Live Nation Entertainment (LYV) 23 Feb 232022 Q4 Earnings call transcript

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 Fourth Quarter and Full Year 2022 Earnings Conference Call. Today's conference is being recorded. Follow the management’s prepared remarks we will open the call for Q&A. Instructions] [Operator

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

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

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

us. XXXX, on around fans In joining the to for you events, live attending spend thank particularly prioritize continue and their afternoon, concerts. Good world

both and for seeing this of Our on. we're cut last out will top for in experiences back research priority discretionary spending. consistently tells the XXXX. our And early one that us are results concerts And indicators XXXX play fans

attend XX the demand million last we shows year countries. across the our business, XXX cancer strong With in had fans

international the we live artists, performers. teams more While growth in music. growth have demand from and as global we untapped favorite came both with XXX the reach majority with opportunities help ticketing, fans In of their further nature and of markets, reinforcing fan artists cases, helped connect their million the our we for fans

into attendance at the us growth. year, our of to terms we full to XX% drove theaters, events, results. festivals, just $XX.X up part getting came will type note markets grew and clubs details comparison million still to for concerts, our of billion. from venue growth This many XXXX Most XXXX. despite understanding year of to to XX% and by markets relative In is XXX be Before in division, our fans closed on to revenue all that last for metrics types. stadiums, attendance double-digit XX,XXX Every from had venue which best

reinforces invested the further working shows with in role superstars and started putting This and to all is artist our between. income. largest just up XXXX, in XX% billion on to contributor artists getting $X.X in largest the those as artist We our

As shift with U.S. part even ticket a of more show to below the $XXX million to artists as the this, we price helped value in stayed entry $XX pricing, market

are markets, increasingly streams. we of venues almost in shares growth the closed Typically, come smaller shows Live XX as of fan music on important This much artists reliant majority globally, with million XXXX growth. to revenue our Part continues operate from international fans delivering our again, the artists. particularly Nation of to XX% rev is for as touring other sales get they go ticket from

Nation, experience and options Venue our of a the elevating range and enhanced products focus fan on continued providing In we for services.

types. at last all per fan a year, venue by we XX% average As our grew revenue result,

successfully to products millions their we're regularly Artists we recent best aspect and we've Morgan tours, on X% innovations down cut sites including designed ticketing over products. seen innovating Beyoncé, every for ticketing have tens Verified every Madonna most In and artists in success Amongst are are with we XX% end why for artist sales, the ticket invest help ticketing, large focus up us. continue is this products is sales venue's for the We simple. of of XXX ensure so our Wallen. for the onsales typical enterprise XX% Fan venues inventory versus needs. the the on as developing to leading for year Fan, of on to on to strategy their resale, create resale largest to many dollars software platform, such to the new asked and see Verified in approximately address sales. and clients, venues help that is part the non-Verified Venue Fan technology which to choose clients result work our being deliver Generally,

volume XXXX which our fee-bearing ticket million, countries. billion up drove at by to XX% XX in by to our results, we fee-bearing $XX $XXX grew over XX% across GTV, turn Looking

tickets up As continued billion, Along the million new the $X.X result, a ticketing was our in growth. in year, clients international were XX% results stage XX XXXX, XX%. revenue with net with we signed for global these for

had our up $X Snap. In billion. business, to we seen including to businesses, PoP, in XXXX, we and brands we our more XX% with In brands large as with eager platforms. reengage such globally XX% than as had Go These revenue growth, fans large that across PayPal, our drove XXXX, sponsorship XXX have are strategic sponsors of partners as over XX% Google overall

our up international concerts ROI ticketing, markets with XX%. led As this growth with sponsorship and international

of XXXX on ahead to we our as sale. announce shows any Looking XXXX,

demand any see strong of no consumer with We continue to sign slowdown. globally

even in key this time indicators year success We at have four year, towards pointing the of XXXX. all and record leading another greater

billion, revenue which $X.X of XXXX, a from deferred rescheduled chose. XXX% from at benefited XX% XXXX and high was from of XXXX volume our up the First, end

year. is our $X.X global XX% XX% growth double confirmed, the as of year last to point sponsorship through Then the shows to digits sales planned billion up of this fans, XX% again, international ticket finally, for is for exceeded period. last over relative XX same mid-February, fee-bearing Next, our up XX%. this GTV up our year ticketing And year with million this from time of activity

