Live Nation Entertainment (LYV) 30 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Live Nation Entertainment Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Amy Yong, Head of Investor Relations. Thank you, Amy.

You may begin.

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

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

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

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

are now we questions. take to that, With Operator? your ready

[Operator Sachs. first with Instructions] Laszczyk Goldman question is from Our Stephen

X% fan XX%, diverging looks it on it the America like some Joe, quarter second international with growth grew North count, between XX%. trends in up down

a into and that half for attendance into Michael. you you few been there's on what that over the within across on that, of demand means venue ultimately that of have if front, bit months. more And then seeing then the think follow-up back year you're and to related cancellations what about you Could what lot half a to tour wondering could comment the Just little consumer attention you're 'XX? type. that I talk region the extends demand back last attendance on and then across extent for trends a of growth maybe just And the seeing then

X-part about a That's question.

pieces. easier the some with Let's start of

In below to of in seeing historically cancellation historical norms X.X% of terms rates, of trends. with line X% of absolutely cancellation X% about They we're year. kind last shows, rates, historical our run fans,

the that efforts to or shows, tours not out very been I of large take and we've there. reports seen of number seeing a most points data we're and think of unusual X anything just X have

In put the month fans terms of of couple continues concert we've those a extremely One from just be fan, May metrics the on we and summer behavior. to to focused or purchase our their of that a here things in promotions of be casual over overall we week heard recently so. or when casual fan increased seen and promotion, demand, important is are We back strong. more other to on or think obviously, companies tend weeks or highlight X-pack we've lot past where tried interest

So that's positive signal.

go year-to-date. to The people is in last-minute shows lawn or the of not up other That on the making signal that the are more amps as how they're to buying tickets off, decision close before those do of couple the play we is weeks look whether at XX% number show. last

spend dollars' continue again, demand no casual at to go on to and behavior, of again, once issues So seeing in amphitheaters. show, what's for growth the our we're very there. our track And that strong finally, couple a their they seeing we be APF

price more a point. very with a can money, it's than of seen X/X our value get lot concerts memorable of as $XXX, experiences good It's at less X/X much think them I $XX. other than event consistent all you being So less for than that

seeing. consumer of good very about strong we we're level So the feel continue to demand

is year. venue the the saying with stadium was terms the seen what quarter past geographic first of over It's it and been consistent so driven. year. over year, half we've numbers that for type the big really not we've This of very specific a the going In driven. not be I fan much count It's think to

terms count. out that That stadium lower in international seeing lower number. our fan of impacts shows, play You're

we've had very performance, where amphitheater the on side. America, North strong particularly

you amphitheater up quarter. As XX% second for said the see here, we attendance

are it's well. up strongly So digits really and amphitheaters double that year-to-date. up Arenas, as theaters very clubs, all

the continued from the having -- So year. a trend. you're happens just geographic longer-term to growth not make seeing, in comment standpoint, of macro any on And shows any this benefit totality, the U.S. stadium Doesn't that kind despite

at As demand underlying issues into of no all. we head the back the year, on again, fan half

the course half. We continued in growth expect to over the second fan count see of the

arena of QX, show terms QX was count. the most impact we in shows at the well. summer about stadium shows of QX, we X/X come had we in QX. probably amp as you'll the growth QX, started of your year just think and that in fans continued And in look of as the will if the and I think season, of earlier majority -- I see got

for in growth but of we than -- the -- QX demand fan solid So the QX. expect year, half overall second again, growth still fan probably more

then Michael. And it. just maybe for Got

look you how shaping is into reads any up. As touring out on XXXX, the early pipeline

it mentioned in press think year. I expected the busy release, to was a you be

commentary front as well. around color and Just on that, stadium or particularly arenas and the amps any more

Yes.

stadium given XXXX. this X, big grow extraordinary be growth where a day is coming that still years of from business X never in said off were going We're thrilled year. can to the we we As we

So be of issue the that year shut business stadium and down affected it's still of summer. most France Olympics. for going Paris for lot the a overall. Stadiums us for of Most always international month, stadium the that and strong were given to challenge, always a a was

like looking banner right X right the for was So is, It's good as for predicted, 'XX. We're big a stadium bigger now 'XX at than looks ago news we year again. now our to pipeline years it 'XX. be

than last now was our terms it bigger year at right pipeline. in time is arena and amp this Our of

predicted AOI would compounded be 'XX we'll of and an we'd year year we've annual And as that X%, XXXX the solid more. X% industry So on and the continual to COVID, line, and we've an stadiums. arenas and next of see be life amphitheaters always back always probably growth will to a back as thought post to come and back top be growth

Our is Partners. next question from with Ross LightShed Brandon

I'll it tight. try and keep

a follow-up as I Just that question, think Stephen's there on seventh was.

overall of you you like QX larger rest a in relative in year, Just types that the up were this the big what the years? for stadium does performance expect bring And terms since this terms there's ticketing of in of does Should the for QX year in of ticketing that the activity, year? we stadium where and weakness of putting that QX look QXs to similar kind mix? in

