LYV - Earnings call transcript Q3 2018 | Live Nation Entertainment, Inc.

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Operator

Good afternoon. My name is Ebony and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Live Nation Entertainment Third Quarter 2018 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

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

Michael Rapino

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

XX%. our results strongest delivered up flow revenue Sponsorship, and XX% And XX%, divisions, was AOI Concerts, and XX%, ever. their quarter, AOI All up Ticketing up was year-to-date, For cash AOI the and was free quarterly XX%. revenue up was each up

have strength X% in to up to Sponsorship business, onsite in year also will on we results and drove business. giving similar concerts for XXXX it continued over growing, be strong Live Through and Ticketing XX tickets results to of shows Our over Starting year-to-date. demand in Concerts sell through October, Concerts global quarter, for million million third million year-on-year, concert year-over-year XXXX, XX confidence XX fans XX another X% Nation and XX% XX% then for success is quarter. attracting the record track Concerts sold our onsite over shows were countries, we're globally which attending and AOI drove Ticketing attendance our tickets of up for with division, us our in that With up increase XX% We fans attendance each up record revenue the XX our show divisions. an across to we our year. in flywheel, XX,XXX Sponsorship seeing business in this million our overall and driving

up programs. XX%. count per by increase across of our our by have by and We $XX. years past driven and $XXX is the to our average year-to-date increased three each than which by onsite XX,XXX have fan Collectively, arenas at XX% our we driven price the Across house have show beverage, grown artist also as parking is shows, amphitheaters, revenue roughly pricing summer, increases X,XXX the almost up by of grown pricing also across initiatives per food revenue and is an increasing optimization. saw This we to time through ticket over front This shows. VIP, hospitality improvements we fan revenue our XX%, $X substantial growth at more our million show nearly $X to average have amphitheaters, these same generated over

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

the strategic of expected group tickets sponsors growth XX% Ticketmaster in XX%.. brand this nearly multiple XX% XX% for ever quarterly of top marketplace. double-digit as committed $X continues a continued T-Mobile, driving revenue our the marketplace an largest growth core Collectively, over brands year, opportunity Sony, musicians. producing world's driver, double-digit key we spend and quarter overall for have ticketing result, for relationships and making partners billion spend to accounting all GTV. and including the have on our Pennzoil, five business, providing $XX recognized million again AOI our this up On-site XX% with growth as partner success add with ever, almost growth X,XXX Sterling position now With away than such revenue the to deliver the we approximately as with year-to-date our this by approximately In results over financial this three to will a year, global reach our and be millennial it for branded sponsors up making business ever XX%, across delivered XXX new across quarters to growth amongst million music Sponsorship best Nation XX% wine, continues worth XXXX connect as sponsorship, year-to-date of of stronger we Nation quarters in Sponsorship AOI the GTV X audience online across year, the for the our our revenue. brands Advertising is our the we $XXX fronts. is With And Sponsorship leader as year worldwide. to been AOI up high-margin concerts and and will far business. investing and attending on-site is XX% Sponsorship ways scale key Sponsorship this GTV, the confident will of initiative platform up is billion platforms, XX festival and now was building growth deliver XXX for Other broadening we & largest its our deepening Live XX we contracted, revenue global over our festivals marketplace XX%, countries Live As over in year, we fans to nearly leader, our with year-to-date fee-bearing year. are continue find growth innovative with million global Subway. Ticketmaster

games During the Presence bringing with base third venues, our the install over NFL X of rollout these XXX held and million stadiums entry. scalable X,XXX for via buildings, We using events for fans in In of the mobile as some to as quarter many ticket to quarter, at out over the many quarter proved mobile. continued the mobile we tickets with third digital Live XX% capability NFL venues. entering we fans the Nation ticketing

AOI are high effectively, Overall, of the tickets. do maximize XX million custody single-digit of whom this teams Ticketing digital delivering have to to events, over tickets enter validating chain X,XXX greater and X ticketing million move ultimately quarter, fans fourth artists the them growth venues looking to continuing tickets to for venues, using deliver their year. for that great of their ticketing while expect artists marketplace of dual better much digital approximately control growth ticket, both across enterprise the the Ticketmaster's to we meant For expect sports providing our fans to control and I us and events. tickets. will has teams, control enabling results The with a mobile the distribution, continue another greatest in tools strategy to to By the value buy and

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

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

from consolidation call more will in As flywheel. to over the we to our Concerts businesses Sponsorship you we Ticketing details further see that, I from look Joe tremendous forward, global take and to Ticketing the our concerts' opportunity divisional on and performance. and the turn through additional continue growth With