and I turn to Before reforms. over regulatory I the industry environment on Joe, it to want comment

they industry is there On on front, merger, set of violations. monitors our more more with has up the gone as Because not renewal of DOJ competitive regularly merger. regulatory economics to share constant consent the and keep down, conversations Ticketmaster the the remain signing of majority been extended service decree ever, the not bidding in than take market do and the the any fees. and process, since believe competitive have In the every ticketing a the related venues we

sale times because set entire live we the the engaging is tickets improve The topic the policymakers reforms, of the been has ticketing between facing scalpers. face pulse fans how at to and yet connection conference get ticketing on focused they at industry, their industry in value on the industry and ticket price this the we've the sites see This a to conversations been will and page believe five On greater the chaos ecosystem with the our week, protect of secondary the big fans. for the can't at with artists reforms. advocate the they challenge where on are a transparency biggest

full Act, illegal. enforced. And Ticketing expanded and lots create tickets to help the Act they selling, cost To scope Fair be it be should see should of launched create speculative The we fans industry-wide music to their upfront. concerts. fair and and says It's BOT decide so pricing, needs which the should paying their drive rules progress, are Artists their ticket too. all-in artists the resell be only

base. of the the their on side will best artist be We always for advocate is their the and fan who career

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

Michael, afternoon, everyone. Thanks, and good

seasonality will as focus our relative is our with XXXX results emerging much the prior quarters, results. comparison us our And full terms after XXXX. annual Given the of the uniqueness pandemic, to with the discussion so be will our I of year best for on in understanding in largely from XXXX

For year. was the year constant XXXX billion was an than reported increase revenue billion of basis, our the better of our On $XX.X revenue $X.X billion XX%. currency or a for the company, $XX.X for

unfavorable due roughly to strengthening against was U.S. the a X% dollar, the there So pound. the primarily impact the and euro of

a a billion. $X.XXX for of was XX% million million year-end XX%, was $XXX of $XXX leading AOI $XXX negative of $XX of cash $X.X of AOI $XXX million $X.XXX X%. free And basis, company, adjusted also the FX for reported nearly million, than year by in impact our flow led improvement or and million up balance to converted ticketing Our an have currency The to free cash full billion billion. was XXXX, this in roughly record better constant we the sponsorship. year AOI a On

of share million, $XXX than was earnings a better Net income $X.XX. per in at for year XXXX, also the $XXX resulting million record

a Let on me each color give more division. bit

to festival XXX concerts, close million to fans mix First, due XX,XXX we heavier when shows to XXXX, the stadium concert fans. XX% compared XXXX, had fans our with attending a events. million per X% compared we events, more to XXXX in with was Show XX show count in fans up had most ever up of and

for grew AOI. $XXX billion, million while delivered result, a As XX% of we the our concerts year revenue by $XX.X to

with Arena, theater had million deeper count strong up metrics. million Festival XXXX, across all fans was the UK doubled than for addition year, in fan this Rio digits. American XX.X tremendous Lollapalooza outdoor Leeds in premier and fan including and fans OCESA in a season by the UK more Belgium, in the & in double South up XXXX. Europe, the from growth by as XX.X and in as nearly our very our in up XX% markets We Stadium the events, Reading of club attendance and Mexico. Rock Looking Mainland to in our and XXXX, XX% in from were X.X And strong in international attendance well at growth finally, Werchter year across fueled million over grew bit amphitheater attendance Chicago. board. Rock Brazil, fans

ancillary of revenue DIP nearly show our growth. fan clubs entry, on in sales, the details festivals fan At on to globally, the revenue camping revenue more by North night per by our was and the driven XX%. fan revenue per over concession UK by ancillary increase experiences levels and move per over lane ancillary ancillary are of per $X up spending fast cashless amphitheaters you there payments. and an per upgrades and or U.S. in concessions, major increased drove Giving And XX%, $XX, higher increased venue America XXXX fan fan type, XX% theaters

discussed the have company-wide taking into attending our for profitability, our fan this, at of reopening our venues. our Despite international year. fans during account per streams the past markets headwinds increased still notably we've we costs as associated we revenue shows operate, had we to As related amphitheaters well in supply venues and as at some and labor festivals cost pressures chain quarters, with

seen We to and focus, do recent of we have and these revenue expect to cost expect continue With XXXX. in subside the grow along with not level our this, same impact months initiatives pressures in in profitability XXXX. fan per ongoing continued

particularly ticket to we With XXXX, continue reflect global sales up tickets, Next, build fee-bearing the ticket million XXXX. markets. in international numbers that ticketing, demand where increased year non-fee-bearing XX% compared the to fee-bearing It XX% live this sustained as for we exceeded compared $XX.X billion, was base, our ticket GTV first sold $XXX the our for XXXX. year sales was up experience. fan In our non-sports volume, client to

overall for be secondary GTV. our ticketing continues with business accounting percent a to largely primary of only ticketing a mid-teens Ours

