LYV - Earnings call transcript Q1 2022 | Live Nation Entertainment, Inc.

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Operator

Good day, everyone. My name is Hector 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 First Quarter 2022 Earnings Conference Call. Today's conference is being recorded.

Following managements prepared remarks will open the call for Q&A. at given be will that time. Instructions

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

Michael Rapino

our financial the course consumers and million. with remain you our never for as delivered been performance first the business. picked our on results sponsorship GTV, shows for The profitability this the live us. restart. result, of are drove road company's back that and XX reflection businesses to primary excluding our to highest month leading reopen, a well benefiting us of ticketing, Good fan first the fee-bearing Ticket from overall markets over how to up second only serves concert GTV has overall $XXX we some our as ever taking which lives greatly stronger. In Despite deliver for AOI highest afternoon to Artists helped transacted XXXX. up quarter our are refunds, we quarter quarter priority transacted previous events longer gained has Ticketmaster's tickets And have was quarter. expectations XX% record all strong of year. now the relative in QX and XXXX positioned social businesses performance trailing GTV transacted a March XXXX, ever. surpassed clear drive being of the indicator we're the demand with million our as a and for new Momentum thank joining buying we

this as ongoing well into also additional content setting was new for as new up quarter X with Venues This through year added creators, tickets growth million us contracts XXXX. and

growing market XXXX market Our pricing, XXXX partnerships demand team leveraging events. to and continuing average than up its artists contracts and gaining enterprise as quarter, relative even choice share by for across the And creators, higher effective and continued signing high teams, retail fan of was accelerated demand secondary events, growth be at marketplace. effectively Ticketmaster as Fan faster fan and largely pace, expected runway much how relative sporting well XX% market up demonstrating to the continued for the ticket up pricing, ticketing league by pushed efficiently. of GTV the driven NBA even to price a NFL, XXX% live as Ticketmaster, other there and additional reinforcing for platform new this double-digit is the most and content tremendous demand

doubled our risen telecom has Our past ad sponsorship XX% the exceeded of We're of a revenue, onsite path about categories dimensions, XXXX. come number particular years; collectively this expanding across three partners accounting and created in XX% existing XX% elevate growth of well results than relationships, new XXXX. partners priority recent both being The we per with strategic and since sponsors year of fully purchase had delivering since number We've and of sponsorship that generated million seeing span Much revenue our for committed technology, and how up breadth of over financial this XX% our more their two With brand the XXXX. returned units in is from online. activity over years. sponsorships total that success categories with of growth which collectively experience. great of new fan $X almost has focus our has to expansion integration, by QX,

sales for indicators, relative a And so all fan us partnership in with attendance expected reality million now and year sales to through to in have The over continue to ticket Verizon, compared continued to are up the performance. in activity leading XXXX. fans our relative XX attended augmented concert flywheel positioning our capabilities planned our open. more of continued XX%, show XXXX. XX shows and But point, to at months we end edge to us point up connectivity April, up year. we of million our with XXXX, to started importantly, sold financial first is year, XXXX growth double-digit the XX% At our powering XG for give up cutting year sponsored Approximately and are launching count XX% the limited solid with million Venues strong this with tickets XX for over to at division, million, early and festivals. concert of we artists quarter XXXX, in far shows the setting relative and was planned digits for concerts committed initiative sponsorship the shows for this our through allow the double to for we markets Snap to XX build as compared to This fans

to We at the in have US, over per for, average on up see to we've our for spending pricing double-digit are to time same $XX, market. revenue market-based fans under shows no up XXXX. and price in embrace particularly the low on spending We fans to shows and across two when shows Early the quarter get on fan in level get they remains XX% clubs in average with fan rates The the indicate also. types almost XX% with digits. revenue had the lean concerts million over few And consumer XXX,XXX to all artists first fans our year, shows At tickets they continues this price fans levels the across continue enjoy in in average and theaters also up reads US industry UK months show had fans. the attendance the relative per the festivals entry a XXXX with the continue and to the showing their with resulting for pricing, shifting venue to the past approachable secondary million ticket at four tickets, US all XX show. generally increase arbitrage at best for from the $XXX the in the reducing mid-single

Center and and of go tickets with in fans activity point ahead paying rest for sale Nation, leading the continuing sign pipeline levels and are site tours the slowing concerts with indicators summer we to with sales the lifetime Venue still recently to at sold best They're ever we attending February and on record making choice. they to and scale and the all We year, in of in us create March. Live building number is more Looking are this optimistic to spend year more of Sponsors as festivals this adding momentum operated to reinforce just concert in XX million in open memories. and this XX QX of as addition Ticket more build to on platform down. a tickets, record showing platform our almost were global time including Nation's the than We're looking over Venues, large entertainment financial spending partner Austin, on in Moody going of XX the XXXX, shows more that are year. this remain no our the levels of getting results. Venues year live

the and US over world past the up. the driven is opening rapidly year, rest of our activity UK While of now much the have

this of Europe Latin year. are the just addressable Assess exceeded quarter, long this for to all and the and continued our and for ticketing our continue global attendance sponsorship, the financial concerts have its start expect for America to to run, record runway concerts, be expected Western growth. a this both provide XXXX I performance markets for results

