SFX Reports Initial Earnings

Robert F.X. Sillerman’s latest foray into the concert world – this time in the electronic dance music space – kicked off earlier this year with announcements of a number of acquisitions, and the company’s latest filings with the Securities and Exchange Commission continue that trend.

In the weeks following the company’s $260 million IPO, SFX completed purchases of Dutch dance promoter ID&T, which organizes massive dance events such as the Tomorrowland Festival; One of Us International; Stereosonic producer Totem Onelove Group; Electric Zoo Festival producer Made Event; Arc90, which developed the application Readability; and European festival producer i-Motion.

“This was an amazing first quarter,” Sillerman said in a statement. “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. The same is true for all other relevant metrics for the company. In addition, the properties we acquired enjoyed over one billion minutes of online viewing in the third quarter. As we continue to coordinate and combine this we have an existing and powerful backbone for our soon to be released new digital offerings.”

As the latest inception of SFX is still in its infancy, pro-forma revenue projections were $113.8 million for the third quarter and adjusted earnings before income taxes, depreciation and amortization were $12.8 million for the same period.

A day before the earnings report, SFX announced its latest deal with Rock In Rio, which has been staged 13 times over 28 years in Rio de Janeiro, Madrid and Lisbon to more than 7 million people.

The new partnership will bring Rock in Rio to the United States for the first time in 2015.

“While it’s a great opportunity to help build and grow the Rock in Rio brand internationally, utilizing our global promoter network, it’s also an opportunity to learn from the operational and commercial expertise that has made Rock in Rio and Robert Medina global phenomena,” Sillerman said. “Electronic music is becoming an established part of the modern music festival and we expect this trend to grow to showcase more of the DJ’s and Producers in our network.”