It’s no surprise that Live Nation is feeling the hurt during the COVID-19 pandemic. As a company with its hands in booking, ticketing, management, and events, nearly every facet of their operation has been shut off completely. However, in a a second-quarter earnings call with Live Nation execs yesterday, it was revealed just how much trouble they’re in.
According to a report from Variety, “Revenue was $74 million for the quarter, down from $3.2 billion in the same time frame in 2019.
“Live Nation’s net loss for the second quarter was reported at $568 million, compared to net income of $172 million in the quarter last year.”
An important fact to note, however, is that Live Nation says that “86% of fans have chosen to hold onto their tickets for rescheduled shows instead of asking for refunds.” Since this is not counted as revenue until the show happens, it’s reflected in their quarterly earnings report as a deficit since so many shows have been postponed.
Because so many shows have been postponed, CEO-president Michael Rapino believes “’21, ’22 will be record years. Regardless of what quarter exactly we scale at, the business will be stronger than ever.”
COVID-19 was declared a pandemic by the WHO on March 11. In just 5 months, it has brought one of the most powerful music industry pillars down this far. Despite a hopeful outlook, Live Nation will likely need to look to the EU and UK for revenue in the spring, as the chances of the US bringing back shows that soon are slim. Even Coachella, which is rescheduled to happen this coming April, might face postponement again.
However, Live Nation president Joe Berchtold said, “We do expect the on-sales [in the US] to be a few toward the end of the year and the bulk of them as we get into the first quarter of next year.”
via Variety | Photo via Tony Nungaray for Insomniac Events