GLOBAL DEMAND FOR LIVE EVENTS IS UNPRECEDENTED

1Q23 FINANCIAL OVERVIEW (vs 1Q22, reported FX): Record Results Reflect Incredible Fan Demand 

• Revenue Up 73% to $3.1 Billion
• Operating Income Up 5.3x to $143 Million
• AOI Up 53% to $320 Million
• Operating Cash Flow Reaches $1.2 Billion
• Adjusted Free Cash Flow Up Over 2x to $190 Million, Converting 59% of AOI

Global Business Drives Growth (All Metrics vs 1Q22)

• Live Music is #1 Leisure Category Global Consumers Expect to Spend More On
• Fan Count Up 79% to 19+ Million
• Ticketing Fee-Bearing Gross Transaction Value Up 60% to $7.7 Billion
• Sponsorship AOI Up 37% to $96 Million

Leading Indicators Point To A Record 2023

• Record Number of Fans Expected: ~90 Million Tickets Sold Year-To-Date for Live Nation Shows This Year
• Ticketing Set to Manage 600 Million Tickets Globally This Year
• Sponsorship on Track for Double-Digit AOI Growth

LOS ANGELES, May 4, 2023 /PRNewswire/ — Live Nation Entertainment, Inc. (NYSE: LYV) right now launched monetary outcomes for the quarter ended March 31, 2023.

2023 is off to an amazing begin.  For the primary time in three years, all of our markets are absolutely open.  The widespread theme we’re seeing all over the world is that dwell experiences are a excessive precedence for followers.

In the primary quarter, we delivered document outcomes throughout all divisions, in addition to document help for artists. From ticket gross sales, to attendance, and onsite spend – each signal factors to unbelievable demand for dwell occasions.  In the primary quarter, over 19 million followers attended our reveals throughout 45 international locations and we bought over 145 million tickets with document ranges of exercise throughout all markets. 

We delivered income of $3.1 billion, working revenue of $143 million, and AOI of $320 million, up 73%, 5.3x, and 53% respectively, relative to the primary quarter of final 12 months.  This efficiency is indicative of our continued long-term development and units the stage for a document 2023, as we’re extra constructive than ever about artists touring, followers attending live shows to see their favourite artists, and our function serving to make this occur.

Live Entertainment Demand Is Unprecedented

What is evident as we take a look at our outcomes and working metrics is that international demand for dwell occasions continues to succeed in new heights – demand has been rising for a very long time and is exhibiting no indicators of letting up.  Talking to followers, they are saying that dwell experiences are the primary leisure class the place they count on to spend extra sooner or later.  Naturally, that is resulting in document ranges of exercise in each our live shows and ticketing companies.

First, in live shows now we have bought almost 90 million tickets for reveals this 12 months, monitoring greater than 20% forward of this level final 12 months.  These early gross sales have been pushed by a document variety of stadium reveals and continued sturdy development in area excursions.  With many main excursions – from Beyoncé to Drake to Bruce Springsteen – demand was so sturdy that even when artists added various extra reveals, they nonetheless weren’t capable of meet the entire fan demand.

As an extra initiative to make tickets reasonably priced to all followers, we launched right now our Summer Concert Week sale, with $25 tickets accessible to over 3,800 reveals.

When followers attend our reveals, they continued spending to reinforce their expertise.  While our key out of doors season has not began but, early reads from U.S. and European indoor venues that we function exhibit additional development in common per fan income.  As we offer extra elevated hospitality choices for followers, now we have launched Vibee, which hosts vacation spot occasions centered round dwell music and launched this week with U2 Sphere VIP packages promoting out.

We have additionally continued constructing our Venue Nation portfolio, with new venues anticipated to host almost three million followers at one thousand reveals this 12 months, driving extra long-term development and profitability throughout all our companies.

Our ticketing enterprise advantages from the identical structural tailwinds as live shows, with additional development pushed by our success in including new shoppers, notably in worldwide markets.  As a consequence, we bought 73 million fee-bearing tickets within the first quarter, up 40% and delivered $7.7 billion in fee-bearing gross transaction worth, up 60% vs first quarter 2022.  We are seeing development in each quantity and pricing throughout our international markets.  This holds true throughout all occasion varieties from live shows to sports activities; and from the largest superstars to new artists.