$X.X With this with revenues the billion are of over AOI for activity million. level, $XXX year

As year in XX%. margins we in the delivered high XXs, at projected last coming we full quarter,

best XXXX, the at concert by and sporting to compared by pricing seats ticket primary demand On rose events. premier on the front, driven for fan prices tickets XX% average

ticket. ticket average remained Secondary extent the U.S. also market live the that events to remain concerts XX% average by than the This ticketing double rose a and pricing of primary value. below other more price which secondary priced in on shows and so

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

fee-bearing help drive Michael signed XX we expect for client increase and in wins these tickets positioning ongoing new year, an us as sold will net for this Lastly, million tickets growth. noted,

has that ticketing, been leaving Before add wanted of fees. to the comments help front are the lately price venues. service the venues lot We the a the that so-called just separately add-on that people embedded on ticket. Michael in service called some attached few fees, goods to into that services to to agree because of even not run the junk be regulatory instead tend illegal. obscure that and understand I Ticketmaster They out discussion of spoke thrown to pockets, the fewer you. There price to get case. a the about the charges should few Ticketmaster the their Very is and true arbitrary that as which compensation and to to charges goes think junk We is hidden real businesses distribute tickets most a fee money understand conversation to of

a As legislation she where the for one is total well as going first sees mandating advocating any pay, of the all-in reasons the as we're breakdown pricing consumer price he or the of of to rights, There material that but a range strong have for direct of artists and fees. these impact policy are business. our because we're on other points we're none content advocating of proponents

XX%. with for a our business was $XXX revenue sponsorship year it record line million, Finally, top up of

was this AOI business high-margin XX%. for $XXX up million, Our

growth than by online XX% and again, to high business XXXX. festival more Looking compared XX%, back both growth respectively, on-site of doubled. XX% platform sponsorship's and Once at our our had year, integrations in we and sponsorship the during increased

international markets business year growth had to compared XXXX South AOI exceptional America across greater in Mexico. activity increasing over an with and Our this our XX% expanding and due rate Europe to festival by

it's project very this current XXXX, rates, X%. revenue based while impact little very on in year, FX on our few points early still AOI than other A we and less on year, the

CapEx the out projects, and this relative This on we chain including organic thirds come years million as growth. of spend expect as generally year, as few slightly two $XXX supply approximately We with new revenue-generating support tight constraints builds to is our well investments renewals venue controls. to and be higher past other and to

revenue, range and trajectory. percentage growth our is However, with this consistent as well of a within historical our

untapped us sufficient We to capacity, billion an ended the revolver available of year with between cash $X.X flexibility investing giving in liquidity continue free growth.

in percent notes issued As convertible billion aware, $X senior amount we of in principal XXXX. you're January, due X.X

the that to that As we notes in effective to then XXXX, net the due were expect transaction, to price increase X.X% hedge the $XXX. proceeds a used part repurchase half of We developed convert roughly we our of debt from this a meaning X.X%, well comfortable with dilution positioning our leverage. with minimal Over average interest cost in convert rate rate an fixed of at of this us We're environment. offering. debt roughly is XX% convertible

In debt nothing long addition, next our months. maturing XX is and within of the majority the is dated

to of compensation share a impact our will Given in line will provide that we're run more at guidance we noncash AOI, on the the year. about items with year, beginning be anticipate below of want We which XXXX line few largely per two and calculation. the last expenses thirds earnings with acquisition transaction

continue expansion, As quarters. $XX evenly year, approximately million the expect depreciation and by amongst we global for the grow our we amortization phased to

with in stronger last will of projecting increase anticipate performance We're AOI. $XX from and Given we to And interest XX% expense financing, expense our resulting income year, accretion approximately line per be to that joint tax will recent ventures. quarter. higher than million number grow a NCI forecasted about at future our

