Live Nation has already sold 100m tickets for concerts in 2022 – more than it sold in the whole of 2019 – Music Business Worldwide
MBW’s Stat Of The Week is a series in which we highlight a single data point that deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group, a technology-driven record label, distribution, and rights management company.
Live music’s lockdown hiatus feels like a distant memory this week in the wake of Live Nation‘s healthy Q2 results.
According to the company’s investor filing for the quarter ended June 30, 2022, the live events giant has sold 100 million tickets for concerts in 2022 so far, which, it says, is already more than what it sold for the whole year in 2019.
Offering its prediction for the full year, the company claims that “2022 is on track to be the biggest year in live music history”.
In his letter to shareholders, Live Nation President & CEO Michael Rapino claimed that “the second quarter confirmed that the live entertainment industry is back globally and bigger than ever” and suggested further that “Live Nation led this return”.
Added Rapino: “Every key operating metric is at an all-time high, as we promoted more concerts, had more fans attend shows where they spent more money, sold more tickets and enabled brands to connect with fans at a scale we have never seen before.”
In terms of finances, Live Nation reports that it generated revenues of $4.4 billion across all divisions in Q2, including concerts, ticketing and advertising & sponsorship.
That Q2 revenue figure was up 40% versus the same quarter in 2019, the year before the first pandemic year. It was also up $3.8 billion versus the same quarter last year, when the company generated $575.9 million as the live business started reopening in markets such as the UK and the US alongside national vaccination programs.
Live Nation’s concerts division was its biggest revenue driver in Q2 2022, generating $3.6 billion across the quarter (see below). The company’s ticketing business generated $575.3 million in Q2.
The company reports to have promoted over 12,500 concerts in Q2, with an attendance of 33.5 million fans, each up over 20% relative to the same quarter in 2019.
According to Rapino, of the 6 million-plus additional fans attending concerts in Q2, 5 million of that growth came from international markets, driven, in part, by the company’s acquisition of Mexico-headquartered promoter OCESA. Live Nation says that it also saw particularly strong fan demand through Europe and Latin America.
According to Live Nation’s balance sheet for the first six months of the year, the company generated revenues of $6.2 billion across all divisions, including concerts, ticketing and advertising & sponsorship.
The company’s ticketing division contributed $1.05 billion to that total figure in H1, up $783.4 million versus the first six months of 2021.
Revenue from Live Nation’s concerts business in the first six months of the year reached $4.8 billion, an increase of nearly $4.3 billion compared to the $526 million generated in the first six months of 2021 (see below).
Elsewhere in Live Nation’s investor filing, the company reports to have an “active pipeline” of almost 30 new venues worldwide.
The company reports further that the number of fans who attended shows at its owned or operated venues during Q2 was up 13% YoY to over 14 million fans. Live Nation expects that figure to reach over 50 million fans for the full year.
Live Nation also reports that fans are spending more on-site at its venues, with average revenue per fan up over 20% at its owned and operated amphitheaters, festivals, and theaters and clubs relative to the same quarter in 2019.
Live Nation says that the average revenue per fan at its amphitheaters this year is $38.50, up 30% relative to this point in 2019 (see below).
As of June 30, 2022, Live Nation’s total cash and cash equivalents were $5.9 billion, which includes $1.4 billion in ticketing client cash and $1.9 billion in free cash.
Live Nation says that this free cash, along with $563.8 million of available debt capacity, gives the company $2.5 billion of available liquidity.
“As we prepare for 2023, everywhere globally is open for concerts, and we are actively routing into all markets with the largest artist pipeline we have ever seen at this point in the year.”
Michael Rapino, Live Nation
Live Nation Entertainment, President and Chief Executive Officer, Michael Rapino, said: “As we look forward to the second half of 2022 and into 2023, we have sold over 100 million tickets for our concerts this year, more than we sold for the entire year in 2019.
“Fan demand remains strong, with continued growth in ticket buying and on-site spending. And given the long-term nature of most of our sponsorship partnerships, our planned sponsorship for the year is now fully committed.
“As we prepare for 2023, everywhere globally is open for concerts, and we are actively routing into all markets with the largest artist pipeline we have ever seen at this point in the year.
“For the 2023 tours we have put on sale so far, all signs continue pointing to strong fan demand.”
Cinq Music Group’s repertoire has won Grammy awards, dozens of Gold and Platinum RIAA certifications, and numerous No.1 chart positions on a variety of Billboard charts. Its repertoire includes heavyweights such as Bad Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and hundreds more.Music Business Worldwide
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