Yesterday, SFX Entertainment released its third quarter earnings report which highlighted a net loss across the board. Over the course of 3 months, SFX netted a total loss of $28.6 million and within 9 months, that loss reached $72.1 million. Although SFX witnessed an overall loss, their earnings report comes after a heavy acquisition period in which they acquired ID&T, Made Event, Totem Onelove Group, and several more. Over the last 9 months SFX has been securing its foothold in the EDM space and their earnings report reflects Robert Sillerman’s long term strategy in building a company that truly controls the EDM industry.
Being the first released earnings report since the company’s founding, their stock price saw an increase early friday morning and is currently sitting at $9.19. With a target price set at $15.00, the 7.1% increase directly following the release of their earnings report proves that SFX is a work in progress but the public is gaining more confidence in their long term success. When commenting on the earnings report, CEO Robert Sillerman explained why SFX is here to stay:
” The opportunity we are pursuing has been understood and accepted by fans, the music industry and marketing partners who understand the need to win the affection of Electronic Music Culture fans in an authentic and celebratory way. The desire of the creators of these extraordinary events to sell 100 percent of their businesses, while maintaining a significant equity stake in SFX, is testimony to the momentum and acceptance of our thesis.”
On the bright side, they’ll see a tax credit.