LYV - Earnings call transcript Q2 2020 | Live Nation Entertainment, Inc.

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Operator

Good day, everyone. My name is Erica and I will be your conference operator on today’s call. At this time, I would like to welcome everyone to Live Nation Entertainment’s Second Quarter 2020 Earnings Conference Call. Today’s conference is being recorded.

Following management’s prepared remarks, we will open the call for Q&A. at given be will that time. Instructions

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

Michael Rapino

joining us. and for Good afternoon, thank you

ensure no strengthening extended that get been live priority and through with to an three we position events. flexibility the months, liquidity past Over top financial to has our have period the our

confident in so. to when events to will remain quarters the at And the fans sales is expectation leading up ramping summer safe will do of it that partly, live is to we up events XXXX, that shows. return with ticket these Our scale live return

indicator tickets in Through strongest concert holding the their concerts the rescheduled to of future onto their second a Our fans the end their are fans refund. quarter, current for of that tickets the the given are desire when continued of even demonstrating shows, attend despite of demand uncertainty. keeping is option XX%

in for next robust of reinforced for a are outdoor also for expectation can Our the festivals in summer go fans with season to show, the year’s so XXXX their summer. two-thirds next by strong the they canceled tickets along UK ticket early festivals sales keeping

point from surveys concerts live load see over the ahead fans, rescheduled social put find when for our XXX In festival. types Among keep artists At time, scheduled festivals ahead some attending last than fans same have in from to to this ways base XX,XXX meantime. we of fans performances a artists. to we globally. that the had For year. their example, remain Lollapalooza to XX these festivals fans Virtual the fans to it Between creative well show with connected have well held the for million scale, taking to all of sales, provide concerts we continue safe of is our planning convenient on of streamed the with weekend highest globally favorite fans to almost second place time that and highlights, priority festival quarter event platform XX to gather, the XX% creating we concerts from Wight on performances we virtual past XXXX, new is so a we concerts established and innovating home last again. strong that be it’ll be are million pacing before tickets already downloads help demand Understanding huge concerts in demand tickets find for year. by fans’ at proven X,XXX concerts a sold more the are of Isle a the of shows and on and

Finland same in Given time, possible, cities well socially well. permitted, and potential allowing streaming those live shows, person concert long-term the can’t our to attending cities become fans New across an the of concert as the additional popularity business, are get we for Spain, concerts in soon U.S. component want Zealand, to where the recognizing shows in fans France, as and or included to as distant launched to tremendous seeing of when the Denmark, attend enjoy back these other we’ve Germany, who At as as

challenging are there about. events this the time a is everyone, live a that few I things particular, for While confident business in am

live and will Nation We live to we fan is affected much crisis power over as as our its as by With through by when Live to shutdown so. safe are else will call artists of responsibilities I responsible whether everyone do and to do the in bringing it employees When turn Joe detail for our ready more possible results. an fans, this will this. our return, artists, abundance join music get to music And it’s meet that, we’ll this to and have again. fast everything to to back on well-positioned

Joe Berchtold

everyone. afternoon, Thanks, Michael, and good

us to costs financial confident has will As and right our top our cut back. time Michael is liquidity the property the we actions our bring mentioned, taken And to shows been strengthening position. need time with until provide increase runway are during we this

this and reduced costs $X.X pre-COVID million over usage cash for by We by billion have now our $XXX our relative to reduced year plans.

available the liquidity. end $XXX to returns. we covenant burn gross our rate month to favorable of a And on readily estimate million our quarter our per quarter, billion a in $XXX the we XXXX, with available of to last to along of With amended burn time, average QX second until on us these an second providing providing agreement at the for suspend year. us liquidity $X.X debt $XXX the through and with end cash billion, reductions, added week to have $X.X cash the additional more month over we operational business free the same totaling maintenance $X.X of with million billion metric per over rate flexibility At lowered of capacity, the credit million raised

Turning QX to our with AOI. starting results,

loss government million, of was for Our by of million driven quarter AOI programs. in inclusive funding of operational $XX primarily a million, various approximately $XXX the fixed benefits costs from $XXX payroll

