Earnings call transcript Q1 2023

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Operator

Good day, everyone. My name is John, 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 2023 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions].

uncertainties Nation call me statements statements will subject matters. risks Live that remind that related begin, actual new to afternoon's cause developments anticipated this contain and business to we the has differ, financial to asked you are results company's Before to could performance, including prospects, that certain similar forward-looking and on and Forms SEC could cautionary Live XX-Q and refer Nation's filings, most including recent risk risks company's to for filings included statements impact X-K factors XX-K, in and results. of a the Please the the description actual that uncertainties

and also will full most the GAAP Regulation Nation or call. Live also reconciliation In measures non-GAAP with comparable earnings to release financial call. other in refer which Live statistical measures measures discussed supplement G, on information definitions this or be a to some this contains provided website Nation to SEC the has their accordance these on of

reconciliation and Nation's website The Live found Financial investors.livenationentertainment.com. on website the be release section at Information supplement can under

to now over turn Entertainment. go sir. is my President Officer Rapino, Live the pleasure Please ahead, Chief conference Nation to of and It Executive Michael

Michael Rapino

for tremendous XXXX joining thank off to is a and afternoon, Good start. you us.

high all for For are the a are common live fans. the seeing that of theme, around X first priority time fully in are years, experiences we markets our open. In the world

relative XX billion support We as of for year. tickets activity to million spend, levels comments million QX of In were $XXX QX, all respectively, shows artists. across relative year. XX% across my every In record QX will $X.X all of delivered markets. general, well to we demand the AOI to divisions sales record and up XX%, points be last XX million, incredible sold last countries and our over In XXX attended live revenue and with first for results to we delivered across and sign record Ticket fans as events. attendance quarter, on-site all

at a This see as artists performance are growth helping positive long-term for and metrics global as more their live record new and XXXX a to the of clear stage heights. is attending about artists this as is favorite of is continues results role has we for time our that to our operating concerts ever indicative make continued events touring bands showing demand a signs we and and happen. look set Demand no for been than growing letting up. long But reach

#X this they to leisure fans, the spend to business. expect in future. to of record concerts in activity Talking and say ticketing both activity live are the our where experiences more they Naturally, that is leading levels

year, sold this this First million in ahead XX concerts, nearly tracking last tickets we year. shows more than of point XX% for

all stadium of driven additional been that and tours Beyonce, growth able and early demand. to Bruce shows, have continued number strong record when are so Drake sales aren't many a of meet major arena add in the strong still These Springsteen, shows from a has artists by been demand tours. number fan they even of to With

fans, When shows. affordable nearly to continue fans enhance spending As initiative attend $XX they tickets all ticket experience. to a to we with available our make further Week, Concert X,XXX today Summer shows to the launched

average that from growth we in season operate per our revenue. started, fan reads demonstrate early further outdoor indoor U.S. yet While European and key not has venues

venues with launched X,XXX hospitality this across our elevated X to and expected year, building businesses. million profitability live we week music Vibee portfolio options more the centered and selling provide all Venue the have out. hosts We've at nearly fans growth driving also Nation continued this new we our shows As UX long-term Sphere launched host with of packages sale events destination VIP fans, which around for

ticketing structural benefits notably from in same international by adding new business markets. driven further clients, our in success as Our with concerts tailwind growth the

XX sold in XX%. quarter, in we tickets result, a billion million GTV, the and fee-bearing As fee-bearing first up delivered up $X.X XX%

are and sports This global in biggest both volume across artists. true types event to and across pricing concerts all markets. growth to our superstars new seeing We from from holds

for beyond, And online brand global in fans XX% Levi's. year. the over partners commitments the has recognize live we on-site this, With Nation on we and sponsorship and a including Google meaningful connect Our unique first partners PayPal the and never with adding for scale. of Pixel, greater, for of a passion been in music to quarter, Live ways provides and the continued XXXX have platform planned our

fans live music are with show. of time value can brands can to XX% provide at important, embracing experience, goers brands the around the their concert Equally that enhance agreeing the

Our best with turn which fans, in in deliver ones. team working at brand industry programs is to and relationships develop the new attracts the to value brands that our grows

demonstrate success strong strategy our and for the sets in quarter up us Our XXXX. growth results first of for the

by activity, expect record We number million managed globally tickets rescheduled a fans. this XXX benefited with even XXXX fans around shows host year, million from Ticketmaster against XX attended which also should of comparison a to this deliver year. record

