, with around 600 million tickets managed globally this year. Our sponsorship business, even after incredible growth last year, looks to be on track for double-digit AOI growth again this year,” he stated.
