Live Nation Entertainment Reports Full Year And Fourth Quarter 2023 Results

LOS ANGELES, Feb. 22, 2024 /PRNewswire/ —

“The live music industry reached new heights in 2023, and demand for live music continues to build. Our digital world empowers artists to develop global followings, while inspiring fans to crave in-person experiences more than ever. At the same time, the industry is delivering a wider variety of concerts which draws in new audiences, and developing more venues to support a larger show pipeline. Against this backdrop, we expect all our businesses to continue growing and adding value to artists and fans as we deliver double-digit operating income and AOI growth again this year, with our profitability compounding by double-digits over the next several years.”
–Michael Rapino, President and CEO, Live Nation Entertainment

2023 Financial Overview (vs FY 2022): Global Demand for Live Events Drives Ongoing Growth
(reported FX)

Revenue up 36% to $22.7 billion
Operating Income up 46% to $1.07 billion
AOI up 32% to $1.86 billion, doubling since 2019
Operating Cash Flow of nearly $1.4 billion
Free Cash Flow — Adjusted of over $1.1 billion, up 20% and converting 62% of AOI
EPS more than doubled to $1.37

View how these results compare to past quarters in the 4Q23 Trended Results Grid:
https://investors.livenationentertainment.com/financial-information/financial-results

2023 Highlights (vs FY 2022): All-Time Highs for Attendance, Ticket Sales, and Sponsorship Activity

More fans: Concert attendance up 20%, over 145 million fans attended over 50,000 events
More global and longer: 50% more international acts in top 50 tours and tours have 15% more shows on average (both compared to five years ago)
Higher spending on hospitality: Ancillary per fan spending up double-digits across all major venue types – amphitheaters, festivals, and clubs and theaters
Greater ticket sales: Fee-bearing gross transaction value (GTV) up 30% to nearly $36 billion
Growing brand demand: Sponsorship revenue up 13% to over $1 billion
Live Nation remains the largest supporter of artists: Investment in artists up over 40% to over $13 billion

Promoting more artists at every level from clubs to stadiums, with nearly 7,000 touring artists in 40+ countries
Paid out $1,500 nightly bonuses and 100% merchandise profits to over 3,000 developing artists through our On The Road Again program, which has extended to 2024

2024 Strong Start (vs same period 2023): Leading Indicators Point to Another Year of Growth
(based on leading indicators through mid-February)

Fans prioritize live: Social media fuels fan interest, with approximately 90% of live music goers agreeing that seeing live music content on social media makes them want to attend shows

Live Nation concert ticket sales pacing up 6% with 57 million tickets sold for shows this year, and arena and amphitheater sales up double-digits
Strong demand across all price points: Front of house continues to see high demand and ticket sales up 25% for the 2024 Lawnie Pass

Show pipeline up: Confirmed shows for large venues (stadiums, arenas, and amphitheaters) up double-digits with growth led by arenas and amphitheaters

65% of full-year booked compared to approximately 50% booked last year
Venue Nation fan count expected to grow with more shows at amphitheaters and other operated venues
Event-related deferred revenue at year end up 8% to $2.9 billion

Strong momentum at Ticketmaster: GTV up double-digits to $13 billion on fee-bearing tickets for events playing off in 2024

Approximately three million net new enterprise tickets signed in January, with two-thirds from International markets

All-in pricing winning fans: Move to all-in pricing last fall receiving positive reception and driving higher conversion rates across our operated venues
Sponsorship momentum continues: Approximately 75% of expected sponsorship commitments booked, up double-digits

Long-term monetization driven by opportunities across Latin America and Asia, expanding venue and festival footprint including premium experiences, and Ticketmaster’s global platform including digital ticketing

2023 Concerts Demand on the Rise Globally (vs FY 2022)

Revenue up 39% to $18.8 billion
AOI approximately doubled to $325 million
Full-year margins expanded by 50 basis points, despite most fan growth coming in third-party venues

Demand Increasing Attendance Across All Markets, Venues, and Price Points (vs FY 2022)

Overall fan growth of 20% led by International markets up 25% and North America up 17%
Stadium shows led attendance growth with over 29 million fans globally, up 60%
Wide variety of price points with two-thirds of U.S. concert tickets under $100 and one-third under $50
Average secondary ticket price roughly 2x primary, showing that tickets remain priced below market value

Venue Nation Continues to Elevate On-Site Experiences (vs FY 2022)

Over 55 million fans at our operated venues and festivals, up 13%
Ancillary per fan revenue grew double-digits at operated venues as fans prioritize spending on enhanced hospitality:

Amphitheaters up 10% to over $40
Arenas and theaters and clubs up double-digits globally
Major festivals (over 100k attendees) up double-digits globally

Expanding global venue portfolio with a focus on large theaters and international arenas