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

you. Thank

will a be conducting question-and-answer Instructions] now [Operator session. We

the question Ross line comes your Partners. question. with from of Lightshed Please Brandon our with proceed And first

question. Yes thanks for taking the

hand more a your in today. officials there You that of out why the of your highlighted. so experience? the is know for And solving with is laid fans issues the why issues and prescription promotion lot that and these ticketing are think way buying many elected competitive wouldn't business ticketing share you're of want dominant? any solve But too both And a to you slipping I ticket industry despite big structural at

Thanks Brandon. It's Joe.

effectively you look they business have successful both when been very in our constituents. business, their serve ticketing our because I at and think concerts

them we product terms strategy to had very the ten develop to ticketing, to and products out why touring. to similar spoke stop. led years, We've be when mean So I in number the we best a on with large a serving roughly continuing is, effective are the they're because the have software and key if concert we AG full been which to super have work to best tools of a were where more them, there, lot of size. figuring focused you venues platform of go the with and artists. constituents back with their artists work who side, we've out to for artist, of Michael we of has success work for it In going continuing

So, and the serve well, it's such, hard be such the for your industry. would answer venues we would didn't so to artists question have think, I if someone developed we tools with where great a we smaller and have who

is our grown ecosystem I think it. have to for business. the And consistently approaches the better industry through we overall, the

fees, you then or that and each fees goes future? huge And fans and percentage And it's have prices a into talked Live and Ticketmaster pressure, investors should you so what then O&O and the these granular you about regulatory that's of the ticket the sale. think, and as growing ticket cut, the the percentage of, are of fees, junk ticket of fees to you're consumer a junk venues Nation bigger the why look is amount to I more of we there's “junk”? sustainability of ticket now and concern The high? Okay. why amount the fees worried bigger of be What go and Can giving in the get venue regulators. the little fees about on you

Yes.

This junk by price XX% the us the shared first, are price, XX%. version of product Just to retail of fees. Junk collects wholesale our is the later. low-value markup and these collects hidden the is fees aren't fees correction, base Apple Amazon up of venue. show the of

the amount services the they the of venue they provide. provide, the for of goes version services the for a this So that Ticketmaster is money

not junk fees. So it's

sense And renew because to you the nature when of more the What a don't fees exact the the we've to because of us discussion think the average much venue. said once that below they to makes with the competitive average. give breakdowns get everybody above the I process, obviously, is typically, of of venue. the go be fees majority goes venue the to bidding in the for it then, next

And commercially that's the give a it's wise move and been those numbers. us not what's trend, But for happening. so generally, specific very to that's been

fees the going service sets up, been have been the venue venues The up. costs have fees going and

where you very what it would situation could unique the building think I tell be would their be. a fees

it's upfront see quite where got cap frankly, more the is to as of And to up increased cost the their transparently. you you would they part costs the you think what for all-in likely have needs up then and other total fees, pricing, artists the venue recoup because go I happening if were end would costs rent ecosystem.

another are prices way? then would saying fees prices or because regulated, the ticket just if you be just stay ticket would were ticket on same in passed they So

that's what possible happened, Very yes.

it. Got

Thank Okay. you.

Historically, the historically. a of added of division in what were streams was going Brandon, But kind artist search on to many artist to now, fee And consumer ticket or state revenue said that most be the you base. that. the there we've what of was that fees then top charging know, times, it’s it on takes and added the were as

fees through ticketing venue, that company or the extra that the way the the So is their fee. earn promoter revenue

You're would all just in to right love make more pricing. we it to

all true see the participants that from cost is consumer the need be happen. because that's go the it's for of show to that clear $XX, beginning to the show the to how very participate $XX isn't to So

van the $XX,XXX someone ticket price would if then then you it it's you and rent would have value. $XX be the artist, tomorrow, $XX, isn't up be know a And fees, that add wouldn't shouldn't fees all on them. of sudden, a okay, Well, $XXX,XXX. you say, the anymore, $XX would Now those what, said,

it inefficient. companies and see which we're why the most all-in than our So proponent the don't on right other of of is beginning you That's pricing ours. all a big pricing now at process,

across see all consumer's of board fee the of cost would believe mandated kind we to perception that to relieve wish when stress, this the the tomorrow extra the show of overall that cost. that magical the is that shopping. on be We part show want start the know lot we would So added a what I is true there's that not

