(CelebrityAccess MediaWire) — Live Nation, the world’s largest live event producer, released good news and bad news with its fourth quarter financial report released today.
For the calendar year 2005, the company, formerly known as Clear Channel Entertainment, rang up revenues of nearly $3 billion, up 4.7% from last year. The company’s combined operating loss for the same period was $13.2 million, compared to an operating income of $59 million in 2004, according to Billboard.
The reduction in operating income was largely attributed to $11.3 million in litigation expenses and $12.2 million in costs related to severances and the reorganization of the business.
Total revenues for Live Nation in the fourth quarter were $752.3 million, up 38.2% from the fourth quarter of 2004. Net losses for the period were $134.9 million, compared to $34.8 million in 2004.
The company suffered a combined operating loss of $62.8 million, up over a loss of $42.6 million in 2004 fourth quarter. The loss was blamed on reduced profits and increased losses in global music, theater and other operations totaling more than $40 million. The music losses included $40 million in litigation costs, $12.2 million in reorganization expenses, and $3.2 million in advances on music projects.
A $15.1 million corporate operating loss was attributed to severance costs following the reorganization and litigation costs.
The growth in revenue is attributed to an increase in the global music business of $205 million, which was partially offset by a $7.3 million decrease in its theater business. The global music business was driven by Live Nation’s participation in such mega tours as U2, Paul McCartney, the Eagles and Coldplay.
The spin-off from Clear Channel Communications in December of 2005 helped the Live Nation realize a tax benefit of $41.1 million. –by CelebrityAccess Staff Writers
