Live Nation Entertainment (LYV) 2 May 242024 Q1 Earnings call transcript

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 First Quarter 2024 Earnings Call. I would now like to turn the call over to Ms. Yong. Thank you, Ms. Yong.

conference. your begin may You

Good afternoon, XXXX Nation quarter the welcome conference call. to earnings Live first and

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

afternoon's similar prospects, to to anticipated you and statements like new the are risks actual company's could to regulatory financial matters, uncertainties subject contain developments including results would We to that that this differ, and certain call legal remind matters. forward-looking that cause business and performance, will statements related

to most refer filings, XX-Q the on Please impact description Nation's Live including could actual included XX-K, that a the risk SEC statements cautionary results. of in factors uncertainties risks and Forms recent and X-K for the and company's filings

release Live earnings on Live Live GAAP Nation a that, comparable this Regulation the to found has on accordance section Nation full most it Berchtold. will these and G, turn SEC with The reconciliation also In refer measures measures our under the measures Information definitions non-GAAP over President reconciliation call. CFO, in of provided the Nation's will and can now to to Joe Financial be release. I website. With the some

a with interest lot appreciate what's going in on We Amy. Thanks, the there's DOJ. of

discussions to of staff Ticketmaster. phase typically senior and the has is we're seeking upfront. breakup So which has begin leadership investigation. claiming with investigating, in potentially about an DOJ point, against of the decided lawsuit let Antitrust about just Live to me about issues a that been At division the know We Nation, Live division address Nation obviously press their this reports file a final

at that ordinarily relief process. to whether about over to end of Decisions made the seek see what

break the and up. know interest us sue that DOJ to us some urging Of course, sue us we and to are groups competitors

that address me Let -- directly. let me add

the with structure. merger most by Very relates appears or As what of little of was legality specific combination from business does to focused that conduct Ticketmaster merger. our And Live practices, to the merger promotion Nation we the DOJ's resulting stated, decree on be addressed DOJ forward. the go raised not has of overall previously allowing to and investigation us the the consent business ticketing and the of anticipated

the on a Nation a and of issues we don't we Based legally breakup believe would know remedy. about, Ticketmaster Live permissible be

the has where divestiture a it's structural rarely such Live company's reviewed the and the public through filings and merger engage Nation and Ticketmaster and strong subject the in the in to court structure Legally, divestitures interest. lawfully merger Furthermore, to DOJ only granted. a and DOJ is together connection as unlawful allegedly repeatedly came the conduct. ability the relief that available there between in is corporate approved other remedies. that stated were settlement The

the we're division we resolve of We scrutiny segments. We're believe prepared remaining those disputes. to within to that under segment regard with and looking upcoming connection that leadership to our segment the issues the across is either falls not, in hopeful ourselves since bulk or and meetings this investigation amicably with lacking our concert not If can conduct our court. any within in defend remain ticketing the forward

it the now operator, say for we That's on all for Michael? can DOJ to this and we're on going open me call. And questions

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

the you statement there but stand-alone in that's, think Ticketmaster a investors' probably questions with your I is you that's of Nation regulatory, do biggest value the see on one how inside separate minds. as remaining big question think Live relative I And hit investor company? versus

Brandon. Thanks,

our and very decentralized I'm we've sponsorship incredible around Nation, embark we're run last built a Venue call. our and very proud on Live we ticketing, concerts X in this addressed Nation. venture we think and fourth businesses about that organization, to I At

these know, years. you for was So incredible stand-alone many a all on run business as businesses Ticketmaster, core own. their businesses

it over, and open et we elevate like most and able marketplace platforms technology, its when consumer to cetera. bring platform upgrade that proud we much We're some were took like it, its leadership Airbnb enterprise up to and its

I've incredible of also But incredible we are always a pieces that we part own. around businesses So these Live said They own. great are these are their portfolio. all is what on of I've portfolio think said

We happen term, plan on like portfolio I all that separate or we very it. successful together long think would keeping our today to So be and these think businesses.

that but per Great. exceeded fan just this year. color could I you're confidence is venue reconcile growth is based quarter, but in quickly And helpful. down. then continuing to first profitability makeup actually that? the you additional on in would you any assume give deferred double-digit mix, Obviously, AOI the the the you express Can be

Sure.