Brands Seeking to Connect With Fans

Our model companions acknowledge that the eagerness for dwell music has by no means been higher, and that Live Nation gives a singular on-site and on-line platform to attach with followers in significant methods on a world scale.  In the primary quarter, we continued including companions for 2023 and past together with Google Pixel, PayPal, and Levi’s.  With this, now we have commitments for over 80% of our deliberate sponsorship for the 12 months.

Equally essential, followers are embracing the worth manufacturers can present to the live performance expertise, with round 70% of dwell music goers agreeing that manufacturers can improve their time on the present.  Our crew is the perfect within the trade at working with manufacturers to develop applications that ship worth to followers, which in flip grows our model relationships and attracts new ones.

Looking Forward

Our outcomes for the primary quarter exhibit the success of our technique and units us up for sturdy development in 2023.  We count on to host a document variety of followers this 12 months, even towards a 2022 comparability which benefited from rescheduled reveals attended by 20 million followers.  Ticketmaster also needs to ship document exercise, with round 600 million tickets managed globally this 12 months.  Our sponsorship enterprise, even after unbelievable development final 12 months, appears to be on monitor for double-digit AOI development once more this 12 months.

As we then look to 2024 and past, now we have all the required levers to construct our flywheel globally and proceed to compound AOI by double-digits for the foreseeable future.

Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.

The firm will webcast a teleconference right now at 2:00 p.m. Pacific Time to debate its monetary efficiency, operational issues and probably different materials developments. Interested events ought to go to the “News / Events” part of the corporate’s web site at buyers.livenationentertainment.com to hearken to the webcast. Supplemental statistical and monetary data to be offered on the decision, if any, might be posted to the “Financial Info” part of the web site. A replay of the webcast can even be accessible on the Live Nation web site.

Notice Regarding Financial Statements
The firm has offered sure monetary statements on the finish of this press launch for reference.  These monetary statements must be learn together with the total monetary statements, and the notes thereto, set forth within the firm’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission right now and accessible on the SEC’s web site at sec.gov.

About Live Nation Entertainment: 
Live Nation Entertainment, Inc. (NYSE: LYV) is the world’s main dwell leisure firm comprised of worldwide market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For extra data, go to buyers.livenationentertainment.com.

• As of March 31, 2023, complete money and money equivalents have been $7.0 billion, which incorporates $1.4 billion in ticketing shopper money and $1.9 billion in free money. This free money, together with $579.7 million of accessible debt capability, offers the corporate $2.4 billion of accessible liquidity. The firm believes this stage of liquidity will present its must fund operations and future funding alternatives.
• The firm expects capital expenditures to be roughly $450 million in 2023 as we proceed catching up on tasks delayed as a result of provide chain constraints and additional develop our international platform.

Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements on this press launch, together with the Supplemental Information that follows, represent “forward-looking statements” throughout the that means of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements embrace, however are usually not restricted to statements the relating to fan demand; the corporate’s expectation that its new venues will host almost 3 million followers in 2023 at roughly 1,000 reveals; the corporate’s positioning for sturdy development and a document 2023; the corporate’s expectations that it’ll host a document variety of followers in 2023, that Ticketmaster will ship document exercise with round 600 million tickets managed globally in 2023, and that the corporate’s sponsorship and promoting enterprise is on monitor for double-digit adjusted working revenue development in 2023; the corporate’s capacity to compound adjusted working revenue by double-digits for the foreseeable future; the corporate’s perception that its present stage of liquidity will present its must fund operations and future funding alternatives; and the corporate’s present expectations for capital expenditures for 2023.

Live Nation needs to warning you that there are some recognized and unknown components that might trigger precise outcomes to vary materially from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements, together with however not restricted to operational challenges in attaining strategic goals and executing on the corporate’s plans, the danger that the corporate’s markets don’t evolve as anticipated, the potential affect of any financial slowdown and operational challenges related to promoting tickets and staging occasions.

