Live Nation Entertainment (LYV) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 3, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone. My name is John and I will be your conference operator on today’s call. At this time, I would like to welcome everyone to Live Nation Entertainment’s Third Quarter 2022 Earnings Conference Call. Today’s conference is being recorded.

Before we begin, Live Nation has asked me to remind you that this afternoon’s call will contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ, including statements related to the company’s anticipated financial performance, business prospects, new developments and similar matters. Please refer to Live Nation’s SEC filings, including the risk factors and cautionary statements included in the company’s most recent filings on Forms 10-K, 10-Q and 8-K for a description of risks and uncertainties that could impact the actual results.

Live Nation will also refer to some non-GAAP measures on this call. In accordance with the SEC Regulation G, Live Nation has provided definitions of these measures and a full reconciliation to the most comparable GAAP measures in their earnings release or website supplement, which also contains other financial or statistical information to be discussed on this call. The release reconciliation and website supplement can be found under the Financial Information section on Live Nation’s website at investors.livenationentertainment.com.

It is now my pleasure to turn the conference over to Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. Please go ahead, sir.

Michael Rapino - President and CEO

Good afternoon and thank you for joining us. Live Nation delivered the biggest summer concert season in history that drove a record quarter. These results demonstrate the ongoing and increasing demand for live events globally, with attendance at events of all sizes from clubs to stadiums. Fans around the world continue prioritizing their spend on live events, particularly concerts. Despite varying economic headwinds, including inflation, we have not seen any pullback in demand as on-sales on-site spending, advertising, all other operating metrics continue showing strong year-on-year growth.

With this demand, revenue was up over 60% relative to 2019 with each division up at least 30% and AOI up 45% to $621 million, with all divisions up at least 25%. As we expected, our performance this quarter was led by our concert business, which held 11,000 concerts to 44 million fans across 50 countries. As a result, we generated over $5 billion of revenue and $281 million AOI for the quarter, up 67% and 44% respectively relative to 2019 Q3. Shows of all types continue having strong demand with double-digit attendance growth across all venue types, including clubs, theaters, amphitheaters, arenas, stadiums and festivals.