Live Nation Is Losing Less Money Than Ever Before In Its History…

When it comes to losing obscene amounts of money, Live Nation ranks among the best: since being spun off from Clear Channel in 2005, the company has lost nearly $950 million.  And it’s never turned a profit in any of those years.

Which looks like this:

livenationdisaster1

Adding to the insanity, the company’s longtime CEO, Michael Rapino, makes around $28.48 million a year.  Which is based on an incentive structure that looks like this:

rapino_live_nation_comp

Abstract art fans might have an easier time comparing Live Nation Entertainment to this sculpture by John Isaacs.

johnisaac

But it now looks like this obese vessel might be slowly turning course.  According to earnings details disclosed on Tuesday, Live Nation has ‘only’ lost about $5.1 million this year, which is dramatically better than a loss of $61.5 million last year.  And, it could put Live Nation on track to have the smallest loss in its short history, and even a profitable one in the near future.

Part of the reason is an improving concert sector, which is sensitive to an improving economy.  According to details shared by the company, revenues bumped 11.9 percent during the first half of the year, with second quarter concert revenues gaining 10.9 percent to $1.2 billion.  

Ticketing revenues, attendance, and broader revenues also enjoyed gains.

Unclear is whether recent acquisitions are helping, or just more overspending.  Insomniac is helping Live Nation jump onto the EDM wagon, and earlier buyouts like BigChampagne have ‘acqui-hired’ shrewd executives like Eric Garland and Joe Fleischer (one of whom is proving to be a big earner).

 

Wall Street is also getting on board, and lifting Live Nation from its single-digit past.  That could easily go poof with the broader market (so gamble responsibly), though as of right now, a lot of people are making money off this stock.  After the earnings announcement, shares pushed into the $17-range, a gain of more than 75 percent in just a few months.

3 Responses

  1. DudeNoDude
    DudeNoDude

    Yeah Baby… All the pieces are falling into place.

    Rapino and his team are BRILLIANT! It was just a matter of time when the GOOD GUYS finally win one! It proves that good and honest hard work can payoff, if you just invest in the right people! This is just the of beginning of better days to follow.

    Congrats!

    Reply
  2. Dmaxjames
    Dmaxjames

    Who cares about profits vs. losses. It’s all about cashflow, ask Comcast, TW Cable and all those other guys with crazy depreciation and amortization schedules.

    “Our mission is to connect everyone in the world to everyone in the world”…circa early 1900’s (AT&T/Bell Labs)

    Reply

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