Live Nation refers you to the paperwork it information once in a while with the U.S. Securities and Exchange Commission, or SEC, particularly the part titled “Item 1A. Risk Factors” of the corporate’s most up-to-date Annual Report filed on Form 10-Okay, and Quarterly Reports on Form 10-Q and its Current Reports on Form 8-Okay, which comprise and determine different essential components that might trigger precise outcomes to vary materially from these contained within the firm’s projections or forward-looking statements. You are cautioned to not place undue reliance on these forward-looking statements which communicate solely as of the date on which they’re made. All subsequent written and oral forward-looking statements by or regarding Live Nation are expressly certified of their entirety by the cautionary statements above. Live Nation doesn’t undertake any obligation to publicly replace or revise any forward-looking statements due to new data, future occasions or in any other case.

This press launch accommodates sure non-GAAP monetary measures as outlined by SEC Regulation G. A reconciliation of every such measure to its most immediately comparable GAAP monetary measure, along with an evidence of why administration believes that these non-GAAP monetary measures present helpful data to buyers, is offered herein.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP monetary measure that we outline as working revenue (loss) earlier than sure stock-based compensation expense, loss (acquire) on disposal of working belongings, depreciation and amortization (together with goodwill impairment), amortization of non-recoupable ticketing contract advances and acquisition bills (together with transaction prices, adjustments within the honest worth of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). We use AOI to guage the efficiency of our working segments. We consider that details about AOI assists buyers by permitting them to guage adjustments within the working outcomes of our portfolio of companies separate from non-operational components that have an effect on internet revenue (loss), thus offering insights into each operations and the opposite components that have an effect on reported outcomes. AOI is just not calculated or offered in accordance with GAAP. A limitation of the usage of AOI as a efficiency measure is that it doesn’t mirror the periodic prices of sure amortizing belongings utilized in producing income in our enterprise. Accordingly, AOI must be thought of along with, and never as an alternative choice to, working revenue (loss), internet revenue (loss), and different measures of economic efficiency reported in accordance with GAAP. Furthermore, this measure could range amongst different firms; thus, AOI as offered herein might not be akin to equally titled measures of different firms.

Constant Currency is a non-GAAP monetary measure when utilized to a GAAP monetary measure. We calculate foreign money impacts because the distinction between present interval exercise translated utilizing the present interval’s foreign money alternate charges and the comparable prior interval’s foreign money alternate charges. We current fixed foreign money data to supply a framework for assessing how our underlying companies carried out excluding the impact of international foreign money charge fluctuations.

Free Cash Flow — Adjusted, or FCF, is a non-GAAP monetary measure that we outline as internet money offered by (utilized in) working actions much less adjustments in working belongings and liabilities, much less upkeep capital expenditures, much less distributions to noncontrolling curiosity companions. We use FCF amongst different measures, to guage the flexibility of operations to generate money that’s accessible for functions apart from upkeep capital expenditures. We consider that details about FCF gives buyers with an essential perspective on the money accessible to service debt, make acquisitions, and for income producing capital expenditures. FCF is just not calculated or offered in accordance with GAAP. A limitation of the usage of FCF as a efficiency measure is that it doesn’t essentially characterize funds accessible for operations and isn’t essentially a measure of our capacity to fund our money wants. Accordingly, FCF must be thought of along with, and never as an alternative choice to, internet money offered by (utilized in) working actions and different measures of economic efficiency reported in accordance with GAAP. Furthermore, this measure could range amongst different firms; thus, FCF as offered herein might not be akin to equally titled measures of different firms.

Free Cash is a non-GAAP monetary measure that we outline as money and money equivalents much less ticketing-related shopper funds, much less event-related deferred income, much less accrued bills as a result of artists and money collected on behalf of others, plus event-related prepaids. We use free money as a proxy for a way a lot money now we have accessible to, amongst different issues, optionally repay debt balances, make acquisitions and fund income producing capital expenditures. Free money is just not calculated or offered in accordance with GAAP. A limitation of the usage of free money as a efficiency measure is that it doesn’t essentially characterize funds accessible from operations and it’s not essentially a measure of our capacity to fund our money wants. Accordingly, free money must be thought of along with, and never as an alternative choice to, money and money equivalents and different measures of economic efficiency reported in accordance with GAAP. Furthermore, this measure could range amongst different firms; thus, free money as offered herein might not be akin to equally titled measures of different firms.

SOURCE Live Nation Entertainment