Arena-Sized Profit Gains at Live Nation

  • Save

Live Nation tripled its profits during the recent, third quarter, thanks partly to a massive divestiture.

During the three-month period ending September 30th, profits reached $139.9 million, or $1.67 per share, up from $41.6 million, or 55 cents per share, reported during the same quarter last year.  Overall, Live Nation enjoyed strong performances from all units, though the sale of its motor sports division boosted the total considerably.  Earnings from continuing businesses reached $118.2 million, or $1.41 per share.

Revenues also moved upward to $1.59 billion, up 9.4 percent from $1.45 billion during the year-ago quarter.  The increases offer some contrast to a spate of negative reports, though more serious questions surround current-quarter attendance levels. “We generated exceptional results during the third quarter in spite of the global economic downturn,” said Michael Rapino, president and chief executive of Live Nation.  “Despite challenging times, millions of fans have continued to attend live concerts to support their favorite artists.”

Indeed, portions of the entertainment industry often respond counter-cyclically to downturns, though higher-priced, premium concerts face threats.  Meanwhile, Rapino continued to outline an aggressive expansion, one that includes the launch of a ticketing engine next year.  “Looking ahead, our primary goal remains centered on maximizing our global concert pipe for our client – the artist – and expanding into direct ticketing and online distribution, completing the world’s only concert-to-fan direct platform for artists,” Rapino said.