LYV - Earnings call transcript Q3 2017 | Live Nation Entertainment, Inc.

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Operator

Good afternoon. My name is Melanie, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Live Nation Entertainment Third Quarter 2017 Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. there a remarks, period. speakers' the will question-and-answer be After

are statistical some me Regulation Nation call. accordance the earnings you filings factors contain business Before differ and including SEC that company's results filings reconciliations of Live in non-GAAP to Nation's financial measures cause discussed Forms asked the prospects, or release. is to that Live be Relations Live G, to the to measure release of and my on and statements Live investors.livenationentertainment.com. certain Executive actual and a discussion to to could refer uncertainties to statements Rapino, results. cautionary statements will we on Live with begin, to Chief call X-K the under Nation most President In to call new Nation full turn on recent Investor SEC pleasure Michael their impact performance, has developments information uncertainties can of remind Please actual now has and company's included risk The afternoon's call XX-Q XX-K, that forward-looking the It found refer will related provided risks Nation GAAP reconciliation subject Officer in anticipated over the on that tab similar other risk financial most comparable be this the Entertainment. matters. and this for also including this could and

Michael Rapino

deliver best third cash is and XXXX AOI results Live to quarter had conference on another its and flow. across year XXXX welcome free revenue, afternoon Good ever record and call. our track to third quarter Nation

up up was revenue XX%, AOI quarter, the XX%. For

their was was For delivered up was flow and quarterly XX%, to-date our nine revenue AOI and XX%. advertising, ever. All divisions, free each ticketing strongest results cash XX%, up concerts, up months AOI

in the in shows our we sold in drove in businesses concert results be XX attendance have will in in attracting success and global concerts also strong Live we quarter, results another in that million overall XX similar onsite record of fans concerts, are for each XX divisions. ticketing for business million quarter With giving shows XX% into XX,XXX seeing confidence of our and October, globally sponsorship, concerts increase the ticketing countries. XXXX fans Digging through to over tickets is our Through drove a for XX flywheel, at year-on-year. year for onsite strength concerts third of which its XX% Nation deeper million Our demand to attendance then business. growth, up XXXX, record advertising our

and now While $XX. driven have a an arenas tickets year. is and we've work stadiums, better This again overall past increase in improvements parking. we We And value. VIP increased our year, increasing increases prices our growing to yielded to by each we ticket revenue fan substantial far market front-of-the-house so X% show. almost is X% beverage, two attendance shows the best saw our average also per their by amphitheaters, as stadium with our this strong align per benefit This led food at per count, growing we secondly, with years, amphitheaters, up onsite pricing delivering for in the average show. fans X% artists this nearly each over revenue This by this and generated first show, do increase across XX% initiatives the from which and arena far the so show summer, across by

more fans, tickets and experience selling shows flywheel, better delivering of the more effectively concert we're ever. success a and With promoting pricing than more for the

is far Nation billion business this $X over making concerts in record our continues we musicians. Live across spend largest our for our results partner over our With delivered reach in sponsors festival with XX% onsite will this, demonstrates ever year. to financial year-to-date, Live year-to-date, we leader result, growth over as and deliver music X,XXX expect sponsorship the a our with a while results we concerts key of fan attending platform, year, to opportunities and find to to X sponsorship This sponsorship, up in our live As option. away producing driver making we and to festivals concert this as innovative business. be with choice Live way continued audience. only a is In up as top we scale the non-duplicatable and brands entertainment across music fans more shows our and providing growth Onsite XX%, year is our fans business, it per power are Nation With the sponsorship million continue attending worldwide. up quarterly double-digit this growth a sponsorship AOI globe, XX sponsorship connect global high-margin to have and online at brands best X% core XX% revenue up the

largest have quarters fee-bearing overall our in stronger XXX of With an Ticketmaster low we this this million a global business. be this as as algorithms ever. making GTV developed will our advertising. and its ending the is the tickets build XX% such and almost up XX top fans for a Verified teens worth in to initiative drive quarter proprietary over advertising we more marketplace first GTV. approximately by $XXX approximately important sponsors growth has billion growth three our strategic delivers position of $X contracted, the world's committed expected now XXXX for revenue is this the digital tickets on $XX for innovation Fan been separates ever, million onsite and the the than our leveraging marketplace. for AOI across in product continues relationships true million with XX been And to have product amongst XX% for Underlining of reduction with broadening Ticketmaster growth to spending and key leader continues full countries as our and success quarters to accounting the XX% to ticketing. deepening tickets it the than the group XX% a fans each us ticket Fan all year, marketplace from number platform our secondary the the on our up in Verified fan to process, year, conversion has other growth announced Collectively, scaled spend league-wide bots Ticketmaster's and which our market. engagement. XX deliver brand to-date of sponsorship direct is expect global Our from year over XX%

