Following a dreary pandemic 12 months for the dwell music enterprise, concert events large Live Nation says that it’s now “seeing the pent-up demand for dwell occasions play out as artists and followers are desirous to re-connect in particular person”.
Because the dwell enterprise reopens in markets such because the UK and the US alongside nationwide vaccination applications, this “pent-up demand” for leisure has been highlighted in Reside Nation’s newly-published monetary outcomes for the three months to finish of June.
In an SEC submitting published this week, the corporate reviews that its revenues elevated by $501.9 million, or 677%, year-on-year, to $575.9 million in Q2 2021, up from $74.1m in Q2 2020.
Reside Nation pins its constructive leads to Q2 on each sturdy ticket gross sales and sponsorship commitments for 2022, that latter of which it reviews are up double digits from 2019.
Elsewhere in Q2, Reside Nation noticed live performance income development of round $145m or 102% year-on-year, reaching $287m, up from $141.8m in Q2 2020.
Reside Nation reviews that the variety of occasions in Q2 2021 was over 1,600 in comparison with roughly 100 occasions in the identical quarter of final 12 months.
The variety of followers grew from roughly 50,000 in Q2 final 12 months 2020, to 1.3m in Q2 2020. Reside Nation says that this development was largely in america and Asia-Pacific markets.
Reside Nation’s ticketing income for Q2 elevated by $331m, to $244m in Q2 2021, from a lack of $87m in Q2 2020 (see beneath).
This development resulted from a rise in ticket gross sales, “stronger pricing”, and a discount in ticket refunds, in accordance with Reside Nation.
The corporate bought 30 million tickets within the Q2 2020 (excluding refunds) in contrast with 2m tickets in Q2 final 12 months, pushed nearly totally by gross sales within the Us, largely for live performance and sporting occasions, reviews Reside Nation.
Refunded tickets declined from 11m in Q2 2020 to 4m in Q2 this 12 months.
In a letter to shareholders, Reside Nation CEO Michael Rapino famous that June was Ticketmaster North America’s fourth greatest month in historical past for transacted ticket quantity.
This was pushed partially by Reside Nation’s US concert events division placing the very best variety of reveals on sale ever throughout a single month, added Rapino, which was 50% greater than the subsequent highest month in March 2019.
On the finish of Q2 2021, Reside Nation had whole money and money equivalents of $4 billion, which incorporates $1.1bn of free money.
Reside Nation says that this free money, together with $971m of obtainable debt capability, offers the corporate $2.1bn of obtainable liquidity.
The corporate believes this stage of liquidity “will present it with the runway it wants as extra reveals return”.
“We anticipate to see additional ramp-up speed up by way of the remainder of the 12 months, with enhancing working revenue and all segments returning to adjusted working revenue profitability for the second half of the 12 months, setting us up for a full-scale 2022.”
Michael Rapino, Reside Nation
Writing to shareholders this week, Rapino, mentioned: “Within the US and the UK, we’re seeing sturdy ticket gross sales and the restart of our concert events and festivals, highlighted over the previous weekends by Lollapalooza and Rolling Loud within the US and Latitude within the UK internet hosting a mixed three quarters of one million followers.
“With vaccine rollouts rising all through Canada and Europe, we anticipate further markets to open extra broadly within the coming months. The momentum for the return to dwell occasions has been constructing each month, with ticket gross sales and live performance attendance pacing sooner than anticipated, underscoring the power and resiliency of the live performance enterprise and dwell occasions generally.
Added Rapino: “This progress, mixed with our price self-discipline, has enabled us to ship constructive adjusted working revenue for the second quarter, nicely forward of the place we thought we might for this quarter.
“We anticipate to see additional ramp-up speed up by way of the remainder of the 12 months, with enhancing working revenue and all segments returning to adjusted working revenue profitability for the second half of the 12 months, setting us up for a full-scale 2022.”Music Enterprise Worldwide