LYV - Earnings call transcript Q4 2018 | Live Nation Entertainment, Inc.

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Operator

Good day and welcome to the Fourth Quarter and Full Year 2018 Live Nation Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to today's speakers. Please go ahead.

Michael Rapino

Good afternoon and welcome to our fourth quarter and full year 2018 conference call. comments legal the year-over-year settlement my the impacts comparable. make million $XXX to will today XXXX excluding of I keep our Live of eighth its results. Nation consecutive delivered record year flow up and AOI XX%, up was free Revenue cash up X%. XX% our strongest results their Company. in ticketing the AOI of concert and history All divisions delivered sponsors the

favorite shows the Fans best In top a entertainment with and the concert Turning ever the to, with units. our show large arenas find to artist celebrate fans. their way than experience more experience and from club the choice the demand we increased structurally over per by alone, spend will on past drive and consumer U.S. $X for XX concerts live believe year, grown trend to years, this globally. ongoing experiences has continue billion

XX% the up double million shows demand in we XX%. X adding arenas, we Nation billion of XX,XXX promote strong XXXX million revenue artist to clubs. our we across share, financial globally to digit Across to largest invested XX countries growth and our for in over and concert delivered fans, with with, theaters amphitheaters and nearly fans grow Continuing the artists growth the and by a As XX market attendance Live global work result driving supporter of $X all up far music. AOI total

show per well, captured more high-end products, revenue $XXX for million Once ticket fan we similar show mid-February, service and and Overall, growth earned and to to of and over spend up of is up growth with through increase plans over year increased The increases more In our spent this shows artist relationship, to strength part head in continue in Average the pricing added concerts AOI this business XXXX. show across our the was grow pricing at by our and food the our we price to confirmed XXXX grew our arena amphitheaters with all effectively sales XX% fees. shows. as also increases and count to in fan growing continued shows initiatives from AOI. expect $X $XX I monetize amphitheaters our this prices and with and to stadium house as XXXX further our addition count. translate who shows, and attendance, amphitheater, XX%. delivered improve arena by of our and by grew onsite grew quality our beverage, value the along from average as ticket per at sponsorship we double-digits the parking to high-end In XX% our for revenue both With strong XXXX. AOI business, our to continuing

XXX up top collectively XX over XXXX. This grew fans and key Farm growth Heineken, XX%. this was sponsors State over Our growth with spending driver to strategic our at by sponsors Sponsorship with XX% Frito-Lay. brands reach Barclays, new been deals of including have a million festivals driven our

a AOI revenue again year revenue more that connect our experience believe for in our budgeted they to invest reinforces pacing live XX confident and offer This the connect drove truly in platform sponsorship reinforces Live ticketing growth can believe its of Power GTV fans This the over With the last from up our the concerts. time brands likely XX% at indicates XX% we of by to reaching a net deliver fans, fans. XX% up of and shift with in power this over are X%. GTV and this of over double-digits of total and growing continued will XXXX. committed, Ticketmaster XX unique All already AOI position ahead continued of ticketing Research brands fans year, our that XXXX, fee-bearing billion. of double-digit opportunity paper XX% during brands experience. we in in that the live enhance platform of with white leadership million XX% are of with shows fans increase brands to

deploying By priority value presence top at our Our product, effectively for across time, in these at our over deployed GTV. relationships of being GTV fee-bearing concerts see customer in major in Ticketmaster managed our end XXXX, global and ticketing, as marketplace, in XXXX we unlocking buildings, over our sponsorship was TM key At same fee-bearing will for the At the presence XXXX, we Nation almost point, which of sports and our businesses. digital our operating far making and we highest and events we tickets events in fans, first XX over leader year, fee-bearing attending billion that quarter of for of quarter with continue XXXX Live XXX end deployment tickets of further over Overall events, quarter $X ever, over the expecting million ticketing. tickets. by XX,XXX XXX venues, used in countries. million venues the are over digital XX to Ticketmaster our million Ticketmaster XXX,XXX in delivering fourth with cover see a XXX half approximately we million the time, XX by fans presence delivering selling the XXX build over in in the whom buildings. XX% accelerating, We have the

