NEW YORK (CelebrityAccess) — EDM promoter SFX Entertainment reported a dismal fourth quarter and year, with losses $41.1 million on $95.9 million in revenue for the 4th quarter and losses of $131 million on revenue of $354.4 million for the year in 2014.
Pro-forma revenue, which includes revenue generated from acquired entities prior to their acquisition by SFX, for 2014 rose to $386.2 million from $356.7 million in 2013.
Pro forma revenue for the three months ended December 31, 2014 was $95.9 million or 24.8% of total 2014 pro forma revenue, while pro forma adjusted EBITDA (earnings before income, taxes depreciation and amortization) was a loss of $(7.7) million, inclusive of investments in the Company’s platform.
Some brights spots did exist for SFXE and the company reported staging twenty four festivals in 2014, against sixteen in the than the previous year. However, fourth quarter pro forma festival attendance declined 8.7% year over year to approximately 560,000, driven entirely by one large brand. Attendance at events other than festivals increased 7.2% to approximately 700,000.
The company's guidance for 2015 was upbeat and they expect revenues to be in excess of $500.0 million.
“Since its founding in 2012, SFX has created the world’s leading global platform that facilitates fans’ day-to-day engagements with electronic music culture (EMC),” said Robert F.X. Sillerman, Chairman and CEO of SFX. “The Company’s operating focus combines world-class recurring live events, high-margin social and online platforms and a growing range of relationships with leading brands and major global sponsors all of whom are seeking to reach the coveted millennial audience. Fiscal 2014 served to validate our strategic priorities of expanding popular festivals to new geographies; entering into new, large multi-year marketing partnerships and rolling out highly successful customized programs for multi-national flagship brands; and, developing Beatport and the Company’s extensive online and digital media assets to begin capitalizing on the value of their enormous consumer and professional use in future periods." – Staff Writers