It Gets Worse: Live Nation Summer Income Drops 26%

  • Save

Live Nation doesn’t know what you did last summer, and that’s a problem.

During the recent summer quarter, the concert monstrosity reported an income drop of 25.7% to $51.4 million, or 30 cents a share.  Meanwhile, revenues (of the combined Live Nation+Ticketmaster) tanked an unceremonious 14 percent to $2.14 billion.  The three-month period ended September 30th.

The problems aren’t difficult to discern.  Concert attendance slipped 16 percent during the period to 16.4 million, and across the board, butts-in-seats on all events dropped 4 percent to 32.3 million.

Sounds problematic, but it gets worse.  Live Nation has been heavily discounting tickets to re-attract fans, many of whom are recoiling from the Great Recession.  Or, simply getting sick of nosebleed pricing for nosebleed seats.  That is putting serious downward pressure on revenues.

But wait, it gets even worse.  During the call, Live Nation CEO Michael Rapino pointed to a dismal October, a situation that could cause the company to miss its full-year targets.  “October had hit us a little harder than we expected by a bit,” Rapino said, while noting that the company is “scared of what will happen in November and December if that trend continues.”

The quarterly review comes on the heels of a bombshell finding by Edison Research, which found that 12-24 year-olds are attending 57% fewer shows since 2000.