LYV - Earnings call 4 2023 | Live Nation Entertainment, Inc.

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Operator

Good afternoon. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to Live Nation's Fourth Quarter and Full Year 2023 Earnings Call. And I would now like to turn the call over to Ms.

Young. Ms. you, Thank

Young.

your begin You conference. may

Amy Yong

Good afternoon, Quarter Live Fourth to Full welcome Year the and XXXX Nation Call. and Earnings Conference

Joining and President and is Rapino, today President Berchtold. CFO, CEO, our Joe us Michael our

actual begin, results. earnings results call Nation the contain can reconciliation to SEC refer GAAP section Nation measures refer to filings, statements for measures this afternoon's and risks differ, some prospects, Live we a that are business also X-K on Live Financial the that uncertainties the non-GAAP Nation's to statements new description will and has we to performance, to and G, full Live on remind cautionary financial including certain In SEC our to Please and The Before you Nation's like could this filings Regulation a and of the the that on accordance forward-looking and uncertainties the measures anticipated subject with Information Live would provided company's call. website. factors risks Forms cause the related in XX-K, company's including recent similar risk developments included matters. will most statements comparable these most XX-Q found under impact of that release. to release definitions in be could reconciliation actual

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

Operator

with Goldman the question line first Stephen comes Sachs. And Instructions] Laszczyk the [Operator from of

Stephen Laszczyk

a Joe, will the a and has XXXX. amphitheaters expansion business shift perspective, on to through concerts towards just ticketing on mix and replacing called is tailwinds sponsorship, across margin revenue And out and cadence in sponsorship the Mastercard's have shifting pace we think which Rock of in maybe the and how lot for have mix for the you can you the impact sponsorship the us the where help demand been segments year. modeling X year? Maybe the X growth you then in A biannual any Amex expect X these factors contribution the event towards Is you're notable in there the how you else size perhaps the from release? Michael, business year, and and maybe mix in maybe could to should AOI the this And year. coming way seeing on shift you on us growth slate Rio, X shift this double-digit made help sponsorship. this this business more from

Joe Berchtold

first. go Sure, Stephen. I'll is This Joe.

dimensions the this. shift, several In terms of of there's mix

level about Let's deferred deferred up terms and start impacted what being volume at higher. revenue. revenue lower being volume a this year, a in stadium with we've by basis talked is to on of which timing it's

stadiums. on less So you ahead the with QX have sales far

with weighted have the as basis, to heavily when to highest a revenue just stadium revenue fan money, going parking beer per specifically money mean you'd compress AOI a revenue price tickets because it's a QX going what that's will counting we're be to because be to lower -- be side year. and see line So going the that you in through concert streams line how more per amphitheaters, outdoor the that see in fan end that site have the it's to it the on year tickets. of we a to then of the terms deferred shift fans because QX. a other tend higher on the the It's the top of to to more in on more flows going normal relative

go way and the second that amphitheater should the would between closer on the which fourth into in tend On particularly That flows because the quarter concert have this fan sales improved to per time So revenue the on AOI fan. and segment. you'll third sale margin translate year, see the is in per shows Ticketmaster, it obviously come there had quarters. real through the on fewer it divergence in through will shows.

in still we quarter fourth our that by fee-bearing the against outperformed that million, of the So but grew $X headwind Ticketmaster, increased tickets number of shift. mix was about

AOI So standpoint QX are tickets tickets revenue on we to amphitheater. in the at shows play until be see selling -- those off and Ticketmaster, that a QX the because and help? tickets QX you expect from does sponsorship recognition those more into of deferred won't for But the QX. Stephen, those

Stephen Laszczyk

sponsorship. on then just Yes, helpful. that's And

Michael Rapino

Yes. kind a just pacing so is on And We're a as going year. ahead great amphitheater on we're This aligned. talked supply and about. Joe arena is want higher be to I macro the level our our which give the business, business, we've margin just of content to

