Live Nation Gains on Stronger Concert BusinessWednesday, August 7, 2013
Shares of Live Nation Entertainment Inc. jumped 12 percent on Wednesday, a day after the concert promoter and ticket seller reported higher concert attendance and that the sale of one of its venues had significantly boosted second-quarter profit.
After the market closed Tuesday, the Beverly Hills company, which operates the Tickermaster service, reported net income of $58.1 million (30 cents a share), 650 percent higher than in the same period a year earlier. Revenue rose 8 percent to $1.68 billion.
Analysts surveyed by FactSet on average were expecting profit of 10 cents a share on revenue of $1.62 billion.
Live Nation made $30 million from the sale of its lease on New York City’s Foxwoods Theatre to a British theater group in May. Revenue from concerts rose 11 percent, while ticketing sales rose 2.7 percent. Revenue from sponsorships and advertising jumped 16 percent.
Concert attendance during the quarter rose 8 percent.
“This is shaping up to be our strongest concert season ever,” Chief Executive Michael Rapino said during a conference call with analysts.
Shares on Wednesday closed up $2, or 12 percent, to $18.32 on the New York Stock Exchange.