Live Nation Entertainment is experiencing robust demand for its Ticketmaster sales segment, with shares rising early Tuesday following the release of its third-quarter results. Concerts in large venues have increased significantly in early November compared to the same period last year, and stadium events have also shown double-digit growth compared to 2022, as stated by the company in a recent announcement. Chief Financial Officer Joe Berchtold shared insights during an earnings call, emphasizing the anticipated strong performance in Q4 due to a promising pipeline of stadium and arena events.
The company is witnessing an unprecedented level of activity for Ticketmaster in the current quarter and expects this trend to persist into 2025. In the September quarter, net income decreased to $1.66 per share from $1.93 the previous year, yet it still surpassed the consensus estimate of $1.60. Meanwhile, direct operating expenses shrank to $5.78 billion from nearly $6.3 billion, prompting a stock rise of over 6% in premarket trading. Revenue experienced a 6% decline to $7.65 billion, falling short of market expectations of $7.81 billion.
Concert revenue dropped to $6.58 billion from $6.97 billion in the same quarter of 2023, with ticketing sales down 17% to $693.7 million. However, revenue from sponsorship and advertising improved by 6% to $390.3 million, and overall adjusted operating income rose by 4% to $909.8 million. Chief Executive Michael Rapino noted, "We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating." He acknowledged that while operating income may be influenced by one-time accruals, the company is on track for double-digit growth in adjusted operating income this year. Tickets sold worldwide during September and October surged by 20% year-over-year, with Live Nation selling 144 million tickets through October, a 3% increase.
Ticketmaster’s sales in October showed a 15% rise in overall ticket volume, with concert events seeing an impressive 23% increase. For 2024, Live Nation is revising its capital expenditure projections to $700 million, up from the earlier forecast of $650 million, largely due to the addition of a new amphitheater project. Price: 131.52, Change: +7.72, Percent Change: +6.24.