'XX. going going again We're be that actually at monster year. we're So have fabulous to a that It itself. kind around be to it's like to stadium of We looks to a going look pipe able the world. year as to monetize reloads

level, So decisions artists a user could year. sure we in we're to this macro make supply I we're at stadiums. made continual just -- record seeing on want levels. have And been

and a Bonney Timberlake You get this wanted wanted versus great them we Bad show to in in year to together arenas put stadium. arenas and just

Investor look us industry cash a on year-over-year around fabulous those different stadium back a then AOI bigger makes with cycle have margin as flow, news growth good next over again that years. bounced that's year some our going this we we've year. this overall activity continual as amphitheater world. the a drive the to we'll for the arena we're XX see and basis, and going But years to for 'XX festival in in trade-offs probably will global is So But it the at our continue. over stated Day, year

right cetera, clients to clients, part demand point, the strong how some some have experience as want ever, with global is most we're part et this our of and live York down macro terms of imagine, ever. team, you as just now Verizon, this spent of New want they time your a surge CMOs sit seeing than to can my be basis. I stronger talk Sponsorship explosion live demand in in on with with us the can that about

MasterCard updated So seen as others Verizon deal with seeing, to you've and with and we're be announced.

pipe is Our up year-over-year.

We expect business to a as be double-digit we seen past, to the there. growth this down continue see slowing in nothing we've

Operator

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

Brandon Ross

year. Joe, better the what about doing? you -- business. are in I a app upside was actually answer the How the and this the everyone. last future lot talked AMP in shift to you the I curious mix to understand want question Her

the fixed I'll job been growth in can and Your of fairly time, per the start decade. a business portfolio caps done has on amphitheater the you've at Where from follow-ups. . for point? you does pretty last increasing this Yes, I some come real incredible have over

Michael Rapino

our ran around think the well. We on amount last come. -- have. up continue think, just focused et best-in-class we're years more me of of sets scale right monetize heard us up We we Venue talk we best-in-class, our let and division scale. and markets XX run skill beverage amphitheaters The now. bringing have we're the built at the hiring and incredible we really And because cetera. double we Nation of Just since scale. new for in VIT We we kind couple in that I in opportunity to you've launched think win a about But also of We it and first Day. clubs, this or have hospitality, to Brandon, still years, will COVID, international scale think remention our food global very

As see seeing capital they've club, I grassy you're into XX%, site great capital beat and I go, we when They're we beats to turn invest walk we summer. at run membership a call it. on we're an very machines you efficient, getting you're Jones that we're say, been When now date. returns well to out get a and area to Southwest summer, this to going Jones this But think club, me VIP amphitheater, they XX% very on Airlines. when and going

I much machines elevate job how their over. to take do these when start experience them the on-site arenas upscale as we -- AOI as could the better Now really treat and about have a doing with see double you been

food site of VIP we to our can think the the huge think hood in boxes and our beverage, launched to we site start there's have, amazing. entities been we it's XX rolling to out surge We liquor job. on we new to inside custom the our as we our that clubs bones are our They them shake branded we're own our elevated. idea death liquid our that a business do the So double efficient. an and on They're whether look actually upgrade incredible

XX% If that amphitheater you give be business of in overnight, you We the is doubled premium. look would if at your our about numbers. to XX% X% business, run. kind double you overall think that to it long of macro should

take to just it. way your look double. upgrade at business business double your house, So on a would Simplest capacity it, current in your VIP

Joe Berchtold

into shows bit amphitheaters. fair here with Brandon, X continuing we that's of of we while add our amphitheater our running XX% making right more average, Yes. been can space our And by AMP the an -- about is rate typical we that so our AMP amp on then is look to the of we spots the continuing you to growing from has shows And bounds, volume a half strategy. for of there now utilization other assume on about leaps attend hyperlocal put that put portfolio, fans the of at. shows terms more it, in an activity of more on still months haven't current if that can is we are and and have and