Joe Berchtold

Thanks, Michael.

to third increasing in Concerts. at million. strongest revenue business and stadium was to Pink bringing quarter do X,XXX being for a driver, our fans in continue over year. was our X% for of theaters our has alone All history and sales and led three was Beyoncé XX%, back Nation the Justin Hart fan our Live year And while with ever Kevin Jay-Z, delivering at arena in year global AOI from including shows growth Overall, Nation show This million to July October. Looking only ticket and for same base growth X.X to-date accelerated tours, trailing attending (XX:XX) had now second the we up this shows (XX:XX), five shows, tickets adding and At segments, million our the million tours fan well and our Timberlake, fan counts XX%. best up Concerts quarter were growth over the pubs business past Concerts X.X XX million each Mars. largest of fans first growth quarter, for our Live Bruno by this year, festivals and X% months, this growth quarter sold parts time, the the in our amphitheater quarter. top have each and this X.X last year the in that the

theater the in shows, out. we fourth touring performance that Bruno arena unusually last QX Coldplay while and Looking and are a heavy at internationally Mars activity we quarter, our UX, comping year with club strong strong North had very America see and continued all

was the up third Advertising quarter & as X% well. Sponsorship our & AOI grew to by Turning Advertising for and business. X% Sponsorship revenue

growth have growth. North online year-to-date. the has growth, both our across a Our our with similarly double for and year International growing been driven contributed geographic AOI strong to businesses both revenue both Sponsorship markets And from North our in Advertising Sponsorship online has the advertising and while and America America perspective, digits

Finally, Ticketmaster.

up For up driven X%. was GTV and Ticketmaster up fee-bearing X% year-to-date, up X% GTV by Global which was for was the the for AOI the the for was for GTV was revenue and quarter up now secondary up up GTV X% respectively. and XX% quarter Primary and and quarter, and XX% quarter and was XX% year-to-date, XX% XX% the year-to-date. is XX% year-to-date quarter

the you Ticketmaster in primary an of largest foremost and tickets for and platform. top to sports sell Michael over ticketing up with only mobile We Ticketing of the XX% global an the XX% made concerts, in are tickets our mobile year-on-year and downloads have Nation update digital approximately at our grew that success in fans marketplace past, third driver on secondary our us ticketing world's our see particularly we're results sold our and time platform. our to first make gave to on Live concert As by shift quarter rollout, venues on confidence sports and and mobile of clear to mobile, having will we're These concerts, of ticket increased ticketing to adopted. X% resold are sales growth the XX% we XX% tickets giving million. our to the teams with sales representing greater ticketing continuing same artists, the by overall of the that tickets as digital X% our XX be the visits GTV, our app even and XX% business. with remains rapidly over their it tickets shift

X% distribution that margins expect move around more million XXXX with for our summary, with selling for be In be in XX Finally, up in margins the of year-to-date. year. strategy the about we're QX tickets tickets quarter-to-quarter, last X%. off-platform, we confident be XX% year almost impact while with revenue And open sold full the another Ticketing continued of impacted will for to line clients AOI And expect than full we to of record and AOI dollar. were negatively revenue year, On our less FX, U.S. each strengthening the results and businesses. by overall for year

onsale with in next I Looking financial on now at to turn Live Nation QX, expect project $XX the over growth, our to to increased million tickets. Concerts deferrals Ticketmaster's we call expense recognition And drive go which concert strong along for results. Kathy to in year, up more we another through of will advertising

Kathy Willard

Joe, good afternoon, Thanks, everyone. and

million, compared increased to up and Our $XXX to up flow of key $XXX XX% billion. financial quarter adjusted cash third XX% AOI million highlights XX% for XXXX. revenue was our of all $X.X the free to XXXX, third quarter the was

September primarily of Revenue related growth was to amphitheaters driven our increased show As from the growth from XX, $XXX of majority deferred future coming attendance shows Concerts, and by count revenue up all was our in and arenas. the million. with higher XX%, segments

over the Operating XX% our the third of of also segment, an the by for AOI Our compared AOI the driven and for growth. delivered quarter XX% quarter by $XXX XX% Concerts to growth growth driven million, both net the $XXX which up was last year income was in was prior XX% income million, year, increase AOI.