believe where new driving but million our In Live particularly high up growth deliver expansion, America. furthered we concerts the that ramping operations and thereby in ticketing with sponsorship on substantial basis, businesses. global adding markets promote not tremendous the growth. another and opportunity Italy, groundwork in margin to XX and our our position for XXXX in tickets to business Ticketmaster in summary, its continued continues operations XXXX, profitable venues, growth operationally global our building we international year along expansion was strong German ticketing yet do I In Latin have exceed establishing XXXX. in a continue XX and expectations, for ticketing Nation, position for concert our new laying operation. marketplace, who and collectively ability in leadership a clients globally we expand to leadership over in digital have We ticketing, added both its

to and of the the benefit strong business to XXXX, brands continue continue cannot it With will duplicated more an events the than transform globally of through while execute create We growth drive and onsite we and digit truly expect take hitting call demand, live new I demonstrated the our and trends this In and the I flywheel. concerts position global fans. to of experience to to clubs, of memories, road from more additional enhancing more growth more onsite details. hospitality continue drive economy. come. the business to of macro live growth will it the grow many for are strong In opportunities. to are turn to global established combination continued entertainment consumer as artists to supply capturing all sponsors fans digital and expansion ever robust grow believe artists with firm, you stadium. it to sales our is see the We tremendous power for will unique of fans to that further creating come over Live the ecosystem, for that, ability ticket direct in a is and double continue touring years be spending believe have footprint. indicators will strong music ability years connection sponsorship, further demand Joe concert from more lifetime and a continue our with that truly our We benefit look pricing to and ticketing And concert to ticketing

Joe Berchtold

Thanks, Michael.

segments, at the fans grew XX promoting Looking to XX of attendance Michael top global concerts our record X% XX a we first as said, tours. XXXX, business in million by

talked theaters a countries. with strong for the was give about double past portfolio, festivals festivals year, have three all portfolio XX we continue adding us we of our types a global clubs XXXX digits in also of in in As building to Globally, and theaters festival seven over arenas attendance. year growing XXX very and

to million a and X nearly by festival each now fans we have As attracted XXX,XXX increase festivals XX year. result X% that last over fans attendees

was stadium attendance stick their the to festival geographically, growth. primary of driver internationally fan lower and while America offset arena strong of growth Looking much with attendance North our

count a continued increased activity. also year million the at attendance our up about expense the quarter in shows. on driven of are one optimistic on $XX and advertising specifically Looking a concert is show AOI sales This related and were year advertising reasons representative XXXX was fourth of earlier shift a XXXX increase lower, by we heavily to spend

with year amphitheaters across shows expect keep globally America markets, and strong types said XXXX, seen For ticket growing. in all to year. growth sales internationally, all expect house strong buildings American already with front XXXX we see international our with which this are digit for growth I stadiums pricing, and expand on focus the we will as XXXX year. expected also increase. we arenas and on which with are through also contributing be Sales in We North are continue amphitheater high seeing the growth, particularly shows and and the XXXX. in continuing our throughout Michael our to we North On continue to monetization pricing to already fan over pricing, onsite in increases of optimization Along single arena sale, to

growth season, a of start priority plans. While past few it teams continue working years on until site the already amphitheater summer on won't to our with the monetization amphitheater by specific remains

was advertising and and we again businesses up XX% international performance This advertising digit our across North up grew AOI reflective were In this board. and both sponsorship Turning America sponsorship and the both also year. of strength to growth, double-digits. XXXX, double business. double-digits, online delivered sponsorship

