Live Nation saw a 95-per-cent drop in revenue during Q3 as live events remained on hold amid COVID-19.
In its filing for the three months to September 30, the events company and Ticketmaster owner saw revenue collapse to $184m from $3.77bn in 2019.
While the pandemic wiped out the summer concert season, which is normally the promoter’s most lucrative period, the company’s limited return to live events and drive-in concerts saw a boost in ticket sales of 180 per cent compared to Q2 to nearly 270,000. However, that figure marks a 96 per cent drop from the 8.16 million sold in the same quarter last year.
The company pointed to a $900m cost-reduction target for the year, which increased by $100m from the prior quarter, and that it lowered its estimated cash burn to $110m per month.
Live Nation also noted it has $951m in free cash and $1.9bn in liquidity, which executives said during the Q&A session means the company does not need to raise additional capital to see out the pandemic.
The firm also posted a $319m loss in adjusted operating income for the quarter.
Michael Rapino, chief executive of the live entertainment giant, noted at the analysis’s outset that “there have been no major changes in our business conditions or outlook” since its Q2 report’s release when revenues decreased 98 per cent from Q2 2019.
While the company and the rest of the live events industry is reeling from COVID-19, Live Nation reported the number of ticketholders who have opted to forego refunds and keep their passes touched 83 per cent, down just three per cent from the second quarter and seven per cent from the first quarter.
Rapino also relayed that a “recent global survey” found that 95 per cent of respondents plan to return to live music once restrictions are lifted – the highest figure of any such survey to date.
Live Nation also reiterated that EDC Las Vegas tickets sold out in less than 24 hours and sales for multiple UK festivals, Creamfields among them, have also proven strong, as has fan interest in several COVID-free gigs that took place in New Zealand.