Ticketmaster fixed in margin, for largely to of we then So second are business. concerts by with the month approximate driven $XXX per million in negative end one-time cost We our million initiatives operational contribution costs through the quarter the $XX year. expect average had and events

for off given $XX recording two-thirds our tickets by $XX have shift our XX,XXX offsetting million that portion advertising write-off contribution is costs for across $XX margin million with insurance concerts calendar we expenses the million, generated shows service about the or loss show expense which in by generated for business business, writing events an of timing. operations Partially and generated Ticketmaster, of XX the refunds of approximately recoveries been canceled of Concerts associated approximately sunk of year these expenses, had In pandemic. impacted For of XXXX fees. a million for rescheduled

in approximately implies $XXX $XXX during Looking we during cash. used second debt first quarter billion $X.X and billion in This of the cash then the quarter ended with in free million from added cash, $X.X million at quarter free the additional with cash the quarter. cash, free ended

This not of in portion million service million out during totaled fees paid had part Ticketmaster which cash puts the is refunded largest operational we timing. ticket benefit burn. to for $XX yet has our The quarter. We benefit, this, Starting back refunds Of burn cash our our million timing but with capital As non-cash had million adding operational $XXX free effective to one-time back QX and accrued payment impact of totals our for fixed we’ll benefits, burn to $XXX the operational $XXX $XXX the was and quarter. of QX. a $XXX of costs our total cash and million million put then which quarter. $XXX million cash for timing the million fans at refunds $XXX in this working

acquisition higher quarter items In payments. addition, payments ongoing the end million had through but capital burn the nonoperational interest $XXX due net expect to contractually slightly component and nonoperational These items, expenditures, approximately our year. activity, average to quarter this including for we ran for the of cash past burn obligated cash second $XX we for million of to the acquisitions, per month advances

Finally, improved from we had operations inflows $XX million cash and of management.

where and concerts fans Live window Nation festivals, revenue. the festivals that’s events. Festivals how concerts keeping update rate refund me of deferred is rescheduled first. mentioned Ticket year’s The for or for them end a generally canceled year’s have through our retain have two-thirds give rescheduled this March. impacted gone and you as refunded But show of tickets for let for tickets. in Michael their and are through QX. ticket that their Across on shows Lastly, global are million both since refunds $XXX about refund XX% can an refunds are we’ve next

about Nation canceled of approximately over in rescheduling events, or $XXX will million this from period. $XXX In addition, same additional venues Nation refunds, funds not shows the be held in we shows million Live these If of fan total, this on have million the $XXX apply behavior and fan $XXX offering refunds. third-party Live refunded some we process held was We $XXX which but have yet million million by for mix are rescheduled held Of forecast and from funds. still million we $XXX funds.

paid from we’ve yet estimate these deferred but accrued this funds refunds. shifted ticket revenue Given not to

months a shifted At was these as from was $X event-related to of XX our how in of million for $XXX revenue next events long-term revenue quarter, of revenue due Of the our quarter, deferred first XX number at flow million. look of billion. months into revenue. over to deferred to were deferred end billion second end next the concerts for this, XXXX. revenue short-term $X events the Now the was a At $XXX the decreased, refunds the through deferred the half approximately deferred second shift

$XXX the deferred Nation then Live over health new refunds result, an million. quarter The roughly revenue. second end Nation Live year. totaled the was refunds ticket $XXX $XX ticket course concert of cash approximately of million generated the of to $XXX additional long-term deferred recorded quarter revenue deferred the We short-term of million $XXX a As revenue that quarter the then shipped future which sales at million the estimate had we we have accounted in in million, from for in estimated back

our end is $X.X approximately the the billion. based of event-related for the at revenue on sales of prior refund ticket year, to year deferred rates forecast and rest additional at projected Looking the our

burn rates in cannot Given refund just give we to of any turn the I’ll call guidance levels the these we shows, and that, timing With all the uncertainty market beyond you. you further gave over Kathy. and

Elizabeth Willard

I months Thanks, Joe, and our good results review our provide sheet. afternoon, and and six will balance updates on everyone. quarter second

this for significantly results for the to our shows the quarter all and both COVID-XX since of impacted and total of variances which driving six the been due All across shutdown by of the pandemic in have is all the segments. months first mid-March our year periods of

billion For $X.X year, of million to to the earnings the quarter quarter, our a $XXX loss was XX%. million revenue $XXX for was of in down AOI XXXX. $XX compared compared million, last

XXXX. was last $XXX million in operating for income net loss quarter compared in to income And million was $XXX $XXX net compared the of Our $XXX million million to loss operating year.

