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Live performance large Reside Nation Leisure has revealed its Q3 outcomes for the three months ended September 30.
Inside the submitting, the corporate reviews quarterly revenues of $2.69 billion throughout all divisions, together with concert events, ticketing and promoting & sponsorship, with Reside Nation President and CEO Michael Rapino telling traders in a letter this week that “dwell music roared again over the previous quarter.”
That $2.69 billion income determine has eclipsed the $184 million posted in the identical quarter final yr, when concert events have been largely on maintain in most world markets resulting from Covid restrictions, however nonetheless is available in at over $1 billion lower than the $3.77 billion Reside Nation generated in Q3 2019.
Rapino famous in his letter to shareholders that summer season concert events season “rebounded shortly” in 2021, with 17 million followers attending Reside Nation reveals throughout Q3, “because the return to dwell mirrored great pent-up demand”.
A more in-depth take a look at Reside Nation outcomes reveals that revenues generated by concert events alone topped $2.1 billion in Q3, in comparison with $154.8 million in the identical quarter in 2020.
In accordance with Michael Rapino, “festivals have been a big a part of our return to dwell this summer season, with lots of our festivals promoting out in report time and total ticket gross sales for main festivals have been up 10% versus 2019”.
He added: “And now we have had plenty of excursions already promote over 500 thousand tickets for reveals this yr, together with sell-out excursions by Harry Types, Chris Stapleton and others.”
Reside Nation’s ticketing enterprise noticed revenues of $374.2 million in Q3 2021, in comparison with adverse $19.8 million within the prior yr quarter (Q3 2021), which indicated that the corporate paid out extra in refunds than it generated in gross sales in Q3 2020 (see under).
Throughout Reside Nation’s Sponsorship & Promoting division, the agency generated revenues of $174.4 million in Q3 2021, a rise of $126.5 million (72.5%) in comparison with the prior yr quarter (Q3 2020).
Trying to 2022, based on Rapino, Reside Nation’s confirmed present depend throughout amphitheaters, arenas and stadiums is (by way of October) already up “double-digits relative to the identical time in 2019 for 2020 reveals”.
By means of mid-October, the corporate had already offered 22 million tickets for reveals subsequent yr.
“Demand has been stronger than ever for a lot of of those on-sales with a million tickets offered for every Coldplay and Crimson Sizzling Chili Peppers excursions, and several other different excursions already promoting over 500,000 tickets,” writes Rapino.
He added: “Ticketmaster’s on-sales for 2022 reinforce this demand, as we anticipate the 2021 fourth quarter transacted fee-bearing GTV to be at a report degree, even after already promoting 65 million fee-bearing tickets for occasions subsequent yr.
“Ticketmaster has additionally added purchasers representing 14 million internet new fee-bearing tickets to this point this yr, additional accelerating its progress on a worldwide foundation.”
On the the tip of Q3 (as of September 30), dwell Nation had whole money and money equivalents of $4.6 billion, which incorporates $1.3 billion in ticketing consumer money and $1.7 billion in free money.
This free money, together with $571 million of accessible debt capability, offers the corporate $2.3 billion of accessible liquidity.
Reside Nation says that it “believes this degree of liquidity will present it with the runway it wants as extra reveals return”.
Reside Nation’s total revenues within the first 9 months of 2021 got here in at $3.5 billion, a rise of $1.9 billion (54.2%) in comparison with the primary 9 months of 2020, when the corporate generated revenues of $1.6 billion (see under).
“No business was extra impacted by the pandemic over the past two years, and no business has so confirmed its sturdiness of demand within the face of such disruption.”
Michael Rapino, Reside Nation
In closing his letter issued to traders this week, Rapino famous: “As we get near turning the web page on 2021, I stay extra satisfied than ever on the facility and potential of dwell leisure, and the energy of our place.
“No business was extra impacted by the pandemic over the past two years, and no business has so confirmed its sturdiness of demand within the face of such disruption.
“I absolutely anticipate we are going to proceed to have bumps within the highway within the coming months, and it’ll take a while for worldwide artists to be touring on a very world foundation, however the elementary energy of dwell leisure and Reside Nation has confirmed out, and I anticipate we are going to solely proceed to develop from right here.”Music Enterprise Worldwide
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