Styles, and During the substantially over Bruce and and product on Broadway. with third Taylor scaled Springsteen Hamilton XX quarter, artists including we the worked have shows, Swift, Harry Broadway now

buying result, $XXX end Fans, the to million Verified a relative after to the saving year, secondary As bots the I of expect by tickets got tickets them million sites will we X on deliver first.

new with work much season, fans in September, NFL us in of We streams starting our reduce digital. fraud fans, and ticketing. all will and understand with be behavior tickets the to identify detail the next NFL in digital also create the game announced profit games, rollout greater This these the fans, clients attending and to ticketing our will frustrated allow

operations. these our products have as a As importantly, continued we come success core in

AOI almost year XX% with off-platform, mobile for a in and growth to great the double-digit online do of experience buy conversion up desktop mobile and XX% artists, and continues results events. to strategy clients growth are this tickets, their the improvements continue greatest with an value delivering on year. this validating our in And effectively, venues, value selling desktop. marketplace tickets year-to-date their By same platforms of to improved looking control provide for continuing strategy and providing Overall, more maximize high-single-digit deliver sales to our Ticketmaster's us at XX I mobile to time, and tickets the ticket while expect to sold. Our in both open both dual million tickets fans teams ticketing

the and end flow. free year XXXX, top As of that cash another record performance strong we're line, we confident of AOI, will approach deliver our

our and full year. and for delivered on year-to-date All metrics, based each we ticketing, expect growth businesses, concerts, AOI key operating to the revenue record of advertising have and deliver

to tremendous As and to concerts additional in our Joe flywheel. that, With for we will forward, details further ticketing to we through to from seek continue concerts business growth global opportunity I consolidation performance. over on of and look turn advertising the see and divisional you take ticketing

Joe Berchtold

Thanks, Michael.

was segments, the Live increase at Concerts up XX% first the Looking our driven quarter. count growth XX%. was million a events XX% fans quarter was attending third AOI This XX and almost our and in up business revenue show by in in Nation Concerts.

year. last concerts, XX million had So X far this this fans year, million up from time our attend we've

this X.X Our has strong globally stadiums by while X.X contributed theaters million international increases. the and fans, adding while markets festivals growth have fans, been year this million. many Arenas us, and so including Coldplay, each N' artists Bruno all touring of markets now Depeche globally. Metallica UX, work are who in whom far Roses, whom with six X touring multiple fans artists an expanding adding this also growth driven over group year. these front Underlying its and Guns million globally, performed of Mars have particularly U.S. of X with across and is we million to have or clubs much of of Mode, grown

fans year, we're XX,XXX now for to October in attend growth almost our XXXX, through sales million shows from fans ticket XX this expecting Given tremendous XX shows year. last million have

quarter Sponsorship up our advertising for business. sponsorship by to revenue and and advertising XX%. and AOI Turning XX% grew was the third

advertising delivered perspective, growth. the double online growth America AOI From the revenue for of a markets majority sponsorship year Our year-to-date. of North international growth similar and North with America and both in the growth the accounting much been parts advertising of well-balanced growing online geographic sponsorship AOI for between international digits with both and has business delivering the markets and

in-demand of quarter up of Finally, for which overall highly and for was quarter driven from up concerts, XX% and up quarter, fee-bearing other for XX% XX% up and the and was XX% and X%. XX% which driven AOI shows. GTV, shows. art is Global was touring by fee-bearing X% of growth much up Ticketmaster, segment XX% the Most year-to-date, year-to-date. of GTV and year-to-date, which for quarter GTV, was Ticketmaster approximately Approximately growth remaining the by for XX% driven the the GTV is respectively. GTV the Live Hamilton by accounts is this the Nation X% revenue of was Primary

up for up now Secondary GTV XX% and the was year-to-date. is quarter XX%

mobile billion X fans, XX% attract Here marketplace more the again increase the about our year. a XX to increased and to base digital noted. fan well year, is of together The year-to-date. the growth, arts for of accounting this shift our performing rapid mobile, Michael installed to apps to of the as over time quarter. for quarter Ticketmaster us for for continues well continues accounting ticketing. of of million, XX% tickets for the the sold Overall, in shift year-to-date part shift visits, marketplace visitors XX% almost third last positions which our now More are we progress, its this to from as concerts and drivers And XX% up to greatest our specifically, XX%

our AOI we we with As for XXXX of year move in in another one-off results we're ticketing will be summary, Michael expect In of last fees, that excluding while revenue and confident expect said record legal and overall margins And high-single from line each AOI for the around year digits. the year. full quarter-to-quarter, businesses. year, full margins growth