AOI last Our looks for after even growth growth sponsorship to again this be business, on incredible year, double-digit track year.

to have compound foreseeable build future. the continue by beyond, look to the we flywheel AOI necessary to XXXX our for double-digits globally and then we levers As all and

to With to that, turn take through I the will more you details. call Joe over

Joe Berchtold

Building our this afternoon, QX, started year sales. good a revenue, Thanks, count with Michael, XXXX, AOI, and record we ticket first out quarter fan and highest on everyone.

connecting tickets, All hosting and of with brands fans. our fully markets are selling open, tours

increase revenue $X.X than better the reported an billion was of of XXXX, QX XX%. Our quarter billion for $X.X

billion currency quarter. was constant our a for basis, the On $X.X revenue

impact due the So primarily and to dollar, roughly of strengthening the X% unfavorable was U.S. dollars. a Australian there the slight Canadian against

my FX our limited a just on will Given the numbers, currency. of impact be reported the rest comments

of $XX in an million ticketing, of quarter, in and with $XXX AOI was $XX reported for in up improvement Our $XX million XXXX, sponsorship. than million million better XX% $XXX the million concerts

higher growth historical roughly free converted from and our are and XX% Asia our came cash markets of $X.X XXXX. our this global of flow this we In QX Latin million, a leading which We growth ended billion, revenue, at of diversifying activity to key expanding quarter seasonality. is significantly adjusted up XX% our AOI Pacific deferred XX% last than our of touring this where AOI conversion half $XXX Over America indicator year. our in from point

color each a give me more Let on bit division.

attendance XX% with attendance fans compared to our X,XXX was parents. to than show more in due XX ever per and with approximately the we highest Show historical stronger concerts, of we up levels. to when count XXXX, heavier attending events million mix concert million XX% QX shows, average had a XX.X First, fans for had compared arena events, stadium up XXXX and

is result, margin over $XX we a XX% This the our QX for grew XXXX. AOI, expansion solid million our while see beginning a we As for in of by $X.X year. to revenue million relative last what to improvement year concert as delivered segment, a concerts including the billion, $X year very

touring. Arena our from board. Looking X.X a quadrupled strong million Asia was million quarter, And was largely our expansion. fan X.X and Europe had Mexico we This markets. and growth fans Australia XX% came Latin it's Zealand a $X bit result from for up of quarter attendance quarter, the deeper primarily this XXXX. at festival fans New large to the fan and as for fans growth see from festivals, not XX%. attendance XX% Pacific and up Theater Stadium in XXXX, did in and grow million American by XXX,XXX Australia club or up almost fan count a while count we growth our from than more metrics, across

with year, remain we fan our forecasting will this inflation increases international operational closure XX% are in and XXXX. still we was our growth, That per in our QX Overall, activity. cost headwinds Last discussed to for general the at cost and we continued seasonal some amphitheaters. towards markets shift Thus buildings XXXX, across pressures cost markets through across for our increase accounting declining year, drove XXXX. all effect that operated of cost in versus our down and is our below and This said, part venues festivals far expect are fan global count strength due various over festivals. indoor QX levels along the

a average revenue increasing improved we profitability overall year fan pricing this increase by expect more fan, of again As will mitigated on-site as conditions, result cost per sponsorship. per than these and increases are

even XX,XXX XX% up than million billion, experiences. times TM ticket XX% compared the peak X/X XX%, to Next, XX.X% increased as tickets in during live to in driven ticketing, GTV more volume tickets, Ticketmaster America or ticket increased Nearly demand this all transactions globally. QX, where XX quarter, XX North we tickets quarter by With any our sales ticket numbers fee-bearing reflect the issues. month In per XXXX. tickets up processed more for with QX XXXX. growing growth $X.X $XX.X sales while America tickets concert concert was million were sold North And of each concert by minute million was by over without international the in sold At of sales compared sold increased fan fee-bearing for XXXX, XX%.