Joe. discussion With growth. turn our XX that, year over have I'll already over We ongoing XXXX, earliest great indicators for of in for positioning tours next it under to

Joe Berchtold

good Thanks, everyone. Michael afternoon, and

QX understanding performance unique and the and best XXXX, operations terms Given our XXXX comparison situation XXXX in of us indicators. key of in for is the

ticketing, better $XX the sponsorship So $XXX XXXX. in quarter. million, previous million million while of This our led in XXXX and was QX will QX $XX of to than $XX of Overall, will to record provide AOI by in had QX an around I our be for concerts. relative some of our AOI of by relative $XXX results improvement exceeding most ever been our XXXX, our million million first was commentary focus XXXX, million $XXX highest which quarter

you more Let I give Then on give division. each XXXX on bit leading more me indicators. color a will

million than $XXX it AOI ever of and results the the of for making in million. ticketing best quarter doubling delivering was a First quarter the again more ticketing $XXX AOI, the QX second star XXXX

board. loss impacted of pandemic resulting successful XXXX an the of was million. quarter first $XX The Ticketing in across was AOI by heavily the

a me Let give the key quarter. statistics few for

than the excluding XX XXXX. tickets GTV XXX% XX% quarter respectively. with the GTV ticket toward relative driven higher overall after with XX% XXXX. levels ever, primary and volume, XX% came And growth pricing by resale, average relative of highest and our market-based Transacted from more XXXX, second first $X.X refunds help both artists, was our in than QX and their QX doubled demand A events highest indicating to of live million our XX% capture tickets, This were XXXX. events all excluding were respectively across GTV, and sporting excluding our was average our billion, Transacted to ever XX% full X XXXX. GTV seats outpace secondary for to and ticket from Our fourth concerts and grow up refunds QX that ticketing of million GTV and top shift sports QX whose while ticketing primary higher up value to the prices transacted double-digits refunds quarter, quarter resale others, up quarter to QX continued the compared price more increased teams, first continues by of for efforts events. XXXX

digital since are in digital direct of the into foster digital the can we QX XX% were level our seeing this norm from digital live using XX% now As way events to to XXXX, accelerate games our in QX now of XX% XX% of have with this NBA become and we enter of globally fan NFL the effectively XXXX. that year leading our broadly, With across fans XXXX. QX relationships XXXX, first in tickets tickets and XXXX. More efforts to up normal tickets with of relative the QX adoption,

to opportunities. and with online sponsorship the of expanded Venues up Next, ramp continued reopening

expansion online relative of sponsorship of to advertising delivering As QX growth AOI O's strength XXXX that by business, festivals online each AOI. new a the The brand This QX XXXX both versus our AOI comes driven $XX and was the by and XX% million across $XX addition QX and in XXXX result, quarter of record launched million. grew onsite of partners.

million in our $XX of in and which $XX positive of to of a Finally, million, in loss QX compares million of AOI QX was XXXX. of loss $X AOI a concerts, XXXX

open. more on these continuing the indicated tours we be for even nearly typically events XX and which In arena last our all we of the XX XX% fully in this first X,XXX driven our been had to US and of for QX fans types we performance, quarter, million UK, comparison, X,XXX led million QX the resulting attend fans accounted which shows the In As in QX be has drives this seasonality fewer historically quarter concert and by when year the XXXX case. had that and call, markets venue planned than were almost all QX year, fans. of will

best by digits off through was shows the late up for price of April entry for first driven average rates seats. and our levels. were amphitheatre XXXX, than At price the to ticket that playing no-how club the and same sales less quarter time, double than ticket overall $XX $XX again demand less back this mentioned year, For our shows. pre-COVID to relative remains for average mainly Michael

to record set straight. wanted a to hopefully the I give So more few specifics

full the our US, at the better through rates Looking year for the than for the or mid-April were period same same no-show XXXX.

were are they and X% par X% better. clubs, up, X% on were arenas, and theaters they better, they For for for we better amphitheatres, all were

backed don't so have metrics but top used In but on had per in is fan generally have rest fully haven't had well impact those any UK as and on ahead seen any yet, issues and of We we our and up US there festivals. average theaters no-show to and events on line re-openings enough quarter gave any the pre-pandemic, general, volume not for long-term and the markets clubs growth first Michael the meaningful Venues of the world, any now there. strong rates of to you XX% was other our the summer expect both revenue last we shows. outdoor evidence

make strong they of For concessions the have the increased as onsite theaters key upsells growth to concessions look spending purchases. by heavily VIP most and was driven drivers onsite to the clubs, and and festivals, show. going All continued and indicators for fans include