billion last year revenue in a million months For the was first driven of six XX%. AOI six the revenue billion compared income prior to activity of our by first shutdown. the this Most XXXX. loss compared show the in was first two-and-a-half of $X.X generated the down $XXX of XXXX $XXX we to for to months, million months year, in in $X.X

million year Our income to in $XX was first compared and net the net for last $XXX loss was $XXX loss operating $XXX million million compared of to six income months million XXXX. operating in

our balance sheet. onto Now

a had billion. of includes free balance billion, total cash $X.X As of of which XX, June $X.X cash we

and as deferred more well than million revenue out Our us $XXX been XX. current rescheduled additional is as total deferred liquidity. provides one our of for of million cash events part This have $XXX of event-related as year cash of that June operating includes therefore long-term revenue

the $X.X defers Joe of cash estimate in capital reduction notes million advances. XXXX, billion X.X% reduce along with and the and billion in eliminates savings principal As cash that activity XXXX. outlined, $XXX issued to lower ticketing we actions May acquisition includes in conserve due In amount expenditures, $X.X senior concert of which our XXXX, for approximately we or portion approximately outflows cash our cost secured

the of was the a $X.X our weighted of end cost As X.X%. billion quarter, with average total of debt

cash, our liquidity quarter debt capacity suspends and free million total completed amendment with $XXX our $XXX revolvers between to against A. us event-related of $XXX replacing XXXX, $XXX debt week available we agreement free critical if that giving net capacity, deferred for gives a we to a test maintain of up further months minimum believe our available million. have us with which million, our million leverage for of Last undrawn until and six credit capacity XX, loan December until our return. shows We choose, amends undrawn revenue. our debt expenditures also million, to of sufficient the term which We cash, together operations the Capital an and measured is coveted were it $XX our liquidity

spend from capitalized ticketing to approximately $XX term for year our in With for million initial $XX year, estimate approximately the to that, the open with is remainder year up the $XXX for We venue-related our systems, million. remaining full questions. are capital Of Operator? million for million, of down labor, in projects. now the be largely expenditures estimating for we’ll $XXX updates our large

Operator

from Instructions] line Partners. LightShed first Brandon of with Ross the question And [Operator comes your

Brandon Ross

very Good afternoon, detailed couple remarks. for the guys. Thanks of questions. A prepared

expect line you’re Should the approach, can typical to cash at there cadence a guys wait-and-see and up. us on are everything for to your we years? I how all you Then I on approaching sales top in assuming you’re no XXXX? of First, gave is more given a no there have And on? you that take you going tell sales in XXXX. guidance a in assume follow that’s going Or similar burn

Joe Berchtold

I start Joe. is will This these.

on the of next to festivals scale we terms focused as and the to first. the summer be on particularly returning amphitheaters In sales with indicated, timing, we expect

the on expect usual would end timing So around I we of year. think amphitheaters which the the typically of that for would those sales, be

expect get So year we the of to full loaded. bulk them into of end we do year. back same; more on of year to the sales around as the few expect the half quarter the it don’t the the expect for we the somewhere a we be be towards and But first

Second question.

QX. to In call the of more cash burn have we terms relatively is cash I’ll inflows, what the with similar it in burn, limited

both we status that contribution guide both thought the point give thing there. quo have increase The we to we’ll So better we is the into closer. substantial. increased are inflows costs, at but is you assuming not, visibility you on move you as more we we’ll to as well then we sides And obviously, us margin which did through would have or ups there some simple if numbers scale as cash some it status QX. and at we do gave prudent But as the burn activity have get further give quo. as and on, ramp QX, from we to And going increased this more

Brandon Ross

there? you talk happened widely and it with guess were to rags in reported Got there it. was met what for that the terms the adjust about artist festivals tried I then and Can pushback. And outcome? you what was shows, Hello? forward you at with share contracts have able been contract And for as going XXXX differently and And structured from your shows for maybe how XXXX been all? risks you have to artists

Michael Rapino

press different had to for work artists for managers. got and which look living, different terms agents in Brandon, in and bid a is mic. to that. the job in too hold bad, Their because trouble job these different with a Sorry, meant on model. with be business deals wasn’t was for Yeah, progress, a I shows times. is That’s my it are the of competition, negotiating our to We,

So process the is always fluid.