Brandon Ross

Great. both platinum in Then expect international business. ticketing tailwind to are has concerts and Platinum the the ticket probably I the . mask domestic a over big for was and the know Ticketmaster you in and platinum the how far along business years, rollout at continue both you of been pretty curious I to contribute growth to And then concerts how of and past both couple

Michael Rapino

Joe and jump start I'll can in.

every as how just of right? And agents It's that Saturday it's Platinum different in managers a smarter. team, on artist be reprice skill than been with -- this. Wix out think in been just night And Tuesday we've figuring pricing, worth working day Phoenix a night may is pricing have dynamic as great simple a L.A. Just it we in-house a that's

the lot you we're the price can in back you being way et price, the it. price if cetera. U.S., of kind the look smarter inventory. your at give think look Outside you a first -- I'll -- to inning. at front better, X We so ways the So out of sells

So we're just world. rolling this out the around

infancy stages. to in growth going So still great Australia America, cetera. opportunity, to South that's Europe, the et expand We're had it We've in obviously. but in

first they say, for when much for well leaving system when scalpers anxious for versus on let's are right it, the "Wow, arena Promoters it are the Milan the better. the and at too Baltimore an business, look there. see price inning they now, because in sell So table international received it we're on they anxious crowd gets for this artists

So pitch. best our sales that's

going all see business, increase to in and the U.S. the pricing all the And that getting the top day time way end, will it we obvious it the take dynamically at to done platinum, just better. gates you're see the So excel. shows I inning. of about business, we're the but sell-through B on to way, It happen. smarter up. artists flow way see the and on say some open you the rates the your the all along amphitheaters, stuff The kind through is fifth probably the the PX would

think multiyear we our So line. to still that's continue line/bottom to grow opportunity a top

Joe Berchtold

ticket. think The of other still secondary price I almost is is Brandon, the primary twice that about way ticket the typical it, a

and be house. So said, pick to being that scalper that closer take you I that platinum really the just want think market saying, through of going it. to to margin. as as be the artists are more priced Michael away more want I

Brandon Ross

overstate. give to stock your at many stage covering thing the not you to I've give double-digit gave never where you the QX? guidance I've welcome you that Yes. been I guidance. But confidence AOI And QX. QX X of been usual What seen -- the then now, expectation and not in here. versus always I finally, noticed, this I've It's give type years for that

Joe Berchtold

I'll start.

is pipeline by I for think, very first and digits, the of show our strong arenas all, amphitheaters. up double driven

As we've in gave execute talked the highly we're why now. amphitheaters ability Michael about, all at our reasons confident to our

profitability the year. confident we're in fans to of us off the that ability that this we're our to and of double-digit having going growth volume the and deliver visibility those So drive gives fans confidence

Operator

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

David Karnovsky

Joe, buying growth additional guide, the first, see know what's I to could described spend. the you've venues you CapEx just you if in are capital you November, on past potentially if say I guess, investigation to some abroad, discussed where versus I driving then relative and so anything DOJ a maintenance I that secondly, deals including the you for could provide don't detail and pipeline in mid-stages. know wanted incremental for look XX. deploying could And the had potentially how years? is And on

or Pro. terms to So here if update I overall see of things in timing you wanted any the with had where stand

Joe Berchtold

the me start with let Sure. CapEx.

gen, rev we X/X we're $XXX right about maintenance. X/X CapEx, projecting As noted, now million

include top projects XXs. the down -- is major stadium million a of collectively that, in about in is our would have of top buildings existing Beach is major world, projects return $XXX X would for Jones either Soul, or and million the a revamp talked look about international and venues which you about that those of City. the If the rev new half X Michael about in of renovations gen, Mexico at

