Live Nation Stock Surges 6% After Q3 Results, Expects 'Traditional Antitrust Approach' in DOJ Case
Live Nation has reported its Q3 2024 financial results, showing a slight year-over-year revenue decline to $7.65 billion, down 6% from the previous year. The company's ticketing segment experienced a notable 17% decrease, generating $693.7 million for the quarter.
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Key Financial Highlights:
- Concerts revenue: $6.58 billion (down 6% YoY)
- Sponsorship and advertising: $390.3 million (up 6% YoY)
- Adjusted operating income: $910 million (up 4% YoY)
- Concert operating income reached a record $474.1 million (up 39% YoY)
Despite revenue challenges, Live Nation saw significant growth in event volume, hosting approximately 40,000 events in Q3, representing a 13% increase from the previous year. This growth was primarily driven by arena, amphitheater, theater, and club shows.
Regarding the ongoing DOJ antitrust lawsuit, CFO Joe Berchtold expressed optimism about "a return to the more traditional antitrust approach" following the administration change. The company expects less interventionist policies moving forward.
For the first nine months of 2024, Live Nation's total revenue grew 3% YoY to $17.47 billion, with concerts contributing $14.45 billion. CEO Michael Rapino projects "an even bigger 2025" for the company.
The market responded positively to the earnings release, with Live Nation's stock (NYSE: LYV) rising 6.1% in after-hours trading, reaching approximately $130 per share.