Latest news with #JoeBerchtold
CTV News
10-06-2025
- Business
- CTV News
Live Nation to invest US$1 billion in U.S. music venues
The Live Nation Entertainment Inc. application is seen on an iPhone in this photograph taken in Washington, D.C., U.S., on Saturday, Oct. 28, 2017. Live Nation Entertainment said on Tuesday it will invest $1 billion to build 18 new live music venues across the U.S. as the concert promoter sees strong demand for musical performances from fan-favorite artists. This investment comes amid Live Nation's grown optimism in the live entertainment industry, driven by long-overdue ticketing reforms and growing fan demand. Live Nation expects two-thirds of the concert fan growth to be in the second half of the year, Chief Financial Officer Joe Berchtold said in May. The Ticketmaster parent said it will open doors or break ground on the new venues, ranging from intimate clubs to large outdoor amphitheaters, over the next 18 months in a bid to bring more big shows to smaller cities. The company, which said it is gearing up for its biggest year of live music ever, already boasts a portfolio of 150 venues across the U.S., representing roughly 4% of all music venues nationwide. 'To support this historic run, Live Nation venues have hired 37,000 U.S. workers to help deliver unforgettable experiences,' it added. The Department of Justice and dozens of state attorneys general sued Live Nation and its ticket-selling unit, Ticketmaster, last year for allegedly monopolizing markets across the live concert industry in ways that hurt artists and fans. The department is also conducting a criminal antitrust probe of Live Nation and AEG's response to concert cancellations at the beginning of the pandemic in 2020, Live Nation confirmed while denying any collusion in May. President Donald Trump in March signed an executive order aimed at protecting fans from 'exploitative ticket scalping' and reforming the U.S. live entertainment ticketing industry. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
Reuters
10-06-2025
- Business
- Reuters
Live Nation to invest $1 billion in US music venues
June 10 (Reuters) - Live Nation Entertainment (LYV.N), opens new tab said on Tuesday it will invest $1 billion to build 18 new live music venues across the U.S. as the concert promoter sees strong demand for musical performances from fan-favorite artists. This investment comes amid Live Nation's grown optimism in the live entertainment industry, driven by long-overdue ticketing reforms and growing fan demand. Live Nation expects two-thirds of the concert fan growth to be in the second half of the year, Chief Financial Officer Joe Berchtold said in May. The Ticketmaster parent said it will open doors or break ground on the new venues, ranging from intimate clubs to large outdoor amphitheaters, over the next 18 months in a bid to bring more big shows to smaller cities. The company, which said it is gearing up for its biggest year of live music ever, already boasts a portfolio of 150 venues across the U.S., representing roughly 4% of all music venues nationwide. "To support this historic run, Live Nation venues have hired 37,000 U.S. workers to help deliver unforgettable experiences," it added. The Department of Justice and dozens of state attorneys general sued Live Nation and its ticket-selling unit, Ticketmaster, last year for allegedly monopolizing markets across the live concert industry in ways that hurt artists and fans. The department is also conducting a criminal antitrust probe of Live Nation and AEG's response to concert cancellations at the beginning of the pandemic in 2020, Live Nation confirmed while denying any collusion in May. President Donald Trump in March signed an executive order aimed at protecting fans from "exploitative ticket scalping" and reforming the U.S. live entertainment ticketing industry.
Yahoo
16-05-2025
- Business
- Yahoo
LYV Q1 Earnings Call: Live Nation Misses Revenue but Beats Profit Expectations Amid Deferred Event Timing
Live events and entertainment company Live Nation (NYSE:LYV) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11% year on year to $3.38 billion. Its non-GAAP profit of $0.09 per share was significantly above analysts' consensus estimates. Is now the time to buy LYV? Find out in our full research report (it's free). Revenue: $3.38 billion vs analyst estimates of $3.48 billion (11% year-on-year decline, 2.8% miss) Adjusted EPS: $0.09 vs analyst estimates of -$0.16 (significant beat) Adjusted EBITDA: $515.2 million vs analyst estimates of $315.8 million (15.2% margin, 63.2% beat) Operating Margin: 3.4%, up from -1.1% in the same quarter last year Free Cash Flow Margin: 7.8%, up from 1.9% in the same quarter last year Events: 11,296, in line with the same quarter last year Market Capitalization: $33.7 billion Live Nation's first quarter results reflected a complex mix of timing shifts and evolving industry dynamics. Management attributed the revenue shortfall to lower activity in non-concert segments and the later scheduling of major concerts, which resulted in higher deferred revenue expected to be recognized in the second half of the year. CFO Joe Berchtold explained that while Live Nation concerts through Ticketmaster rose 12% year-over-year, other promoter and non-concert events were down, leading to overall revenue pressure. He emphasized, 'It's supply, not demand issues,' pointing to strong fan engagement and robust sell-through for headline acts. Looking ahead, management expects the majority of concert fan growth and financial upside to occur in the second half of the year as deferred events take place. CEO Michael Rapino stated that no signs of consumer demand weakness have emerged, with sponsorships and on-site spending holding firm. The recently announced acquisition in Japan and expansion of the Venue Nation portfolio were highlighted as strategic levers for future growth. Management maintained a stable outlook on concert margins, guided by scale benefits and continued cost discipline. Live Nation's leadership highlighted the impact of event timing and supply trends on the quarter's financial performance, while expressing confidence in demand and outlining several strategic initiatives. Deferred Revenue Timing: Significant growth in deferred revenue due to later concert scheduling means much of Q1's ticket sales and associated profits will be recognized in upcoming quarters, not this one. Concert Segment Dynamics: Concert activity driven by Live Nation-promoted shows increased, but was offset by declines in non-concert and other promoter events, leading to a mixed performance