Live Nation Losses Narrow In Q4
Live Nation Entertainment continues to pare its losses in the company's fourth-quarter, with financial results bolstered by revenue growth in its concerts, sponsorship and advertising segments. Live Nation reported a loss of $51 million for Q4, compared with a loss of $126.3 million for the same period in 2012. The company's adjusted operating income for the quarter was $71.3 million, up from $62.5 million a year earlier. Revenue for the quarter increased 12% to $1.61 billion.
The earnings report also included some year-end numbers from the company and they reported an increase in concert attendance of 19%. Revenue for the year was up by 11% from 2012 to $6.5 billion, while the company's adjusted operating income increased to $505 million, a 10% improvement from the previous year.
Concert revenue was the strongest contributor to Live Nation's improving bottom line, rising by 18% to $1.08 billion. Sponsorship and advertising revenue increased as well by 15%, to 63.1 million and ticketing improved by 4% to 388 million. However, Live Nation's artist management operation Artist Nation contin ued to weigh on the company's numbers, posting a decrease in revenue of 9% to $91.8 million.
"We had a record year in 2013 and are well positioned for continued growth in 2014. During 2013, we further grew our unmatched concerts global fan base by 10 million fans, attracting almost 60 million fans to our concerts. This tremendous growth fueled our sponsorship and ticketing businesses with Ticketmaster managing nearly 400 million total tickets in 2013. Combined, we delivered a record year for revenue, AOI and free cash flow. Our results demonstrate the effectiveness of our business model, establishing Live Nation as what we believe to be the number one player in each of our businesses, with concerts driving our flywheel, which is then monetized across our high margin on-site, sponsorship and ticketing businesses," said Live Nation CEO Michael Rapino. – via CelebrityAccess