The you this And agents, biggest we restructuring than the and some really more just with have their year been the very you anything trying of that have had I the we say that compromise XXXX. to I mid managers do the But XXXX the has that to doing cooperative, and we it was just This in into wanted what on was reschedule it guess to our side and obviously the understand all to artists amazing show terms to had incorporate promoting would side sure all the meant industry be make year, overall next been got negotiation if We’re agents and It the risk met. statement. looked, back accomplish reported, step that. all refunds. wasn’t the side. wanted be we as to was would could wanted a dealing a

know been concert because festivals started have it’s know to we local bigger the Now tend commitment. renegotiating. what cash into the average were we on an it’s And as head also just we’ve but seen, didn’t as your really outlet, on a a as do don’t we But time surprisingly refunds, higher strong much rates refund side. going bigger are concert. be They to we

going that was So both if year we are some weren’t to certain you to wanted wanted things the stuck we refund wanted those two of risk we XX% take wanted same to a that on shared in reduction this were to year, and are make if rate XXXX we sure still drama from we had festival to that festival. XXXX, if insurance. press, the price a was paying are Those we sure two two the all and the make principles, the refund aside a the things that we and and protected headline in -- a you you to sure it next make play artist wanted a play going the

upside. back at then same manager and the have rescheduling should that business in and Now in sure the ended all we two to the artist looking all who it incredibly making we of tickets some every accommodating terms. place was in taking and refund agent been those XXXX in up all if next and terms share and on year’s for promotors And insurance, are through the those festival all sold clear and shows help are

win, was sense the the like things most net of any P&Ls. We’d for are that important all. the and So that it into wish rest result points those negotiation. head made The list to were as all we of that for a two was business festival our but

Brandon Ross

that XXXX? XXXX in are from structured than that differently shows being deals? for about were those historical pushed not contracts What Are

Michael Rapino

industry in basically overall had show general our Well, you every that basically I the to doing. in what chance did say Every it. canceled is the show Not would was to some sense. you had Right. cancel

boat. everyone So the was same in

all slate. starting a You with were clean

So doing and it say and well, to that COVID. and artist wasn’t of sale a the if you you I pull with down to go tour decided regardless it not would had on was you it forward

the and number have to the that the negotiate the So tour on look the and et at at at go-forward of opportunity manager best you you and artist that what that and with any dates, strategy. show reschedule, and was deal agent cetera,

be and about of to we guarantee is spectacular well year stuff So talk that -- sense that high pushed a can demand. was XXXX all selling you the anything the stuff going in of get did the was

XXXX will our any of what XXXX reschedule all XXXX is ahead of going We Ninety-five continuing with -- to we So those be that didn’t substance. have season anything still of shows. for really are was year. XXXX dealing stuff percent sale on to next shows

Brandon Ross

Got you. Thank it.

Operator

next question David is with JPMorgan. Your from Karnovsky

David Karnovsky

it And can there mentioned Hi. otherwise terms about look how XXXX might at amphitheater artists or Thank can look talk coming footprint so in you lean your arena focus that of played you on And can planned how into amphs? you. the book stadium? an all venues? you before, you you concert much initially, season, back maybe might When

Michael Rapino

outdoor in. start were mean, what from of in a outside festivals. shows then and America, their season America heartbeat what first, The small to to our about international XX% I’ll of is going we’re of XX% I Joe lot the international, larger business. is happen business think festivals, summer you will versus here. jump doing It’s so

boutique they are as to what of we do Most and have be high will So well. The think Europe those utilization our will already here, next we of outdoors. going be well summer, summer business season the festivals. as advantage our XX their do continue amphitheaters

So, then would in outdoor the business strong start stuff of yes, will America, fall Europe up at to as we your and festival and now ramp in touring winter. looking right business be into most the a indoor amphitheater into

Joe Berchtold

I’d to a thing come our only think a add The going advantage. our managing really large where of agree. place this our number is I having, buildings to I is Yeah, is

the these So hundred the then and the festivals we land clubs operate we number have of manage buildings, buildings process the theaters fact have of have that the one where outdoor, and the the expect them. volume processes we the for because we lower leases on because happen same some have and large sooner all them. XX gathering amphitheaters the And those of that activity as that that than can indoor we manage we would even have can with plus we some the with can will gathering of people we the

will to. otherwise I think than we be able would let ramp that up faster us

David Karnovsky

I markets level at did get being you mean, of Okay. XXXX are countries with or think to you point? you this scale summer there capacity. earlier some regions think done at international where limited some prior Then to operate concerts where other I mention can you