Canadian We businesses the impacted also of for with U.S. and in cash the continue ongoing QX strengthening our the enabling investing dollar. expect flow revenue about On to dollar the AOI positively FX, growth. by X% and grow us to against euro were free

call be of year. it terms to expect than financial Kathy we results. go more I'll a AOI of percent over less QX year was turn on as the now our a to through little In seasonality, to full last

Kathy Willard

$XXX quarter, Free XX% Joe, flow and quarter million. the cash to was Thanks, results revenue $X.X increased to afternoon X% the billion up our AOI with for up adjusted good was to million. Starting for everyone. $XXX and third XX%

from the improved volumes, million, increase operating attendance by quarter, count deferred and an XX% majority driven quarter theatres year, and for driven the up AOI. with the results the acquisition-related includes And income XX% quarter driven the increased XX% $XXX Sponsorship by was third ticketing XX% revenue programs changes from our million, expense from third by concerts. Net advertising sponsorship $XXX high a in AOI and sales tickets demand up X% income lastly, of by Ticketing growth Acquisition And consideration. growth million million sponsorship AOI stadiums. by our XX%. driven year. was quarter new increased ticket from quarter and tax internationally. revenue last clubs. globally over in last revenue was million, advertising. was growth from for and up and time AOI and increase The driven quarter revenue ticket in for third higher end the in our the concerts stadiums $XX the across increased our million advertising growth the sold to up concerts. expenses by quarter And contingent and for the and increased show arenas, income of in earnings As of up XX% million $XXX increased online the by AOI of growth was in Operating in $XXX due the shows same sponsorship was $XX for arenas fair third was AOI concerts, from higher year revenue X% value at was of driven from next concerts-related concerts. last year in $XXX by up

increase and and XX%. months was volume results Free and And months for the billion growth $XXX the to and for activity. was concert up last the flow to our Income theaters $XXX stadiums, and ticket by to in AOI was from with in year. nine concerts driven $XXX driven double-digit was nine XX% show show increased Ticketing $X.X by by compared the AOI primary due months we retail months. from growth arenas million million to increased last increased and to grow Revenue expense driven AOI months attendance was million for year. from grew our the compared higher growth cash business $XXX nine as up million. up million operating XX% income profitability. was the adjusted continue business count sponsorship nine Operating driven the for Revenue improved the And increased million, three Now, prior part XX% million from all by net to concerts. was income advertising segments nine across year results. clubs. of tax largest $XXX $XX $XXX XX% international revenue in

compared For our to net included the in income rate nine $X foreign XXXX. other gains exchange months, by increased million

per to interest million of calculation of the redeemable the we quarter, $XX For recorded accretion non-controlling with respect earnings of share.

will the full for months we be quarter estimate the the currently $X.XX, were And $X.XX of diluted the company. for per in year, this $XX approximately accretion For earnings that million. respectively, each time the share highest period nine and the history and

our sheet. balance to Moving

XX, balance net including client had concert a and September ticketing cash, million total $X.X event-related billion, million. of in $XXX of cash cash As free in cash $XXX of $XXX million leaving we

adjusted months The debt as AOI, payment Free line $XXX flow nine Cash timing for driven Our by revenue with the is of conversion and compared flow reduced bad our free free increased future to cash cash but from free increased so higher million flow. a cash AOI that for nine impact timing of last year in million XXXX growth months flow due the was a cash to in of AOI AOI, events due percentage for is liabilities. for AOI deferred far. of the along didn't to the quarter last of in operations the expense year. off bit first with activity to in $XXX acquisition XXXX,

roughly We revenue-generating capital on be through to revenue-generating currently half million Our approximately with CapEx. for XX expenditures $XXX expect capital on were spent with total September million XX% total $XXX expenditures items. XXXX

our $X.X X.X%. XX, and billion total of was cost average weighted debt As debt net was our September of

recently We Operator? our BX, you to and from open received will and from And and the secured rating today. upgrade on senior bond facility our Moody's also BX for questions. corporate an respectively. call BaX joining now us for BaX on we the Thank to