Sure, Brandon.

was just since entering around with me AOI little XXXX, context Ticketmaster bit XX%. this of over XX% around concerts also start XXX%, Let multiyear a trends we sponsorship year As and I that think a up look around

So we're things is, as and I expect, some think this you'd the the to more. normalization grow, seeing one of those businesses as come start year together numbers

about stadium the So mid-single-digit the to going think Ticketmaster be unchanged. driven It's talking on We that by Michael sales this a growth activity. just remain our we said, with to was views year. be it's QX going on --

good general, stadium bad. and And I people have in think of just lot a undermodeled impact, the

it's I been QX. undermodeled, in upside think the

past, to perspective they is and the the just I've said one their amphitheater stadium ticketing do average how fan triple from triple price of numbers, in purely count an the narrowly As show a ticket show.

have company overall, very and to and amphitheater helped drive a us as valuable fans overall. So growth this summer year are those our AOI while this

segment, the way. to it at specifically the impacted As you see you're look ticketing going other

And piece that domestically on? wanted stand to situation the if going don't to ask and overall ask your then but impacting strategic look just at opportunities, at and making. on back allocate all? lawsuit, the Great. as how want you in When ahead are how overall that just the of where M&A DOJ, was just is your swaying mind both straight about you you decision now there of it with I whole nothing abroad, capital you Or is

Yes, isolate. we're able to

if you're my you're DOJ. in -- So on department, working the legal

If you're as divisions, running usual. any business of my it's one

Venue we've on around said are last So we venues focusing the -- world. the while, for we've always global Nation, been

we release. year. or think online XX over XX the in got in put Still next coming We've that I pipe. press so the

at I looked had We looking meeting that across the XX this venues Asia new build a America Latin in the and morning. to we're venue U.S., pipe.

basis. South an Africa business a usual. expanded international you and think there's those a space week, ticket, great of basis. more So venue And have global think I saw white a we in We few on ticketing still last on great, as

in of So us lots of the divisions. and usual opportunities ahead as still business

is from Karnovsky David next question JPMorgan. with Our

was there from of that kind and to level entertainment this frequency live it starting kind the other of trend curious late to to post-COVID, kind 'XX in an through that's any pull going normalize. Is is pull concert to indicate in anything forward we've Joe, you talk as 'XX? of from to unsustainable some Michael, line? do heard kind demand your forward of for to recently of I'm on think Or there data your now view comps. moving companies and relates ramp back a

I little to for like one. bit the a pull forward concerts find an frankly odd Yes. be of concept to experiences

fewer there. count. about The Notwithstanding is Latin, country. a year, this K-Pop, fan lot we a the I we're We're long still our stadiums said We new about Afrobeats, a a demand talked exporting think artists. fact growing this that show We've have artists, our we growing lot still have count. global lot business. talked is actually supply-driven

on growth and the of that there's shifts We'll So that the venue go from on deviating activity. of ongoing of would continued I But side, business. the seeing markets they level think that terms some have in world. an historical the which types the seeing in demand have the nothing everywhere we're trajectories is suggest can exactly what we're really globalization acceleration which artists of

on going growth Probably base. global over economy to about consumers talked overall. you're all we've industry as get the still X%, last of the of there, industries one show forward. are double-digit continued around wanted they And that a sound, growth COVID this to a never at going global We basis, of going a predicted some shows to supply/demand moved XX% or X%, always to year We the regardless basics a of of industry see of well the to artist, of -- annual a supply/demand, grow the make XX% basis rate. to Colombia Pittsburgh, trends the are from we got that find some the XX% many grow globalization demand are best as restate year. the wanted to those divisions year still industry was out this Globalization, that the a on on amongst at the pent-up experience going

attendance season. Joe, And and your strong to I in to you might should in growth QX to the of think count basis slowing amp year a that for potentially mean relative have then for And the AOI due show an more count earlier quarter. QX? were growth this growth frame on show just what relative before QX you can margin particularly said

Yes.

I have is our the QX to see on of high volume for high-water the reason we always much as pretty not think no addition margin to mark continue. amphitheaters. in that I'd festivals

of you for to continue little we talked We specific concerts. to a year but more modeling, more numbers result a expect just of be bit margin earlier the trying to give context this trying where some a growth I expect I to normalization. about growth as for was -- strong expansion. of very have to AOI I'm I gave that the guys AOI

growth of are to exact margins of we lot because forecast expect we So the XXXX do And always think moving for a company levels. to concerts give year. I that this back overall hesitate towards margin carry year of in lot on the moving QX of it we're that levels a on in full volume XXXX results expensing on marketing, basis. but that depends margin sales back expect towards a our the