Joe Berchtold

the start, that they along markets, one I and timelines. be like path. will small that in towards the structured Yeah, moving shows whether mean, to a be They’ve other seem to seem the New the of Denmark U.S. be very forward looks moving good on place Finland, they those plan all those some a when can had all Australia, Germany, we but see it’s markets, we longest Zealand, news, definitely,

unto in talking before those clubs into actually to expect in markets although do the countries business return happening spring. XX theater up outdoors a about different be to we some we’re and So spring certain arenas markets of operate from especially

David Karnovsky

Okay. you. Thank

Operator

from is Stanley. Swinburne question Ben Morgan with next Your

Ben Swinburne

their good some sure, getting at music Michael, seeing. back hearing appetite that more or lot have that on What are progressed. afternoon. economic similar And postponing relations fans a help the in the then get road maybe you something go rather than fans to to I money on would faster. thought revenue on a Hey. on can you decision back have their new artists the or point. canceling cancel have. get some back I artist sooner environment? as versus you know you be a their bit question releasing was think little this know who deferred been decided to that that least about process on to I for the trying a Good there are road I didn’t evening later? either Others, sensitive around postponing, the you I’m pressures if are with are from their, to follow in had grow And year just up order

Michael Rapino

not a showing were was call sure some out statistics we debate change. everyone earnings understood had whether touring to make when this. had I our that a then of fans back it structural think last gather got would that they you Yeah, was There

be won’t long lots play of on doing The to anytime artists DJ this we’re shows we soon. really, with sets they have been in we think we ideas don’t really, three faster. business gather just can now. better figure have got going Hamptons say out have learned one, I We months, if they anything that short-term could we you would to I so so how do on in to we

safe. going along We’re to play play and

the I nailed artist, talking to this an So it. morning. was you artist

and elsewhere, to keep slightly saw happen they down need this I label machine also the going think see think you’re you I the a record as boom. because read I to releases week new to touring moving. creative

So to artists safe? have saying, dying am new to yeah, to you music. are I go? are that music. we can XXXX keep calling When going new going be When’s I go? I me I it think drop want got when I to all go. daily just

push what road these regardless on we we get at, their why the will to is who drive than music. scale need of quarter artists this think I business exactly all ever believe the to creative be long-term with the stronger new So by

what pent-up. can I quarter XXXX going artists the on XXXX. wait into of all and were with coincide XXXX XXXX, road They’re XXXX, morning. to need years the to powered schedule record the now They release be now in year ramps to we They with talked artist debate until this backlog will and road by exactly economically who So in tour waiting. an in crates we are on going so March they but they’re to get November. later are can they believe the

So huge demand.

the very are We ongoing gifted on of with incredible creative lot connecting industry road. chain, make supply living have a in this fans and we who that geniuses their

to make we it fans will gather. to We craziness got that from sure we and So are continue, can do now know all across America, the just safely. of the we have going seen

postponing, want really have things that not got As events are narrative to didn’t money. government the offer to far We giving that was industry. believe that many we it. and to companies shows, for deferred we fans early the We to still offered of decided There refunds But as also. ones refunds, postponed canceling and on done refunds on that cancel even are leading need sure that. are the and you postponed we revenue make any false one we’ve

go, are because on suppressed to Ticketmaster look at see be very an those our that when So just to offering refund if any wants that business the offered back. It others. true, an fans our to options now artist it’s is figure on I go looking to right we it run even money because you maybe wasn’t because for a if year happen his the go real. site you our at get both wouldn’t We now; you off. tour. sold going versus going out on, at get both at manner concerts probably right any easy older refund. holding get it’s see canceled try other it I’m a easy numbers artist if and ticket actual to May was we believe not in take a versus higher We artist We’ve number saying, sites, options. rate take to refund for I’ll is going versus a back to an make very postponed, it to may at believe that they’re And Ticketmaster be he road, the about talk fan not going we’re Ticketmaster,

they’ve So that you’ve those seen ones said, just wait. I’ll some of

more to a tied ready artist go record little your demo. you’re probably waiting younger and a you’re If earlier, releases, to still given really probably

Ben Swinburne

I it. helpful. the on And at may for be revenue was revenue. detail. the quarter is you be end thought That’s said Got think, Thank the is It’s the the of expected. you would of million. I And confused. deferred just higher at then the events, end $XXX some refund about year. there for number, obviously activity Deferred billion I counterintuitive, sort which it all you $X.X think the of given

sales. I include you benefit that from on any think, did Joe, said not

So I you? mishear maybe what’s just Or the did reconciling item?