Finally, concert we have March less the our and on to X% impact COVID schedule around US, less in of our continues only and concerts. by cancelled planned

XXXX, at end of As indicators stadiums we for bookings April over overall XX% arenas, amphitheatres, up and through confirmed double-digits X, remainder leading the each up look the and festivals. looking are our to show of

tickets year billion fee in which million tickets higher events, XX for than XXX of XX% to is sold bearing we events over has XXXX, $X.X XX% these, this, ticketing this million deferred Second, in from this have up event-related point revenue, sold Ticketmaster Related XXXX. XXXX. do flowed have been revenue hasn't will in largely yet almost but of this for Live course QX Nation tickets events the twice over the of so by are concerts, year, These as happen. AOI that level through the and concert

sponsorship in for of XX% commitments side, we XXXX double-digits overall up more net this have are revenue On XXXX from the and point than sponsorship our set. plan

and us we're side, On obviously cost to the These labor closely general, festivals. associated in we costs with both hit amphitheatres, with and increases and in tracking cost the and supply inflation. primarily clubs operate; Venues chain tend challenges theaters

provide which million per place. that cost this as guidance Venues place. set by and well $XXX a of divisions. this talent average and projections is clubs, acquisition, OCESA building expected Venues increase factor mine the base, broader in this per flowing all which year, line fan we services XXXX. our and these light items variable fan expect will X% reduction excluding points below of increase amphitheatres per largest A across In XXXX, of our and fan well we with AOI the fan, impact earnings given and This a operated is to year, wider labor we below expect our is few costs in revenue our revenue the growth $X.XX of costs is remains AOI, given last theaters variable to per ticketing share we our which For most with offset we below Helping deliver now in talent Across $X the well Festivals per other OCESA ticket in involved relative Mexico expect to remains have cost equipment will fan. year. in Current range grow more average on these results active that executed up still we our per on events. few profitability to our fan costs through levels year fully full so are wanna be sponsorship their XXXX calculation. excluding have entire exercise

these investment we of two XXXX. the expect depreciation amortization, roughly line years. OCESA the addition combination the on of by our to in CapEx and and be with is First The reduced over past M&A in offset of impacts accounts

With strong joined and are expense the which double of of acquisition many XXXX ventures, festivals, anticipated expect of performance OCESA levels. non-controlling interest be roughly our we will

acquisition. XXXX We are this compared attributable increase increasing to OCESA million Again, to is the the to projecting be about $XXX year. largely

As financing expense a additional roughly the result our million $XX per quarter. years, opportunities is the past over of now two interest

our expect and be grow generated to We this of anticipation two flow Finally, cash cash with in flow expenditures be sufficient with will flexibility of opportunities capital line growth. tax million fifties the giving spent free year, back $XXX billion AOI invest in expect XXXX, of free we expect ended us ahead in available year. expense to comparison growth. generating thirds QX for $XX in with this revenue and million to continue AOI this In $X.X projects. liquidity on growth of capacity, cash XXXX we We the the conversion approximately adjusted income free full to to us revolver from quarter and untapped between

comfortable X.X% and call at the me cost environment. debt XX% interest a rate With positioning of in with are this is our our with open questions. our let fixed We roughly over as of for average that, rate leverage well Operator? debt

Operator

question Please of from proceed with first David line comes JPMorgan. your with instructions] question. [Operator Karnovsky Your

David Karnovsky

leading of for you. 'XX. Thank Michael, right. All you've lot a indicators given great

think put could relative to that. be, jump the tours elevated context what and organically you for ahead, this to might much of number you to continue backlog pandemic of and how way of some your through footprint? that sort kind is discussion mention you work XX a of hoping release and be through early normally would the that you on versus is there So in kind looking to sort apologize increasing How was of just did at I 'XX but from around

Michael Rapino

no would've out thank flushed 'XX 'XX XXXX any The the we really is is tours backlog. Yeah, wherever. year where you. reschedule from 'XX,

pipe. want business kind very a back it's call is of to if XXXX yes, vibrant almost So and you to

a I years, going think and scale five we next where look is going XX% We to almost Date, if doing kind be back Investor industry compounded industry we to year 'XX, want again. we high we kind tend think did said at growth, growing back to industry a growth of at we the look at at looked full the at can and the the basis. you think industry. on to into outperform you that It's what sector of quality the

'XX a, want you of record we look we be if So it in coming and think at call will we're multiple of off year record a for 'XX, years growth. to

David Karnovsky

extended follow generally of you that level any some you on provide And Thanks. higher. Maybe given team I it walk and NFL that's the just past, stable. to was market the then could in I of a on, tended Grant, of gains, to for Okay. whereas through share particular, growth drivers to then to competitors update you drive mentioned XXXX. shares kind if strong initiatives, to the league could we taking in and just just you now relationship your the wondering some speak think you the Ticketmaster, you on is can there secondary think as of just seeing just you're of as or