a largely at to mid-teens continues percent only a accounting ticketing ours our overall rate, grew be similar ticketing with volume GTV. for secondary ticketing of secondary primary While a business

of of our of hard $XXX sales, million, to these AOI for ramping of It's the ticket revenue to last staff year. over was the up the cost QX quarter compare $XXX shift mix year, back last given geographic and growing these was margins With million margin and delivering XX%. increased course

are year and being high continue margins full year full for in XXs. these to expect ahead numbers, XXXX But margins of the our we the

front, prices XX% and Average value. primary which XXXX, remain to double of fan market to continuing at best On of close price to below demand ticket particularly compared remain by prices show tickets to concerts. the events seats, the concerts extent the that a average for primary pricing by ticket rose live other secondary QX driven on ticket

as We we fees from nonservice revenue also further grow digits upsells. other including ancillary insurance, double streams, revenue and build upgrades saw

this for net year, positioning ongoing growth. compared us this so X clients Lastly, tickets, for signed last nearly we year, have new far XX% up million accounting to point

sponsorship top Finally, in business, line XX% $XX in to improved $XXX million or revenue by million our QX.

high-profile of high-margin the on expansion the by attract reopening of in the markets Our Sponsorship's driven venue international that XX%. artists premium year, QX sales quarter of in the closed during AOI our for growth marketing million, was were that this increase and partners network. was $XX up last business

strategic our Relative year. the over during to generate North America our in had XX% average AOI of geographic to year. sponsor and margins on-site tickets our XX% number online sponsors had over growth rose quarter due the while than higher now sponsorship our international while markets on-site by XX% slightly sponsorship delivered sold activation in of variable our sustained those partners representing revenue quarter growth. year expenses of were last with of programs revenue most XX%, XX%. Xx both $X QX Contributing by a growth has from We year, with in costs revenues. of strategic as talent for we marketing grew had since total to that presales the of growth These partnerships sponsors From our for year-over-year. the to double-digit growth last lower been account million perspective, last Sponsorship these key A-list for artist sponsorship

margins we XXXX. anticipate out, will full the and year, expenses plays timing with be line that in variable As for

points other on few A XXXX.

organic renewals We we as X/X ample investing X/X on on an on be including cash us free the projects, CapEx $XXX to approximately this up flexibility million and year, quarter with and deferred other The of $X.X We maintenance. venue capacity, continue new project revenue-generating XXXX liquidity continue that support well ended in growth. as available catch XXXX remaining is CapEx will giving untapped builds investments billion growth. maintenance revolver to between as with to

debt approximately our X.X%. our an of We're the with comfortable with rate growth debt particularly leverage, with at a ahead of roughly AOI average fixed cost given XX% of

your to to estimate accretion a is The QX addition, of we accretion guidance the that majority growth within on our the months. XXXX, from will notable higher only be should debt In in be into set XX this change previous projections, due and as dated and XX% above maturing estimates. impressive long is below-the-line our factored next EPS approximately largely nothing is

the this FX on we any for expect don't revenue AOI At point, material or year. impact

call Operator? let me for open the questions. With that,

Operator

David Instructions] [Operator of the line Karnovsky the from first JPMorgan. with And comes question

David Karnovsky

and contracts. we've Joe, in couple seen a practices to bills introduced of Congress Michael, ticketing address

you've the So wondering lawmakers come assuming you to of fully primary you've these first, might meet how your just of as you concerns based think these And items were enforced. business, they think on largely some then understand. had impact bills meetings do

Michael Rapino

practices are Yes, so people the seem the these the in through tools, fully different to ending and giving the all we're up supportive that the and of themes where all common be more we on. those pricing, And cleaning principles kind of of up watching at secondary, And are we bills, in it's own most exactly what's of. what all whether industry deceptive politics Act. having we're of our coming FAIR which the in believe artists FAIR is, going noise, build of out all Act and

These We know protection and better introduced ticket around the same the fans on artist coming of all and and selling a senator and be in of in away bill pricing. we've helping practices Senator has sites and secondary control supported and a always the the BOTS, and deceptive get the are Cantwell hands vein them [Neil] Cornyn. of theirs. hopefully, Cruz the all spec got some same in and Klobuchar thematic in the their the

not is versus any these. of this LN So

deliver to We better these of bills. helps our because better of fan and We for think are us sale it on a business aligned all these is we've experience. long continually a all for time, said bills,

start our we're So controls to our these overall and the and the help but going that best, bills is regulations experience business. any doing Wild right some now, West, around better natures it's putting

David Karnovsky

a of your your promotional you Then something Vibee. kind there out festivals you And Okay. primarily maybe across versus to wider for hoping footprint? the an the this putting this is interested drove out opportunity expand decision Maybe was build is bit what just is residencies, this I to plan and -- more internally opportunity events bid then to or on build partner. -- frame for you can can a that major