earnings accretion with For was quarter, million, redeemable same the $XX share interest last the non-controlling third per year. impact period the consistent the to from of

and months revenue all was Ticketing months million. was double-digit flow and to AOI months also the increased for XX% cash by nine along income prior growth. depreciation segments. due to again AOI, Operating nine XX% by increased growth adjusted XX%, Driven was growth XX% delivering operating $XXX AOI through of segment of expense revenue in to growth from to XX% across $X.X higher per up For growth compared Advertising million, XXXX, year. up up due Revenue million spend expense. slightly it our income up Sponsorship free the as XX%. income solid after the the the and our was $XXX September billion. and nine arena to by amphitheaters. fan increase the the onsite our higher Concerts activity, refinancing. million, driven amortization was by up and impacted by delivered amphitheater grew for the XX% higher grew to XX% XX% revenue interest in debt in majority $XXX $XXX Net up was each a also was our with by was

For from impact redeemable year million. and the approximately was per the we estimate the impact will for be full interest share months, that the X accretion million to earnings XX the $XX currently non-controlling of

cash, in in as cash free Moving Concert total million cash event-related XX, $X.X client to million. had $XXX including billion, cash of we our of with $XXX balance net $XXX sheet, September of and million Ticketing

months provided sheet, for of business a year. activities driven bit As look time XXXX overall the at on growth is working operating last given over seasonality the growth million December year since our normal higher capital cash balance the in in you $XXX of legal the the receivables the through was adjusted and the of of at increased, activity accounts the Net by million, nine and the million this year. by over payment of $XXX last Free driven September last the maintain higher the XX% just the to compared because quarter increase down the third flow an was were To cash accrued liabilities by XXXX. of year. where capital working Concert accrued $XXX of settlement business

Our currently will on were $XXX XXXX be that revenue million will total total revenue half XX% the months, was capital spent for capital roughly generating items. nine We spent for approximately expenditures million, $XXX of which generating on estimate which expenditures of be CapEx.

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

For joining will the quarter the currently in now be line with call we that fourth this quarter and expect the today. year. we you compensation us questions. of stock-based expense Operator, will expenses Thank for for third XXXX, open of acquisition

Operator

from we BTIG. first And question Ross Please ahead. take you. Thank go will our Brandon with

Brandon Ross

the taking a Hi. Thanks for questions, I few. have

a big in optimization ticket were Do guess and a this you For of I expect ticketing going part in and lot to the of the fans? I platinum there room lot see mentioned have increases more prepared Is of from still what price been Michael, feedback strategy expansion of as that XXXX? has And year. artists this some the a something pricing you remarks. there? the we're follow-up. Then

Michael Rapino

what priced inefficiently Brandon. the continually we've a believe kind in no sold for the tickets and more the Bruce to row that we front it's a price. literally world. fine I is what you that second be later. he we balance probably worth had talked is the for product artist, on charge find your the bear. brand know product most that does of had Thanks, will about there has we this the while line than world mean, Springsteen theme Yeah, this versus do manager market you of is this what Generally, of But incredible increase other we in

the maybe market a around what we number the contradiction efficient $X throw we do the to that probably that market-wise be billion to of We on for to PX market. on price they charge to it sold it because stands the front expect the know continually do with be more every out at, know have is VIP that is just secondary gap. let the So can't more through I don't more looking the figure Platinum I for, size year how know but business artist and artist will completely the be we secondary because (XX:XX)

artists So a long we will increase think the path we're inning second in to forward that there's look continually of the where game. We that pricing. think first, great

any part in have sold front. the in but Now, to never the pricing the we the problem, decrease get our of advantage the not back concert, we Generally, house. the back is

the and As is, house. usually the we're trying the know, sold house rest is the fill of you front to

So for frontend pricing price the the the can lower for we the sell-through. backend and we can is higher the the both optimate price and gross

So of this years think pricing lots or We're for front. have inning in increasing concept of in we of first to the kind we pricing second is just a and and dynamic the the new pricing come. opportunity

Brandon Ross

Great. And accounting also for and phasing impact outlook abroad Ticketing changes impact of QX last how AOI a little then versus maybe unpack and at XXXX will AOI How here wondering if the and may of this bit. Ticketmaster onsales was between your you at the year I Ticketing? could especially timing

Joe Berchtold

for leap Yeah, Brandon. is first Joe. I'll part. the take a This

good expectation to Our going be that year. is is another is, next very year

of you the in recognizing said on Concerts the takes non-sale side the the is some get your QX, side. is QX. it particularly sold Through which that tickets, with any tickets period in those see of for – also of place. accounting, the advertising my of expense impact Nation benefit on when I've Part certainly Ticketmaster a in number of the of in we onsales comments, non-Live strong setup As a the side Ticketing

our onsales in do And I'll So the have be as will then we'll let a particularly part some accounting arena the Concerts of of stadium, QX to recognition. large in that the big business. we the what speak recognized in means tours for Kathy

