Las Vegas ticket operator Tix Corporation has seen a major year-on-year decrease in revenue due to increased competition from the online and mobile ticketing industry.
Tix Corporation provides discount-ticketing services through 10 stores in the Nevada entertainment hub under its Tix4Tonight marquee. It offers discounted tickets for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining. Tix4Tonight also serves as the official Las Vegas guest services partner for Expedia and its other brands.
In a trading update covering the three months to June 30, Tix Corporation said the number of permanent shows that were closed last year heavily impacted the company.
Its revenue of $4.8m was down 11 per cent compared to Q2 2016.
In addition, the second quarter numbers for 2017 show a 37-per-cent year-on-year decrease in net income to $333,000.
MGM Resorts recently notified the firm of its plan to open up its own discount ticket booths within its properties in Las Vegas. MGM, which is a partner of four of the five Cirque du Soleil shows, added that it would pull the show’s tickets from the company’s Tix4Tonight booths and retain them for its own sales. Cirque du Soleil currently makes up 15 per cent of Tix’s total ticket sales.
The company said: “Competition from MGM’s new discount ticket booths, coupled with the removal of the four Cirque shows from our inventory may materially negatively impact the company’s future performance.”
In an effort to subdue its downward spiral, the company is looking to grow its reach through a new online and mobile platform, as well as introducing an improved discount dining program and a first-ever discount-shopping offer.
Tix has also created a new project to market its discount inventories to US travel company Expedia brand customers prior to their arrival in Las Vegas under its Expedia Local Expert partnership that is anticipated to commence this year.
Meanwhile, the company also saw its share price plummet by almost 20 per cent earlier this month after announcing that continuing operational concerns have led to its quarterly dividend being suspended. The company’s troubles were outlined in a Q1 trading update released in May, which showed revenue had fallen 20 per cent year-on-year to $4.3m.
Image: Stuart Seeger