LYV - Earnings call 3 2023 | Live Nation Entertainment, Inc.

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Operator

Good afternoon. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to Live Nation's Third Quarter 2023 Earnings Call. And I would now like to turn the call over to Amy Yong, Head of Investor Relations.

You may begin your conference.

Amy Yong

to Nation welcome Earnings Quarter and Call. Conference afternoon, the Third Live XXXX Good

is and We'll our and today then us Joining President your take and remarks Michael, questions. and we prepared will our CEO, CFO Joe with Berchtold. start from and President Rapino Michael

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

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

now turn I over And Rapino. and will with Michael our that, it to President CEO,

Michael Rapino

joining for us. you Thank

fan This events. more global fueling ever, staining globalizes artists in and unprecedented the die-hard both is desire As as faster clubs casual behind levels with ever. our happened truly you tailwinds and an for fans business and structural the accelerated results, to than this broadly all concerts. our able small from massive from are has to And are than can see demand

up results are how We will get these deeper today our week setting and add? the ongoing anything growth. start next Joe, industry into and to conversation the for trends the

Joe Berchtold

me to and we'll Thanks, Michael, than good the given that keep afternoon, presentations usual. week, more is investor add call brief today's thing for Only everyone. next

So to questions. take we're I that, with Operator? think ready

Operator

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

Brandon Ross

then guys X Just articles off, on there's been your at some you follow-up. both into to on impact last the Justice industry-wide the just the separately, regulation, as us DOJ legislative can investigation then investigation? proposed you an you of on know branches since executive reported, well potential update a give start I major And have and movements least legislation. And the the company what congressional in as about

Joe Berchtold

Sure, I'll start.

of. you consistent think of general, is things Bosch And in First supportive the legislative, definitely that straightforward. we be a just fully think I of. we cruise pricing Act there's supportive on call centers and pretty what I under introduced, by Fair and fully ticketing supportive with the ] are consideration. of an pretty We're [ that in Senator things outlined Blackburn can now, Main, which all-in legislatively ] well all, hearing Right everything think [ I bill also are which would we're we're there's

promotions as me business if emphasize we problem it. that they unlawful. And they drive And tell that that far at our surprisingly, But that let to at look can everything DOJ complain are further almost something, it's from is have some our not talk yesterday, DOJ fundamentals they at others. tell, nobody not that the think we that look as the out the came and them and issues thinks about a the there, level taking On the I article impression us with competitors first our about. least

good are them provide top and those pay to artists and We dollar top-notch things. with support, tour

my also I overall our I've on the business previously, to think which, model, that is I've the is as based seems at said business looking article versus practices impression investigation reinforce what specific heard.

the they retention letter think retain I on seeks specifics related gets anyone like the from a DOJ of cover agencies the letters, this, documents the should generally, On getting that document to investigation. article saying documents

being So the about. us tells competitors given all is topics this have relevant which that complain obvious think the seems they information, agencies pretty and are discussed

come Finally, up I think document production any right for. the think asked concerning now We you that don't that seems always we this find tweeted it of there's real at completing investigation. interesting they've as news obviously timing our earnings. the We're to

our investigation story its in new on we We debt earnings, before And positions. haven't we even day that the of this stages to yet is at point. another the have mid which impression is seem think don't coincidence. a started is kind And

Brandon Ross

time like Tuesdays now And getting things Is And fall at especially real booking know Ticketmaster lot metrics But the about as some like negative especially I trends to all others the holding you're weakness, in point to will Ticketmaster results, continue for business, some Rihanna especially continued business. from weak world the real at but are Okay. forward? really QX in in ticketing look there that to seeing I your off up? trepidation there's a forward-looking the for said consumer now. anything just and Pittsburgh in experienced sell, guidance of the know you economy. the a to still after suggest just your of strength

