Live Nation just reported its 3rd quarter financials, with numbers disappointing many on Wall Street.
In the period ending September 30, the ticket seller and concert promoter recorded an earnings per share (EPS) of $0.71, which was more than 10% lower than the consensus estimate of $0.79. While its EPS was considerably higher than that of the 2nd quarter, when it posted an EPS of $0.41, that particular number represented a 5% increase over estimates.
Live Nation reported total revenues of $3.77 billion for the quarter, in comparison with $3.84 billion in the same period a year before. Earnings, though, rose, from $172.68 million in the 3rd quarter last year to $178.9 million this year.
What appears to have dragged down Live Nation’s numbers was concert revenue. Analysts expected the company to book concert revenue of $3.5 billion, but actual concert revenue was $3.17 billion, which was down from $3.3 billion in the same period of 2018.
There were many positive aspects to the company’s financial report as well.
Year-to-date operating income increased 12% to $408 million while adjusted year-to-date operating income increased 13% to $862 million. The company has also sold 92 million concert tickets so far in 2019, which is 5 million more than what they sold a year ago at this time.
Additionally, year-to-date net sponsorship and advertising revenue climbed 14% and Ticketmaster fee-bearing gross transaction value rose 5% in the quarter, which is the company’s highest rise ever for a 3rd quarter.
The company further indicated that consumer demand is strong. Not only did amphitheater and arena concerts in September perform better than they did in the previous September, but online sales have continued to grow.
Since the start of 2019, the price of the company’s shares has risen 44.6%. This is especially impressive considering that, at the same time, the S&P 500 has risen 21.5%. Whether that continues could largely depend on analysts’ impressions of the earnings call with management that happened just after the release of the financials.
All those Spotify investors, should redirect their investments to Live Nation, for more reliable returns.