XX%. Austin number XX% and while major in Google, Mobile. strong including Uber For quarter also the launching Limits Sony, particularly Pepsi was fourth of our programs and City for festivals was We T a AOI revenue fourth sponsors quarter, including at the saw growth and in a Voodoo

to get again year. we expect XXXX, of deliver As the we double-digit AOI into growth

last strong on-site our based sponsors current as sponsorship ahead brands, Michael of strategic indicated, are particularly on at festivals. growth our expecting in pacing we As as discussions with we basis year, and this our well time double-digits are

which GTV of XX% the by and quarter Fee-Bearing for quarter XX% Ticketmaster. up and for and quarter year the up overall accounts XX% Finally, was GTV, year. XX% for and X% was GTV the for almost for up the Primary XX% for the up was year, full respectively. Fee-Bearing full Global GTV, which X% driven

the X% up for quarter was for and full the XX% GTV up year. Secondary

for take base app app by market. which we mobile to our our accounting relationships. strategy. America experiences, reach rapidly, continue overall we can and and give As up mobile sales year-over-year over of to improve We in for ticket of continue grow our for XX% secondary tickets XX% grow is In continue me the sales. install digital to much via share direct the North Throughout XX% this for greater critical devices XXXX, year

cost with these fourth margin these quarter the our million. the slightly quarter, one-time one-time on the the markets. margins, factors. associated data data full our Ticketmaster affected impact For $XX Much at material totaled two by XXXX the that down breach AOI the breach vendor remaining third-party margins. from marketplace these costs and impacted of in The year on was in approximately certain preempt international impact obviously, comes a other for To question were of costs fourth majority costs

These time expanding and invest market below of allocation concert get given in average margins First, will as are ability to expect nation it below an tickets, any indicated, Ticketmaster's initially margins. to continuing AOI have average a we're and for but applied we our scales. footprint at generally period rapidly positive as global markets start-up Michael

we're in continue The marketing spending we To GTV. marketing, our driven grow grew the to faster. even effective free a XXXX. more more get paid GTV as continued data growing from be Secondly, clear, GTV visits to driven

of impacted generated despite profitability the paid incremental GTV As a via this margins were marketing. result, attractive the

quarters, our playing So we a in in quarters. in our we be delivered great a summary, to our the most and From was as across stadium XXXX see continuing out primarily growth in investments will expect third all businesses; all second, concert of standpoint, businesses. of be the to XXXX, year growing continue those

The have now turn FX, activity. XXXX less with than ended first up point quarters with account our and against impact XXXX. costs absorb On annual see financial over XX% associated also for seasonally of increase overall we through to very AOI, fourth fixed more growth meaning they and and revenue negligible our AOI on will on results. at will call a our to we each go on to lower for little this I impact the Kathy that

Kathy Willard

with was start million $XX key by adding back million and XX% in compared I everyone. after AOI million legal in quarter. in Revenue highlights our Joe, $XX good for afternoon will recorded Thanks, XXXX, to $X.X fourth XXXX. increased to the accrual billion, $XXX

sponsorships higher revenue was revenue revenue activity North XX% in increased related primary Concerts online XXXX the contributed increase Joe and advertising last advertising with XX% to online advertising AOI future that growth up for in revenue in in Fourth from higher As was XX% of internationally. million theater America ticket growth sponsor deferred and shows America, in in of December increase quarter and delivered $XXX Sponsorship up the North shows was concerts from Sponsorship to quarter the XX, expense ticketing XX% and our in club from lower volume. higher increase $X.X growth with AOI $XX million advertising from due an the mentioned. year. and billion, a XX% and and arena majority activity. the

was after reform $XX net loss and flat for changes quarter the in operating year legal million tax the of the $XXX $XXX year, a to prior million adjusting related legal the accrual last benefits quarter, was in compared the tax $XX in essentially to loss loss before XXXX. accrual. for Our to million The million

an XXXX over year, XXXX X% and growth secondary across XX% full in account revenue And attendance $XXX arenas, from advertising million events cash concerts XX% with XXXX. XXXX.AOI up, arenas, revenue without for more $XXX AOI ticketing AOI was along $XX.X XXXX amphitheaters up and $XXX driven by the and million segments double AOI was the clubs up and from and last year online school growth before XX% flow amphitheaters and Free or advertising sponsorship per majority billion For revenue of or ticket of the The clubs. up was show concerts of over revenue our Other increase the increase the delivered XX% Sponsorship over for accrual. legal this was for from legal in year by a digit accrual, Jessica advertising theaters million year. the both accrual, XX% festivals in by increase revenue in was and increased globally. and as AOI across and primary line sales. primary delivering increased ticketing fan growth fans, XX% grew ancillary higher secondary by result Concerts XX% was XX% in theaters and in grew up amphitheaters, X% with the driven higher programs volume and revenue legal Sponsorship and ticket higher without sales. AOI