Michael Rapino

look at overall. this segment we Yes,

about for premium If we've a talking the last on been few opportunity business Day the you is for look us. huge Investor at our years, what

the great is industry customers. we a overall for that. The job has the And done scaled services job not a and that think and an but can more industry, done provide better But industry that. a done I being nation a doing I've are a great think an has products opportunity said not experience of experience music customer. job time launch any a GA, that as like and to this stadiums sports of great arenas new and there's on great doing for premium premium

called experience of extension and and a a this greet. strategy and about call continual Nation. So experience. or tour the be sound events We'll early Those what meet We've would X,XXX based we the going an or and premium towards just this the VIP got concert those are year. a do check to company around a

And the and and launch, So UK looking we've together take advantage ways and Ticketmaster's in and put in we've hotel leader that travel, we at CID Clint have on that The at we been been were where and and space it. the success. we Poland expanding at Vibee already that others of but that can is the location great with scale, both we testing the ticket and doing airline Ticketmaster scale, doing looked or an been that is we looked and have product it. difference another

the expertise. have We

sales ticket So million close it experience we and UX or Insomniac premium experience. to $XX up with high-end out around in built our the team sold launched looked [Body] at a

some this say we is continue it's subscriptions, look product memberships, doing we're So challenge is another the going this we ways companies the expensive I the problem. ongoing to clubs, of in-house strategy, the we also and the product. that have expertise, these have other don't have about how and premium premium a there's know into clubs, GA part do whether from right, all to of is premium our in to the experience

chasing So it's a when for harder a you're you're chasing the you're in-house. unless Olympic rights premium, business little

are pay our sure I'm UFC their rights. So experiences does These location have our to don't we fabulous files, rights. with

So of split else and with We to any businesses. we don't it that in-house. anyone upside but can own it our have outsource do

Operator

And with the the of from line Partners. next question LightShed Ross Brandon comes

Brandon Ross

follow-up and question the David's fundamentals a to your one. then Congress. with on I'll sales on and that start Actually, One

of attacks exclusivity. in Klobuchar a should beyond word the -- pretty it in into Bill? depressed model that, we for bounce venue margins. was type terms Joe, and you of of to XXXX the year Can respond bill very North that venue anyway. years. in of with know from a then And exclusivity I just the constant but think we'll kind I back see is the and kind real future how go Is on take continuing specifically margins, your America? important you you fundamentals, year last And obviously

Joe Berchtold

First doing make to on is, think point, first is of congratulations birth hear, I the of on all, everybody point the Glad well. exclusivity I daughter. your should

I But And have are been certain monetize them off the they is by they do in to they exclusivity. rights. these start the best best figuring have. point, with, time, monetize always way exclusivity is to have the venues rights What out determined the for actioning rights U.S. those how over the venues

in a systems it's, I that in as to adding the to ability modest system been exclusivity the have ability as both hurt issues very So that venues other with press by the quality confident We're do can with frankly, we've to that would handle seen the very shown sales. has most no think way in sales because on would that well were other clients fully been it's you've any on primarily there systems, lose rights. of their changes maximize our be the they be its

deliver. ability So very our we're confident in to

bill Congress, gate but as bipartisan today's just doesn't in bill, challenges. have any support this its out I the think it's not uncertain that of any one,

venues would lot they respond because would. and see fundamentally, probably hurt that back I push more be we the think to more than But that you'd a

there. terms of In tried the lot to of a give of performance in I details business, the

I look of continue cash more know, operating at the to that on business, year. a think that, expect where we all, we basis, the I of grow first to which, said, as as is, how you profitability that's this

I was also think, terms our the I year in noted, side, tick of concert in a margins. bottom last the

by inherently this for we to that's be going it customers. margins of great business, year, don't this coming we to technically expect instance, the you still be could having margin, as a over back assess pursue a arena for it expect be because, gave and tell profitability. year, We're numbers stadium We We our impacts already business, the to that one still going than lower-margin a business amputate cash to while great generating year. but

we're an I that upward on So think trajectory.

