LN Sees Q1 Revenue Lift

Live Nation Entertainment released first quarter 2012 financials May 9, with Azoff, Rapino & Co. declaring a “great” start to the year with a 2 percent spike in revenue to $868 million from $849.9 million one year ago, despite a net loss of $70 million, or 37 cents per share, from $54 million last year.

The Street had expected slightly higher revenue, with analysts polled by Thomson Financial on average projecting revenue at $870.8 million, as well as higher losses of $71.3 million, or 39 cents a share.

“We are off to a great start for 2012 with solid first quarter performance in all our segments,” LNE CEO Michael Rapino said. “The company delivered year over year growth in revenue, profitability and free cash flow in the quarter. Importantly, we also saw a 6 percent increase in ticket sales this quarter as compared to last year, reflecting strong demand for our live events and giving us great confidence that we are well positioned for the summer concert season.”

The recent acquisition of 360 Management, and that of Cream Holdings, owner of long-runner Brit electronic festival Creamfields announced earlier in the day, gives LNE a tremendous boost to its electronic dance music portfolio as well as its growing roster of festivals. Rapino said he expects LN to produce 55 festivals moving 3 million fans through turnstiles in 2012.

Rapino reported the amphitheatre business was up 50 percent in the first four months of 2012 (not merely for the quarter) and he ambitiously predicts the sheds to double attendance with artists including Jason Aldean, Brad Paisley, One Direction, Big Time Rush, Dave Matthews Band and Jimmy Buffett to draw big.

He said that dynamic pricing is being used at approximately 50 percent of the sheds in summer 2012, and expects to pocket a 5 percent to 10 percent increase in revenue for shows that use it.

And it’s the upgrades to the Ticketmaster platform, according to Rapino, that is responsible for turning around AOI from red ink to black. He said the company expects to roll out a “state of the art” client portal to replace the old TM “green screen” later this year that he said will “help retain and acquire new customers,” reiterating his year-end report figure of “more than 100 percent” TM client retention.