Live Nation Entertainment, Inc. (LYV) Earnings

Management highlights

Global growth in stadiums and amphitheaters in the U.S. skews towards Q3; strong global supply of artists with growth in international business; Ticketmaster focusing on product improvement with AI injection, driving ancillaries; venue securitization as innovative financing for venue side; Venue Nation partnerships with sports teams replicable globally; premium hospitality rollout in venues with opportunity for growth.

Guidance

Growth is stronger in Q3 due to calendar skew of stadium and amphitheater growth; Q4 also shaping up to be very strong; expectation of strong amphitheater year with positive numbers so far; expectation of acceleration in venue openings in 27 and beyond.

Segment performance

No specific detailed financial performance of product segments provided in the transcript.

Risks & headwinds

Risks related to actual results differing from forward-looking statements, including those from regulatory processes and potential impacts of factors like gas prices on amphitheater performance.

Analyst Q&A

• Q: Hey, guys. Thanks for taking the questions. First, you call out timing shifts and fan counts due to venue mix in the release. Can you first explain why this year looks different than most and then how that translates to AOI phasing throughout the year?

  A: Yeah, sure, Brennan. So really what's going on with timing is because we have very strong growth globally in stadiums and strong growth in amphitheaters in the U.S., those tend to skew more towards Q3, just from a calendar standpoint. Yeah, most of the summer months are in Q3. So we were just trying to call out that as you think about the weighting of the different quarters this year, while we have strong growth across all of the pieces, that growth is really going to come in more strongly in Q3 than it would be in the previous years. That will transfer into stronger AOI for Q3. And then on the margin, also shaping up to have a very strong Q4.

• Q: And then speaking of amphitheaters, I guess the big stumble last year was in amps, really on the supply side, and it seems that you've made up or more than made up for that this year. How sure are you that the demand is there on the amps to fill that supply? The leading indicators seem great, but amps are more of a real-time purchase, and every time there's elevated gas prices, there's there's a little more worry about amphitheater performance. And there's also been some cancellations lately as there are every year, but if you could address that too.

  A: Yeah, well, let's start with cancellation work backwards just because I know that I saw some of those articles. This year would be no different than any other year. We always have a few cancellations. To give you a perspective, we tend to have 1% to 2%. cancellation rate historically both that ticket master across the industry and at Live Nation we're tracking slightly below the industry so we see no challenges at all in that give you again perspective we have about 15,000 shows on sale 100 will be cancelled that would be typical so we see nothing about cancellations in 26 full calendar that would be extraordinary always a tour one or two that doesn't work out Amphitheaters, as you said, we're having a strong 26. Focus the team on the supply to make sure we have the show count. We definitely have that this year. And we know sitting in May, the demand side, we would know by this time of the year how we're filling up for the summer. It's not last minute. It's on sale. And as you see from the numbers in our releases, we're tracking ahead of last year on show count on demand. Ticket sales up over double digits. So we see a strong year in amphitheaters. We think they're a great product. Demand will always be there. They tend to be lower priced than arenas and stadiums. It's a lower cost entry point to come in. So it's a volume game and onsite. Just started. We're days into the season, but we see positive numbers so far. So our premium sales are on site, and our demand is going to have a strong 26 amps.

• Q: Hey guys, thanks for taking the questions. Michael, maybe just to broaden out the question around supply this year, in the release you highlighted concert bookings pacing up across stadiums, arenas, and amps. We'd just be curious if you could maybe talk a little bit more about how touring activity is shaping up for this year, where in the slate you're seeing the strongest inflections year-over-year in supply, and then where might there still be opportunity to add event supply as we make our way into the summer concert season? over the next couple of months?