Joe Berchtold

about four it the do the ago, industry relationship as shift Hey the what's the and not guess, is How We We technology and years out five David, a related. that entered digital agenda. talk fans, out well figuring obviously great, with ticketing? NFTs we how said, I is for we the next proven on the leagues, very I they COVID NFL surprisingly, worked with was the of and to next and for all and mutual for successful of this with NFL. was back the now years. identity-enabled are And to relationships take said, technology the the for driven Joe linking better to that's up this NFL Start deploying as really questions teams understand do it. them I'll partnership strategy with Ticketmaster think the be coming

do what's the we is of and know the with the it's can the we How or So relationship technology really to work relationship figure technology next together use fans. point we of the starting out the continue unlocked. core

we'll to We're So a the renewal. led continue NFL's and the think that's excited We be. what it. been about great to partner

we our driving in smarter interest as at alignment you continue secondary. use as and naturally and in So the with terms Ticketmaster us lets fan That mutual do continue get to well. our Ticketmaster about and league smarter of share the to the teams the that,

So use our and fans on information data of to the a to all we're be have, season the to provide assets acquire customers, great for to buying to taking all holder share them their ticket working we help inventory, the drive marketplace, continue all those all we're tickets. experience great with a

Michael So combination is quarter which increasing of led the as share to first those of has secondary to doubled we've XXXX. part of how in about talked relative all

David Karnovsky

you. Thank

Operator

Stephen Your comes next proceed Goldman with your question - Sachs. question. Please Laszczyk from

Stephen Laszczyk

Great. questions. for taking Thanks the

think I of there's the start, on macro to front. a fair concern been amount Just

weeks I seeing initial spending little any they end to once think signs to few that's habits, or remarks, purchase a of points inflationary on venue bit from you're of on was difficult but the there. would be data be a your prepared the I if the whether touched changing what's the out curious last their turning ticket You pretty helpful against Any get at environment. consumers

Joe Berchtold

think I Joe. Yeah, is this

March in April, XXXX. the data ticket continue months we're points all relative the be XX% up of plus seeing at and our think to were sales strong. those as very we that ticket I Look concert sales each of look to

we've some now. the think a and months and few pressures, March on of so April, for through these gas seen So I

substantially the spending those the on the all So the impact We pricing, impact those EFs of not and up take just a seeing rate no tickets ticket on weeks, again onsite few the XXXX. sales. at seeing about no concert relative talked seen to so we've

So no impact there.

we've the pullback So from have looked in consumer that it, not we all behavior. at angles different seen any

entry $XX to part overall continues is a money on spend continues to clubs out this amphitheatre. want away that. a life, ticket social experiences of for spoke the lot of conscious night get $XX And be out, on do a that think people what from to have spending I to we taking goods. need or to be for very price to we average affordable and those It a for most of that be

Stephen Laszczyk

you Thanks. release, That's on and think you ad in the to create helpful. more some inventory, new I on talk units and opportunity time opportunity side, about that and And a then help the sponsorship in categories? ad if pressure new much online. it little wondering to bring new whether over this you site of was mentioned how the might create bit both I expect

Joe Berchtold

the to experience as product some great on experience. seeing Verizon, the augmented sponsorship to of Well, very products their technology's and to path whole right? categories a the you're the the how it is a onsite coming infrastructure space, that great the with reality in enhance driving development, creating that new with what's product of the new We all technology and is space, throughout Michael XG with purchase the in even enhance of snap growth lot and talked FinTech that's, ways Two about business. integration, ad in categories, in with site. explicitly year the about what used up design creating being this talked organization, examples putting live connectivity use

more as tailored work we on this more make more the with about, in that are digital Ticketmaster a to So data that continue fans onsite on for we do all got better fan great marketplace, brands, the is from just really were that do about with ad units the partners looking to those with you that we how the experience? and we and how possible to opportunities as work make ticketing do piece, make we sponsors connect talking more And that better to tie then and more have that well. and increased create we've

Operator

question proceed question. Ross next Your Please from with LightShed Brandon Partners. your with comes

Brandon Ross

questions. taking Hi, thanks for the

kind themselves, you recession last to out and results are. given you inflation discretionary affect as wanted that are now moved how Just at the deeply but for and the possibility prices think do the concerns build laid gas think about of consumer how to investor concerned, positioning analyst that you I of macro How pushback and has your speak the would insofar this out? point, company compare different of the acts industry can you kind advance, is flexibility much looks for if and booking there very in XXXX how that scenario did of a less in of next recession know lost were and kind played and year, those in it pressure, macro Your of we when than contrast I far kind contracts? you those

Joe Berchtold

ahead. Sure. is go Oh, Joe. Brandon, This

Michael Rapino

think advantages artist road always is go I'll variable. of cost and on they're in. of of variable, great is of set determined we the no our the if they one good pricing jump business Joe What the is -- and cost right? So there start the is was then I good. The and is by

and row can move ticket advantage back it's front around the price reducing end total of ticket that something market of the taking that's the house the whether product the or our makes down pricing, price pricing, to of the moving meet that on demand. So in the overall the under-priced or

most is fairly the consumer, historically the industry is still, proof. still we've entertainment as recession choices for but It's affordable. one of top an three So this that's seen, this been

recession in that take not may trip. you So a

have and a amphitheatre for or night club theater but purchase adventure a or may out You of a out the and the dishwasher, you have not a down a to large will go still the great value.

