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/C O R R E C T I O N -- Live Nation Entertainment/

In the news release, Live Nation Entertainment Reports Second Quarter 2020 Results, issued 05-Aug-2020 by Live Nation Entertainment over PR Newswire, the first subheadline should read "86% of Fans Opting to Keep Tickets for Rescheduled Shows" rather than "6% of Fans Opting to Keep Tickets for Rescheduled Shows" as incorrectly transmitted by PR Newswire. The complete, corrected release follows:

Live Nation Entertainment Reports Second Quarter 2020 Results

Highlights

  • 86% of Fans Opting to Keep Tickets for Rescheduled Shows

  • 19 Million Tickets Sold to More Than 4,000 Concerts and Festivals Scheduled for 2021

  • $800 Million Cost Reduction Program Target in 2020

  • $1.4 Billion Cash Management Program Target in 2020

LOS ANGELES , Aug. 5, 2020 /PRNewswire/ -- Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended June 30, 2020.

Over the past three months, our top priority has been strengthening our financial position to ensure that we have the liquidity and flexibility to get through an extended period with no live events. Our expectation is that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows.

Confidence in the Future of Live

Importantly, we remain confident that fans will return to live events when it is safe to do so. Our strongest indicator of demand is that fans are holding on to their tickets, even when given the option of a refund. Through the end of the second quarter, 86% of concert fans are keeping their tickets for rescheduled shows, demonstrating their continued desire to attend concerts in the future despite the current uncertainty.

Our expectations for a robust outdoor summer season in 2021 are also reinforced by the two-thirds of fans keeping their tickets for canceled festivals so they can go to next year's show, along with strong early ticket sales for festivals in the UK next summer for example, Download and Isle of Wight are pacing well ahead of last year.

Between the tickets held by fans for rescheduled shows and these festival onsales, we have already sold 19 million tickets to more than four thousand concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year. At the same time, surveys continue to show that concerts remain fans' highest priority social event when it is safe to gather, with almost 90% of fans globally planning on attending concerts again.

Keeping Artists and Fans Connected

Understanding that it will be some time before we put on concerts at scale, we are innovating to find new and creative ways to help keep artists and fans connected in the meantime. Virtual concerts have proven to be in huge demand with fans, so we established the "Live From Home" platform to provide a convenient place for fans of all types to find performances from their favorite artists.  

In the second quarter, we had 67 million fans view over 18 thousand concerts and festivals globally. Among our highlights, this past weekend we streamed 150 performances for our Virtual Lollapalooza Festival.  Given the tremendous popularity of these shows, we are seeing the potential for live streaming to become an additional long-term component of our concert business, allowing fans in other cities, or those who can't attend, to enjoy the concert as well.

At the same time, recognizing fans want to get back to attending concerts in person as soon as possible, we've launched socially distanced shows when and where permitted, including New Zealand , France , Denmark , Spain , Germany and Finland , as well as several cities across the United States .

Return to Live

While this is a challenging time for everyone the live events business in particular there are a few things that I am confident about: we are well positioned to weather this crisis, and we will get through this; when it is safe to return, we will have an abundance of fans and artists ready to enjoy live music again; and Live Nation will do everything in its power to meet our responsibilities to artists, fans, our employees and everyone else affected by this shutdown by bringing back as much live music as fast as possible when it is responsible to do so.

Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.

Additional Information on Liquidity

At the end of the second quarter, the company had total cash and cash equivalents of $3.3 billion , which includes $1.8 billion of free cash. This free cash along with $966 million of available debt capacity provide the company with over $2.7 billion in available liquidity. The company's operational cash burn rate estimate is $125 million per month and estimated gross burn rate is $185 million per month, both on average for the second quarter through the end of the year. In addition, subsequent to quarter-end, the company's credit agreement was amended to further suspend its maintenance covenant until December 31, 2021 if it chooses, replacing it with a minimum liquidity test of $500 million , which is measured against the company's free cash, available debt capacity, and up to $250 million of event-related deferred revenue. The company believes this level of liquidity and our associated burn rates, along with our credit actions, provide it with the ability to fund operations until the expected return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year.