Got it. Thanks for the explanation.

right? Nation the to your to service the $XX,XXX not in you charge the owned amphitheater, your is fees to absorb capital, the – building couldn't just operated, can't your then So find be run and have If the hammer so point staff said, to we have on revenue rent on we And home point point have house you we that Argus, you the We XX% $XXX,XXX, to know tomorrow, $XX, be charge Live right. still would well, cost. wouldn't pay other means. to someone we

cost making a show price the better. that We So need now all market to of just the isn't true happen and the full upfront going in. to show

of And Karnovsky the comes David with next Morgan. J.P. question line from the

Hi. or lately Thank accustomed criticism become politicians, Nation elevated you. certainly Michael, Live I think to over the press, against of level social that years media some trade though. Ticketmaster seeing we've from

I taking become were So proactive be limit thinking public or with could investors. ask a the for what help to in maybe perception about you relationship periodic that more what's your wanted lawmakers concern managing to actions

a Yes, it's great question.

if out out, were demand the And always those year, to of million are customers we where challenge did million about in gets unhappy kind XXX want tension creates of zoom delivered. the whack business. historically of of you created, tours at drama this been of that those About customers. of historic five were XXX that's I of of tickets XX that kind and have is supply kind incredible lots with a the demand it last year, and kind happy First, seamlessly look million

we've Nation BXB been a Ticketmaster, Live business. At really historically

the all supplies end. one the if And heat been of out those And take historically fees a scores bit very all we've is the artist. When has front the fabulous and historically demand customers. been are punch of the companies, to or the their in when businesses service NPL the look proposition service prices job our has job having service Ticketmaster you ticket if whack, high, concert of that's to and the building seller general, at to job Ticketmaster all the done is the happy venue a kind of Our are ticket ticket same. part high, taken the at very, that are

where two there's famously just side. everyone of didn't And this on There's Rosen ones now is not customers got one all lean lived right? as you got the never make to absolutely, never – got adjusting make our off, our happy more to said, ticket enough and the inventory you government only we've PR always relations we've Fred much kind start – side. is to that on But are We've happy. forward pissed that can historically. our that BXC the So and an industry get

had think got to not But business shout a are that of incentive or expensive big go charging much education been historically We've job. loud better are artist incentive We've that do kind date. out high a paramount. and to I to venues now big hasn't a fees now costs is service out

the does better all job hand and do all and So forward. probably we've the we some understand how the how operate got consumers going to have policymakers, on wheel, a a business

the always the I while, last enough which XX this chaos has right? this kind problem, on and is the of real Obviously, tickets of this in set show sale of not there's nuclear that years, One I with the a challenges on kind a fan was think think For secondary business. that core unhappy. been highlighted

happens fans on They're about the is You those four see demand at sports are anything They're to think passionate all and the that relationship want a more business, artist's else. that tours five are passionate. they passionate of or committed, or big than our which hallmark they fan, costs. thank what of god, year, artist

Now you on what's announce is an sale. happening

yesterday. I famously said Irving think it

on the haven't We yet. announced UX sale

We play. dates have with when announced will But UX up the haven't dates tickets sale. on sites secondary

to the off couple high doesn't tickets tickets understand started and is times demand XX get sites if are So process. on Why so many has last five sites? face of ticket, scalper there consumer over spec value. years, on of on I the selling these there pissed are the X really pages selling a get didn't to for o'clock sales Why

fair. after new with that's getting must doesn't digital a all thing really don't understand become SeatGeek, must scalpers you the That's online. secondary. add them of This their tickets right? Vivid, so they online going given to have the – years before, of that's seem ticket And StubHub, of Ticketmaster, They get tickets. ways the this consumers the see kind big a many why last now ticket really there's few highlighted, over on couldn't tickets could and a that why then

at I to So the any between the Dolan the to panel got Garth that did with now We of Irvin, we've conference hear Jim on you I in part the ex-employee. Brooks, want that's that. if think today would Fair industry yesterday, DOJ Polestar, Act. lean that really tell you, and sitting the at

it of most shows united got and was most in now and yesterday up them think think it was seen that excited conference would venue, an I've industry. industry I really And agents the we've as sense I was say ever I in the a it because united fabulous stand managers, music promoters, to artists.

