Live Nation Stock Surges 6% After Q3 Earnings Report, Despite Revenue Decline and DOJ Battle
Live Nation has reported their Q3 2024 financial results, showing some mixed performance metrics while expressing optimism about their ongoing DOJ antitrust case.
Man in black shirt smiling
Key Financial Highlights:
- Overall revenue: $7.65 billion (down 6% YoY)
- Concert revenue: $6.58 billion (down 6% YoY)
- Ticketing revenue: $693.7 million (down 17% YoY)
- Sponsorship and advertising: $390.3 million (up 6% YoY)
- Adjusted operating income: $910 million (up 4% YoY)
Operational Performance:
- Event volume increased 13% YoY to approximately 40,000 events
- Strong growth in arena, amphitheater, theater, and club shows
- Concert operating income reached record $474.1 million (up 39% YoY)
- Nine-month total revenue grew 3% YoY to $17.47 billion
DOJ Antitrust Case Update: CFO Joe Berchtold expressed hope for "a return to the more traditional antitrust approach" following the administration change, suggesting potential for targeted remedies rather than the current interventionist approach seeking to break up Live Nation and Ticketmaster.
Looking Forward: CEO Michael Rapino projects "an even bigger 2025" for Live Nation. The company's stock responded positively, rising 6.1% to approximately $130 in after-hours trading.
The company also noted a non-cash tax adjustment related to their Ocesa purchase, resulting in a restatement of Q3 2023 figures.