Live Nation Stock Rises Despite Mixed Q3 As CEO Touts 'Even Bigger 2025:' Retail Stays Cautious
Live Nation CEO Michael Rapino said the company is pacing toward double-digit adjusted operating income growth this year.
FollowLive Nation Entertainment, Inc. ($LYV), a ticketing platform for live entertainment around the world, reported better-than-expected bottom-line results but revenue was shy of the consensus estimate.
The Los Angeles, California-based company reported third-quarter earnings per share (EPS) of $1.66, down from $1.93, as revised, for the year-ago period. Analysts, on average, expected the metric to come in at $1.61.
Third-quarter adjusted operating income was $910 million. Concerts profitability rose to a record, with adjusted operating income rising 39% year-over-year (YoY) to $474 million. Adjusted operating income margin was a record 7.2%
Revenue came in at $7.65 billion compared to $8.16 billion for the year-ago quarter and the consensus of $7.75 billion.
Among the other metrics, Venue Nation fans’ on-site spending increased by double digits per fan at major festivals. For the year-to-date period, Live Nation tickets sold totaled 144 million, up 3%.
Michael Rapino, President and CEO, Live Nation said, “We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating.”
The executive said the company is pacing toward double-digit adjusted operating income growth this year even as he expects one-time accruals to dent the reported operating income.
Looking ahead, the company expects 2024 concerts’ adjusted operating income margins to approach pre-pandemic levels.
Rapino said, “As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy.”
“Momentum continues to build, as we expand the industry’s infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe.”
Retail sentiment was mixed, with some users on the Stocktwits platform calling Live Nation as a “great stock,” and applauding the results as surprisingly “nice.”
A few shunned the stock as “garbage.”
In premarket trading on Tuesday, the stock was up 6.63% at $132.01 as of 6:14 am ET.
Related Link: 10 Stocks Retailers On Stocktwits Are Most Bullish/Bearish About To Start The Week
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