Kathy Willard

more accounting, versus to tickets events by sold Nation less changes control, Live next next that, Ticketmaster, tickets year for it's the that because expecting And it's of those we just about to be we're year for and Yeah. those of the in defer fact this we more year. the

So that's his remarks Joe was prepared what addressing that. in on

Brandon Ross

more. then And just one Great.

to generally a continue the cash come changes to bit, has do or as expect your strategy stock fund environment you up you use inorganic little to do And starting well? use to acquisition consider rates Your been growth. acquisitions, and cash to your only more a as little would

Kathy Willard

on a a right we so we'll We're depending consider start space, overall have pretty now the both be in structure deals. at size with No, room leverage absolutely our stock pretty that'll least coming combination of look consider our Obviously, we'll cash and our the ratio. debt cash, acquisition. we're in the look and happy to comfortable of at bigger on and in AOI but

Brandon Ross

Thanks.

Operator

question JPMorgan. with from David next go our will Please Karnovsky ahead. come And

David Karnovsky

you. Hi. Thank

With the clubs had tremendous you maybe the seasons. America from to the to do theaters few further What best and then that, And what's festivals just past opportunity and those the well? over then amps see the as at to on-site, beyond take the opportunity you've growth practices amphitheaters? the North

Joe Berchtold

Sure. is David. Joe, This

continued XXs, there the think As next sports good to the have. VIP growth fan we're the of the opportunity the several offer, over that by right other we now. the at When benchmark honing in services so we all years $XX further they're continues offer, said, fees, we we ancillary about for per be

execution organizational year put we're last the and growth place year has focus to this think we helped more optimistic. lot the So to at a get the the amps of change in end continued very on there. We

quite of our that focused And there's already, and there, more we some move. and festival, the America beverage mix given on So the offerings on are but brought here. bit we're too. to think theatre our learnings starting our the particularly of that getting business we are very focused We've into absolutely VIP in continue festivals on. the a think to individualized have, North of there, club taking what I thematic out And roll sale, absolutely service, to so more we points them

David Karnovsky

can your concerts think of aggregate is regarding North in international any there tough for And you for but then your would concerts against I for comp. Okay. sort the America strong outlook then QX, way just be frame QX? And in measured commentary mentioned you

Joe Berchtold

we've than already more given. Nothing No.

David Karnovsky

Okay, thanks.

Operator

Macquarie Our go next Amy you. question Capital will - ahead. from Yong with Thank Inc. Macquarie. come Please Amy (USA), Yong

So two questions.

you And the Brazil about It wondering on that this was share through in an the questions on whatever I workshop quarter. little you side? the is the focused there's acquired Events of around pipeline. from on? like Thank markets of details process you're talk issues they're any more second if talk asset Are FTC upcoming other question either just Ticketing looks can depressing there bit been a your a either or lot First, the acquisition willing think can I you. in on geographic you're some you investors to this, my of that Ticketing, some or

Michael Rapino

Amy. Thanks,

we We bolt-on of over XX them. think We generally there great that now. lots continue have as we're are acquisitions countries in are We're accretive as buying historically.

business. at already a So where on we we look building have

established or our on can build promoters core we're always So festivals venues for ongoing XX looking our that music business. or and in grow those countries, business

more basis other, see seen, no at been a growing important we're kind as exploring. we of U.S. I'd years – acquisition So than lots all on running and growth all and we one say have you've look country in of last list a it of that's we left. of there's it. things few the global U.S. the has think the growth all has of

last grow underdeveloped opportunity, cities, can we business. Seattle, markets Los you've still as of America, big our a over a lot and us Florida, Angeles, where is years. have markets South still Miami few we of seen Denver, we're We Canada the have a Australia, lot move in where

with a the bolt-on strategy So really global basis. on about this regulations what local business love opportunity no on is a actually we

in into festival, it Town. these countries global allows or and can Milan we Argentina Cape instantly. build promoter and there's our a us great So and like and a that accretively if buy to into platform Brazil power international And and move it instantly

So look of the we hearing keep we what business. long a keep think fill Joe have will globe an in at about bolt-on we on – businesses story the to keep TM. list you'll ongoing and building we across that the of you – our will

Joe Berchtold

Yes. Yeah.