Our Morgan is Stanley. from question with Cameron Mansson-Perrone next

the the how to been ancillary there? about can. efforts at we CapEx the cash given on release, that with year, achieving terms that? last How mean the Joe, this year? the factoring Or despite lower Is success does monetization of consistent CapEx I in expect forward to up And next you flow that note the think context that into you've should any Ticketmaster given from this taken free some rate year, improve about then, guidance, of conversion CapEx has ramping Noticed the of on in kind that what's just generate ramp. in growth how you're that that? if comment pull that And Two, is year take higher nicely year-to-date. CapEx

Yes.

pull XX venues last speaking and that -- expecting the what we to specifically think as spoke open have we 'XX the we're we're forward, XX to I now 'XX is to of opposed in terms between had quarter. major

very I talking start about 'XX think CapEx. it's to early

an As we're can we Michael a opportunities regularly venue teams question, that. with He market, talked about looking spends the lot every of earlier on time at find all for the looking globally. in

that we'll decisions on of profile tend to there opportunities. extra with think at. make CapEx of we on lot a look based hopefully, I So opportunities those that to continue And will to return kind continue be great XX-plus percent the

forecast the don't conversion the in number numbers, in and of I think maintenance flows before that I terms the was how that growth CapEx, numbers growth use the since In through. CapEx impacts the growth think those number so CapEx. cash the we after free in is cash growth conversion, CapEx that

your to units lot Again, ad of continuing have our clients the to internationally, We're Ticketmaster. perform and spend renewal internationally. and North upsells at terms with in the a Ticketmaster, strong both to first growing adding in America is ancillary continuing Back Ticketmaster question of well. rates,

performance it's the the underlying was one multiyear So performance that had they strength The on volume quarters QX the a as year strong. and be the that to lost stadium that X as basis. the business quarter, shows the in it's high business in think that of all of health very it's the last top indications given second of fact continues great the still of actually are that AOI I of fact the -- and

with is Our Supino Peter next from question Wolfe Research.

I versus question -- CapEx. function. high a questions, then could to with wanted one growth concert promotion growth. wondered really if Nation I the the Venue was X ask on you the contribution I parse segment on And from

generally by about And at talks incremental return, we take XX% capital maintenance oversimplification? discussions, CapEx Venue your returns builds. CapEx? CapEx prior the to a release a the Or should and aspired in does that be forecast upgrades. XX% that would an multiply venue XX% between XX% If venue on difference press total Nation greenfield Your returns on you some return on growth and invest

you're separate have, you that you P&Ls at the Venue all about. other think, We look venues fully transfer the X. the a creating on to that the would that new what AOI trying that We a CapEx value. the versus we're concert the feel returns say, asking give that's first, and really the So Nation of lot spend I generate, we aspects opening returns promotion, lot do from shareholder We're don't pricing, don't we because a we of I time give at business distinct making investments. level, generate to would of

also This that as the on all said tactical we've for some we make. and and and strive what CapEx is or major north that showed we think There's also is more other XX% new improvements. Ticketmaster builds, on CapEx. plus I historically we higher XX% here, renovations venue-based

it's CapEx oversimplification, if bit to frame of apply a So trying an particularly often a couple ongoing I given time probably is for major that projects. single the years of to on you're it the a think

So you a little there. timing bit have of complexity

So but it's this on if basis. quite not simple. returns, trying not you're time, a just quarter-by-quarter you get Over probably to do as those

Barton with Crockett from is question next Our Rosenblatt Securities.

ask with to maybe sponsorship. about bit little happening a more wanted I what's

you're the AOI year. So the for X% quarter, revenue in XX%, but up was was up guiding the and

generally the you this drives in top seeing and You're give the of just but bookings about and I just what of acceleration the could talk double-digit on the wondering talking point. was what you're kind health the line sponsorship margins. explain margin at back growth if about stable in

on on give I'll comment the overall. you Yes, and some specifics margins, Michael can

margin I business, business continues strong. to the think be plus XX% a very

I in as as said, we similar is think have to business that, historical of when single margins you year, underline over historically that long deliver overall in growth talked sort we'll the in have This the I grow all when to, I part think rates. Michael and as we'll is to single-digit high quarters, expect years. overdelivering at it's growth apart about, course business, continue a of the past on of teens that basis. level as growth we you grow the fan continue we're look been an industry the continue and the count sponsorship, AOI overdelivery And overanalyzed we those if

lot a global larger the like work an relationship us That strong relationship with all has on deal on biggest the want and a a big music. our our I regional at CMOs given integrated. And overall, just the to national local would digital, look from deal we're the as festivals, different our years, is tours, a our clients, upgrading the lineup X team deal. to to to And been and from major on the or strategy all continues to upgrade work national with ways live say, be our brands. over seeing Yes. All to moving a the a of on-site, ways find discontinual last a longer-term I our want artists, more they kind NFL attach a

be great an for to long we business basis a think So time. AOI on continue a

to no hand questions like for are this closing Michael the at Rapino I'd time. There you. back comments. further Thank to any over floor

fall. and Thank summer, everybody. talk in you, great the we'll Have a

concludes This conference. today's

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