  A: Yes. I mean, if we step back as we do in our investor day on supply, there are more bands on the road on a global basis. So the pie is growing. For our job is just to keep making sure we maintain our market share and grow with that expanding pie of supply. So we're seeing this global supply of artists continually grow. So that will just mean ultimately more bands on the road And they'll be filling all levels from the club up to the stadium, which we're seeing this year. So most of the supply is just coming from the growing market on a global basis on all levels of supply. And we think that's going to happen for many years to come as this world now has evolved. been flattened and bands from all over from Latin America to K-pop to Columbia to India are now on the road and able to travel and tour in all of the different venues and festivals around the world. So strong supply across the globe right now. We're seeing our international business strong supply. maybe even stronger than America in terms of growth. Latin America is on fire from small to big to festivals. So we're seeing a great global supply and demand as we predicted in our investor day coming to life this year.

• Q: And then speaking of amphitheaters, I guess the big stumble last year was in amps, really on the supply side, and it seems that you've made up or more than made up for that this year. How sure are you that the demand is there on the amps to fill that supply? The leading indicators seem great, but amps are more of a real-time purchase, and every time there's elevated gas prices, there's there's a little more worry about amphitheater performance. And there's also been some cancellations lately as there are every year, but if you could address that too.

  A: Yeah, well, let's start with cancellation work backwards just because I know that I saw some of those articles. This year would be no different than any other year. We always have a few cancellations. To give you a perspective, we tend to have 1% to 2%. cancellation rate historically both that ticket master across the industry and at Live Nation we're tracking slightly below the industry so we see no challenges at all in that give you again perspective we have about 15,000 shows on sale 100 will be cancelled that would be typical so we see nothing about cancellations in 26 full calendar that would be extraordinary always a tour one or two that doesn't work out Amphitheaters, as you said, we're having a strong 26. Focus the team on the supply to make sure我们have the show count. We definitely have that this year. And we know sitting in May, the demand side, we would know by this time of the year how we're filling up for the summer. It's not last minute. It's on sale. And as you see from the numbers in our releases, we're tracking ahead of last year on show count on demand. Ticket sales up over double digits. So we see a strong year in amphitheaters. We think they're a great product. Demand will always be there. They tend to be lower priced than arenas and stadiums. It's a lower cost entry point to come in. So it's a volume game and onsite. Just started. We're days into the season, but we see positive numbers so far. So our premium sales are on site, and our demand is going to have a strong 26 amps.

• Q: Hey guys, thanks for taking the questions. Michael, maybe just to broaden out the question around supply this year, in the release you highlighted concert bookings pacing up across stadiums, arenas, and amps. We'd just be curious if you could maybe talk a little bit more about how touring activity is shaping up for this year, where in the slate you're seeing the strongest inflections year-over-year in supply, and then where might there still be opportunity to add event supply as we make our way into the summer concert season? over the next couple of months?

  A: Yes. I mean, if we step back as we do in our investor day on supply, there are more bands on the road on a global basis. So the pie is growing. For our job is just to keep making sure we maintain our market share and grow with that expanding pie of supply. So we're seeing this global supply of artists continually grow. So that will just mean ultimately more bands on the road And they'll be filling all levels from the club up to the stadium, which we're seeing this year. So most of the supply is just coming from the growing market on a global basis on all levels of supply. And we think that's going to happen for many years to come as this world now has evolved. been flattened and bands from all over from Latin America to K-pop to Columbia to India are now on the road and able to travel and tour in all of the different venues and festivals around the world. So strong supply across the globe right now. We're seeing our international business strong supply. maybe even stronger than America in terms of growth. Latin America is on fire from small to big to festivals. So we're seeing a great global supply and demand as we predicted in our investor day coming to life this year.

• Q: And then speaking of amphitheaters, I guess the big stumble last year was in amps, really on the supply side, and it seems that you've made up or more than made up for that this year. How sure are you that the demand is there on the amps to fill that supply? The leading indicators seem great, but amps are more of a real-time purchase, and every time there's elevated gas prices, there's there's a little more worry about amphitheater performance. And there's also been some cancellations lately as there are every year, but if you could address that too.

