Live & Touring

SFX Stock Plunges 15% Despite 194% Growth

sfxOne of the world's largest producers of EDM events and online content, SFX Entertainment (NASDAQ: SFXE) reported quarterly financial results today and Wall Street reacted badly. Revenue, thanks mostly to major festival attendance in the three months ending  September 30, rose an impressive 194.5% to $143.5 million; while revenue for the first nine months of 2014 increased 199.9% to $258.8 million. But analysts were expect more and by mid-day Friday the stock was down nearly 15%.

Revenue in the 2014 third quarter included $114.7 million of revenue (79.9% of total revenue) from festivals and live events that were produced, promoted, licensed or managed by SFX during the period. image from djtimes.comDuring the three months ended September 30, SFX produced and promoted a total of 267 events, which attracted over 1,559,000 attendees, including 27 festivals that each attracted over 10,000 attendees.

Platform revenue, which represents SFX’s 365-day a year engagement with fans outside of live events and includes sales of digital music, ticketing fees and commissions, and certain marketing and digital activities, totaled $28.8 million (20.1% of total revenue) for the three months ended September 30, 2014.

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