Live Nation Entertainment has registered its sixth consecutive year of record financial results, including a 15-per-cent increase in total revenue.
With 71 million spectators and a 12-per-cent attendance jump at Live Nation concerts, the company’s business appears to have accelerated in 2016.
Each individual sector within Live Nation, including concerts, ticketing and advertising, produced its strongest operating income and AOI results in the six years since the company was founded in 2010.
The company’s total earnings, before interest and taxes, went up 48 per cent to $195m (£155m/€184m).
Meanwhile, its free cash flow was up five per cent, and sponsorship and advertising revenue increased by 13 per cent.
Average ticket prices increased by five per cent in 2016, with high single- to double-digit growth at amphitheatres, arenas and stadia, driven by higher pricing for the best tickets, according to the company.
Ticketmaster’s fee-bearing gross transaction value (GTV) went up 16 per cent in 2016, which drove Live Nation’s ticketing revenue up 11 per cent. Its secondary ticketing GTV grew by 26 per cent.
Once at a show, average per fan spending grew by nine per cent to over $22 as more high-end products were added, the quality of food and beverage offerings improved and the number of points of sale increased.
Growth is looking to continue with ticket sales up double digits year-on-year through to February 17, driven by sales for arena and stadium shows.
“We continue to see the tremendous power of live events, with strong global consumer demand. Live is a truly unique entertainment form – it cannot be duplicated,” Live Nation said in a statement.
“It is elevated, not threatened, by technology and is borderless. Fans around the world can now discover, follow, share and embrace artists, creating greater demand for live shows. We believe the live business will continue to have strong growth for years to come as fans globally drive demand, artists are motivated to tour, and technology drives conversion.”
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