Joe Berchtold

Yes.

refunds small. that it with ship needed we use the then second it, deferred our that term revenue to because been regards of that next XX modeled ago is we taken And the the heard been perfect, happen. over to That’s would’ve are revenue. important includes year events an that months. be additional things. nuance deferred in Two the have $XXX place deferred that million, over deferred expect Because So we as this pretty past to never a model of If XXXX, shows the what Ben. we deferred revenue next the revenue tended were we’ve But One numbers has is, things for taking you into into million when model the out lot already in right, part flip out of long-term deferred six $XXX to half of because $XXX about of as revenue we a months. to second million able over deferred that is case, revenue, will for we of out.

$X.X XXX rough equals So your plus XXX billion the numbers.

Ben Swinburne

year Thanks it. the for be of experts all hopefully. by end on this your the Got help. We’ll

Joe Berchtold

day. forward you deferred. look we’ll then more to selling And tickets that We confuse start to

Ben Swinburne

Thanks.

Operator

question with in a Khoa queue have do you And Instructions] Jeffries. from [Operator Ngo

Khoa Ngo

question. everyone. afternoon, Good for Thanks taking my

a a on If M&A there’s bit and distress there. focus out you can of obviously, opportunities, lot just little

I to cognizant sensitive So the with be and want question.

you’re and So your general what to appetite wondering consolidate seeing opportunities. terms I’m of those pursue to in opportunities what just is

Michael Rapino

last it mentioned time. we think I Well,

as look foreign believe for I to build to basis next our we’ve have market us markets and a share. footprints be we in been around. global looking global on some get to to that opportunities And and global into our the international we ongoing look build think continue over months businesses there’ll we expand XX that

will this time in over markets. that think us some do we international provide yes, opportunity So,

Khoa Ngo

Understood. And cost pivot if bit can your just little a towards cuts. I

about You’ve much made clearly $XXX million I permanent $XXX million you’re forward. wondering $XXX the going around were now a and think of more how progress. believe and lot you I’m just was of then structural, of that $XXX XQ is pre-XQ, million numbers million. more that at

Michael Rapino

looking through and bit process, at don’t we this tighter think that give do we’ve structures, leaner, to we’ve a I expect out some bit this terms come we fundamental our organizational been things. with no been how going of we’re structure going in Yeah, number. we there’s different will some do of exact question cost you But

definitive So to your and into that. you’re up; getting quarter to savings. beyond, you numbers continuing we expect of that XXXX grow that reinvesting that. then have over the then much a more XXXX right, How in two, will is portion you’re But next year or we’ll ramping see that, and some of on more of some back give as

Khoa Ngo

much. very Thanks Understood.

Michael Rapino

that’s sit to this you and bureaucracy had your we own to to when launched XX how your part haven’t build you and had to in. years add like and have only are are give sit isn’t obsession looking you opportunity gift go we slow not on XX I luxuries to never market energized to X.X our and And or of is say motivate market to around our out operate the basis? going Live to teams are global to with, products the me new main and to Joe daily what I this just would still a is would division this going rust that under efficiently And up company more level Nation feeling since go division every will down how ourselves differently? into need on have -- some the heading so What back years ago XXXX. But color, probably rock and but challenge to you own felt different. and does we that by come look So we I look

Khoa Ngo

much very the for Thanks color

Michael Rapino

efficiencies our ongoing add as well. Will which cost will hit -- structure to obviously

Operator

Stephen Cowen. from comes with final Your question Glagola

Stephen Glagola

to difficult business. you may some maybe And like full if countries reduced capacity, then cities maybe revenue Hi. And at or the still part -- additional at most great. the you that scale, Could your back to across that sorry is that’s press Thanks. the in component X to capacity, or you If governments in And any revenue like -- you on the release streaming, be What during would XXXX? phase as guys offer a that an XX% and concerts me XX% long-term the able festivals being are define to the summer in opportunity? put pretty internationally, on the -- products talk that live speak international to you the other being opportunity as confidence various return and [ph] will excuse events say concert incremental to amsen services gives capacity That openings potential are adjacent for be this can U.S. or time potential allow when scale bring revenue? the you new of additional of look in capacities. we expectation.