Brandon. there question, that of I think are questions sort within X

The going with then what's first is numbers. going the on demand consumer technically on with and what's

sure make hard the on to consumer hit we So just demand.

they things the that look that to us continue an are weakness. the very all of fans the strong. no The spending be seeing we site, are are We when go indication how at shows how give selling, to

at for demand. year of last higher. toured to consistently are were but shows of seeing just touring again to so consistently look last the where year, artists year that sell-through those the are and in release, hit the we they When some a a of above are overall at the best number or highlights. alluded We're this like-for-like the and artists few examples grosses We of that they're

at demand fan no So all issues to last relative summer. on

arena at concerned would We're seeing in the growth of And you this it last at tremendous the look number year. cannibalization. terms cannibalization. could see be strong continuing such as when point shows, strong was lead to on, We're you early volume, is which of our some volume arena sell-through no as to overall which a despite largest

we're seeing look the strong QX, theaters in clubs, bulk growth and spend. spending, when of we on our then we in fan And activity at venues where our on-site have

the gate. out make to just So hit sure we that of

on. And going then what's technically,

on going to concert we fans margin story isn't this sales what's year you're what stadium fan our revenue they're They're growth revenue that AOI past the going been and high very sell a ticket a a arenas going to ticket, more the consistent with the and the deferred be come going see less are we've year, that I X-plus to a with story, to so the cycle saying shift number to with going expected through tickets XXX% deferred big of sales And in expansion. year of amphitheaters, earliest. also lead at be shift point later. more the stadium portion for is historically in think in highest-priced of bit months, profitability, this the a the overall, a higher revenue for is venues, of to

I'm still we confident the still in double-digit believe growth -- we've that saying. been

David the from of The next from question JPMorgan. Karnovsky comes line

festival are some recently press and seeing some around moving the in challenge noise in maybe We've the of events seen tickets. U.S., established demand more that the Europe, in

see could what or even dig to bit you're on you if wanted in the observing a Just industry? for live

start. We've read Yes, some it of also. I'll

our it said in haven't business. We

around world. festivals XXX over have We the

ticket digits currently, are year-over-year. I double think up sales

our So a portfolio. festival to we're strong seeing start

over sponsorship, you We is so seeing festivals, a similar strong, our we're XX% strong them. start also huge year-over-year with around remind up a to business on festivals to are sponsorship venues

XX launched see We portfolio helps. year. festivals about some we new company, global having so We're a festivals internationally. launched that We've a new do a

if lucky the make You're year. think this X. them we we XX% I year, down to it shut And next XX, of started

restarting new So performers you're ideas. weak always and kind of some cutting off the

with on, overall a is, to deliver and The seems we going big Coachella stadiums. trend those artists see missions think the to massive hard part I only making of and lot money of unique I great this that whether business, it's the in Bonnaroo, headliner. are out, that's or festival be really the are to X-day appeal kind everybody with think a year arenas to of original to year deliver

it's as to headliner. So that easy get not special

Where it's genre great XX,XXX or and of festival it's on Diego. of it's San a higher-end outside are or BottleRock exactly though Eddie of And to coast niche, more a music a it's maybe the got lifestyle, write that in festivals we're on down couple a like [indiscernible] X-day the seeing great festivals a Vedder X- appealing certain and a or and people, maybe calling does Napa. of business success, we've out

better the X- across, So shift niche to we higher passage Coachellas, or Lollapaloozas, with are Austin X-day still, kind festivals of the Limits, the experience starting higher go There's City people. strategy in let's starting to they life sponsorship if of just have to more the swings per heads, XX,XXX a try X-day putting a big right, XXX,XXX new definitely, long. probably so seeing seem a niche and live though, less they're after value it's a and But make sure a will -- field. and you're you're probably one, they'll more people versus a

part big portfolio. overall overall, a overall of business us, piece a to our of it's piece global nice nice drive on and sponsorship portfolio our our But a business, to in it's our basis, a

