Live Nation Earnings: Strong Demand for Live Events and More Sponsorships Drive Growth

Demand for live events further strengthened during the third quarter and drove impressive top-line growth and margin expansion for Live Nation Entertainment LYV. Tickets sold year to date for Live Nation shows already exceed the full-year count for 2022. On the ad or sponsorship front, the firm has already received full commitments for 2023, with various multiyear agreements, including the recently announced deal with Mastercard, paving the way for ad revenue growth in 2024 and beyond. We are maintaining our $105 fair value estimate. The shares of narrow-moat Live Nation remain attractive, in our view.

Total revenue increased 32% from last year to $8.15 billion, driven by growth in concerts (up 32%), ticketing (up 57%), and sponsorship (up 7%) revenue. Higher consumer demand was on display as the 10% increase in average attendance per event was accommodated by 8% more events during the quarter. More ancillary revenue increased average revenue generated per fan by nearly 12%. Deferred revenue was 39% higher than last year, indicating that a continuation of impressive revenue growth is likely in the fourth quarter and early 2024.

In the ticketing segment, a 6% increase in the number of fee-bearing tickets sold along with higher prices generated 36% growth in total fee-bearing gross transaction value. Average revenue per fee-bearing ticket for the firm increased 29% from last year. Consumer demand and less economic uncertainty attracted more sponsors and drove growth in the sponsorship segment.