Las Vegas ticketing group Tix Corporation reported a six per cent decline in revenue in its third quarter of 2019, which it blames on a “softer than anticipated” show ticket market in the region.
The firm, which provides discount ticketing services for concerts and shows via its Tix4Tonight brand, has this year begun to diversify its current business that is geographically concentrated in the Las Vegas, Nevada marketplace, via MGM Resorts and Cirque du Soleil shows.
The company has reported revenue growth of two per cent over the first nine months of 2019 compared with the previous year, with adjusted earnings for the period improved to $625,000 as compared to $503,000 in the prior year. In addition, cash flows used in operations improved to $121,000, compared to cash used in operations of $1.15m in the prior year period.
Tix Corporation’s chief executive, Mitch Francis, said: “Our third quarter revenue was impacted by a softer than anticipated Las Vegas show ticket market. We continue to aggressively address the difficult Las Vegas show ticket market conditions experienced over the past two years.
“We entered into a new five-year agreement with MGM Resorts and Cirque du Soleil; increased service fees; and we effected significant operating cost savings. We achieved year-over-year revenue growth, improved cash flow, and have no debt. We continue to focus on the business of the company and devote our full attention to the implementation of our strategic plan and delivering value to stockholders.”
In July, the firm announced its partnership with Reservations Gateway in forming TixRez, of which it anticipates sales to begin in the first quarter of next year. The new venture will provide online booking of activities throughout the world, driven by proprietary software.
The company has faced significant expenses over the last two years due to an “inexperienced and unqualified activist stockholder.” However, in October, Tix Corp reached an agreement with the stockholder, HSB Capital Partners, resolving certain disputes regarding the election of directors at the 2019 annual meeting.
Image: Christopher Michel