Nation where just locations with discuss around to where versus Can an on for Live a independently we've to to then you it's strategy, the your partner View execute like Oak for venue capital instance? And look Group, of you you as world, kind seen best kind deploy criteria third-party of

X,XXX-seat Spanaway around looking Group the of been now hopper Legends is arena bunch it retail Yes. America to their and on out sports sports We've right in that everybody venues build it. with owners, certain has do We across all. partners with in ones Boston, a footprint

building concourse with retail NBA, help capital -- So NHL out. we're partnerships with different bunch to partnership in owners build we'll their are a area, out of NFL them or in and who that potential partner

sense developer was OBG like partner would So this say a with the to it. meeting in with we're [ morning. depending Austin, world, ] we'll who that makes opportunistic I I if there's sometimes do and a partner is, But we did venue around in the

this morning. very the very, called it about We this division. leg I are fourth excited

return America over The pipeline few going lineup where if got on AMP a outside is XXX% a see a take theater We've large can time developer, them business better the always to the global the look The of and this there at we unsophisticated economics or very business. we capital years. that of keep the around there's we're that's are Most if -- We also. long. do own. pipeline next if rolling the our Arena of can lot will that's out that we of of think

everyone would I the -- probably wants we're we that with. the partner to are one say

great So optionality. have we

bring We are and looking demand is that to always kind of in us be partner the a partners first with. developer

great now, opportunities building muscle that of have and execution we we're than So power but right more opportunities fast.

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

a lot for step-up XQ, aided by XX% as sponsorship that internationally year-over-year driving move international? bit the on one And just that is suggest the Maybe throughout a in be maybe was that It growth expect up 'XX? like driven of the you was XQ, it's think, should Could in that Does see talk that I XQ we something what's Michael. to the sounds internationally. in saw about is quarter. strengths little more more could more year, it fact we or we throughout driven? Revenue

Michael the on international. year. started hop Stephen, you this A in about you're A going lot in it's our as just Asia. then lot and said, business as and this America is it talking Michael of festival performance Joe. And seeing of South is what I'll festivals, it's QX what's of in get is, in. particular, high was can

really So business. Hemisphere help we're growth that sentiment of getting that we QX Southern is our the the things will QX out balancing and one the like

we'll year So this -- QX see chunk good expect the real I sponsorship those and because see we'll growth traction would in building QX rates we're highest businesses. getting a

one Got unless to on for then sponsorship? in it. Joe Michael maybe And another jump you wants or

like to had incredible some had -- of want I incredible The X No, numbers of these we or years mean any growth sponsorship would talking I -- is comparable we record just an we're I just about. remind growth. year. you last

it's the think here a powerful fact whether that business to the debating we're how testament a or just show at how up these levels, at is, the is growing sitting and and the So customers mic are anyone not. drop hungry full pipe to I the again machine show

that numbers So couple. we're the growing have after a extatic sponsorship percent last year-over-year than to bigger XX-plus

see I touching this while I think brands, figure the that growth -- great it's festivals to to they're going spheres and people and know big, live, from happening, how customers, a all live on-site, and to struggling you're demand these experiences and the continue. very space, reach is think that at very, brands are hot being consumers venues

Got Joe. it. for one And then on concert maybe margins just

margin than full You segment expected called year. out in be the to concert last higher is release, year

could magnitude about depending I last talk dictate line? there? outcomes What some versus I in on that, of range think with would factors, meaningfully more just above a of maybe in, the more guess, bit the year little you coming

Sure.

watch I think One time. still going probably play bit we're X out of over to factors that is a FX.

