StubHub is expecting a challenging end to the year after announcing a modest performance during the third quarter.
In a trading update from parent company eBay, it was revealed that StubHub generated gross merchandise volume of $1.2bn (£910m/€1.02bn) in the three months to September 30. That was just two per cent up on the same quarter of 2016, meaning it lagged well behind eBay’s eight per cent growth figure.
The ticketing division, which announced in August that president Scott Cutler is to depart his role, recorded revenue of $275m, which was up five per cent year-on-year. The company said that rise was “driven by growth in its international business”, although proceeds from global markets were at four per cent, compared to five per cent in Q2.
eBay chief executive Devin Wenig cautioned StubHub would see “continued pressure on growth through the rest of the year,” while noting efforts to keep tickets off StubHub for many events was a factor.
“[W]e have competitors that are looking to restrict markets, restrict ticket access to supply,” he said. Wenig added that eBay will have “more to say” about the issue in time.
Following the update, Baird Equity Research analyst Colin Sebastian said in a note that StubHub’s performance raised a “potential ‘yellow flag’”.
Discussing StubHub’s operational developments during the quarter, the company said: “StubHub continued to strengthen its partnership with Major League Baseball and is now integrated with all 30 teams.
“Additionally, the company will now serve as the official secondary ticketing partner to the T-Mobile Arena, Las Vegas’ newest sports and entertainment venue.”
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