is looks this historically the seen recession, always great do. as have value over they package. actually maybe a concert pullback, And if was even afford to high to there we a item time, that a something at consumer can the priced, it's during still still So higher travel the alternative a

that it house, option will very house. see can we be a and So one consumers one, the ours, we artists pricing same a something as for much is fill a continue have the everyone always will motive -- we in the pullback, affordable any If still think adjust. to get

at of Joe? dynamic So house up we look until always to the and say, right variable the we show, the hour how get pricing do options full.

Joe Berchtold

of just that didn't a is has and is Yeah. And secondary on that first have called very ago we information even XX the build no level have we market. -- now industry almost years to

first market that So have is real a great shift of again, pricing what defense you supply can pricing experiences, go level, that's on have, you before the is spend then knowing which wall that recessionary the any impacted. we in we to tickets, flexibility, along. of first billion And to along our think benefit arbitrage on is that what again, have pricing's that dollars pricing price out of adjusting Michael's that, as of plus of with comes from dynamic point even time, and environment And experience the on the to our on from -- one exists goods be continuing. the read we macros so

of wealth the a biggest the and income gains quartile. with You built the up have in lower terms

about Still, there. revenue on we've that got the affordable got you've So talked entry tickets. prices you've good

perceived sell tickets. think as that bring that. value We'll continue to acts the the to with stay fan, on by stay as the what focused out long able is we the we So be and aligned

Brandon Ross

called you owned caps opportunity. you where kind investors operated That's clubs talk can be that and us the relative it's about. at area? caps Great. that And of festivals, you types usually time on to amphitheatre out per least for could remember, not something usually much Can upside the for you other per at theatres, amphitheatre at venue in opportunity there first how stand and the help the then I and those understand

Joe Berchtold

we quarter, clubs the out have the on to theatres It fans site. knew want Yeah, festivals the really we because on with called and data amphitheatre first going in all guys were that this going the some data you quarter on being we yet. what's don't

any to also trying questions other that what tie data on and the on our could festivals So we clubs to were use and buildings, then costs. have and back to we theatres

long purpose we consumer summer, it runway. that have of about in still again, that a do some on talked premium a upsell spend, everybody feel and there's as better how was onsite We the onsite the think the indicator, think job increase a a better date XX% very of on but selling that job to about it. XX%, And opportunities our February comfort doing offers yet and still that we XX%, We leading had and there's is VIP that amputates good as So behavior. the we're marketing the site. of we on taking strong don't give we for we was how in do

Brandon Ross

Great. Thank much. you very

Operator

your comes Cowen. next with Stephen with question Please proceed Your question. from Glagola

Stephen Glagola

the for you organically asset. Is typically EBITDA. calculation, a guidance type as that then that America grow $XX expect and couple Is consolidating the full XXXX similar your more? delivering assessor of question. in growth like baseline, $XXX million in sort should XX% Joe, the bit after about we of and in a years our the in of on unpack Latin M&A for sort model? Thanks of guys year my that revenue that to been results on in Yes. Is plus that able can it's I first expansion, have we just XX%, with million have, correct? line analysts

Joe Berchtold

a me there. couple of So I break guess, into pieces let

to Mexico year both So Latin America and we do expect this well. broadly

that to I only all strong very OCESA think 'XX, would it year much that be OCESA, it Latin having without even a America stronger. relative makes

off. aren't numbers far terribly Your

have for us and kind be to drivers I time as is think 'XX going of be few what we're what of Give more them within there for little keep general to a one to therefore ballpark do and numbers 'XX. start in Mexico the the next specifics They're broadly, ready see updated America our certainly on yet. great over But get OCESA 'XX or to we'll of with Latin 'XX you don't we years. would growth declaring it. the You of our and triangulate.

Stephen Glagola

Okay. then for thanks And that.

Michael Rapino

functionality. Mexico feature there. and they're on only a Both we've down and much concerts we own already We're a upside XX% the still concerts just not living in -- team And remind we, had huge Mexico. we're that with now green upgrading, screen it, to ticketing and you, both a owner Ticketmaster, that it's to

So Mexico secondary, add in big upside Europe. etcetera, to and throughout

ticketing. in concerts So sponsorship and and opportunity, big growth both

Stephen Glagola

of more Rock believe And you year Rio I in on have the segment for Michael. guidance, Thanks big this these had XXXX. one rest just on and modeling the that questions Okay. outsize the obviously sponsorship year and two, this festival impact. scheduled a

because then business about we closer AOI that fourth is probably is moderate also, right Is quarter I as the year, but above impact and in on thinking -- this this just you mid-thirties consecutive year? UK And how the progresses? now, year should the believe US that now of the XX%. margins be do the or the the remainder can this with ticketing of Just, most driven the to P&L this that expect expect to is throughout something, we