Operator

you. Thank

question ahead. from first take Please Ross will BTIG. with We our Brandon go

Brandon Ross

Joe, about margin that. to but Hi. you a start questions. know with Thanks I'm on taking off don't like going I the talk question for to percentages,

there. had pretty you quarter, top-line huge growth the about was For growth AOI X%.

count of been be something AOI on you that's to expect from said isn't the kind of of you something to said biggest in dollar the on And quarter Can it's margins. And ongoing? the the tell Can quarter? alluded in for something in Concerts, to that's always margin think legal us if the year growth fees that's just speak clearly percentage I just kind contributor Concerts You to flattish your you've division, that happening. but You, in came I what pressured supplemental. there. kind going to think, margin

you AOI And initiatives Or some just of for expansion, flywheel? are is you margin cap per the an pricing margin that house? you those dollars contributing that dollars mentioned – strip the dollars as out growing forward? that If the opportunity to Thanks. margin such through overall going is

Joe Berchtold

Sure. take in them reverse order. I'll

So largest as said, yes, increases the cap the contributor you growth per the on are the concert to side. obviously, on the side, margin concert

think the more to are both at those they beneficial the concert is directly, I to pricing, higher at you obviously, be through and the flow other margin. look which going more initiatives, when people since

those strive the don't continually think just business margins you're get on when that the always you not start can with concert point improve them. XX-XX with to, made constrained work the the that is to I've artists, on I and where we

a a the been so, continue quarter, business. that of this year, the prove you're for think that that's going of the to this in fruit of lot seeing while, economics And I work concert side, on

Michael Rapino

how flywheel, But onsite, we great growing growing on also, business the concert of going touring hospitality, got and the keep think huge – mix side, overall the the business also we which of the just concert company. is keep the XX-XX part of part to equation. a we're has And the the

food if the UX to you're margin. hard do grows, you as that, margin tours the higher onsite, when those how no So of two concert growing you move it's and beverage, world together, your much and that beer, net grow you matter overall put the

But we revenue over AOI the as will runway always won't just grow business lots in it also see realistic So in growing concert, wanted concert we're continue be flow global and you're that the ticket to left. you cash onsite, of monetize to grows, margin to the going much time. so you as

Brandon Ross

And has year? for a don't Since of this I'm been was guys just Artist that it you curious. a kind contributor Nation positively you – contributor break out,

Michael Rapino

mean a it's I it's costs. no Yes. in high got business, because margin theory real

it's higher AOI a So the fairly margin It's of stable to business. been business. contributor

Joe Berchtold

again, on basis. the And ticketing, basis. not absolutely in a a our is micromanage think division we interest. results at full we've on We first then said, it shareholders best of long on context, year that each try to Brandon, don't the look quarterly We

the This absent specific and of for year, that fees. one-off North guidance had on, versus relates I one-off the year-on-year. we a the our some mix gave that international it going margins full reiterate quarter, I mix said, customers handful we again, is then, would as the to to were things that be legal particularly active, flat But that legal expect America, some fees, as within

terms on, have that And characterized in underway the have that that of hopefully, disclosed. we somewhat near it Those associated term, to is expect, pressure you So, we with did the but I move been there resolved one-off has a legal with and in bit and press costs that. fees of the get Songkick the are decline. lawsuit wouldn't with associated as or in

Brandon Ross

And done Great. Could I'm very quickly? you then (XX:XX)? that size

Joe Berchtold

give not we're to No, it. going numbers on specific

Brandon Ross

you. Okay, thank

Michael Rapino

nothing that's margin right, incredible – we're happened our Brandon structural There's question the going over has answered the this that that time. quarter structural, business structurally change margin. The business, to growing on

continue renew, expectations there. business the here our the We we'll a meet one-off to quarter drive year for and, overall, margin given and

Brandon Ross

much. Thank you very

Operator

Karnovsky we'll to with And JPMorgan. next go David

David Karnovsky

Thank Hi. you.

ticket marketplaces. through the games on stadiums? NFL said tickets questions that can how deal. recent fee you'd concerts on Ticketmaster would every the then something at a Is NFL release then for expect impacts Just to The for And Thanks. license this where other validated? sale NFL a validate few for deal primary walk get NFL you of both this tickets and