'XX continued for great. success. early is have going think to I every be very 'XX is And we sign

Brandon Ross

Just one comment. that quick follow-up to

know I think you for with get good lapping all. But do feel grow. far? things 'XX you Do so what you the the concern supply seeing as this every year of you're next question That’s about the 'XX. there's coming asked side I side and year. out feel confident supply

Michael Rapino

you the this about -- yes, think Yes. pocket air the was as 'XX. all We the fall there live Yes. I in know, shows be enough -- we and would in

with festival. those shows of had and This and strength last combined been years today To and We has back sitting amphitheater business shows a anything because XX of business, is a regular global comparable global the also be the kind we see about on territories from that numbers, That the bed. the business. to here million. cylinders. world. beyond to the So stadium at 'XX. the to it of Firing We're the we're do I on And has basically demand looking don't COVID at or at we're here shows long now. year's around rescheduled looking that strength all We're above you the but of talent right the pent-up of almost to business all sitting rescheduling. hopefully, in the year club out the put road into to all clushed last this X.X think looking all think thrilled year stuff

off, artists. The question isn't of always the have top six artists to This XX fight Stones, were Rolling younger just right? we The

up, at the look know stadiums Bunny ago. host I the of that Combs to year last Luke there's the largest year. year, Rosalina, every to Lollapalooza didn't G, pipe filling Bunny, artists BLACKPINK, we Bad years be We selling Carol Bad Eilish. Coachella out this You talent BTSs, going Billie coming with just a had mean two great was the selling idea no was going be new

is encouraging supply/demand, alive So There's want we the low see continue strong. just greater more filled fill money. and years, U.S. we're we TikTok. that bad to in before, more studio domestic. new also and seeing next And about charts strategy was where artists and all And for future, to this the economy really, supply many right The the was they the on really now it think, talent other a the said all sitting stadium. most is or we artists it UK-based be the for and

Canada, you where have the coming industry. Latin UK It might it and was last the and That have truly artists year becoming global And very been see now can happen for superstars. America are or a top breakout years. in in controlled consumer real didn't big U.S. might XX Korea the from been area, and it This didn't world travel. It the big global. but is

way that of markets. TikTok talent Spotify XX that supply -- from for in South chain alone global to it be are become So years be going and the to everywhere out think these overnight still gives from their we the stadiums in and finding the places kick will it's to arenas other their Africa, next India, to young and next stars

Operator

Laszczyk Sachs. the next of the comes Goldman And question from line Stephen with

Stephen Laszczyk

of perhaps are think year, those saw coming there's top the to smaller for smaller the show expense amphitheater stadium shows talk year? club how shows last the trending what you the moment. well demand for for Can I we maybe arena performing about aside or the average of even it's the concern some Maybe compared demand, for but ones. and maybe underlying at on contract Michael, types this setting is tours or that

on shows your hear to those and performing? smaller love just average So thoughts are how size

Joe Berchtold

Yes. Stephen, Yes,

point feel to don't in amphitheaters we yet Just if to our at you on But just doing lot also per tracking show. that, give be around strong pretty the first increased with on We're lower clubs, terms of at fan of theaters that which this pricing, cost the X% attendance ahead you quarter. look they're the year, average in and a have tend per basis. of a structure

those well us. shows very So are for performing

Michael Rapino

our one-day But And there. Bonnaroos at markets to industry, today, of even just really, festivals Unlike U.S. and when festivals, easy well. the we movie the all the ones, of doing festivals, Lollapaloozas the at theater business. have our in where sitting really international over you're great Beyonces are are jump the businesses. right, Joe but And of kind to do the here And looking on you're looked model, to seems we smaller XXX to be it right, we're truly hit-driven not numbers. always scaled to a -- a world are going we

middle whether So be incredible it's festival and a a a road it's whether on to global club seems smaller At levels, act. a demand market, of there all basis. in a

stuff. Milan. haven't we demand the stuff and coming So be selling uniformed the clubs Pittsburgh from from to The to to just to seen not they're top seems other stadiums

Stephen Laszczyk

business. venues just maybe one the And on Great. then

the think can side, year. at called think You or pipeline incremental Joe, I'm curious, in add maybe at million just you if host fans I the many shows venues release, you the the this ambitions flywheel X you today? couple new expect look venue of Nation to for incremental you out next the stands how press to venue years, maybe how Live over given fans on

Joe Berchtold

Yes.

the we new year continuing add a out in portfolio. to some build would with in venues the think end, and the per our mix I low to millions while year new would club this what arenas be at typical larger own hope from of theater amphitheaters,

to a more meaningful part of continues be it it and robust. So

very As money we our well. time, earlier, a it sponsorship and the operating you by we've learned and said to arenas deliver over and faster. stadiums as the can the for But accretive count return able beer money being can I shareholders scale

