Live Nation had another record year in 2023, surpassing the all-time highs set in 2022, when artists hit the road in large numbers after COVID-19 restrictions shut down the touring business for most of 2020 and 2021.
The concert promoter and ticketing giant had revenue of $22.7 billion in 2023, up 36% from the previous year, thanks to record levels of attendance, ticket sales and sponsorships. Adjusted operating income (AOI) was $1.86 billion, up 32% year over year and double the AOI from 2019, the last full year before the pandemic.
With artists touring in record numbers, there was plenty of demand from fans to absorb the increased supply of live music. Concert attendance rose 20.3% to 145.8 million. North American attendance increased 16.6% to 81.3 million and international attendance increased 25.4% to 64.5 million. The biggest attendance gains came from stadium shows – notably Metallica, Beyonce and Luke Combs – which were up 60% to 29 million. The number of concerts — single shows and festivals — rose 15.3% to 33,629 in North America and 13.5% to 16,430 internationally.
The rise of K-pop and Latin music, along with Live Nation's acquisition of Mexican promoter OCESA in December 2021, has led to an increasingly international concert business. Live Nation's top 50 tours had 50% more international shows in 2023 than five years ago, and the additional international dates meant the tours had 15% more shows on average.
“Our digital world enables artists to develop global followings while inspiring fans to crave in-person experiences more than ever,” said President/CEO Michael Rapinoe in a statement. “At the same time, the industry offers a wider variety of concerts that attracts new audiences and develops more venues to support a bigger show.
The concert division's full-year revenue rose 39% to $18.76 billion as demand increased across markets and venue types. At Live Nation owned and operated venues — under the Venue Nation brand — attendance grew 13% to 55 million and ancillary revenue per person had double-digit growth. In its auditoriums, spending per person rose 10% to over $40. Because Live Nation owns and operates these venues, the bottom line benefits from increased fan spending on items such as beverages, food and merchandise.
At Ticketmaster, revenue rose 32% to $2.96 billion and AOI improved 35% to $1.12 billion. Total gross transaction value (GTV) increased 30% to $36 billion — North American GTV increased 26% while international GTV increased 42%. The number of paid tickets increased by 17% to over 329 million. New customers accounted for 21 million additional tickets in the past, with around 80% of these coming from international markets.
Its sponsorship and advertising revenue rose 13% to $1.1 billion and its AOI rose 14% to $675.1 million. Driven by growth in the beverage, technology and financial services sectors, Live Nation's sponsorship had over 100 partners with multi-year, multi-million dollar commitments.
In the fourth quarter, historically a slow period compared to the spring and summer months, Live Nation's revenue rose 36% to $5.8 billion. Concert division revenue rose 44% to $4.87 billion. The company's AOI rose 20% to $116.9 million in the quarter.
Looking ahead, “we expect all of our businesses to continue to grow and add value to artists and fans as we deliver double-digit operating income and AOI growth again this year, with our profitability growing at double-digit rates over the next several years.” Rapino added. As of mid-February, Live Nation had sold 57 million concert tickets, up 6% year-over-year, and Ticketmaster had $13 billion in gross transaction volume for events so far in 2024, double-digit growth. In addition, the company has committed 75% of its expected sponsorships, also a double-digit increase over last year's period.
from our partners at https://www.billboard.com/business/touring/live-nation-earnings-record-revenue-artist-tours-fan-demand-high-1235612747/