Joe Berchtold

Rock Rio, this we've think again year. got that of and In terms I

that rebalancing consistent but we when It's lower said with margins with The you and Ticketmaster taken to if you're it, from and margin right benefiting will get high now, be waiting do So you great. US a is are regard some probably flowing of I is cost the with 'XX margin think it in thirties be and out, would a the international, business. done, right. in through continuing some terms is the this think of which all it year

Stephen Glagola

Joe. you, Thank it. Michael. appreciate Thanks, right, All

Operator

Katz your Please David with question with from Jefferies. comes next question. Your proceed

David Katz

trends, Joe, I some you negative and premium end? and and I Hi Are about all, the at afternoon. pricing comments of the end your for even was or the customer. ranges the talk any recall amount utilizing high things around end. your were of high other more broad-based discussion of know a but average Can at earlier addressed my fair unpack some value maybe investor toward or taking change the there platinum price on kinds you seeing questions. event, There Thanks was of consumer positive

Joe Berchtold

go increase number driven by the Amphitheatres, market what overall to doubled The call is pricing. I the end the high of over the No, double-digit we've absolutely. tickets across we arenas. platinum probably our into based about or think stadiums major

is else show, upward and then priced, anything yes, to than closer than probably on where from getting market market of try been flexing to would've tickets depending or historically, closer the market we the get as to it's more are the price. also more it priced So artist true the

can this, think tickets. the year, of helped commentary the as to the but our million by grown on $XXX the more secondary move growth I has this Even size, you our doing secondary tell artist we've about

So these there it's getting year, we're capturing this move try that to penny not to every out in but even while increases direction. continuing we're that

David Katz

you I But follow the a Understood. it's if probably that first it. And direction would in any in that up are how structure might cash going much how and versus back but a debt. pattern see years, much Is how a we about leverage cap and even X.X years different may time forward? going about in number you think how I that, raise change thinking of

Joe Berchtold

XX% is rate. Well, I gives a things over think that of fixed our of lot that debt us is of the one comfort

us. having pretty a in impact fixed X.X% at short-term fairly sitting we're a with on limited So increases structure debt

level. feeling So I fine our debt about about think our total we're

on robust any based in our from don't to AOI, grow continues an concerns we AOI coverage being I into very total be and think Our about debt. to have standpoint able and our

David Katz

you. Thank Okay.

Operator

question Morgan proceed Swinburne Your Please Stanley. next from comes with your with Ben question.

Benjamin Swinburne

Thanks. Good afternoon. I have two questions.

venue tickets really terms or you in release side, on guys little driving talked about, had X It's talk whether business price, Ticketmaster competition on but the a adding back you're all. strong XX that like any you doesn't -- at seeing about share on it type in any you're context I what We kind Can think of US the to increased and new versus quarter, affecting business. bit hear of including about just Ticketmaster, gains First, what's sort of seem primary last it's million one behaviour. in and adding, new international, year. competitive on the

interested just keep some success this taste color So in be and there whether up. the can more around

Joe Berchtold

Yeah.

to story platform. integrated you're this further XX a been by we we've million the has as to has been. the X us, same driven to the the has product think move million where the dramatic everything. we've as which scale, that improvements single time, that it's internationally, International I at in US At and we've strong, And the we're the continued making working confidence of been success with in today, is that for particularly story. of had the international very unparalleled many build spent differentiated the the same had When but best relative to is The to you're marketplace being scale and of the new commitment and have the the product in teams and discussions in fans, be. dollars are experience enhance only Ticketmaster, its the product products to best the that is driven. the continuing gonna artists their going what investment enterprise level

as how company no news always I you there. off nothing have then so so and how competition economics it You my there. create that in out your improve, you always have. so overall money other price. have figure aggregate pressure, it's continue my to It's price that more the do my reduces differentiated ways new And continue efficient to to and job flywheel new make that everything. price I get continue product what do a always There's That's to

Benjamin Swinburne

quarter. on then some the earnings And given back the macro, just everyone's it. know Got concern we've I other results seen this on of in

think of Your Joe, sponsorship I largely sort it's term longer contracts. business,

what of think display us in have heard you companies. of duration some, long signs I is seeing some any remind if just softened your you in ad from that any part has other second there. big in might of Thank Can We've softening of kind how have you players given you. and advertising you're guys we've heard that business the business here sponsorship for the digital businesses quarter.

Joe Berchtold

we on provide Michael the the those -- the on breadth have, We're focus relationships them, been base assets that any of of you not relationships, to that that represent. plus seeing growing these dollar number on of numbers million sponsorship our of of gave some our signs large how relationships we much the and just the softening. have they

at at saying want present amphitheatre. festival coming So it the at multi-asset the to multiyear, they're be we from

presence. online an ad integration level It's much there. players a the just with have higher than simple to going some are also of other of a We by out

that seeing at not impact we're So all.

