A brisk business in the venue and seemingly insatiable demand for live music helped Live Nation achieve a record first quarter, the company announced on Thursday (May 2).
Total revenue rose 21% to $3.8 billion and adjusted operating income (AOI) improved 15% to $367 million as each business segment — concerts, ticketing and sponsorships and advertising — beat the year-ago quarter.
Arena and auditorium ticket sales for 2024 are on track for double-digit improvement, and confirmed shows for large venues – stadiums, arenas and auditoriums – are also in double digits. “Global fan demand is stronger than ever, more artists are on the road and more venues are being added to bring them together,” CEO Michael Rapinoe he said in a statement.
In the concert segment, revenue rose 26% to $2.9 billion as fan attendance rose 21% to 23 million and arena attendance rose nearly 40% to 10 million worldwide. festival attendance grew by double digits and was boosted by Latin American markets. To date, Live Nation has sold 86 million tickets, about the same as in 2023, despite more arena shows and fewer stadium shows.
Venue Nation, Live Nation's venue management and operations business, saw improvements as fans increased their spending at concerts. In the first quarter, food and beverage spending rose more than 10% at clubs and theaters in the US.
Ticket revenue rose 7% to $723 million and AOI rose 5% to $284 million. Gross commission-bearing transaction value reached nearly $8 billion. Boosted by double-digit growth in international markets, Ticketmaster sold a record 77 million tickets in the quarter. The company said artists who toured in 2023 are seeing increased ticket sales and higher revenue per show in arenas and auditoriums compared to their tours last year.
Sponsorship and advertising revenue rose 24% to $211 million. This year, Live Nation added new clients Jaguar Land Rover's Defender and, for UK festivals, major partners Rockstar Energy and Liquid Death.
Looking ahead, Live Nation expects double-digit traffic growth at its theaters and other operating venues. Outdoor spaces are particularly profitable. Live Nation expects its theater revenue per fan — which is 2.5 times that of similar third-party venues — to grow by double digits in 2024.
Full-year margins are expected to be higher than last year, and AOI is expected to be in line with 2023 levels, excluding a potential payout for lawsuits related to the Astroworld tragedy in 2021. Live Nation collected an undisclosed amount for the Astroworld legal fees in the first quarter.
from our partners at https://www.billboard.com/business/touring/live-nation-revenue-soars-21-percent-record-first-quarter-1235672006/