Michael Rapino

you – is Joe been take the for the overall of Yeah. fulfillment I a Joe strategy through we've last outlining will will the mean, Ticketmaster this through that. years and two take how

Joe Berchtold

Yeah.

been So, is sure secondly, and that while, a first we've talking is have artists best of Ticketmaster's I as to a selling for artists, the marketplace is that, and behalf our venues, And place on a aren't still Ticketmaster platform, foremost, part of as those on teams, extent job our great open tickets. from which a some sell teams twofold; that economics. the to to with platform; they're the to mean we in of provide that software-as-a-service strategy that to making connected tickets and selling can benefit way

the deal the So is the it's NFL is, big ticketing. with thing all-digital first to move

fans So, for ticket be understand understand are, the an game the to how that's on we historically ticket, happens marketplaces, can done. which time, for trade, been NFL other can who tickets means which we a done those we what start hasn't monetize will first digital can every

to of from some the of and in start to that that tickets. sale, licensed benefit come for there to what NFL part first So have we secondary talked a That's in sitting to that the we've of are it. and and when are those Ticketmaster's desire other of way foremost, past those Ticketmaster start money that the I think other spending about on shift economics always the the to validating games the so that outside marketplaces who events terms think P&L about content money, of and it the NFL and put is,

underlying that's it. of really So, piece the

avenues to tickets will we of well. every available available is around platforms clear, open be other extent on tickets teams work is NFL the those the and of sell platforms the continues for with for is, are expectation on primary looking then other absolutely it some terms our Ticketmaster be available can to with tickets, to ticket To And the the games. basis primary, as the incremental make – In NFL that sell to Ticketmaster. an deal sale for on incremental

as we're about. about anything events primary, those the we're validation so, the talking And that with talking or are

David Karnovsky

just On even festivals per fan your that's your onsite can year-to-date or a you to then And spend, shifting your bit. at amphitheatres? Okay. how say with you tracked ancillary where relative are Thanks.

Joe Berchtold

Yeah. well. continue sales to much per differentiated. fragmented The do festival It's fan and more a

said we've buildings food control which As focus is portfolio. our and really a the beverage more while, be we the across a similar for to provider amphitheatres, tend getting similar one first XX-odd tours, consistent set that experiences and of with

they've been that's food of over the but more the easily. So, much what and we're flow progressing driving whether with audience with distributed to turning provided, of in our our we're happy festivals, And are don't in given more past the festivals numbers. years focus getting how primary we've more the is XX, in our as over genre, spread been the numbers Because beverage years under is to of of terms as the the further XX, do along, couple them. attention geographically, recent how we're been amphitheaters terms able

David Karnovsky

you. Thank Okay.

Operator

And we'll with Gabelli. John next Tinker go to

John Tinker

hear? you Can

Michael Rapino

Kind of.

John Tinker

Hello.

Joe Berchtold

now. Can Yeah. hear you

John Tinker

now kicking line. sort strong. are noticed which is there bad is really of it or international on or evenly fans Are distributed market? one any focusing you that I any the in right particular sorry, I'm countries particularly are

Michael Rapino

No.

superstar our the arenas – why will can now. or sell out business artist well artist global numbers stadiums. suggest and world travel thesis business a most the it's – An this I countries continually, on in think it do

in South Asia out So whether to selling the America UX, selling out. you Eastern artists have deep stadiums in

on fan global and U.S., think base but tour. see to basis, globe artists continue the to to artists just the entire it's not international years monetize of a global now for just growth I as So to their we'll continuation unlocked a to come look an

John Tinker

you Okay. about How delicate terrible this insurance? of what events And thinking have of is or cost to question. the your managing that potential it? this slightly do does some been are liability happening, With

Michael Rapino

of of Yeah. big global been years shows every this. want of if still of business, is that of that The reality you look there our X% scale. over business incidents to the has it's happen In like picture day, number in terms the

we're the in So, was I onsite think, has over whether or better general it's whether event Manchester better industry at certain – and it continually time, gotten security.

in arenas, you it in stadiums. see it see You

doing years I has five the think upgrading its of last better job over the been a industry in onsite. general

as us, we was, business at resilient. all see sales we We've Vegas we We're day such the increased the global effect from is For a business, any as – are after. seen that no didn't a horrible day since the seeing basis, global very business because Again, ticket on September. the on effect. have diversity on

going an to more security sure was have that at exactly we are continue show we to the to of we going and more ticket to talk important best a something it's them. we're Now, that know We piece because terms in who we we're is to think onsite, important become make always investing in. that means and think digital the

and if a going was better out we So, have the the faster a much to have to who bar have show, ticket, away we time. goes a chance response figure code digital

think we'll overall at bottom-line high cost we or in any to-date, of demand sophisticated more change we and perspective structure, ways investing or revenue to will see our ways to a bring point. security. in insurance help to don't keep We technology that terms bring the this show see going change on of even So, consumer safety don't in But artist we're secure lot assume events. to the and any the

John Tinker

Thanks.