So fraudulent three – bots who which, misleading first and selling, advertising the spec people try policy allow going to certainly use the post of the use to to be websites. not told We're bots, doesn't with bots the be we've well just existed don't do focus doesn't our around tickets. in. only that of the use actually of on answered site is not focus in us focus which is elsewhere FTC have with been FTC – Amy, that on largely fraudulent is is various of as secondly, basically use FTC our ticker where to them and our ticket workshop, it's But we workshop on their participate clear, that has this in secondary It's It's works, major press predates exist. conversations to to all speculative to to cycles long stop to any on that in doesn't Ticketmaster assertions and were bots Senate doesn't variety and about. sales, going going on going focus to the ticketing, misleading ticket sales a wide the the of understanding, clear, workshop, practices let the advertising

to transparency that coming workshop we be host a be Macquarie Inc. information We whole out - place going we Great. it. fully there's Yong of the we're going and Capital and think is accurate So taking think participate. you. a there'll that of applaud more the Amy lot Thank to and topics fact (USA),

Operator

Please next take Blair. Sundby with We'll Ryan question from go ahead. our William

Ryan Ingemar Sundby

hi. my Yeah, question. taking for Thanks

wanted ask Presence. Just on to

number point? enter expected a that to mobile. $X up million on there some So to at barrier the higher XX QX $X What's, million fans guess, I to million getting

Michael Rapino

barrier question or... the Is

Joe Berchtold

the Well, season addition not the are tickets this really paper a of indicated to the is mobile switched some mobile versus tickets. by on ticket have issue, teams up whether holders ticket. It's only $X it's Joe. entering not people – what use decision an There that mobile it's in is already a of reason talked have – about the the issued million exception we for that or not why $XX with to the teams people also to of are that's million game XX%

So get it's comfortable have it able the mobile. technology, without any get they our with of see teams to as see XX% expectation leaders other that adopting the use more issues, teams more all they in plus more we'll are that working, and teams the

Ryan Ingemar Sundby

it. Got

pricing so of there address of kind Okay. to pricing. up And a back That bit everyone then you've are a on in sense. market kind little makes go artists – all couple got seeing Yeah. a value to that bringing question I'm you guess following of and much of more Are artists kind pricing the this need pool artists, are and or then equally, closer future? across a you I on of pricing taking the board with

Michael Rapino

their the row front stadium. this across generally, first or arena – would it's or their might every artist underprice all you're increase it for rows a product XX the one is might product, No, be be But probably underpricing pricing. to have depending artists be an and There the opportunity generally, how board. big just

Ryan Ingemar Sundby

like drive revenue, changed? Do that coming the you has your shows kind and when think Okay, ticketing, who's you guess on more XXs improves partners drive about you how a of the the it their to great. that XX% those more? to And think room data digital XX advertising, as you for is as I even or of there, back – partners that, and behavior the then that sponsorship big have and chunk

Joe Berchtold

it's both. think I

a their I they think to have tighter And an spending will be those these they'll commitment get product the getting be potential general absolutely already just of where attractive XX results we from in number all I categories the makes connection more this music business think their and be there our shown reaching and sponsors. because our even to sponsorship. fans. to sponsorship can more absolutely have they millennial when opportunities, of those all continue and markets And for

Michael Rapino

we're we've And multiple as the I'm arena. about, that as jump just digital those do going digital barcodes walk now, going XX,XXX Right ticket know well for tickets that the avenues that. that business. I The to are, the us core are have revenue (XX:XX) we building scanned. in changed unlocks a hands. better in they've to barcodes In walked don't have generally as future, way who on just of if to talked XX

So, know to going we're with XX,XXX we're who people a those have them. one-on-one dialogue – going

good good them we once at We're able weeks they tremendously actually the opens Nation million customers So that about door. how a the really talking what at T-shirt? talk in, generally them yes, these really they're go you show. in getting correspond show are bring or valuable to Do them walked We're all our with seats to beer you know a So that But the the for door. XX concert. two, very are to you on before It up they do to get data talk XX,XXX do haven't to our in to been those people walk to also getting they to increases shows, we go that the a sponsors. that show. sell a the customers they're upsell at Live walking, you when life that's buying obviously about so we the knowing fans

show. most the after while the technology lets We them the important to-date that haven't us place: talk pre-show, they're show, the had any the to festival, at

talk them to we to can provides you another next you do incredible show. at while just the a tickets talk show, have So revenue they're want show, you're Friday, opportunities. country we Also, to we for to available – about get at go

both and at So a customer this for customer the Sponsorship a the division into dialogue opportunities and get our to barcode turns we digital that division. ticket before base Concert the show our with when incredible engaged a create provides show

Ryan Ingemar Sundby

you Great. Thank much. so

Operator

with go Joyce Our Please next Evercore will ISI. come question from David ahead.

