Live Nation reports show record profits for each ticket sale. Even in the cost-of-living crisis with inflation, concert ticket prices continue to grow, making each popular live event less affordable for the regular music fan.
Last month, we listed the best concert and event ticket sites for those who want to love to go to concerts and festivals.
Every music fan continues to prioritize their spending for live events and concerts. Despite varied economic obstacles such as inflation, we have not witnessed a drop in demand, with on-sales, on-site spending, advertising, and all other operating indicators continuing to climb year on year.
With this demand, revenue increased by over 60% compared to the third quarter of 2019, with each segment increasing by at least 30%. Operating income increased by 95% to $506 million, with all divisions increasing by at least 60%, while AOI increased by 45% to $621 million, with all divisions increasing by at least 25%.
According to the Live Nation report:
Their company which hosted 11 thousand events for 44 million spectators across over 50 countries, led our performance this quarter, as planned. As a result, we earned nearly $5 billion in sales and $281 million in AOI for the quarter, representing increases of 67% and 44%, respectively, over Q3 2019.
Shows of all kinds continue to be in high demand, with attendance increasing by double digits in all venue categories, including clubs, theaters, amphitheaters, arenas, stadiums, and festivals. Stadiums had a good quarter, with our fan count more than doubling to over nine million, driven by a worldwide demand for major artists from a variety of genres and audiences, including The Weeknd, Red Hot Chili Peppers, and more.
Here are the highlights from the report:
- Reported Revenue Up 63% to $6.2 Billion
- Reported Operating Income Up 95% to $506 Million
- Reported AOI Up 45% to $621 Million and Up 51% to $645 Million On A Constant Currency Basis
- Year-To-Date Operating Cash Flow Is $928 Million
- Year-To-Date Free Cash Flow – Adjusted Is $996 Million, Up 88%
- The main aspect responsible for Live Nation’s profits was the record attendance numbers, with an estimated
- 44 million fans going to over 11,000 events during Summer.
We also saw high on-site per fan expenditure throughout the summer, with no change in consumer purchasing habits. Ancillary per fan expenditure at our managed venues in the United States and Europe has increased by 20 to 30% year to far compared to 2019.
The recurring theme is that fans want to improve their experience as we continue to elevate our hospitality operations and provide more premium alternatives. We still have a lot of opportunities to extend these higher-quality experiences across our venue portfolio, which includes over 400 venues and festivals worldwide, with around 40 more locations on the way.
- Over 115 Million Tickets Sold, Up 37% From This Point in 2019
- Double-Digit Increase in Tickets Sold for 2023 Concerts vs This Point in 2021 for 2022, Excluding Rescheduled Shows
- Confirmed Sponsorship for 2023 Is Up 30% vs Year Ago for 2022
Here is the answer from Ticketmaster about the event prices:
“Finally on Ticketmaster, a point on some recent press regarding ticketing fees. We will continue to advocate for fee transparency in live event ticketing. We advocated for the all-in pricing mandate passed in New York earlier this year, which requires face-value prices and fees to be shown upfront. And we support the FTC mandating this nationally. We operate ticketing marketplaces in more than 30 countries around the world and have seen all-in pricing adopted successfully in many countries when mandated across the board.
This only works if all ticketing marketplaces adopt together. So that consumers truly can accurately compare as they shop for tickets.”