It 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.
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