So that year millions lot X some happen some we're of line this chunkiness of that that. a dollars, projects definitely up drives seeing tens have now in to cost them of of

returns some tactical rev combination XXs, a are other rock VIP XXs that sales. gen tactical some at and improvements in revenue is our to new that's be than sort new club, The things new the of extremely I maintenance creation sponsorship Ticketmaster Ticketmaster plus of tied a continuing than bar in high heavily a with the venues generally percent viewing lower venues, think And existing deck some been ticket designs lower would boxes, at a of rise units. combination, ad group then our new mainly a rate things

making we that have we're sure limited. So watching that closely pretty and

Michael Rapino

pipeline, when been Nation happy venue team, We've Venu level. didn't I really seeing Investor and terms global announce. it weren't In invited walking to scaled team. any X winning were some X about -- our that since we're global around into of we'll of cover, as holding into These we have skills years. best-in-class We're we're going that point. talking teams the got walking we we're and last really key We And in-house really we've -- incredible right those We're continuing just at over think in working the at own of Day. now to we the -- kind venues hope band. our you about world our development to. some this around the be

scaling next we forward it the than much So these. see we that because we much in just great past on and higher see years, arenas the path over on much, focused was hadn't before, international it a X

Joe Berchtold

finally, report. don't to then got And lot DOJ, on a think I we've

what control the have. questions they We we but updates. timing. continue should any They don't And out, have answer specific any play to we'll well

David Karnovsky

. cooperative. XXX%

Operator

next Mansson-Perrone Morgan the from ofCameron with comes question the line Stanley. And

Cameron Mansson-Perrone

Michael, if being an promotion we can. the past I kind about towards where global a think booking just of conversion. the in are national that update release you operated that I'd you've that lead from for it you all in then current of third-party to now? do interesting at to venue today. kind big that in the in of can think stays Two, was the and portfolio move in that thought shift to shift think increasingly Or you business Is booking love And on hear your adoption venues? seeing pricing lead I higher something you're spoken

Michael Rapino

But I'll because any tabs and all actually mean path, are X thrilled I consumers multiple shopping can that idea. in would we surprised If anyway. always They we're pricing, was were I'll upfront. start. add us. skeptical. be Yes, the they're think would conversion the we -- led there I Ultimately, see loving hurt

true the out figuring are probably same. the we're So costs

this yes, Joe talking be the to of torture a seems senate the everybody are say everyone's test. running all most would and stuff we that all with. So congressional of I I it's to about common think the great

legislated So would I up the good for this step start being I jumping is other to we can on et time, scalping, are a all-in assume over cetera. the going somewhere consumers, worry so would issues ends about forward others and wagon assume around

On the Still great promoter. and a promoter it's shift, It's still local. X-level -- promoter national why we or of a lots shift, have countries. promoters, local it always in is a to local promoter it's -- XX XXX Concerts a be offices global executed have right?

company publishing the to best an years. expensive. X at on have market you those basis. was Drake over putting back. staff they most evolved like can as So at record and last that cost a make the carrying agent, show XX ongoing on curing have to give he's and global Artist became global are label the X mean execute fans X local absolutely at probably global scale you he's a much sure have in a show important category credible huge I night. the These to artists last

whether So artists years have the Europe CTS over needed look changed. more in They started They national a needed because last have their the global to us for organizations are that needs up much before to global we it's AEG, capital. view sponsorship wider there. or partner, to Kong do data, on a Do not? all or it have business. them or help get Do think we they marketing Do after? do ways they go about Japan their XX Hong

more the global with globalized consumer consumer we've the the the about, manager the from and -- for. they're brands become younger have as artist, artists talked So younger the and looking

some of touring global plans global basis, absolutely before you your and a to agenda talk that's popped to about mind. with a do kind superstar new where X if managing manager when sit want you go down on want So in with common you're the

we're just over continue think to the move seeing shift So that next see I that and continual years. you'll X

Operator

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

Jason Bazinet

had on I quick CapEx. just question a

CapEx revenues been on sort from the capital see with sort open can spend guys make outside, returns consistent sense X%, of in doesn't business more. this on it envelope of given so and invested your X.X% we why You high the to have bit the happening of up and a what's

Michael Rapino

this question. Love

priority up coming the drained out I built -- we during about we was cash bank that of as back a talked think lot I obviously COVID, years X Joe the of last and Covet.

