Rapino, CEO of the company, is rightfully in rapture about the $2.26 billion sales for the quarter, up 15% from the same period last year.
Live Nation CEO Michael Rapino / Getty
Live Nation’s CEO Michael Rapino was waxing lyrical this week on income levels for the international events organizer, describing the $2.26 billion in sales for the most recent quarter as “ the best n the company’s history.”
Rapino went on to to add that, to date 2013 has been a very solid year for the company in terms of turnover.
The only fly in the ointment for Live Nation was that net profit was actually down for the quarter at $43.8 million, against $57.9 million for the same period last year, due to the company being forced to absorb $36.2 million of toxic debt losses.
Driving income levels forward at Live Nation where the increased concert attendances that the company enjoyed during the quarter , with income for the division increasing by 21% to $1.73 billion while AOI jumped a massive 44% to $70.7 million. Concerts arranged by Live Nation worldwide drew an increased attendance during the quarter of 26.7% to 21.2 million, up from 16.7 million for the same period in 2012. In North America, concert attendances rose 27.4% to 14.8 million, while crowds attending international concerts jumped by slightly less, at 25%, to 6.4 million. Overall income from concerts made up for for 76.3% of the company’s entire income during the quarter and 32% of its gross profits.
Industry analysts were reportedly expecting revenue for the quarter of $2.09 billion which should have been translated to earnings per share (EPS) of around 14 cents. However, thanks to an increase of more than 200 million in income In the quarter, Live Nation’s EPS for the quarter will be liable to be around 22 cents per share . In the concert division
Live Nation organized a total of 61 festivals during the first nine months of 2013, attracting more than four million music lovers, with a further eight concerts to be done during the last three months of the year, and according to current statistics, the chances are that an overall attendance growth of 20% will be forthcoming, according to Rapino.
In Live Nation’s ticketing division, trading was much more subdued with income growing by just 3% for the quarter to $356.8 million with AOI even declining 2% to finish at $80.3 million. Ticket sales to sporting events were on the increase, up 4.2% to $37.6 million.
Income from sponsorship and advertising at Live Vision continue to bolster the companies overall sales, up by 15% to $110.2 million for the Carter while contributing a highly respectable AOI of $83.3 million, making for a 12% increase from the same period last year.
Michael Rapino when announcing the figures for the quarter hastened to point out that while the concert division remains the principal generator of revenue for the company, income came from ticketing, sponsorship and advertising remains a key factor in Live Nation’s bottom line, with the three divisions, whilst only accounting for around 21% of the company’s total income, contributing 74% of its AOI for the quarter .
Michael Rapino joined the Live Nation group since 1999, when the company that he founded, Core Audience Entertainment, was acquired by them. Since then Rapino has held a number of major management positions in the company, rising to the post of CEO and President of Live Nation Entertainment in August 2005.