Live Nation is estimating another record-setting financial year after its third quarter earnings report shows an 11 percent increase in revenue, reaching $3.8 billion. The company’s Q3 financial results released Thursday (Nov. 1) also show 16 percent jumps in operating income and adjusted operating income (AOI) to $234 million and $386 million, respectively.
From July and September 2018, Live Nation reported its best quarter ever and plans to deliver another record year in revenue, operating income and AOI. The company’s concerts division alone has entertained 33 million fans globally and is on track to sell more than 90 million tickets by the end of the year.
“With the success of our concerts flywheel, we are promoting more shows for more fans, more effectively pricing and selling tickets, and delivering a better fan experience than ever before,” said Live Nation Entertainment President and CEO Michael Rapino in a statement. “As a result, we will spend over $6 billion producing concerts this year, making Live Nation far and away the largest financial partner to musicians.”
During the first nine months of the year, Live Nation saw an 8 percent increase in concert attendance over 2017 to 71 million fans at 24,000 shows across 40 countries. The company has more than doubled its concert operating income from roughly $46 million to $99 million year over year.
Show count for Live Nation has increased by 17 percent with average ticket price rising 14 percent. These increases have resulted in a reported increase in artist earning of over $300 million across roughly 6,000 shows.
Ticketing platform Ticketmaster has seen a 15 percent growth year-to-date in global fee-bearing gross transaction value (GTV), resulting in a 13 percent growth in revenue, 7 percent increase in operating income and an 11 percent jump in AOI.
“Ticketmaster will deliver almost 500 million tickets worth approximately $31 billion in GTV across 28 countries for the full year, making it the world’s largest such marketplace,” the report reads. “And the success of our marketplace is stronger than ever, as all three quarters in 2018 have been among our top five quarters ever for recognized GTV.”
Live Nation’s sponsorship department is also reporting its best quarterly results on ever. The company boasts 1,000 sponsors across its on-site and online platforms, including new deals partnerships with T-Mobile, Sony, Sterling Wine and Subway. As a result, the financial report shows double-digit growth for the sponsorship division with revenue and operating income up 11 percent and AOI up 12 percent to date through September.