noted, constant for a currency, up basis we, basis, At X we year-on-year. QX, XX reported basis points. points As on were up were

can have we grow. that material on a clearly, impact how much So

all do could do down is in because our we Second if is bring of you long. in up in being the level the don't and that we QX reason bringing we'll activity of margins just too deep lot what's of have? while guys know, QX, the arena a still all love the QX as I margin booked. going process And day is that arenas AOI

some numbers. there's to into So get still visibility those

already we've to up this And of A next is because be great 'XX very that last of call the a the up talked strong Olympics on couldn't of year. already reasons, variety tremendous they stadium they're Cup stacking year. or access the stadium to then Rugby how about stadiums shaping a year lot any finally, a World or -- of for year get

The those launch incur QX, the in then all put end the to stadiums, of accounting that shows have write sale at impact is you of QX. off on you marketing you to those expense for expense particularly marketing shows, and only that

we but life of the more margins, from the the globally, that sale and the over bigger we strict a standpoint hit. accounting tour, cycle tours on irrelevant in impact expense put again, the QX stadium So

and get guidance. work So more we'll we closer as those through all of numbers provide

point now, all to happened, are the going have big but a are exactly what right margin to is yet But factors be. at aren't declare things all that good that expansion those really

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

earlier year. to and I questions business. X growth on up the the then of want So the the follow on venue first, I on for on growth guess, outlook

spoken growth you've muted healthier. to quarter this think given the a mix more venue makes look I considerations the year, even first potentially which growth in XX%

Joe, year help how we then So this CapEx of think you've you maybe that? frame from opportunities, could the ramp -- the just should venue on And about light higher in all outlook growth new time. over you to CapEx in opportunity and prove us spend? this past higher about about the tell wanting outlook talked see generally from the out then incremental gradually it What should

Sure.

our to I step Brandon's build our think right tell we margin. positive high-ticket it's have we're back how in should of because those On double-digit about gave going that particular, just the losing bit QX the continue growth, as out is heavily you I to in is end that I going context this sponsorship business. price questions, the by little to, year. be to a optimistic are concerts deliver to of the AOI going will of and growth growth. ability side and I be And growth look say, at the all to year? as Ticketmaster it's second by stadium driven shows think to lower be continuing concerts It driven but international

growth rates So were as coming last pieces over and all to years. I what be Michael to of of couple to tremendous the expect all happy of off continue very said, grow them the of

this pieces be back of business think year. overall the I look how of is So just is to we have tenor all X it grow that to the continuing great. will at

buildings coming the Fenway in effective what whether park, expectations renovate we the venues building that all replicate the to And or a international to developer is successful. they first looking what and as take from build volume around is opportunities, developers want building to sports the did player you're them we're coming helping performing ground, every to make operators CapEx, you're as of good should something are opening said, their because terms think Michael our at I the who and owner we're a us that that Group the above whether are of us that in the or partners terms of choice, think their team to an

this So pipeline. of performance incremental and and the I think pipeline, it's but just a is strong build-out strong continued continued still

line Peter question And comes with the Research. next from of Supino the Wolfe

AOI -- rate about wanted that ask more about come. years I'm if to for longer-term the first company months I wondering many X at to double-digit comments ago, your build-out compound venue about could view the project. in a growth

related If you any capital the are United XX,XXX, are outlook. from returns? about ask capital, I returns a number? Is maybe these the that into lot way an a your to those a then it project What talk numerator company that didn't long-term or still you as you you when It's the we've And achieve that build built just specifically could and to XX,XXX States, on heard clients. from whether It's on student denominator? are big returns that, goal? wonder, a outside and EBITDA arenas how question [indiscernible] venues,

Yes.

the were, long-term we of X over we're X the time. going AOI part of and that. plan. continue mean I I build generally last how largest out of terms course, strong growth that's did levers, mean, component drive our When it In to Liberty, that to we is every the or venue of year, at lay venues year, out,

thesis how and that it's absolutely of continued it part growth So to strong going rate. get we're is our part of to

return mean performance, the on In standard terms it's a I of invested capital.