Joe Berchtold

October. the issues. me asked But let and Sure. X QX first seeing about, I We're in give pieces, call of all, you think that you no then, it,

volume quarter. was QX So strong very a

by So fee-bearing and North the it sold -- America and internationally. volume, we which quarter, ticket growth came in tickets that the really both from XX million driven was

demand consistent XX% which the that globally. concerts. to concerts, looking seeing go growth the tells that are we're band from fans the So came of you again to

are one normally really, But about we came half which just last expenses, spread reminder tremendous quarter a the had on tremendous second Ticketmaster. demand is an fan largely last together client over was flowed that would I note of the concentration the out volume and thing year. The renewal through that unusual QX but year,

October, Ticketmaster at of if were North look again we October, the platform digits specifically just Looking then sales year-on-year up America. ticket They were year. our double at last up for in month to relative more

weaknesses. no So of sign we're seeing

to look of the Other digits. at we year-on-year is metric as that up week track the those at since our end X the look sales And we just for over weeks, we double division, concerts again, every U.S. quarter, continue be sales. past

weakness we're year putting it but more, sale. we're leading everything the all. you commitments indicators show good We about on we'll that get seeing So and next into no gave for at for feeling

Michael Rapino

more or now across festival Wednesdays to toured and booking weekly the over it's anything clubs to next tour with year, it's early playing sales in seen on XX back is again And or Tuesday, pond tour. for for the have the just not color. Yes, in talk on sense a Blink-XXX to an Brandon, whether big stadiums this sales whether last club who for world on the on we and have I Cleveland taper from off we up that festivals. Pittsburgh year And say, burst and on or Tuesdays, year a both maybe calls around presidents any you playing

be Argentina a pullback globe, in supply/demand stadium big. seeing right seems we The to across a are small to consistent consumer from any Milan not now. tour to way So the any to club from

Operator

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

Stephen Laszczyk

profitability been lot there's Joe, out segment on focus the how this a of concert would quarter. take

unpack the some slate that I year dynamics think think around as concerts help those these factors think we given more it of this in this and and next year. maybe quarter, last year. a hoping just look shows dynamics us some offsetting compared and was the some size I forward to would and stadium be of you as this profitability contextualize mix year matched I revenue shift structure towards having just we to then about could expense maybe helpful

Joe Berchtold

Sure.

I year. basis year-on-year. year, expansion think for our year-to-date, just expect the XX start And at that I me least margins full points let relative up of by margin to last are concert noting

halfway towards venues definitely to progress, the levels. the good despite will heavily verging on skewed by growth that's making So be XXXX for driven back overall that year stadiums. And third-party

the we fans were QX, pretty The arenas which last comparable XX% in or is for our third-party was stadiums, at look year look of If a at number about that if we think XX%. I buildings. good quarter, proxy for

we this added a stadiums in we So of that quarter. arenas had X.X buildings lot more XX% mix year. the Those the fans for fans million about accounted in or X

negatively X does AOI up, because things, past. and about making that fans, these as talked impacts And on in It margins. the we're our money drives it we've

high of and about. lot fluctuations. buildings if our So overall don't think year. progress mix make that's combination full quarter-to-quarter the in shift a more in see why towards We some you you'll substantial the the I third-party buildings take But worry growth margins for third-party

as think the I happy we're look totality of that. pretty we at

Stephen Laszczyk

Great. maybe Michael. for And then one

this You're and coming launch that year. ahead these some could compensate in some and look stores those will bit you your the sort shaping the tours how of to about replicate Beyoncé. X and tours maybe Swift how year-over-year? as fairly lapping talk hard tours of to up were be concern current for impactful slate more ahead the business looking Taylor of significant opportunity a I notable we little up the year on Think if there's and next was to wondering

Michael Rapino

Well, this we promote I've the seen written, didn't Taylor's tours. but

Nation, 'XX. account tour look tickets. or artist So Live but more I to worry don't is about for going no across than when was to have wildly our at X% Beyoncé artist of any successful, that comparable we Ticketmaster in

say, So will macro for tours. of have of been that pipe sitting at It's and on next a this over year year. looking at a crazy we've next we're portfolio sales, but our think we double-digit gaining We ever saying as about good are year-over-year. ticket very steam. to no year stadiums looking hurt our here one this next artists lot And year tour growth year, us and

record-breaking to So to we're announced, year, tours to we're announced. Bad big the next be Bunny again going as more on just and up more road very confident come have went

both we're next strong to that with confident year's year are full numbers. So big, Nation Ticketmaster, overcome that a will years Live very going this have pipe