impacted strong the investigation last incurred up million, XX% over year Although legal before Operating this growth. accrual costs by Joe AOI the that noted. $XXX was driven our year by cyber income

be of year accretion to We the for $XX million the Our the be We million expect quarters. and before will across net this consistently spread which approximately accretion the XXXX was as to reform income compared XXXX for currently of tax accrual legal XXXX. $XX benefit. $XX million XXXX tax interest $XX redeemable in related in million non-controlling recorded

ticketing expected the contract be We years in last with will in non-repeatable of XXXX expense. advances of amortization few line

Turning to our sheet. balance

by XXX we $X.X operating December, of XXX million $XXX billion, free as including and million concert in related by million with cash event client total provided driven XXX compared year related to million cash our had deferred and of increased event balances activities cash, ticketing cash. net Net million. the XXX cash revenue. was Leading As last higher

expenditures year, half items. revenue the which spent were of For generating $XXX million, full total roughly were on capital

total generating our for approximately For expenditures. this split million, be revenue to $XXX XXXX, we similar currently year expenditures capital a to expect with

weighted for now as us we of you average Thank net cost total $X.X billion and call debt today XXXX the was with joining will X.X%. open for of a December Our questions.

Operator

We'll Amy Instructions] with [Operator Yong go first Macquarie. to

Amy Yong

match the when So and you two questions. about international fronts of expanding How guess, margins million One, do those that guess Day, I Liberty that one Nation the you organic Michael, does can quickly markets. and growth? first, the on Joe the hitting M&A a for Analysts side? ticketing attendees. XXX on talk from in us U.S. into hitting -- Live terms Thanks. And of What assume remember I a lot think

Joe Berchtold

Amy thanks.

regard with the to here So international market.

market thing in on international U.S. on remember currently the the the So different average the is fee fairly is first structure

Your U.S. in typical around the service is fee XX%.

XX%. service fee around Your internationally is typical

in the AOI we past they’re generation, see and So that lower we at And U.S. as to a market. adding of talked some while the that our the than today one factors structurally the Again we our we on reviewing level market going thought have on shift average markets. margin I cash profitable that international give markets it maturation of its to and allocations there. said, a all. in we fits convergence hard pretty with of don't you to quickly has, concert of AOI our one But quickly. become they do Each size grow expect positive then all overtime, terms as from

Michael Rapino

to I'll fees probably, great International, have Michael, great one for of behind increasing it's XX they years we advanced see all potential only on it's in XX platform of Amy, the that, $X fees a dollar let's The service it jumping so think was pricing U.S. TM. call also outside those years. for but years. every markets and may America, XX on North closed today, next ticketing about thing model the just service have growth some on

U.S. are so strategy we the a But a of over lot to these model a today have And great local distributing up they there online. have year to we bank So literally to pricing speak, retail markets overtime. see of we reflect is also are still lower and the going converting fee has international every great service we're the to seeing power. where opportunity to actually closer that kind

M&A question buying grow The enter we XX buying market and complexity Canada. pool XXX engine of million well second our profit the And on here in. local on organic. Amy million to with one that The be relatively established has fans question can market. can we're XX to that M&A chip promoter will outside Michael we us that internationally from our that who's great grown is then starting a fans versus U.S. And tours So often to use area. small, to again

promoter talking that local grow we America in we're that rapidly or in initial of purchasing. organically Argentina, whether North platform about So market here a down off we're

XX% with actually that result, absolute So we XX% have let do we I Yes entry over model, point. balanced initial XX M&A mean, as the we of selectively a growing opportunity historically took organic growth markets three we use we to words up me our end but the more our look still business at globally fairly well to industry. for on but had be the a overall more showing global the fragmented a of on tour, acquiring tourists business and by bolt-on out. and own then and tickets current

