Live & Touring

SFX Stock Continues Downward Tumble

image from www.hypebot.comIt has been a good week for those hoping to cash in on the EDM boom. Just a week after launching it's IPO at $13, SFX Entrainment (SFXE) stock fell as low as $8.95 yesterday, before closing at $9.50.  Investor concerns are not without basis, as Hypebot's Clyde Smith wrote,  SFX Entertainment is not profitable and its losses are increasing.

"On a pro forma basis including SFX's planned acquisitions, the company would post revenue of $92.3 million and negative $15 million in adjusted EBITDA, and a net loss of $71.3 million for the first six months of 2013. That contrasts with SFX's 2012 revenue of $238.6 million, adjusted EBITDA of $14.6 million, and net loss of $67.4 million. " – The Street

$150 million of the $260 raised is expected to go to acquisitions including many already in the works. The company is also planning a major increase in its debt.

Read more:  Why It's Not A Bad Thing That SFX Entertainment Didn't Blow Through The Roof

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