great lobbying that for the certain to I fan is ticket, I artist someone want yesterday, deliver a ticket my money at moment charge books Association, say historically Broker exists want Artists that and have up middle "When out sat to that and and don't only good said, been not the relationship my would a the Ticket price in I a that he to lobbyists there off they've a want I and the making was price". room when job. But done fan my IP, at lit together really that

I was we've our week how think going to passive in we to the moving. approach we're This been start educate too start and on where act. of So need

better right to We now. new a going Live to is We're developed get just our do We're to education the going products the are the stock We're Verified that reform. see at going to lean better the We're matters only products have forward Fan the venue going products. on to transparent. best most industry. ultimately, at secondary that ones better us box. lot the and more You're game at that. still Nation being part to try the lead be more the will on And that then some side

We're think right from place for see the a this ultimately year pushing one I But action they're for side done job Obviously, we the as the have to great of a work [indiscernible] now I leaning move year a CEO this doing job. standing much you artist are. us. you is We job side where tell forward united better telling the you'll not start more a story. when So witness if aggressive going narrative. more want good of forward artist. back, of hijacking would done them. products we’ve there's SeatGeek, very behind artist, Scalpers We're and lot be the fabulous with to our the

good that. today I FAIR think is a start at Act

Okay. see. on margin little lower sponsorship than the normally quarter, the AOI And Joe, a just then was for we

had think and got later. were amp scheduled festivals some there I shows that

could XX% of I just like then there Wondering mix that the for if sustainable walk might how was expected? than think wondering there. Thanks. So was you higher factor you through drivers free year, And be? had if conversion cash flow and a it the that just

Yes.

finished up think, year. we obviously fantastic a I

too read past, you quarter don't told comparisons. guys much overly I've in this the specific As I in

opened We half. year. addition of the a with most the changes of in OCESA, closed You've lot had the Europe some impact business obviously a of only moving pieces. APAC got last the in second of Timing year. of lot

it then read or yes, said, So particularly And to some on to shifts, came strong AOI. timing our cash just to it into a indication flow read as the side. free margin you was the go-forward in nothing as very conversion really as

lower pieces I line think gave overall leverage some higher just part, us then what just expected. expected, a we the a And of on little below were the the that. in bit some than AOI level, than

think conversion. we year flow cash that last I outperformed So free on

Thank you.

Please next question. of proceed And your comes question the Goldman with our from with Laszczyk Sachs. Stephen line

demand for opened being far so XX% particularly especially of saw year, talking maybe we like front year this for pricing a you seeing far year. the the the reopening Canada last that some so XXXX? in in and by or Michael. versus what parts on decelerated, global benefits U.S., that year-over-year demand time was that saw this markets think of expand the you I maybe now up little on accelerated about on Hey. in growth more consumer on Thanks could a Great, thank you. commentary hoping lapping February, basis what I ticket last you're bit were As remain stable Maybe sales through as trends Europe?

So thanks Stephen.

I'll start.

Joe. ahead Go

just I'll with then some start numbers in Michael can and color. of some with fill the

comp million where this That's up last that year if last at we're shows, is means said, benefit Michael year XX half to those About fans XX% would with relative even XX% happened year. you an year having think as against last growth around of that the number, So got XX we anyway, all point rescheduled. but We rescheduled will. this were million fans. inflated which of totaled those have

growth that. So than even the stronger actual

the would in up North noted still XX%, high release America we within that – that teens. which up is around As is international mean

growth. good very So

at just roughly we've the If in you on mid-February we global sold ticket of as year through tickets a year. look this the sold last January sales twice sold basis, number

the looking to at activity be even continues very robust recent So globally. most

similar. Yes. is And my commentary

the We are just year. amazed the at customer of this resilience

on November all it XXXX bubble? Was Where pocket to growing? was just the I customer? the exception rule. view the a an think we everyone's we air and keep Could lived thesis was

but the world. world stadiums Europe, outperforming around demand in our last all America, of Asia, are in South We're with right year We now now. everywhere festivals up growth the Eastern right see strong nothing

Our clubs theaters and are doing well.