Michael Rapino

November more wanted laid level. And long a this out macro time. that probably remind a in I we've been investors, think on for our we We doing Investor Day, to

venue markets world strategy We look been have that changing. it's not different large where the We keep continue to if can find see a there's on where right don't return. club a year after It's portfolio return, big like and adding an than a venue opportunist we it's we theater great we and bolt around the year. incrementally a at market arena, Austin,

we'll in of over in numbers out we laid continue over strategy time. and subscribe think time. And I many So that to cleaner terms to look November how what we

Operator

of And with question next Citi. line the comes from the Bazinet Jason

Jason Bazinet

last year. been makes the spirit or of think Or you in cash I balance, or hand? over had Xx just have there's way something it Do think being question like you on to it's it one about I some more sense that $X.X just used in the your flexibility to that cash seems a deploy and cautious just run, to do don't know, billion that something or another?

Joe Berchtold

make quite And think just build in, things to numbers Michael fan business. basis as growing we portfolio. portfolio, within out opportunities venue but We see continue to cash have existing opportunities think from that sure was business, there's we've that very just do think right, I on the set think untapped the numbers included a a of the lot talking talked has enhance the we of continue which continue capacity, No, that a strong experience those to it's to cash metric, even our lot So a to great the we to of about. right? been I extreme, you can global we probably revolver but not about

to moment, looking to at coming we'll So continue maybe right and out little it a assess but and being to business, the the what see of continue conservative COVID, are. we're the grow options

Jason Bazinet

Can follow-up. ask one just I

part putting up One depressed looking is, your to at year for of stock related part the it been the of just you with of to relative of seems guys it was share DOJ sort or of I didn't have things seeming the But disconnect price that demand. that repurchases. fears surprised of of so take last more advantage fundamentals interesting you pent-up of the sort so me, guys

Joe Berchtold

Yes.

the share of one -- think is tactically I side repurchases flip thing.

a think misunderstood. growth companies a that be ideas. a think out repurchases out of lot there growth robust market share such set as ideas they seen that the to and that takes of also I that that are embark we of we've want And on that wouldn't I have we signal

Secondly, when deliver that you invest think you the maybe stock lose time, from on in an have you can you dislocation but if returns you attractive investing these accretive return there's growth can compounding a compounded out opportunities. over in impact by a growth, you get

I . I I out coming immediacy at we'll said, of options the that's all thought But in as of forward. continue to it, we move look As think process. think been our the

Operator

next And question TD comes from of Stephen the the Cowen. line Glagola with

Stephen Glagola

Joe. question, for Thanks Yes. Michael and the

two proposed going Just potentially could and impact legislation business. specific -- that's around how potentially I had to the questions your

are that fees insights business the you competitive a how of are position guess, or an there's there, this model, could like, Fee excessive. provide Act, Junk color allocation from ticketing how prohibition to if one? Protection and venues. mandatory with new that, the just operate on your ticket international I two, on of can be renewals FTC on the exclusivity And on provision Ticketmaster glean in of determine then I markets U.S. and one kind that So nonexclusive like believe just Can on there trending you

what collects service would impact than the ticketing how the service revenue. So your what primary or I that know well? as venue just fee wanted Would collects impact to fee more caps

Michael Rapino

It fee of to think of The I venue you to drivers, this the some kind demand, will is go interview. [Bob Roux] you. the for subscribe the as Joe and at everyone know need business. the service do auction venue said, of I end to wants the help most the ticket.

business, his rights in and hire or pretty that's that market, or think not Salesforce in vocal Ticketmaster. on or whether and the service billion So $X Again, to Microsoft he can continually think be we he's stadium multibillion to his the or returns companies about it's arena or what exclusively dollar CRM strong so built venue going that the I

they're think for return best business. for look their at options going all to their I their

So we at that perspective. from that look

just Europe that thrown in as out the is here. U.S. always because lightly at allocation look We really an we've international

here trend, your Just buildings are an new there been more kind really towards you're International for and building built of leveraging. that the mostly buildings they had this was model arena, is being revenue which are and business should from a they looking But It than new over as football. the is as away getting that realizing over underdeveloped. soccer be stream moving it another exclusive built, are or

the the because model closer moving now they're So look venues. exclusive probably they've international valuing in moving think international I model at U.S. realizing for that their the to I under their to model U.S. ticketing been rights

tickets Now We than technology. market we because over well sell an competitor. we the open more well best do always with do the there really will in

driven be market ticketing and well you're we're most for ends to So that if more so the tickets allocated us because you, going more that X up to probably others, open to and us. agenda. up here, really, allocating think the to allocate end agenda than venue don't going the really model sells you're probably you'll by going to we the But we're do an