The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the "News / Events" section of the company's website at investors.livenationentertainment.com to listen to the webcast. Supplemental statistical and financial information to be provided on the call, if any, will be posted to the "Financial Info" section of the website. A replay of the webcast will also be available on the Live Nation website.

Notice Regarding Financial Statements

The company has provided certain financial statements at the end of this press release for reference.  These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission today and available on the SEC's website at sec.gov .

About Live Nation Entertainment:  

Live Nation Entertainment, Inc. (NYSE: LYV) is the world's leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media & Sponsorship. For additional information, visit investors.livenationentertainment.com .

 

FINANCIAL HIGHLIGHTS 2nd QUARTER

(unaudited; $ in millions)



Q2 2020
Reported


Q2 2019
Reported


Growth


Q2 2020
Constant
Currency


Growth at
Constant
Currency

Revenue










Concerts

$

141.8



$

2,639.5



(95)

%


$

147.0



(94)

%

Ticketing

(87.0)



370.8



*



(87.4)



*


Sponsorship & Advertising

18.4



151.5



(88)

%


19.0



(87)

%

Other and Eliminations

0.9



(4.8)



*



0.9



*



$

74.1



$

3,157.0



(98)

%


$

79.5



(97)

%











Operating Income (Loss)










Concerts

$

(279.9)



$

60.7



*



$

(283.0)



*


Ticketing

(267.2)



64.1



*



(269.5)



*


Sponsorship & Advertising

(11.2)



91.4



*



(10.9)



*


Other and Eliminations

(6.8)



(0.2)



*



(6.8)



*


Corporate

(23.0)



(44.4)



48

%


(23.0)



48

%


$

(588.1)



$

171.6



*



$

(593.2)



*












Adjusted Operating Income (Loss)










Concerts

$

(210.7)



$

132.8



*



$

(213.2)



*


Ticketing

(203.9)



123.8



*



(205.6)



*


Sponsorship & Advertising

(1.8)



98.5



*



(1.4)



*


Other and Eliminations

(3.8)



(1.3)



*



(3.8)



*


Corporate

(11.7)



(34.5)



66

%


(11.7)



66

%


$

(431.9)



$

319.3



*



$

(435.7)



*



* percentages are not meaningful

 

FINANCIAL HIGHLIGHTS 6 MONTHS

(unaudited; $ in millions)



6 Months
2020
Reported


6 Months
2019
Reported


Growth


6 Months
2020
Constant
Currency


Growth at
Constant
Currency


Revenue











Concerts

$

1,135.2



$

3,957.6



(71)

%


$

1,153.0



(71)

%


Ticketing

197.3



708.4



(72)

%


198.2



(72)

%


Sponsorship & Advertising

108.6



226.6



(52)

%


110.4



(51)

%


Other and Eliminations

(1.3)



(7.8)



83

%


(1.3)



83

%



$

1,439.8



$

4,884.8



(71)

%


$

1,460.3



(70)

%













Operating Income (Loss)











Concerts

$

(441.0)



$

1.6



*



$

(445.7)



*



Ticketing

(283.1)



106.7



*



(286.1)



*



Sponsorship & Advertising

27.0



123.5



(78)

%


28.2



(77)

%


Other and Eliminations

(8.2)



(0.3)



*



(8.2)



*



Corporate

(55.4)



(83.8)



34

%


(55.4)



34

%



$

(760.7)



$

147.7



*



$

(767.2)



*














Adjusted Operating Income (Loss)











Concerts

$

(298.9)



$

138.2



*



$

(302.4)



*



Ticketing

(158.9)



224.2



*



(161.0)



*



Sponsorship & Advertising

44.8



138.3



(68)

%


46.0



(67)

%


Other and Eliminations

(6.6)



(2.7)



*



(6.6)



*



Corporate

(32.8)



(63.4)



48

%


(32.8)



48

%



$

(452.4)



$

434.6



*



$

(456.8)



*




* percentages are not meaningful

 

  • As of June 30, 2020 , total cash and cash equivalents were $3.3 billion , which includes $745 million in ticketing client cash and $1.8 billion in free cash.

  • Event-related deferred revenue was $0.9 billion as of June 30...