Global Fan Demand and Client Wins Drive 2023 Ticketing Results (vs FY 2022)

Revenue up 32% to nearly $3 billion
AOI up 35% to over $1.1 billion
Full-year margins remained in the high 30s

Live Experience Economy Fuels More Ticket Sales (vs FY 2022)

Total fee-bearing GTV up 30% to $36 billion, with North America up 26% and International markets up 42%; 85% of the growth driven by global concert ticket sales
Total tickets up 13% to over 620 million tickets, including fee-bearing tickets up 17% to 329 million
21 million net new client tickets added, with approximately 80% coming from International markets

Sponsorship Growth Reflects the Scale and Unique Nature of Our Global Platforms (vs FY 2022)

Revenue up 13% to over $1 billion
AOI up 14% to $675 million
Full-year margins remained in the low 60s
Over 100 partners with multi-million dollar, multi-year commitments accounted for approximately 80% of revenue
Growth led by beverages, technology, and financial services

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Additional Financial Information

2024 growth expected to be more weighted toward 2Q and 3Q compared to previous years
2024 capital expenditures estimated to be $540 million, in line with prior years as a percentage of revenue

Approximately two-thirds will support revenue-generating projects, driven primarily by the expansion of and investment in our global venue portfolio
Four venues account for approximately one-third of this spend with total expected returns over 20%

Foreign exchange rates not currently expected to materially impact 2024 revenue, operating income or AOI
Below-the-line impact to 2024 EPS:

Depreciation and amortization expense expected to be $80 million higher than 2023
Annual accretion expected to grow in line with AOI
Non-controlling interest and tax expenses expected to grow in line with AOI

2024 share count not expected to change materially from 2023

Balance Sheet and Liquidity Gives Us Financial Flexibility

4Q23 ended with $6.2 billion in cash and cash equivalents, including $1.5 billion in ticketing client cash and $2.2 billion in free cash
Approximately 87% of debt is at a fixed rate, with an average cost of debt of 4.7%

The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the “News / Events” section of the company’s website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the “Financial Info” section of the website. A replay of the webcast will also be available on the Live Nation website. The link to the 4Q23 Trended Results Grid is provided above for convenience and such grid is not a part of, or incorporated into, this press release or any SEC filings that include this press release.

Notice Regarding Financial Statements

The company has provided certain financial statements at the end of this press release for reference.  These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission today and available on the SEC’s website at sec.gov.

About Live Nation Entertainment:

Live Nation Entertainment, Inc. (NYSE: LYV) is the world’s leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com.

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Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release, including the Supplemental Information that follows, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to statements the regarding leading indicators pointing to another year of growth for the company in 2024; the company’s current expectation that all of its businesses will continue to grow, with anticipated double-digit operating income and adjusted operating income growth in 2024, with profitability expected to compound by double-digits over the next several years; expected growth in Venue Nation fan count; continued momentum for the company’s sponsorship business and the drivers for long-term monetization in this business; the company’s estimated capital expenditures for 2024; the company’s expectations for depreciation and amortization expense, annual accretion, and non-controlling interest and tax expenses in 2024; the company’s expectation that 2024 growth will be more weighted toward the second and third quarters compared to previous years; current expectations that foreign exchange rates will not materially impact 2024 revenue, operating income or adjusted operating income; and current expectations that 2024 share count will not change materially from 2023.

Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company’s plans, the risk that the company’s markets do not evolve as anticipated, the potential impact of any economic slowdown and operational challenges associated with selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled “Item 1A. Risk Factors” of the company’s most recent Annual Report filed on Form 10-K, and Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company’s projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided herein.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that we define as consolidated operating income (loss) before certain acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. We use AOI to evaluate the performance of our operating segments. We believe that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

Constant Currency is a non-GAAP financial measure when applied to a GAAP financial measure. We calculate currency impacts as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior period’s currency exchange rates. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.

Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less changes in operating assets and liabilities, less maintenance capital expenditures, less distributions to noncontrolling interest partners. We use FCF among other measures, to evaluate the ability of operations to generate cash that is available for purposes other than maintenance capital expenditures. We believe that information about FCF provides investors with an important perspective on the cash available to service debt, make acquisitions, and for revenue generating capital expenditures. FCF is not calculated or presented in accordance with GAAP. A limitation of the use of FCF as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of our ability to fund our cash needs. Accordingly, FCF should be considered in addition to, and not as a substitute for, net cash provided by (used in) operating activities and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, FCF as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that we define as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and cash collected on behalf of others, plus event-related prepaids. We use free cash as a proxy for how much cash we have available to, among other things, optionally repay debt balances, make acquisitions and fund revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

Contacts

Investor, Amy Yong, IR@livenation.com, (310) 867-7143; Media, Kaitlyn Henrich, Media@livenation.com

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