David Joyce

about ticketing and also higher of already talked talk international please on what of higher which instead to to the themselves, lower, flow are obviously Ticketmaster the Ticketmaster? you. margins you've you continually Just help year resulting the the in the are in redeveloping know us are to about of margins? from impact managing the but from typically margins. are the what please you not the discuss Thank you. Thank level growth guided the margins on investment mix and businesses think about I similar why Could margins volumes there impacts cash past and impacts could last you've

Joe Berchtold

is year, expected mean, again for Yeah. make the be frame this, sure full I are XX% and to up our just AOI year-to-date, I our up And margins indicated that we revenue David, flat. XX%. is just our to

of dramatic the on of flows a we it. stable benefit as that the lot side substantial which a business of Concerts that's is, very in investments of digital elsewhere. business, overall Michael areas so have context went continue our side the It's through, Sponsorship reasons and Ticketing So make for business, on just massive through yes, to that'll ticketing business, the like a in change

important lower yes, arena, of high-quality clubs, which, amphitheater to and about, to We're it very ticketing investments the continue which relative is shows, focus or generally do-it-yourself simplicity benefits in tools where divisional may And XX margin. to the some world. exists area what fans to is to we've a throughout theaters continuing level. to invest to levels. International well also, accounting a stadium one So we those track on is it our is their ticketing due in in part the XX,XXX lower continues as million costs and But margin grow another on we talked general our develop year be at tickets artists. tend business have for think and

So we'll against and all across business strong I AOI grow continue deliver the that. to continue growth to think fronts,

David Joyce

All right. you. Thank

Operator

with next And Research. question we'll take ahead. our Doug from Arthur Huber Please go

Douglas Middleton Arthur

Yeah, thanks.

the progress really the more improvement impressive the make I in in of the the driving up, much can that attendee on margin flip house how you've theme, overall on huge in I Concerts margin going the scheduling per continuing pricing Just you mean, but know on side, revenue talked what's segment, about Concerts improvements, margins and the and sort and segment? the

Joe Berchtold

Doug, this is Joe. Hey

fan, drivers big the continue flows two inherently through is flows grow beverage, margin very well per gave then well. through think and that also. I which ancillaries to food you we high secondly, And the pricing very

two those drivers. the So biggest are

We other our reasons buildings arena fluctuations the opposed exactly business in are year-to-year. all on the be means to buildings be For determined going to so overall number. mix a is amphitheater about continue margin and because profitably obsessed, before will and We'll got business think also this margins as that which we not what not higher we're growing year margin We've be on focused heavier we more that that arenas we'll just being and talked that mix. about that the may different I stadiums margins. we and obsessed and fact that as growing think traditional to focused don't can have thought be growth grow our those we're as

Douglas Middleton Arthur

earlier mix quarter, Well, be cited this big the in you've in cited year's the that stadium you as release... great third think year had this I not show in would

Joe Berchtold

Yes.

Douglas Middleton Arthur

...specifically internationally. margins true? help that's that Does when does your

Joe Berchtold

margin from relative Well fan revenue of per your will. your are your average a be onsite, going you amphitheaters basis, the if to because get to highest it's customer, you going on

your a yes, So amphitheaters in relatively we've more year than, got margin. to going that's help

Douglas Middleton Arthur

Right.

you Okay, great. much. very Thank

Michael Rapino

sell we more to shows, our we on important right? just can positive sell higher businesses get more and them So in flywheel we're them million stadiums we grow – food, on higher services, sponsors, margin flywheel. amphitheater for our it's margin more than low the – me more of if are that we Doug, all margin basis to know other But customers talked or we've a select XX sell can ticketing them our can business flywheel growing we that other the that than the at scale expense always shows

our have we which still business of be we grow share the the Live goal able businesses also from that that continue our we'll that across grow to global flywheel. then scale we So market will first to is great opportunities with in,

Douglas Middleton Arthur

Got Thank Got it. it. you.

Operator

This are conclude does no time. for at further your Thank questions conference. And participation. there you today's this telephone

disconnect. now may You

Live Nation Entertainment (LYV) 1 Nov 182018 Q3 Earnings call transcript