  A: Yeah, well, let's start with cancellation work backwards just because I know that I saw some of those articles. This year would be no different than any other year. We always have a few cancellations. To give you a perspective, we tend to have 1% to 2%. cancellation rate historically both that ticket master across the industry and at Live Nation we're tracking slightly below the industry so we see no challenges at all in that give you again perspective we have about 15,000 shows on sale 100 will be cancelled that would be typical so we see nothing about cancellations in 26 full calendar that would be extraordinary always a tour one or two that doesn't work out Amphitheaters, as you said, we're having a strong 26. Focus the team on the supply to make sure我们have the show count. We definitely have that this year. And we know sitting in May, the demand side, we would know by this time of the year how we're filling up for the summer. It's not last minute. It's on sale. And as you see from the numbers in our releases, we're tracking ahead of last year on show count on demand. Ticket sales up over double digits. So we see a strong year in amphitheaters. We think they're a great product. Demand will always be there. They tend to be lower priced than arenas and stadiums. It's a lower cost entry point to come in. So it's a volume game and onsite. Just started. We're days into the season, but we see positive numbers so far. So our premium sales are on site, and our demand is going to have a strong 26 amps.

• Q: Hey guys, thanks for taking the questions. Michael, maybe just to broaden out the question around supply this year, in the release you highlighted concert bookings pacing up across stadiums, arenas, and amps. We'd just be curious if you could maybe talk a little bit more about how touring activity is shaping up for this year, where in the slate you're seeing the strongest inflections year-over-year in supply, and then where might there still be opportunity to add event supply as we make our way into the summer concert season? over the next couple of months?

  A: Yes. I mean, if we step back as we do in our investor day on supply, there are more bands on the road on a global basis. So the pie is growing. For our job is just to keep making sure we maintain our market share and grow with that expanding pie of supply. So we're seeing this global supply of artists continually grow. So that will just mean ultimately more bands on the road And they'll be filling all levels from the club up to the stadium, which we're seeing this year. So most of the supply is just coming from the growing market on a global basis on all levels of supply. And we think that's going to happen for many years to come as this world now has evolved. been flattened and bands from all over from Latin America to K-pop to Columbia to India are now on the road and able to travel and tour in all of the different venues and festivals around the world. So strong supply across the globe right now. We're seeing our international business strong supply. maybe even stronger than America in terms of growth. Latin America is on fire from small to big to festivals. So we're seeing a great global supply和demand as we predicted in our investor day coming to life this year.

• Q: And then speaking of amphitheaters, I guess the big stumble last year was in amps, really on the supply side, and it seems that you've made up or more than made up for that this year. How sure are you that the demand is there on the amps to fill that supply? The leading indicators seem great, but amps are more of a real-time purchase, and every time there's elevated gas prices, there's there's a little more worry about amphitheater performance. And there's also been some cancellations lately as there are every year, but if you could address that too.

  A: Yeah, well, let's start with cancellation work backwards just因为I know that I saw some of those articles. This year would be no different than any other year. We always have a few cancellations. To give你a perspective, we tend to have 1% to 2%. cancellation rate historically both that ticket master across the industry and at Live Nation we're tracking slightly below the industry so we see no challenges at all in that give你again perspective we have about 15,000 shows on sale 100 will be cancelled that would be典型so we see nothing about cancellations in 26 full calendar that would be extraordinary always a tour one or two that doesn't work out Amphitheaters, as you said, we're having a strong 26. Focus the team on the supply to make sure我们have the show count. We definitely have that this year. And we know sitting in May, the demand side, we would know by this time of the year how we're filling up for the summer. It's not last minute. It's on sale. And as you see from the numbers in our releases, we're tracking ahead of last year on show count on demand. Ticket sales up over double digits. So we see a strong year in amphitheaters. We think they're a great产品. Demand will always be there. They tend to be lower priced than arenas and stadiums. It's a lower cost entry点to come in. So it's a volume game和onsite. Just started. We're days into the season, but we see positive numbers so far. So our premium sales are on site, and our demand is going to have a strong 26 amps.