Michael Rapino

right. All

go Let me -- ahead.

Joe Berchtold

streaming on Yeah. then start backwards. work will I

call have XXX business haven’t opportunities we studios that we’ve club enough natural have provide advantage XX,XXX events. these the the on. I we at think sense great streaming the shows been in focused and theater in festivals a execution do digital incredible And alone, and they we but physical

biz us you’ll some year new new we’re great business. in think core and from department But additions. in we see I I the deep at devev that think So our [ph] products work think are to complements

sponsors. sponsorship benchmarks reduced to their they’ve part well value. although capacity, a base, We such some of from Live the as some not Adding deliver have helping of own, have also a with some been concerts has alone drive-in as sponsors tools Home you perfect huge provide been when and great on big XXX

I you’re So think right.

new business. You’re see products us our some going we think to that complement launch will be core great a to

As lead. business, on far confidence back just the as Joe, you and could I you the so were that to discussing take getting

Joe Berchtold

Sure.

To your by normal us, model we our So for concerts what question on answer in of thousand of the summer, scale a all, mean first tens of doing business millions scale? be to we’d several fans. quarter

Is right So type predict volume. year to it’s Is But it the now that of is going we’re in it XX%? last exactness. try not to it? percent What of XX%?

why to going happen? A we couple think So it’s do things. of

to the the approaches belief that going happen you something efforts moving experts. and their or year multiple First end comfort. are that of listen predicted you have vectors by Faucis of all, I saying is different ago you gives and one where to the the they on front their of think terms different are of vaccine multiple faster the in with The than of the expectations world is some three four Dr. months anyone if the vaccines what

on potential treatments. treatments, of drugs, it. reduce perhaps over other rate a learned of in and terms remdesivir the medical the in amount The months helping the mortality other We’ve huge the of to obviously made past others, the of antibody being the in community of four of treatment, terms terms is use progress the as a basic

pleasantly has still So far terms so the progress us, about on been talked of tracing providing is probably treatment science vaccines, thus testing, as in opportunity. the overall ramping the testing and up lead tracing, the we’ve now also the the and bringing but of we of have been between surprised facts some slower

two-thirds canceled So of this the believe you’re be the their to we wanted summer. be that the on a of there. that about, say the amongst today would have on demand the people do getting shows, keeping high to of is year reasons we’ll the out year for show tickets beginning sitting by to next go instead they still for saying we put but of were we comfort sale tickets degree put I that tickets the the talked to to have then to facts that those think here the that refund. the going their keeping canceled And year, next tickets. of able people their able XX% shows The festivals

promoters would of already over sold which world. alone, make we largest total have sold one in have shows well, X,XXX tickets in XXXX that million for So been us XX the for that the already

those together comfort. factors all So gives us I is what think the

Stephen Glagola

of the then down Michael, one just and think I pardon but and anticipate if do in slip reopen? also that John or business you questions, independent environment this you on, could venue Ticketmaster Thanks, go owners concerts the could impacting just How long-winded and close more will if you and used the to discuss viability bankrupt?

Michael Rapino

very very, just with side would diverse global the it’s less small a a macro on a Ticketmaster business I level. front, venue on say portfolio the on

end of then a and day have a which business and is concerts. business effect limited sports very the large of part big it on big its Ticketmaster, at basis has global the would So there. large venues

there, programs that for see business ongoing it any be stimulus to there. in of whether live venues, like think in and whether countries, the general, small the the it’s say looks I employees, the effect life you’ll seem big. this the U.S. maybe or that So don’t it’s coming would in most effect now, to

boat. government them time. we to this I So some are have Listen, ongoing through support the keep would through assume all in programs them afloat would of same continued

reduce get hopefully, together, figure are costs, through all they and support out will to and are also. they to looking I find think the how banding We systems and downtime their

Operator

this in there at no queue time. further questions are And

Michael Rapino

you. Thank

Operator

for participating. gentlemen, this and call. you conference Ladies Thank concludes today's

disconnect. now may You

Live Nation Entertainment (LYV) 6 Aug 202020 Q2 Earnings call transcript