across the Ticketmaster platform. Venue Nation Expansion: Management confirmed an accelerated ramp-up in new venues, expecting four openings this year and more next year, which should contribute to higher fan volumes and incremental margin gains over time. International Market Entry: The acquisition of Hayashi in Japan marks a strategic entry into one of the world's largest and most challenging live entertainment markets, enabling direct promotion and greater control over local operations. Pricing and Affordability Initiatives: Continued efforts to expand ticket price tiers aim to balance affordability for fans with revenue optimization, with management noting that artists are increasingly sophisticated in pricing strategies across geographies and event types. Management's outlook for the year centers on the timing of event recognition, venue growth, and stable consumer demand, with a focus on margin consistency and global expansion. Event Timing and Deferred Revenue: Most revenue and profits from Q1 ticket sales are expected to be recognized in the second and third quarters as events occur, positioning the company for a stronger back half of the year. Venue Portfolio Growth: The addition of new Venue Nation properties is projected to increase per-fan monetization through enhanced on-site offerings, contributing positively to concert margins. Demand and Regulatory Environment: Management does not currently see consumer demand weakness but is monitoring regulatory developments, including the ongoing DOJ case and ticketing industry reforms, as potential sources of operational risk. Brandon Ross (LightShed Partners): Asked about the drivers of lower Ticketmaster revenue and the outlook for improvement. Management cited event timing and deferred recognition, expecting growth later in the year. David Karnovsky (J.P. Morgan): Inquired about margin expectations for the full year and the impact of international operations. Management reiterated confidence in maintaining stable concert margins due to scale and cost controls. Stephen Laszczyk (Goldman Sachs): Requested details on Venue Nation's expansion and timing of new openings. Management expects four new venues this year, with the full impact seen in future years. Peter Henderson (Bank of America): Probed the company's ticket pricing strategies and efforts to balance affordability and revenue optimization. Management described ongoing refinement of pricing tiers to maximize sell-through and artist returns. Benjamin Soff (Deutsche Bank): Sought perspective on regulatory changes such as BOTS Act enforcement. Management supports greater enforcement and transparency, viewing reforms as beneficial for fans and content owners. In the coming quarters, StockStory analysts will focus on (1) the pace of deferred revenue conversion as major concerts take place, (2) execution and fan engagement at newly opened Venue Nation locations, and (3) measurable progress from the company's entry into the Japanese live entertainment market. Developments in the regulatory landscape and ongoing consumer demand trends will also be closely monitored as potential drivers of business performance. Live Nation currently trades at a forward P/E ratio of 62×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Live Nation Entertainment Inc (LYV) Q1 2025 Earnings Call Highlights: Strong Concert Demand and ...
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Live Nation Entertainment Inc (NYSE:LYV) reported a 12% year-on-year increase in Live Nation concerts through Ticketmaster. Deferred revenue for Ticketmaster increased by 13% for the quarter, indicating strong future revenue potential. The company is experiencing strong demand for concerts, with significant ticket sales for major artists like Chris Brown and Lady Gaga. Live Nation Entertainment Inc (NYSE:LYV) has secured over 80% of its sponsorship business for the year, showing strong brand partnerships. The acquisition of Hayashi in Japan is a strategic move to expand in one of the largest music markets globally. Ticketmaster's revenue and AOI were down due to less activity from other promoters and non-concert categories. The company is facing foreign exchange headwinds, particularly in Mexico and Latin America, impacting Ticketmaster's short-term reported results. There is a later timing of on-sales, with more concert activity expected in the second half of the year, affecting revenue recognition. The regulatory environment remains challenging, with ongoing legal processes and potential impacts from the DOJ case. The secondary ticketing market is not seen as a growth driver, and the company aims to reduce its reliance on this segment. Warning! GuruFocus has detected 6 Warning Sign with LYV. Q: Can you explain the factors behind Ticketmaster's revenue and AOI decline despite increased activity? A: Joe Berchtold, President and CFO, explained that while Live Nation concerts through Ticketmaster were up 12% year-on-year, other promoters and non-concert activities were down. Deferred revenue was up 13%, indicating future growth. The decline was due to supply issues, not demand, and FX headwinds in Latin America. They expect improvement in the latter half of the year. Q: Are you seeing any consumer pullback affecting concerts or sponsorships? A: Michael Rapino, CEO, stated they haven't seen any consumer pullback. Ticket sales remain strong, with significant on-sales in April. Sponsorships are over 80% contracted and up from last year. On-site spending hasn't shown any decline either. Q: Can you discuss the concert margin expectations for 2025 and any factors affecting Q4? A: Joe Berchtold noted that they expect concert margins to remain flat for 2025. Despite some volatility, they are managing costs effectively and expect to maintain last year's margin levels. Q4 will see some impact from OCESA and advertising expenses. Q: What is the strategic significance of acquiring Hayashi in Japan? A: Michael Rapino highlighted that Japan is a crucial market, and partnering with HIP allows Live Nation to promote directly in Japan. This strategic move will enhance their ability to secure venue availability and expand their presence in the APAC region. Q: How are you managing pricing strategies to balance affordability and revenue optimization? A: Michael Rapino explained that they are implementing more price tiers to sell every seat and maximize gross revenue. The strategy involves pricing the front of the house higher to prevent scalping and offering affordable options for the back. This approach varies by market and event. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