XX% we think I share. use global that market

to And will are years over So few organic. and on, how three Excel we'll continue six we ones bolt we combinations an on those last a chunk think the that to bolt we there's to and and continue to both grew five, here acquire organic. would runway look on execute

Operator

next with to go we'll Citi. And Jason Bazinet

Jason Bazinet

ticketing quick market. on the question A secondary

of giving so You that sort mind share. is mentioned far? you successful major Do share think you're you're quick how being gaining how how us of your just and And market taking big are? you players snapshot a

Joe Berchtold

Yes.

that getting Liberty numbers we're presentation. last are So, specific pretty some

So I'll of all remember those try numbers. to

industry clip, ticket the several is say did we past have than good over our what growing a been years pretty think faster we prices. at the been I growing frankly, has secondary So,

sales obviously Ticketmaster you exists strategy a to headed One strategy if tickets our marketplace, to strategies. arbitrage continues more the there of think possible generating offers that which the initial use more is strategy. more pricing as our the primary. $X effective price over secondary and other important for more be as bands as artists compelling the is continue get be and billion at we track on so out primary have into at a create that much economics tour least product but concert is to that look which the And to there two tickets, we to down ticket in transfer flywheel And pocket can alone. And to overall at

the it would in fans the matter primary think growth us expectation continue But, I for prices, to be United for going space see market a continue products. forward, in right our we we focus of So obviously competitors certainly best do how the secondary that well pretty that it's think I in to the dollars on stuff as serve would are known, rest we the States. the that really and

Operator

Ross to with BTIG. And we'll next go Brandon

Brandon Ross

driven Maybe on, think did I a you at following mentioned year bit, X. Are started, up we you number since now a international next being strengths Amy, acquisition little of And international. QX by maybe about growth have the follow of becoming a a and you investing markets talk the And could point where real in Company? I you're see international you up. what why? engine And internationally then

Michael Rapino

start we've fill the I'll done can pieces. two growth don't a haven't have put ahead. together. still still for while. been that in We believe we those let's that U.S. I anything think market, actually Joe and Canadian done some

still market. lot we've under in opportunities the build markets lot before one a serve A our to talked of a in are of businesses servicing We and We about. as of

of market. low big a lot We share market in have

still So concert expansion think continues U.S. and America. estate business And we frothy in we U.S. hospitality, the real a potential, on-site is sponsorship see, the think in incredible has be still great to double-digit business I growth opportunity

it's either. not an So easier

we no that business have in that or we can you XX we it's confidence out and countries, all share look it's and always great market said build with execute around as the we pipe to continue absolutely at other But in We learn. the world global America. have the cities invest where a

know in we $XX Town million of that best still X in Milan cities usually follow and we legs we ticketing, then to when $XX that Cape model put to million global ticketing platform in concert business. we the can and build our down have and in we real, sponsorship a and As in those which got promoter major X

have four in why we by major opportunities us our don't where international and a might that's have bunch one market see whole think different So major market. we we in legs you a leg, of promoter the a festival

we up legs, organically the to happen scale. fill will As our opportunity great

XX that International to and lots be platform. opportunity share next behind build the I about and X ways So years. we'll a We'll of just lot the doing Business be market for It's on to talking America mentioned ticketing. XX% of

we venue sponsorship So, see higher in probably development. from and a as potential ticketing growth it unsophisticated both

So you'll the all X anywhere see our unique. our consistent to that those, of opportunities want about had over demand part a we the years built know the apparatus we and get we to is makes console model called to that's

international years for on to great okay us, that'll risk U.S. day a enough grow deeper bad to ourselves. be good continue So come or with having is now, aversion. start to have be a continue the diverse for will market and but to have bench a certain enough grow many the And will

Brandon Ross

strategy. if you estate then wondering I current through take was can us And your real

of have You in mind, is the coming past no you cap gotten growth over the per Company over expect that accelerate bigger With and more sheet with venues to do the over significantly of capacity. years? balance the few years

Michael Rapino

Yes.

the would is don't it your I all I Brandon that than -- recall slightly frame five different -- think I of really questions

Joe Berchtold

of out X You only get X.