Operator

from question And line with David comes Katz of the the Jefferies. next

David Katz

area talk Thanks seems new know smaller an you've was for talked better? I technologies, which for about I love a I'd And be entities, past What's cetera. could of to including lot, et protect approaches, ticketing covered you other hoping market. market, secondary the on but you an And is growth update respect just new please, can could. if that? What about yourselves do impact the about it to how there, with just what in you their the to

Michael Rapino

I legislation then you're the of what around and jump scalper remind that of legislative for will to we've I'll around we and Joe all this and theme the seeing just forward the handcuffs come some around common noise, months. swirling putting business. The in earlier, want is been -- limiting all said X

see the going So it a be selling, ticket, this And lot for scalper a on website, legislation deceptive help to the harder will spec do forward a better that the holder, do the et job content front. practices, cetera. of selling, of we or moving primary BOT, lot is drip

last market the we hasn't to years. is a it, going that in move but do now, right legislation overall, legislatively, cleanup ban some think the to moving going general, That's secondary. against XX this business does the that secondary cap XX, not happened So big primary not it, in of hertz help

Joe Berchtold

Yes.

to very concert. secondary have secondary than piece other remember that sports the in you for is think different is I

upfront function a the teams ticket season is to them often a has the and it you value value of fans. and they're platform guaranteeing and distribution the sports the some to disaggregate sell Secondary teams, performing where they the funding that to as scalpers, used the for sports

that concerts, price tickets objective issue and increasing selling to deceptive with is don't get and the fans. using sole concerts. the You have them of that the the to in illegal The they're practices

is I don't they today, a league have give central exchange, power back the ticket power to So think the to need can NFL does seeing set artists artists. of because you're the what the you collective sort up same that an

you're past years, politicians. done hasn't That adding point over it So the it's -- another from other it and by in artists, then survive players getting becomes how put understood to others been now back the out ecosystem. very several the you're the adapt onus figure music your business to can and the that Like have that's be it's how of secondary decision-maker. in and value. And because being our the to adding where what have today, gotten the any they're clear grow you they finally and value fully scalpers

David Katz

million. next beating would say And quarter to be Thank by understating you. $XXX

Operator

comes with line And the Stanley. next question Ben the Morgan of Swinburne from

Benjamin Swinburne

of the front on also more and market I Xx technology. about Bruce where of pricing thoughts could us Last on pretty then business that. today always of Springsteen just pricing mentioned, I Nation? topic would back prices way artists AI a last that sort is is primary Two I primary. of and sort today? Live was of opportunity And secondly, market you obviously expectations thinking embrace Michael, that for industry running the huge the feel questions. the guys about pricing an on the around as you it think are trend you your What year, you secondary these that far it's are right house ahead think, prepared year, and house, your days. in Just broadly, in are sort moment sort remarks update was wondering if

love to would what think. hear So you

Michael Rapino

points management country. maybe Historically, at Perfect. the across I On we've Tuesday and artists for the sunlight was pricing pricing, matter the great few if Pittsburgh. a price really their think of the has pricing, years, static all been the York it and saying team points, look in a secondary it in last transparency Friday was there models. price different three fairly same or It New helped

the So now really that artists different has or use. PriceMaster our really, sophisticated business gotten models with dynamic can

artist the can products worth to The So is it's we've that that world affordable let's make bring of artist continue. the than the the manifest secondary artists the their a years the what in the still and I sold, so brand an whole But accessibility. not that that's and one gets I and prices price, do and the think they do let markets, ticket pay. is do down at away in there's for will And front, but up we in we how willing sell sure front seen the where few price the of prices price the runway market their more but think between see looking row. at the everyone bring we ticket out and back,

market, day that think see to for the And dramatically we never live TM. to going But of Joe, that secondary. the can about at. underpriced feel comfortable, next gets the to versus look to think X still here So where that and market. we probably probably upside years we're on closer years we they'll to that's as demand, there's talk between you and AI, they moves XX the think artist every you continue