Michael Rapino

that's And, out release, you just we're I challenges also, People always to our been on, we know no no-show are it our as go seeing some I to the there, in showing up brought also rumour rates jump up all. in at Ben, stated know had but shows.

those are no the your to We people shows come to showing show. XXXX, rate digit 'XX, and don't similar terms no-show drum issues it up. in But showing regular of to that of low back make to people all normal, at

Benjamin Swinburne

Yep. saw Michael. you, that I

Operator

comes proceed next Blair. Please Ryan Your William question. from your with with question Sundby

Ryan Sundby

question. Hey for the Thanks guys.

XX of on mentioned of in something and time of coming up struggle that XX starting and you guess, venue side to from many the, festivals a, timing first I festivals, COVID and a the, pipeline the the on Venues the festival is side, are, those How capacity how able size overall that new could up new add. were the You here these maybe in number maybe staying about then the pick think or terms large and should opening during OCESA. of we

Michael Rapino

new Europe a, great shares, you of and companies a been in America. have of global nation being success festivals growth, continuing few And part has part festival of a about market the business to live and big business. the regenerating know, our festival side, the grow entry organic On we, points new we finding

always ideas. success. add year every festival our had companies So new let launch to great And and looking we've we're year this some

young it's been Vegas; to sell tickets hoped were XXX,XXX with companies, brand were, We huge festival festival. we of a success a when sold Shoeman. a, in when we of in One so we We over our new promoter, Vegas, launched business CX, Jeff XX,XXX tickets. young in out festival strong

to a We stories. usually those our every rate. all entrepreneurs We success take of love swings we So encourage festival year. XX% have

be great on go to brands. Some of those

on. to move Some fast you fail

back have we of but of festivals that look on bolt I'll was when new majority new high machine hundred to some indicator. There and because and business and big only around for letting not are full So our a a like can, you sponsorship, know, food, plus portfolio go XX beverage. do on we large, this margin we to And are our let world, revenue growth entrepreneurs acquire we creating create amphitheater and us. year and swing Venues. the festivals we're a speed of of a the organically

Ryan Sundby

Great. How Venues? about here

Michael Rapino

we can slow-down similar story. jump be starting, time. one COVID a that continuing, really a Joe because in. Joe? I during would didn't We're It's lead just Venues have mean, longer they

in look operate you, that we plus the Venues focus continued venue around our we you nation and at highlighted our investor XXX division if So that kind our the day around world. of

I we probably think we said XX and we have about probably annually up world. open festivals XX the in new the around pipe

one on theatre. that in front we're on of sales, aggressive proud beautiful more to plan, week just last results opened and move theatre So and that to come. continuing record record We on to arena a global to a club continue Austin expand a basis

doing So continued throughout we've phasing opening the historically. years been and

Ryan Sundby

XX% and and And digital were QX U.S. which attendance most the the XX% it the, like I came digital quarter UK, Great. from tickets led in, assume of I sounded 'XX. were, the of know this the versus rollout. then though

digital And bigger about if little can maybe, that forward? we data think collecting? should act how on, on you're to starting I talk you're a guess penetration that you I moving So picture if you,

Joe Berchtold

and around terms doing just probably place. the in basis, rolling this but lot It's the new acting that the data. great supply these global time, but and It'll we're bit making in chain of of already with some of pieces little progress those we're getting each a on on of a Venues for deployed take think on XX% I the still not you're to end, year to Yeah, has just out access of end have A right. our get we control helped with bit. a infrastructure systems do that I little the globally.

the Just saw how we're yesterday, using some more of targeting it looking for effectively at the marketing. information

able click as XXXX then you, your it to connection we our as and amphitheater sponsors in upsell as to we digital our to rates get more concerts, more expect into nation connect result, substantially. up are market what be effectively we'll it's the summer, much and the we from have on when email with festivals, operated a that And operated tailored through fans. the rates live buy people was you that going to than So use

So much beginning this earnest in of the year. that we'll see in more all in activity

Joe Berchtold

you. thank Hear, Great.

Operator

with comes question Please Matthew with question. from your next Your Benchmark. Hargan proceed

Matthew Hargan

the your in and Thank wheelhouse. it feels memorabilia [indiscernible] you. right someone it at something digital it's it's conceptual Two like buys experience firstly Sotheby's questions, end a nice versus compliment in that

variety? talked personalize some of very with a a around are affectability really of innovation what slicing the today, you seeing markets, but about your a And the secondly, Thank that season and apply the hyper the time? to it And it ESSA XX% that more of some lot local really keeping know talked Musk, Mexico to of in other you about NBA European larger seemed even NFL? with like investor know, there's then more have this you. you and also TA, at acts U.S. the have nomenclature some that You those even markets? could of concept does you I Elon way act over sounds period

