Live Nation Entertainment CEO Michael Rapino said that Live Nation was profitable and recording record annual revenue following an uptick in overall attendance and the surging popularity of country music, during a conference call with investors. He said the spike led to a better than expected free cash flow and adjusted operating income.
In the most recent fourth quarter for 2013, Live Nation said revenue grew 12 percent to $1.6 billion with an operating loss of $51 million. For the year, revenue rose 11 percent to $6.5 billion and operating income was $140 million compared with an operating loss of $22 million a year earlier.
Rapino said Live Nation’s concert attendance grew 19 percent as its concert division was the lead or exclusive promoter of 21 of the 25 top-grossing tours in North America.
"We increased both attendance, and attendance per show at every type of venue from theaters and clubs to amphitheaters to arenas and stadiums, showing the consistent strength of our business," Rapino said on a call with investors. "We also are seeing this growth across all genres of music, with country music delivering the greatest fan growth, up 2.3 million fans to nearly 7 million, increasing 50 percent from last year."
Much of that success for country music can be attributed to Brian O’Connell, who runs the promoter’s Nashville office and had a massively successful year with Jason Aldean.
“He’s really taken the live experience to a whole new level and his upcoming tour is going to be one of the biggest in the history of the genre,” said O’Connell, who’s got the star booked on a 50-date stadium tour with stops at Cincinnatt’s Great American Ball Park, PNC Park in Pittsburgh and Cleveland’s Progressive Field.
In 2014, O’Connell is also overseeing massive stadium tours for Luke Bryan and Tim McGraw, which “could easily move our revenues far higher. Luke has been doing great numbers at arenas and is ready to make the jump, while Tim took last year off and is planning some great promotions including a show with his wife, Faith Hill,” O'Connell said.
Live Nation also has dates for the Lady Antebellum tour and Blake Shelton, along with Deirks Bentley who is going out on the road after a year off.
Besides country, Live Nation also found success with electronic dance music, its fastest-growing genre. The company has been growing its EDM holdings, acquiring HARD Events in 2013 and buying a stake in Electric Daisy Carnival producer Insomniac.
Sponsorship and advertising are also growth areas, bringing in $284.7 million in revenue last year, up 15 percent from 2012.
"We believe that’s a double-digit-plus, plus growth business for us in the next few years,” Rapino said.
Interviewed for this article: Michael Rapino, (310) 867-7000; Brian O’Connell, (615) 346-9000