middle the the superstars Our then in theaters, direction. We'd going of think across said. always always big we our to the is business, incredible stuff That's our festivals, festivals to business kind we clubs, consumers, sell How strength of do? buyer, worry you and on-site the this most niche and spend a do? those in how clubs see just all of right is rest as amphitheater – festivals, potatoes this the the of we're is our – or first business. How meeting tracking going the we our board And to right in going theaters the be the are the about shows? continual seeing on now out,

incredibly on the zoom said fans night forget have at for than do, earlier, still we But couldn't of the look about a always dinner, are that for out to out let's experience it. game, a because concerts, to we let's as cheap to was attain park. bad have go overall theme absolutely a are concerts. best out, going night Still Bowl, of tickets $X,XXX consumers. that or option it affordable XX% again a shows Joe a a very that most affordable X% affordable more much We're $X,XXX are each, incredibly of memorable ball political concerts consume badge Super versus I still tweaks. shows people and were honor a job PR done or

So plays we that in. think

a seen We've on We this top haven't to will any more demand bottom year. through pullback. rise We think global basis. seen that

on And maybe Joe. more for one Great. then regulation

stand a You for and in on notable DOJ? about the us rationale hire where recently the with you you the investigation pretty front. for on maybe little a any talk the update hire legal bit made process potential that Could

actually This Wall, following May we're in the is So didn't BottleRock. Dan at January. from XXXX end those of retirement for it, his formally see hired of I of you conversation started delighted. who joined and us at Dan We a Latham

from going was in people's us. was he retirement, working Like of upended. planning join XXXX, retiring we to XXXX, fun on other many be end announced Latham, Dan that at come And the with to retire plans, So his those an exciting, so talked got found business. us

up end ongoing past Dan that been like DOJ. to non-stop with instrumental has for for He's until seems It be wanted He'll but didn't discussion. in this the terms dialogue years he retiring works of do. in in now January, the the our So been something been three that's XX years.

asked fact He pundits of to that and statements about their an was together piece making the motivations. laying refer so in out He up. many basis DOJ, everybody today understands broad to exactly read broken analysts their the op-ed process, should put the people risks being that on that opposed just us as Polestar certainly consent questions they decree, a

there very higher disprove I he that what unfounded a does speculating. little generally talk opposed to laying think why in fantastic for going of detail specific I that he and way requirement lays those creates to beliefs people to are think job need out so are to as many out of a

Okay. Thank that. for you

And of proceed the & Cowen next with question. line your Glagola question comes with from the Please Stephen Company.

ticketing Thank you. Yes. of about your Building against said one Michael, main you. competitors off you testifying what earlier,

Just will in you for ticketing utilize like Live Act, political digital players think the primary technology Ticketing help to Nation on States their controls do United light any ticket? ticketing in of Fair allow resale of artists to there's the impose to

would some in the I believe I probably fan logical, seem up get that around $XXX be U.S. that walk cheaper an shot unite ticket level to regulation. the to is right? doesn't the the – doesn't and said, only Well, make a artist underpriced product $X,XXX. world have there countries best country to – don't the other the about wants is when they a has their middleman most IP. able artist "Geez, think the if It why mean charge for I of

is to on how you look So look, much $X.XX. about artist, just most the wouldn't be at password sharing able IP, if you to work doing think Netflix save

the a who there's I the mean lot worth we're pretty sold. underpriced every day. artists of their much think the pent-up that's it's product world more I only product are second of So in

that I betterment of think base. for done they've fan their the

their abuse seen the IP. sunlight that's And like everyone online else, they've of now the been on taken

our artist. stand the like I I up like with position. So

I artists, ticket tickets. are believe the saw Garth. you That going [ph] mean able artist I like the control doesn't think to tickets We should exchange to they sell should that of believe with the fair it tickets. a model PROJAM be you do you more Irving, yesterday and not in transfer have platform, their exchange and will should. that the have

let artist the an care doesn't about secondary the if move. great, rush And will will then then –

to to at that the it to want the limit saying, go the since and do If XX%, artist should at underprice care have it, want cap making you to you for their a I well, market? product it just how seat fan on how betterment the they're you of think decision XX%. does

charge $X,XXX better Because not continually we market. to charge that's want the I'm well, fan then, don't the artist for say, to going just to

time market, that do going they that very to with I over under they're presented. be in charge I if story when they'll should a say So have persuasive it. believe lawmakers believe is

secondary to they freely the know, the that you make are around trying running can As second sell tickets – are them. transferred so sure

that's I think that crisis last in the in don't of a on good news all the go gone unused. let while,

lot foot, lot about much as has business the while this I bottle. the created – not a us of painful of it suppressed The genie's of bottle we of days. out is too think that loud some this on kind wanting We our back great talk on service customers. the a got were for as out news to

bottle been the champagne has popped. think I

thought I think was I yesterday artists unique. very

done lobbying. the sleeping, have job going we've – see you're think been I a to scalpers fabulous while all

yesterday artist up sports. woken and And venue, have the got big in the and I a they especially this, stake think I think remember recently. right,

step their and I a position. or sports artist content they think how control I Kim on talks lot We the like general, think able when teams, and owner to a to sell leagues, more sports want that valid owners May clear in We content tickets, He that's will the think forward. big be other very the IP. was industry. So think very about the artist a have that's yesterday. any

