Live Nation Reports $567.5M Loss For Q2

Live Nation Logo 2017
– Live Nation Logo 2017
Live Nation reported a loss of $567.5 million for Q2 of 2020 on Aug. 5 after its business was dramatically impacted by the COVID-19 pandemic.
The company’s posted revenue was $74.1 million, down from Q2 2019’s revenue of 3.15 billion, or 98% from a year ago.  
Associated Press reported three analysts surveyed by Zacks predicted revenue of $300.6 million.
The company’s key operating metrics tell the story of a business dramatically impacted by COVID-19. In Q2 of 2019 the company had an estimated 10,252 estimated events. In Q2 of 2020 the number was 131. In Q2 of 2019 the company worked with an estimated 26,022,000 total fans. In Q2 of 2020 the same estimated total was 49,000. 
Despite the down numbers, Live Nation boasted of 86% of fans opting to keep tickets for rescheduled shows and 19 million tickets sold for events in 2021 as strengths. The company also drew attention to its $800 million cost reduction program target – which has unfortunately meant furloughs and pay cuts – and a $1.4 billion cash management program target for 2020.
Live Nation president and CEO Michael Rapino said in a statement: “While this is a challenging time for everyone – the live events business in particular – there are a few things that I am confident about: we are well positioned to weather this crisis, and we will get through this; when it is safe to return, we will have an abundance of fans and artists ready to enjoy live music again; and Live Nation will do everything in its power to meet our responsibilities to artists, fans, our employees and everyone else affected by this shutdown by bringing back as much live music as fast as possible when it is responsible to do so.”
The company in its earnings call said its expectation is for live events to return at scale in summer of 2021, and its goal is to get through the extended period without live events leading up to that. 
The company also boasted of its “Live From Home” platform for virtual concerts, with 67 million fans viewing more than 18,000 concert and festival performances  globally in Q2 and 150 performances streamed for the virtual Lollapalooza Festival. 
Since the beginning of the year Live Nation shares have fallen 33%, and shares closed at $47.63 on Aug. 7, down 30 percent from the same point last year.