basis, to a cash out, back at it cash-on-cash we cash look the business. So on

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

with that you know a about deliberating as color you in FASB the hinting a sort expense you it of any fourth But might the our my Q request I and about disclosure guys to I talk great. was is, FASB out about would guess, when that? questions with I November venues disclosures decades, that are that disclosures. Q, there disclose in or been says what business I for thinking then still came noticed if just second have be that segment up you're destination, but not? how know And on of you sort I something, don't question is, second you're X building standing actually. had related

organizationally structure. as about still separate venues we're of under business, terms the point, not organizational venues In the at same of We concerts [indiscernible] them segments. and this thinking have

it terms who the just the of be premature It's down it'd focused to about trying growing. as think we're in So internally get this segments -- also area be on to an important road, knows. everybody to

term that's So use loosely. why that we

of FASB, to we're there doing new the terms -- regulations, them day what them. the implement going In to studying generally, any until any accounting we we're time is that are need be

the So selection a time to I don't always to We're have any full and prepare and here think do and the things ready. just we revisions be would use what assessment whatever anything we lead way we to we be of different. going have, need make make how

the question And of from Bank. Soff with Deutsche line the Benjamin comes next

wanted bigger ask compared attendance looks to there up this North Just quarter. a about tenants concerts international American was attendance. in It like step to

each year? bit growth you that about unpack a think talk the you can in So how and little region for about

Sure.

and QX fewer is a function we largely we've as of think international been Southern I fully stadiums had, talking Hemisphere of in or just year particularly the function that last a stadiums about.

the in America. is expect lot disproportionate Overall, our America. QX out come growth meant this kind trend increasing is of international of was a would because of probably that amphitheaters, share out of primary where year which an of growth will in growth North I the North define going, that the So

in Again, no our adding the standpoint just you growth and a growing, year, where overall all larger I that trend. bit a portion, but of be there clients, of a I towards of we're terms with change we've may ticketing sense think heavy trend the is international capacity sponsorship look adding this if the got we're in cyclicality structural international being from of venues, that, in where our aberration it's that think business character out at where a

the Joyce Partners. And our of David comes line Seaport final Research question from with

please. questions, Two

ticketing First, world. the when would index path you of look be attendance the concert is attendance of growing how versus And secondly, forward? per upgrading platforms plans OpEx? rest is at population, country ticketing, what the What from capita to going in metric -- around the globe, U.S. here over CapEx on what the are that and then much the the versus for your the

of drive America. will North our driving want, us our talking a the we've past fan penetration, we'll is been terms on about continue, has hyper-local continue for and you America base So years focus absolutely if our been several expectation that That build helping and attendance, in fan a per in basis. fan North in to

and thing generally that's same going in Latin. in We the been touring added you The touring back whatever We more year, every adding artists in out -- on K-pop. on who've we're other added just have cycle, is, hours.

Afrobeats. adding we're Now in

we're with So to in adding fans, will and which help draw continue more penetration. artists, that the more also

international of As other think more function look a going a Manchester, are to how like hyper local markets, it's into major a venue U.K., continue where the earlier. In activity a strategy, for is the that that see opportunity sure the on to international of London. they venues, through markets driving about we lot cities our additional talking got at more all why was that penetrated just Michael you're not a strategy may there's penetrated In focus have lot to we ties which be we making of we we going presence. the that in of markets,

growth the to fan largest. focus we So to every the get certainly from biggest different, a how market is bit but a continue on more

continue been pretty past of lot we've ticketing, a level that a we talked progress you but in We enterprise couple in stable made. over software the of is the and we've the terms CapEx, think lot world, that. think In A the got tremendous for it's about years. we've I system cost leading of think develop investment to that products

for the dramatic We we are products delivering to the nothing in continue marketplace, expect it customers new as but changed. enterprise both

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

and to you, Thank talking summer. you we'll in everyone, to look the forward

and teleconference. that does gentlemen, Ladies conclude today's

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