to staff, wanted our kind balance we sheet the strategy needed in So again, here. get place, higher get we the plot of XX-year X- strong, everyone get through our skills back to and real

So producing tools that to to now, growth we laid us this we way our deliver the all given think plan Investor we flow EY in it's ambitious out return the we're cash and need Day. our

big So consistent but and opportunity, with current depending up you'll that move outlined if been see us deliver we a our growth that that . we've there's can down, we've you pretty number. for

Joe Berchtold

think we if more. it accepts it the it just then market demonstrate more and And do bit a I

you the been and a on said, returns. capital market that spend as we've We more. tend you demonstrating turns. want spend invested The As a -- bit us return demonstrate let doesn't leaps we Market big those take continue bit big to will to we more.

the to continue earn So it. more right market then doing the and demonstrated steadily as we're returns, we're that. sees you do a just the not pipeline to building of

Jason Bazinet

press X.X% X% or being forward . the to Looking of number

Operator

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

Unknown Analyst

whether are be are or you an of the or consumer on sales the guys that's performance on-site how front, on It great seeing indicators real-time the get spending. to closing update on shows would

Michael Rapino

ticket went last mean then just door jump of counts. the the can sale I my announced roll sale. Justin this on I morning. ticket flying are top the We from daily sale Usher I'll just on Jennifer week within start to jelly up shows bottom. Timberlake, see The and He's Joe Lopez, in.

numbers. I and told strong We the night. -- show Columbus, all on Ohio in incredible in last slowdown no merch from buying X out. on really seen doing a GM consumer row for high were sold-out on-site, nights was They me we've a had -- the were sweatshirts sold the they we're So Drake numbers.

we're across they're buying current So and showing up globe country the seeing the at across right and now. business, our

Joe Berchtold

most to And to lease. of we're still these tickets front back, sales selling expensive meaning on seeing most

points. sale So for amphitheaters, just passes We at our the seeing on fan. lawn digits went with we're strong sale in on up demand all double our price-conscious that price for

have now well. So that's and those right to QX, be cap Shows clubs, strong per going year-on-year it's really on-site just numbers are the show Ederer continue we given closing. If for the spending and growth. best

are fronts showing all strong consumer globally. So demand

Operator

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

David Katz

concerts. that acceleration what the on. this an and When different the the would in think lines, And side concert arc business is whether in has essentially getting in in about that we sponsorship how relative there we growth advertising seeing of things or about . from at outperformance is think of I'm of you're acceleration the begotten this on growth trajectory sponsorship to later --

Joe Berchtold

David, is Yes, this Joe.

absolutely, the think in business. to are increasing there scale I sponsorship benefits

One make brands a looking want scale, of when that matters. the scale to but they for they're have, customers things at the time at open at really sure it's which they they're that want we us brands, to telling that is are reach to the

they're little of different So programs. not do trying lot to a

$X lot We're closing we're in so side. XXX the And fans. demand. on billion million in a sponsorship revenue more seeing We're over

got a scale and more that So Ticketmaster, we on to continues so -- over -- now we've scale million beget XXX tickets scale.

strong growth we business. see a absolutely, continued So very that in

David Katz

that potentially to not anything those and if concerts of follow up, could future right, sort and just some the pushing or But guidance than that. like day, plotting growth in of grow rate any outgrow of we're at sponsorship I'm more for obviously So lines. kind

Joe Berchtold

growth back XXXX, it grown business. business. look if think than consistently you . And concerts our think we look I faster has since But strong to a double-digit historically, continues sponsorship be

Operator

to like comments. at any back closing to are . Rapino over There questions time. no floor Michael this turn the I for would further

Michael Rapino

QX. and we will Appreciate you end to all Thank of talk the your at support, you.

Operator

concludes This teleconference. today's

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

Live Nation Entertainment (LYV) 22 Feb 242023 Q4 Earnings call transcript