Brandon Ross

Some you housekeeping like. if

Michael Rapino

it's valid see a absolutely No that's fine. huge point. opportunity. No, We a

enrich from one. let any the sick before appreciate patent of are If business book you I'm our flywheel long you the me businesses and people phrase other do look nailed sure of I that at core model,

shows yes, people walking year, the flywheel million flywheel. So, a concerts and monetize finding businesses because of up to XX,XXX we're one have the big world And wake of that the in new no we every XXX going in we adjacent has door. and can

So that's onward endless we growth and opportunities. in the believe U.S. why with its

the happens One the of estate. to them real venue, be

a counting up the our ends years, market now content we putting look in our in A my the streams. in said many of ticket real we've to meetings, we real my shopping estate there's happy and we no more movie advantage have developer right a asking mall estate the amphitheater theater venue are is you your their you site, development Nation probably inserting or we're I'd seat the vibrant come as of the to to build analysts we in theater a the because when in door. our you more that's to and part Live the our love tenant more else's probably free are my creating. and or For to X,XXX we're love of lot America, at getting seat. experience And to longer And to saying, I'd part a or someone content a even times now, way different festival, artists. now be revenue the money were to a because make X,XXX X,XXXseat in if club, ticket be with development

just value $X we in year. happy now have until happen that say not building, want value to equity created our maximize all ticket position a million operate can and and and doing meetings be that to you're we're we're it what those the is of So when run to from

the look run is it times financed while a we're too. going we where beverage, entire and are our value of just instead is reason equity paying building content, the year growing the building their hero should somebody real being to food to and the there it, We in fill the of just holdings content overtime is but estate the for not at estate real reach capture maybe building not the value. to So millions strategies

live are of see in opportunities a of equity is the assets venue. more flywheel being to seeing concert content. some our leverage do where great more more have some explore line down position middle completely us us So, putting completely ownership our more in and down we're and a that and And the you'll control

Brandon Ross

you. Okay, I'm going to a short ask just term for have quick one.

well the in contribute is XXXX sale? quite as revenues should downstream you as far box, at to recognized this expect more that As date we from

Michael Rapino

Well, it movie accounting. will be our first time with

earlier, So, we with stories would general, in say division. like, artist but It's I just we told. be relationships, this we are have mentioned have see in to great look audits another it we’ll what thrilled I just scale,

a new started we organically. division So,

probably done or I in we've projects or XX five documentaries think movies to of telling artists stories got or we've XX live are stories great pipeline festival now the et cetera. or

Artist we the So obviously a conscious division. low business but for It's our shows margin that's ultimately space. a think artists is platform business intensive division much higher capital a and great is marketing from Nation

a to So margin really it's we it nice like we're a will Overtime, to I working it's Nation, think ancillary agenda high overall be contribution think, a our think AOI. our in be not with core Artist XXXX, small also Artist we mother make we end But much feeding to business we’ll others, they learned positive will be ships. positive Nation and a up impact. mission like that ultimately, AOI

is So, is single did Nation, have our division. for probably star marketing we sponsorship could the greatest Artist exercise born

just setting in If get you and and those CMO before. things you been in you that hadn't that kind are high the meeting other division, flywheel of conversations really the very

contract a So, in high or one margins of always ticketing triple one more we're us make tour, sponsor looking at more the business, win. one AOI, and pieces the it’s get ancillary more end

Operator

next Morgan. to go We'll JP David Karnovsky with

David Karnovsky

do any wondering, and footprint. you’ve in if and of expansion concert ticketing, contributing side on on you global a provide drivers commentary you I the release in sales mentioned can sport how the is was growth Just XXXX? that

Michael Rapino

side to the the Sure, business. I ticketing foundation historical key sport mean, is obviously

in level. friendly or terms in played major for of on we lot games sports. the of the teams there's -- growth static not number number talk a sports As the season of more aren't is of There also

from concert several business given times concerts business. GTV growth great of of So, around several we've it's percentage really ticketing. this coming fee-bearing is the that the growth years been over the statistic XX driven past Again,

the So, those buildings to stadiums. on games are side incredible sell looking built just They're night, Those support they it's not continue critical as arenas the to or when every just playing. the platforms grow it's tours, continue the more shows for that more provide that on put to we shows. they to the able business. putting been work those we've artists on with, And

sports sports the been So, growth. Ticketmaster's a the of that's it's have it's unlock not lot directly, indirectly,