Michael Rapino

Yeah.

and lens. On we're are of dual all leagues a product have the I a testing. we discussions Like development NFT, and think into deep a, the think doing, I

NBA that the of super doing and others. working tickets call Cuban on did NFL with Ticketmaster through it working tandem tickets. been teams. to we Ticketmaster NFT hand mark in want were it for We you We're the souvenirs. the side, and If minting, on are bowl in We've all with the all

So doing are on versions of all sports side, and some what of with to brands the getting NFTs. Ticketmaster see teams the we're best

on our On it's song it's on with in a division our metaverse, an the management versions whether and artists whether or the they're fortnight NFT. concert side, we've whether that at, artist of it's the a worked some seen looking

on and mean, side live identity what important the really to nation to looking the I extension is ticket. So have that and thing the of digital an us the, learning we're someone earlier, overall for most mentioned NFC the side on just tied is the ticket.

carry no moving that a to on it a no from the rights, just having the opens had no it general to we to doors value, where had knew block-chain, contract, ticket had identity PDF tied moving up NFT digital ticket ticket. nobody, in so So, it first

at ways we ongoing ticket today. opened we to up ticket, So look of to live with part can can you been add community the basis And and of better NFT think that we have a to value a and on stub if an create value you've you. NFT conversation and

So add purchaser. with relationship we're it's going think opportunity to we're to ideas front. great on that value And we to to, the more going experiment we're that keep

Yeah. The Joe and I you. second well didn't quite on question, didn't it I, jump even enough. in hear I

Joe Berchtold

Sorry. I'm

On hyperly I got it. I No, Yeah. thing. it. got the

operation. hyper we've Europe, Mexico, scale, into Latin we of been that we're a strategy the the markets in what the local each some on to establishing that country, specific to expand that absolutely can the going America, talking getting in to beachhead, throughout then about say, leveraging each scale all of and So throughout applies we're markets go are

part. core a that's So

cities other how were we, we easily they make grow the the concert earlier we Somebody acquisition, cities your con grew off to talking are in substantially. was where Well, in then our, XX, two the route in the and Germany, all chore in, XX when there you through. when we operating the that our, could it Germany population have cities with selling

grew So focus business. we that the became that's and that how

globally. not shows of historically ones exists of and playbook all many because different that why bringing demand you look It the it's so at is just a that when following Thank Great. so the be large part is large, through to. the we'll Tam markets, So Tam you. where we're

Operator

Crockett Please with comes Securities. with Your question. final from question Barton Rosenblatt proceed your

Barton Crockett

for you great. Okay, question. Thank the taking

be one it. of ask context. sounds if way many booked know, already this already XXXX, a booked at but, give for little to bit to you get many but more bit know, have look compelling, You you us booked you this tours you Can if how was XX this which is booked did XX to wanted if I of be it. XXXX? And you've how secondarily have any, for a at And tour for it'd might kind I sense XXXX? do XXXX, little a marker great right might about already wondering now got tours, for at XXXX, That of have time

Michael Rapino

to going good. I, I make give that's to what obviously to think you're, at. can look you generalities 'XX feel I trying you you're mean, get I good that

year have if a many many in, we line. did be we we basic you where for, at you look be double historic would, a would point would about as to want 'XX for, your how marker be So if time I for reviewing at we period, that a use or think to of booked, how would as historic where, a, this

So, XX for this for a, be would a be number to fabulous year a a, time about talking next year activity. of

that kind will feeling robust of to of you a So kind look a what what's 'XX that's, gives of be.

Barton Crockett

a gears little And on question. the Okay. switch recession bit

X a lagging. leading XX more, Oh, back nation, a the live in the, great would at were the indicator, indicator or X of or your I You or kind last concerts know, experience guess recession. lagging in

impact, that? had might was And if so feel a if it, you recession be last thoughts wondering is any you but I there about the to

Joe Berchtold

demand building. the data It didn't summer. the not didn't talked I specific the about the then. have back XXXX. for We front we have dynamics, think lagging market than one how hit less market till the transparency great supply provides Yeah, pricing, secondary it had the it and of now, but lot house, indicator. We today such just on a that the whole in that had into a we was I through then, And

decisions, of So we blindly. lot a a making lot were more

but in more you to that be terms there the So up one we to if over nimble have it was of was different the better And any that we information. last years a the year year was XX of just how of look at much when recessions, again, information. handful the one recession, out We're respond not past set

Operator

business. Decline in our

Barton Crockett

That's Okay. you, great. Thank

Operator

Mr. back have remarks. and to for the Joe of I'd gentlemen, like we the closing to Ladies end and and behold call session, a question turn and Rapino reached answer Michael

Michael Rapino

All right, Have you. great Thank soon. a everybody. We'll talk summer.

Operator

today's conference. concludes This

time. for your You you may participation. Thank this at disconnect all your lines

Live Nation Entertainment (LYV) 6 May 222022 Q1 Earnings call transcript