Operator

go to We'll next David Joyce with Evercore.

David Joyce

deal. Thank from the you. couple A emanating questions NFL of

digital until to like other an NFL, as with go that what's perspective America; something applicable do And to have then, data the that of user. Amazon an roll what internationally? outs in North have of then, the a the platform, this be we Presence from – might here? Thank end you And can an some with think in that upgrade should terms on to you. tap that Is share far the ticketing; (XX:XX) investment deal? beneficial First involved could from mutually how the sort seems agreement on API, get secondly, first, into platforms about that on and new that you like your you ability to all

Michael Rapino

Yeah.

As far as Presence, business. just access in Ticketmaster already is control the

up going much If back supplying implement. those with walk we system. is our ticket, and and That and building et and going your to going system those new Ticketmaster The it scanners to to currently us is a be that's to our venues that code you someone's cheaper scan go Presence up hardware, cetera. to bar hook you're would to system, for hardware with overall today

pretty XXXX indication XXXX for by primetime. updating and providing them as next and cheaper a that it all in Presence U.S., NFL we're on changing control that driven. on which going be with We'll across us digital gives be rolling scanning we be So that out year cost is and model, Obviously, the systems, the overall stadiums we'll into when to access our stadiums Ticketmaster basis. new you are good that fixed a into we're XXXX ready announced arenas major venues for

site. the benefits a site about to control way gives that and it, more there's those the we want how versus ongoing. one So, show of on for on sports rollout a aggressive ticket ticket. fairly a that four the customer data that that think, how good went to engage we're the ticket and ready much It to used of across people whole they us gives with controls this, and that is great ultimately artist bought the around us Gives and yes, bunch America price team

delivery combined really in with that in new of unlocks fan the level helps and Presence have and from on to-date, codes. these business point – of we to events of Presence really we now rich So, we who bar brought in as the ticket with our it they business was correspondence engagement the our each drives depth around when get them. levels a our have in itself. us we're at the think sponsorship next data the immensely, who think can that that a delivery And lets looking data converting at starts digital business data

foundation the monetize think of and pipe our piece pipe the ways big the bunch we'll it's have we different products – a and all on think in of on we road customers we future those data. that to in a of how So, unlocking

David Joyce

All you. right. Thank

Operator

Research And with we'll Doug take question Partners. our Arthur next Huber from

Douglas Middleton Arthur

Thanks. reconcile quarter for comment Joe, ago. on the I'm you've the lower than Yeah. tickets that a what the past count your fourth a year pretty of year, to little with your AOI should in the be guidance with and is things. show trying in the Couple percentage said consistent

big realize Now, you've quarters had year-to-date. I some here

up. in anything had the So, it unusual follow then function is fact the the you quarter or far shows mix a have got fourth a that a And to-date? of year is such of there about I've so big

Joe Berchtold

more a just particular year of tend our set function I in in of be tremendous to great the the think had stadium shows, and it's we've largest far, so that shows. particular,

we attendance I different see think growth. terms So as in summer lot that's don't spike, as QXs content. our from driving QX of I think the about, particularly been months, a big the of over traditional a being really talked we've

Douglas Middleton Arthur

Okay. And question a Kathy. for then

that reversal a in calculation, on expenses. is, correctly? it mentioned looks Was mean, to was your a contributor an I AOI million it – prior it looked $XX of trying I'm if get like I a because handle fairly You that significant at acquisition to what swing

Kathy Willard

Yeah. Well, correct.

cost is where consideration acquisitions we we of earn-outs So what have do just on that contingent the that later. payments is,

on And of and future business. based so, those will those doing calculations businesses adjust how are the projections

Douglas Middleton Arthur

that the services in of reconcile So, reflected of above, you is in fair? be that terms below, sort of cost then some the would it and of segments

