Live Nation Posts Q1 Loss
May 10, 2007 - Touring
By Mitchell Peters, L.A.
Live Nation today (May 10) announced a first-quarter loss of $45.6 million, or 69 cents per diluted share, on revenues of $584.2 million, versus a profit of $5.3 million, or 2 cents per diluted share, on revenues of $516.6 million, during the same period last year.
As for the decline, Live Nation CFO Alan Ridgeway noted during a conference call that first-quarter (ended March 31, 2007) treks from the Who, Josh Groban, Bob Seger and Dolly Parton "did not perform as strongly" as 2006's first-quarter lineup of U2, Coldplay, Billy Joel, Aerosmith, Depeche Mode and others.
"The concert business is a seasonal and cyclical business with a cycle of generally 1 to 3 years," Live Nation president/CEO Michael Rapino said in a statement. "If a major artist tours in one year, it is typically unlikely for that artist to tour for the next year or two."
Ridgeway added that most of the company's income arrives in "quarter two and quarter three, due to the festival season in Europe and the amphitheater season in North America."
Live Nation, the world's largest promoter and venue operator, reported a first-quarter adjusted EBITDA of $4.1 million, down from $16.2 million from the same period last year. Along with weaker tours, the company attributed its loss to increased legal expenses, operating expenses caused by acquisitions, and corporate expenses.
So far this year, the company has held 6,469 events, an increase of 1,099 events, or 20.5%, as compared to the same period in 2006. As for the first-quarter rise in revenue of $67.6 million, Live Nation primarily attributed the gain to the acquisitions of Concert Productions International, House of Blues, MusicToday, Trunk and others.