Joe Berchtold

Yes. Yes.

live be us. experience. to never can There's replace just think the all AI, clear, somehow AI I on for concern think no it's I upside that

us, consider a it For I -- infrastructure an tool for efficiency it's and effectiveness. both

sure cost who's It the know system process to those be level through using that about. to not. creation then than about as marketing recommendations, think takes better whatever on machine person, venue just process. shows we're machine have next person make you efficient. that with use of go we being in you today. try every a more to able better pricing And were fighting at inform another terms that bots our Brit, battles, go will suggesting want to using to. that of you elsewhere what's we better of machine much lot the will fans a to us data or make going place and much who's chatbots learning, if much of thing whole the you a to on data, talking just is event working in tools, AI today, automate we're continue effectiveness, AI learning know now making aware using help lower models AI the input who's All might that that Clearly, PM recommendation a on at learning So individual level of a you same will have help in the much to to

So of learning It's places using the of we're lot it of kind is level. runs our infrastructure. throughout that next to all machine really AI that today a

Operator

question of And Northcoast from the next Research. Healy comes John the line with

John Healy

almost on mean wanted I I just of look the revenue, growth. at it's we deferred when to up of pace kind XX%. a ask think I question

this help this can concert the just ticket you on point, that us about sustained at of of Any up think year. to sales be talked type growth you give could XX%. You pace if

but it's could just get to is clear, the speed message of flavor strong about the color think would year, little kind I this to be grow love you going year. what a of a and

Joe Berchtold

Yes.

out of I think stadiums fastest the the and that start year gate you're generally arenas. you led by coming when

So date. relative on earliest those that we've shows the show the sale that -- are talked to put long about

of level arenas. Xx stadiums, scalability activity, scalability the the are got good in in seeing great So which your you've

your So huge increase deferred attendance, ticket your at sales strong increase million that's in $XX driving in revenue. in

generally lower you in place to amphitheaters buildings, get take the more some level our a have as into the scalability. I think a extent of that shows across you festivals, of

You still as arenas. have your stadiums with the have same very solid growth, you and but not level

point think we're declare we but is to in of the think to I recognize you the level So I probably ready going to don't high QX have year. number, . an be exact try the

Michael Rapino

John. just one I I sides helping 'XX on just in there second, want realize jump for to think important what's just both And to And -- future is on. the more sorry, us what's

was business we went look. look an and So a people year year. COVID year 'XX revenue for AOI to being and off year. last couldn't We going business. a this industry forward, strong last being great growth business you probably year year have we're and off down delivered. we very historically we're does a And extraordinary And thought single many The a high think kind year-over-year 'XX Hut of start of years. We what this optimistic. back 'XX coming obviously, think look was after -- to strong foundation through we high at we year at as been be single-digit into what forward, we very We've at growth look business

capture when we ever. we than couple do of industry is So growth bigger we've industry tend tide do growth points shown we think with to tend think the a And that and rise years back industry the you to better. there's as a as we or industry grows, much of

to growth continual beat this been a year. So about X% look again. has or tend long-term at a as We We growing industry it. story X%

John Healy

I to then And question a big wanted Great. ask. just picture

year. you the some APAC at and out Latin growth is fueling start of called America think the I

the is as they maybe should about the of always those pie, curious margin I than to how had the level -- think margin thinking a businesses kind Just term, U.S. potential sit those to it business today. about of safe you rise. be was those those they thought as as of become market, bigger but businesses higher just the long piece that Are say

Joe Berchtold

least of think with major don't I being think as markets, them growth We massive start thinking we Yes. about probably the about our developed as margin. it markets. potential

to opportunity drive growth highly continue profitable great having and to fans. more fans, more obviously, So

operability we markets, but what's overall venues can drive operate, I margin we're establish as just you concerts, attractive ticketing, starting and any more I sure you some of that. looking than margin in fans get at the more am can think focus off those volume As profitability, what's that with the sponsorship, we

Operator

question-and-answer the time, have we the of session. this At end reached

I Now Michael turn would back like to Rapino closing comments. the any to floor over for

Michael Rapino

in you. We'll the Appreciate summer. you to talk Thank everyone.

Operator

everyone. does you, Thank This today's conclude teleconference.

have You may time. a and disconnect participation, your for you your Thank lines at day. great this

Live Nation Entertainment (LYV) 4 May 232023 Q1 Earnings call transcript