Operator

from JPMorgan. Karnovsky with comes the question David next of the line And

David Karnovsky

growth. on up revenue looks like well GTV growth It following outpaced Maybe your through ticketing.

quarter? footprint? from you the I if might know And sponsorship your other So in take And agreement don't of today revenue could opportunities helped then, interested have deals to do kind how international you know don't I Mastercard for cover on Michael, what the say see understand today. any non-service -- to

Joe Berchtold

I'll start. Sure,

all are ticketing, sources well are as fans it's the as the sources from the revenue other the on that increase absolutely, Ticketmaster good it and array sells we're to profitability increasing providing non-service and fee upsells has per services ticket to it on services to venues Just us continues promoters that helping benefit selling. that that of

Michael Rapino

we time. the sure partners. global across PayPal our easy portfolio Mastercard, have have MasterCard of didn't working to looking years make thrilled in worked crypto of rounds the great now take we're partners had thankfully, on International to them to board. money the the a our and on been payment stable category. we of last out At We couple Citibank, side, at hard any at a great over diversity for Today, that We've

this to surpassing them our we've in show be a side to on our At part so boom. sponsorship of have and -- continue what economics up growth happy historically of and big part an overall had to strong sponsors very business live lined board,

Operator

And line question Welles the ISI. from the next Evercore of Ashton with comes

Ashton Wolcott Welles

to you sort on this Is so are years? add going this fans of owned up the at about X million forward? track in rate Or operated think and or right to guys could your step this I run venues. think year coming

Joe Berchtold

we're add on is area This to that absolutely venues. an continuing focused

hope we continue build to that the So number. that on is

as will fan our probably it add profit, it's year-to-year that we're to as think linear highest serve. be to that tends but that portfolio, I an we we margin on not area building very focused highest be our

Operator

comes Seaport the question David of from next the with Joyce line And Research.

David Joyce

estimates. our The of revenue away related questions. couple particularly A ticketing blew

So is how But or of In type growth indicator do mix venue function of know with versus revenue similarly, for the to XXXX? the and for wondering what that words, go an be that much of how that XXXX? apples-to-apples Then how metrics to outlook much on revenue be. how XXXX I It's was up shows XX%, an not some due events being is when for would use of much shows basis that of sales. deferred these to the on I 'XX XXXX. due tour would help our with we other for the

Joe Berchtold

Sure.

So why first what of focus we've more ton all, are. That's the show at of this for we point, sold not bookings on a tickets through QX, XXXX.

tickets come sold But I is which shows we sold what XX -- on more for into we've part So goes back order I'll deferred of, year, to. million sold tickets this the revenue, next think, the of year. we've

ultimately So relatively to we're what going of portion sell. small

So about. that's great QX not for to the driver talked results a of other more extent. of Ticketmaster our I It's factors that the very

deferred a then turned yes, we And that that well as pipeline up as into as have occurring We've more because, more for And of it's tickets shows solid in stadiums and that tickets revenue noted, sold for for arenas. the because shows period is year. because, next expectation QX. are also the it's our pretty sold Michael

grow next for We deferred X expect to see to number continue months. the X, that revenue

Operator

we time, end have the at this question-and-answer and Ladies the reached session. of gentlemen,

to back for like I'd the over closing turn floor to Michael Now comments. any

Michael Rapino

to We and everyone. taking New as details look are next We're forward next seeing you, Thank to about York excited forward you where we you. in an look Thank you Thursday. we week. industry, through

Operator

teleconference. This concludes today's

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

Live Nation Entertainment (LYV) 2 Nov 232023 Q3 Earnings call transcript