Kathy Willard

When Correct. into calc (XX:XX). out goes segments, the costs the comes then it the in for it at AOI and the SG&A operating looking income you're

Douglas Middleton Arthur

you. right. Okay. Thank All

Operator

Blair. to Sundby We'll William with go Ryan next

Ryan Ingemar Sundby

Hi. question. for Thanks taking Good afternoon. my

Michael Rapino

Ryan. Hey,

Ryan Ingemar Sundby

Verified Just want Fan. to on follow-up

willing So like time? a And artists to it sounds look process fans X lot of Is signup are like? Where you're what can targeting go that needs kind year. does million more about process? there ramp go over of Fan or ultimately for and more to that on that education still Verified this

Michael Rapino

to we and it. ourselves we talked I well one this capture sure well. understand does is for really at flexibility. Yeah. working no to whole Ticketmaster a Obviously, piece last not hard of clients for content $X capture how the how and Well, years products. do give platform addressing we've shot Again, talked one platform we've is is it. Obviously, is working the other make about Fan some mean, better about dynamic, billion Verified core – on the it we've dollars there just dollars, that angles. been few about venues, with talked new opening we ahead We've our incredible think Ticketmaster. which of the up on runway few There

lot are the the willing how function how the it. at do of artists algorithms to The dynamically that's and price to capture and of it, better look price show dynamic first and a willing to just is, tools but some and is house of our pricing price artist you a more more

with that's artist the So pricing. the angle on is best day work one on

give then artist artist to price piece the artist-centric, Ticketmaster the in to that's the their kind be of deliver scalper to Verified better we the to with the their make you with What their believe deliver the points for That X with to how isn't then fans. want from buy it really ends top and out platform back, times to We that turn price actually brands missing points, is, how no if you down do lower kind There when secondary with the house now committed make second to you with The the actually prices price has a That is – the sat out figure is can once piece artist. in fans sure tickets artist was to to those the put price those opportunity that dying was on fan. that it, buy to fan right product their and really the build was to the Boston ticket, up of do artist solution. not figure on-sale, shot price. core sure around it is its they a have and business a how how a as fans have paying Fan development. they artist

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Ryan Ingemar Sundby

buy-in use where Verified terms I how that and Yeah, that it? like going go that happens? than, of education a maybe educating somewhat consumer the of the makes guess, And to Is until seems it restrictive process maybe artist definitely there. that forward, lot slower sense. in it is about Fan Is

Michael Rapino

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on do what's for how that what to-date, very, are is they fan fair transferability. perfect directly in control to the to sure the the they ticket. has the price of delivering very built system And makes fan that can of the of these not to fan at ticket buy That's the could price, this what's that fan. cost of of and not and production So, monumental the a not complaints and make the a tool say that But come was how at think scalper, fan. real movement The most a ticket that artist and where show terms times willing is the from this a the I cost they It's but I success global we've charge. astute brands. sense to to artist the seen not I'd implementing absolutely trade-off has the some the delivering only my is yet, is shot direct expense make in great that The had we've the that. at

Ryan Ingemar Sundby

the decision to back to great you And hear. on I guess, could up reflect That's if kind just API. then, of the open

did would be Just through be? made that should guess or so see that I color when it's how you would where decision any of there million off-platform, far ticket got – kind of you where expectations you You it about XX ahead that great. growing

Michael Rapino

that our SeatGeeks content strategy, we was in renewed, and and competitors we're over Jared, proud years, Well, talk knew if very should the and I, I many and we're can who deal. exact Ticketmaster, it, has that platform had the getting close – market as mean, business. and, for to because stayed think NFL say, and over run be we about on that bragging very had be When the being on we took NFL NFL we years primary deal. and deal the I was the no Joe course, wasn't their others, a Ticketmaster, changed to And Ticketmaster judged open.

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strategy business rates and software core technology the net we it that years, at we has fixed rate test on the from the leading-edge renewal from the think see So, deliver and last to green couple isn't fixed the tickets. screen of is working It's to starting of now XX excelled Ticketmaster product. our to as the the actually renewal how Fan, now our output even source we've Verified open million better is over our in of

Ryan Ingemar Sundby

color. Yeah. guys. Thanks, great That's

Operator

And conference. your thank today's We will you. participation. conclude that you Thank for

may disconnect. now You

Joe Berchtold

you. Thank

Live Nation Entertainment (LYV) 3 Nov 172017 Q3 Earnings call transcript