Thanks Michael just I for Joe, $XXX to million. spend had one on that. And XXXX CapEx for your

think, with levels, I color are? maintenance color on XXXX growth on be you what Is into this investments flat levels. XXXX Nation here spend XX% and rate this above XX% provide capital And the then some two-thirds business? hurdle would Venue just appreciated? you those in implies guys Thanks. growth, factor on the that of any above implies more Can CapEx one-third So then XXXX

in certainly Nation the growth side. the Venue of A is lot Yes.

XXXX to prioritize is get. As amount substantial of the we can scarce building we to supply of able XXXX, that to where faced then use you we with Then that were a a were needed. XXXX, in we had CapEx constraints in that do imagine deferred and had chain resources lot the

a So factor. limiting that was

catch-up some it. of the So there's maintenance on side

The a return than gen operation, continuing of more side for safety required is issues. rev the of is side. and Most really health maintenance a maintenance

a new ones, we return or project cost a well it's venue. differs side, have given just adding above by a you're specific haven't that growth a – at of the bar a it's capital, whether are bit requirements brand-new On our project,

opportunities expand those to just we So as themselves present the that global are footprint. are continuing think we

you. Thank

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

fan it what is? fan. just know think AOI said can for you the inflation some own you I back XXXX? called frame you out on just I per the per a But reasonable costs, headwinds, question sort $X.XX had this and get of in or was $X.XX Concert's reopening and a better. maybe something venues it of AOI I would year

look it, to per Concerts I Jason. is don't logical AOI at a think fan Yes. way

you we've we've about how our multiple about talked pieces. if look talked business across at think the our I business,

site what side. the our by increased we've executing of revenue some and profitability but of per those So per fan have but supply dramatically and our also at per said AOI fans on fee what's inputs, fan overall by to ticketing concerts sponsorship chain costs growing by concert constraints, sponsorship plus the the on coming fan, increasing to non-service plus including we've our increased some the by the with then both fan, – which venues, has some is been it, cost of you these look increases, hit ticketing business grown that per we've

the there on in So and to we more recognizing year, be given puts are it look going at certainly business. holistically, some a takes

up? follow it's... I Because just Can

to I just want also some color But give there.

obviously couldn't didn't when XX,XXX generators. an miles We had everyone, were trust ago, ran together back down, back come cost. running to summer. tour, year. that concert hard May, are in we remind We Overpaying get staff. XXX staff, all but no were suppliers hour last We we to to for open all last Just have a hire tough for getting costs staff, I we in sat XXXX here back level of the in mean, delivered normal every generators staff place, find to we incredible be was suppliers, still open now line, we're the year year. cost think going double numbers, are show

normal do So business. of a cost we to continual basis be back in obviously expect to XXXX a terms

of I there's just way away Can ask think follow-up? X and to it some is shift permanent ticketing and that sponsorship Do sort advertising at words... in concerts? and right you the In profit look other from pools towards

at on was Fast the for those rescheduled up sale later, shows then. the of Those I think rescheduled. yet I let forward another I early and got fans the mean that for couple market repricing had shows years we're XX the or concerts to level price about shows are shows, was it's last substantially. in nobody premature particularly me year that. went for million say back give that those. we hit us piece you best with talked what XXXX, just moved on the tickets and a priced XXXX and

one-time So XXXX, replicate unusual That in a cost itself. your a XXXX, you with were operating stream XXXX to pretty chunk against structure. a of That's the XXXX good revenue business was not going event.

in a a take to got point. off data beat, let single of you draw think this play you conclusion I a out year before So

you. Thank Perfect. Okay.

time, to the the closing have team over end back to floor reached of I like for management And would turn at remarks. session. And this the we the question-and-answer

you, Thank everyone.

conference. today's concludes This

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