Live Nation is one of the biggest live music companies in the world. They own festivals such as Lollapalooza and Bonnaroo, companies like Ticketmaster, and a number of live music venues. The company continues to thrive, and its Q1 2018 earnings report shows promising numbers—with a catch.
First, the good news. Live Nation hit $1.48 billion in revenue in the first quarter of the year. That figure is a 19 percent increase from last year’s Q1 revenue. Concert revenue was also up by 20 percent at $1.04 billion. Concerts made up most company’s revenue at 70.8 percent, with ticketing following at $372.4 million. Ticketmaster revenue also jumped up 19 percent with its largest quarter in history.
While most of the numbers were good, Live Nation is still working under a loss. The first quarter loss was reported at $41 Million in net losses. That number may sound dire, but it’s a decrease compared to $47.8 million in Q1 2017. Live Nation’s operating loss amounted to $6 million, a big decrease from the $21.4 million operating loss in Q1 2017.
Live Nation CEO Michael Rapino said the following in a note to shareholders:
“With our global concerts business looking strong again this year, the concerts segment continues to be the engine that powers the Live Nation flywheel strategy, growing the profitability of the concerts business while also driving our sponsorship and ticketing businesses.”
Live Nation’s operating loss may seem large, but it’s small in comparison to Spotify’s massive €230-€330 million figure. If the company keeps it up, it could be in profits territory soon.
H/T: Music Business Worldwide | Cover Photo: Rukes