David Karnovsky

this sales though year. the just then you leading deferred think up early did mention in And on on revenues I XX%, indicators, event

wondering, periods? that maybe to about more how basis think on a on number consistent assuming sale Just like-for-like

Michael Rapino

mean, the challenge. that's I

that. sale in of because events mid-February. exactness through and You sold can't we're that tickets We consistent concert there's double-digits up no said on assume to terms

us the year. for start So that to off a leading good we're that to key this is indicator

Operator

Borst go with Sachs. next to Drew We'll Goldman

Drew Borst

put want of business? presence presence around. XXXX? ask see, you'd the fourth willing over provided be what that come type kind quarter Ticketmaster I could and you in to maybe contribution even, from it as What about scale if to of contribution AOI some to Or parameters

Michael Rapino

tickets other The same economics is for economics presence the tickets systems, for paper us versus of us. digital versus

our ability And they're will on out we going fan products, for that ability what our the XX value that while So, ultimately on fans we additional increased into better those reach because purchases. to fans have on the brands. a we on Ultimately, convert quality then every have the of it and connection with it's interact create impact sponsorship of not on direct the unlock is fans be the target, of and to data and to the site those AOI. volume digital of their unlock data, by increasing market, will those million that behavior,

it's So, not the itself. rollout directly presence

Drew Borst

now, then just I'm impact on but right to maybe may or have talk Okay. may you wondering whether talk it was with just what announcement follow business> that a not you if And recent customer I is form I big could is of the I as sort yes, has operator about it that up, strategically a it, then not your maybe venue that means? SMG a mistaken, their joint can if of broader noticed and it AEG. any impact if think which SMG, about a venture was Ticketmaster

Michael Rapino

call have, the the center have cetera. AEG no And venues need partners. as those was that fill managing. to They're But their imperative Manchester Yes, That they our business. We're at realizing and reassure businesses shows sell SMG. huge a have buildings existing SMG put a care for fill They us on impact they et to strategic happens them contract minute competition between the And that of an always day-to-day facing else buildings facilities, the to them we've ones all ticketing with building buildings looked in two do the elsewhere of to probably ended conference about public generally. feel Ticketmaster doesn't all tickets. not scale business received else from also and those most has management up the our them someone a managing a results. Ticketmaster they’re and experiment we business, And we they're about more announcement someone that do. theirs. care they management that's not what that We we it it's the us venue are

supplier we're good just for of or business us. SMG reason the largest the AEG's or others because it's the facility So both business

would to So will a they're supplier to to them. partner a in not continue I And good assume forward. business ticketing run return be a

effect last no those think it that five years. from grow over well. been And both business equally of continue in we'll So us, growing companies our the we've to

Operator

We'll go Evercore. with Joyce to next David

David Joyce

again, thoughts and you volume stadium wanted question was that A has fourth any having the if and events. Rio, the quarterly? that quarter on I secondarily two that this margins as in in venue then of impact think bridges what later on concert should size and on think side, now the for of it should year there And you venues have that are what an terms visibility this done the that the on How and Rock the how to quarters financially about of past? impact on types shows, expanding festival fewer could in it just your year. will do and and year about impact on

Michael Rapino

four venue David. three take question, I'll So, the part or

fan most the have America those and America globally and said margin business profitable North when is benefiting food and North and the we things that's grew this internationally. our and in those the simply talked amphitheaters revenue about ancillary amphitheaters you arenas to of we amphitheater buildings. other them, and about one own directly want that beverage our talk is rates saw, we So concert in all stadiums and Last as streams our and of associated you with all expected, in year year, if per because monetize growth you we can

