Live Nation Entertainment (LNE) CEO Michael Rapino says he expects the company to bounce back strongly next year, despite the dramatic but expected fall in third quarter (Q3) revenue.
He says 80 per cent of LNE’s shows have been rescheduled rather than cancelled and eight per cent of fans globally are holding on to their tickets to rescheduled events.
LNE reported a 95 per cent year-on-year fall in revenue during Q3 to $184 million (£137.7m), and an 81 per cent year-to-date revenue decline to $1.6bn (£1.2bn) from $8.6bn (£6.4bn) the previous year.
Global Q3 concert revenue was $154.8m (£115.2m), down 95 per cent from $3.17bn (£2.37bn), while its Ticketmaster division’s revenue was -$19.8m (-£14.8m, including refunds) compared to $388.5m (£291m).
Q3 attendance fell from 31.6m to 269,000, but due to new concert formats including drive-ins and socially distanced shows, it was up from the 49,000 seen in Q2.
LNE long term debt rose from $4.83bn at the end of Q2 to $4.84bn, while short-term debt was down from $64m to $51m over the same timeframe.
Live Nation said it plans to cut company costs by $900 million for the year, says Rapino.
“We continue to maintain a strong cash management discipline while planning for the ramp up to resume live shows.”
“Throughout all this, we remain motivated by the long-term potential of global live events,” he says.