Live Nation Entertainment Inc (LYV) Reports Record Q3 2023 Results
Live Nation Entertainment Inc (NYSE:LYV) reported a record third quarter for 2023 with revenue up 32% to $8.2 billion and operating income up 22% to $619 million.
The company sold 140 million tickets year-to-date for Live Nation shows, surpassing the full year 2022 total of 121 million.
Live Nation's sponsorship results are on pace for double-digit AOI growth this year.
The company's balance sheet and liquidity remain strong, with approximately 87% of debt at a fixed rate.
On November 2, 2023, Live Nation Entertainment Inc (NYSE:LYV) released its third-quarter earnings report, showcasing a record-breaking performance. The company's revenue increased by 32% to $8.2 billion in Q3, and by 36% to $16.9 billion year-to-date. Operating income also saw a significant rise, up 22% to $619 million in Q3, and up 35% to $1.1 billion year-to-date.
Financial Highlights
The company's Adjusted Operating Income (AOI) also saw a substantial increase, up 35% to $836 million in Q3, and up 33% to $1.7 billion year-to-date. The year-to-date operating cash flow stands at $762 million, with a free cash flow adjusted of $1.3 billion, converting 72% of AOI. The Earnings Per Share (EPS) increased by 28% to $1.78 in Q3 and by 50% to $2.59 year-to-date.
Outlook for 2023 and 2024
Live Nation reported a record number of fans with 140 million tickets sold year-to-date for Live Nation shows this year, up 17% year-over-year and already surpassing the full year 2022 total of 121 million. The company expects a record Ticketmaster volume with 257 million fee-bearing tickets sold year-to-date, up 22% year-over-year. The company is on track to manage over 600 million tickets this year, including well over 300 million fee-bearing tickets.
Concerts and Ticketing Performance
The company reported a record quarter for Concerts with revenue up 32% to $7 billion and AOI up 21% to $341 million. The ticketing segment also saw a significant increase with revenue up 57% to $833 million and AOI up 94% to $316 million.
Balance Sheet and Liquidity
Live Nation's balance sheet and liquidity remain strong. Approximately 87% of the company's debt is at a fixed rate, with a weighted-average cost of debt of 4.8%. The year-to-date interest income of $175 million is up $128 million from the same period last year, rising significantly faster than interest expense.
Capital Expenditures and Future Expectations
The company's 2023 capital expenditures forecast is $450 million with two-thirds on revenue-generating projects. The year-to-date capital expenditures of $258 million is primarily in concerts, driven by on-site venue enhancements and the expansion of the company's venue portfolio. Live Nation expects the live entertainment industry to continue growing in 2024 and for years to come.
Explore the complete 8-K earnings release (here) from Live Nation Entertainment Inc for further details.
This article first appeared on GuruFocus.