We I helps to overall don't I can AOI, obsess told we but you couldn't margin don't, and times as will so continue because the the growth. and I standing then tell see QX And margin. expect certainly in many we benefit benefiting if that in past, ramifications see to against grow grow the and continued largely Again, of you you margin quarter. from AOI tell will, in lot exact in to I us the on their you on QX, do the QX, So growing a obsess the on that's But that by the to same the with period. our benefits from second, And business. primarily ff concert amphitheaters those third we continue you'll all QX growth as the festivals continue festival side quarters. attractive not

David Joyce

like and the done Portugal on you be in should been Rock you plans then Las how other that Vegas impact And do markets or for would how before? alternating Rio, have this year residents yet you and

Kathy Willard

it was But do So outlined point. not on in in Rio, clearly. this consolidate X-K Rock that I the at pretty we think

when earnings happens. event equity it's the So

Michael Rapino

are been Brisbane. again And the has the been announced there in at announced, they're event have out other events there that No this plans point. aren't,

Operator

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

Ryan Sundby

to you there those? out don't that operations of you have Is ticking shows guess more that international Michael, about talk barrier adding a I you that exists in the markets. promote kind where that stores of common XX markets keeps yet.

Michael Rapino

It's no. time execution. just our been resources in No,

prioritized first platforms. and X years We had X bought have list we the XX that Ticketmaster, or a we

getting rebuilt. backend all enterprise So, a our lot of platform we’re what, of just

and could just taxes we was new and markets move for a retail. into So, platform currency common adjusted

in rolling people, or big out market exists it done usually It's to in us get time So, have list. no strong share companies, prioritize global we have but operators local have companies a basis come position. robust may would enough content platform a just on a the, and now they our inhibit energy our usually we market-by-market position, it. and we're a that They’re with a ticketing just local lets with leadership

over adding by they’ll brick in are few brick years. were what So, building able markets the is market-by-market next us to see the and within

Ryan Sundby

And venues curious XXX over club pushing So then on how to and with presence, can Is that? it couple that just X far are big you the of or XX% you can Is micro a how the chunk down of buildings? sports that in this with level major you go years? that? go

Michael Rapino

and and control of the becoming our distribute this Absolutely, manage it access we we foresee tickets. standard entry how is

the trying just everywhere, clubs going focus Nation the there opposed to amphitheaters is them. adoption get which sports getting there. it's just to It's So, ones be large to major the for Live matter but and from as it drives team stand of with of a wildest theaters. they're out Ticketmaster and to in same prioritization And the push from done as first Paul, possible then all Michael thing saying, execution starting

Operator

Doug to Huber with Arthur next go Research. we'll And

Doug Arthur

highlighted fourth fourth in Just the XX breach which marketing up in XX the the in on million Kathy, better. step data bit a the was you quarter. bulk quarter you've understand little had of And the million third the quarter.

while? it? a to Or is the we for to at are look marketing So that way these? continue is fair done And a then, on going

Kathy Willard

on every look So, yes, market at fourth but we right. it’s I show, the way fair a mean to quarter,

So, expense accounting normal sheet on show expect future that's the expense balance show for the is the when that advertising have happens that accounting shows. to the year-end, expense at is for we anything the

going So, to fourth have. you're like quarter effect have just every always that we

Michael Rapino

Like And, have that Doug, we that's spend to a high, be marketing show. good the you want unless number don't we think. which

on a look is that sale in good of at 'XX. show and lot number monetize they that that went you have say So, will than news the

which So it to the at true have actually an end we the is of accounting up year.

Kathy Willard

given level on haven’t expect some then have of specifics on continues, expenses we And to investigation, investigation We XXXX. you that just the in would that. cost

Doug Arthur

Okay.

Michael Rapino

similar point it will to it and than material at End won't million expect millions, of Q&A Don’t in be $XX this still on but things. the somewhat be continue the the less

Operator

Instructions] [Operator no we at time. have questions this further And

for So back remarks. call additional over our closing the I'm turning or to speakers,

Michael Rapino

you everybody. talk soon. Thank you We'll to

Operator

We conference. for participation. you thank today's your conclude does That

Live Nation Entertainment (LYV) 28 Feb 192018 Q4 Earnings call transcript