Live Nation Posts Fourth-Quarter Operating Loss
By Jeffrey Hyatt
Live Nation Entertainment, the behemoth of a music company created by the recent merger with Ticketmaster Entertainment Inc., reported results for the first time Thursday; a fourth-quarter operating loss of $64.4 million as concert revenue tumbled.
The results reflect the Beverly Hills, California-based company’s final quarter before the merger. Sales declined 4.7 percent to $854.3 million for the period ending Dec. 31, according to a statement today.
The company also reported results for Ticketmaster’s final three months as a separate company. Ticketmaster had an operating profit of $34.6 million on revenue of $408.8 million.
“Our merger with Ticketmaster allows us to accelerate the execution of our vision and strategy to build a live music company that delivers a full service connection between the artist and fan,” said Irving Azoff, Executive Chairman of Live Nation Entertainment.
“We believe our combined platform will create a more diversified and stronger enterprise with the resources to develop new products, expand access and improve transparency and choice in the ticketing process, while generating incremental free cash flow and increased returns to shareholders.”
With operations in 30-plus countries, concert promoter Live Nation boasts an artist roster that includes U2, Madonna and the Eagles.
With Live Nation and Ticketmaster joining forces in a monstrous business mash-up of concert promotion, venue operation, ticket sales and artist management, the hope is that the consumer – hey! remember us?! – will find the coupling beneficial in the form of lower ticket prices.
