LIVE NATION ENTERTAINMENT REPORTS SECOND QUARTER 2016 FINANCIAL RESULTS
- Revenue Up 23% for the Quarter to $2.2 Billion
- Operating Income Up 76% for the Quarter to $74 Million
- AOI Up 28% for the Quarter to $181 Million
- Free Cash Flow Up 22% for the Quarter to $113 Million
- Concert Ticket Sales for Shows in 2016 Up 17% through Mid-July
- Sponsorship & Advertising Contracted Net Revenue Up 16% through Mid-July
- Ticketmaster Global GTV Up 19% in the First Half
Ticketmaster Marketplace Continues to Grow
- Ticketmaster is the leading global ticketing marketplace, with over $25 billion in total global gross transaction value, or GTV, annually for all tickets processed, and after adding five more countries this quarter we now operate in 27 countries worldwide. This quarter we extended our leadership with 14% growth in total global GTV to $5.7 billion. Our secondary product has delivered GTV growth of over 20% for the ninth consecutive quarter, and it is up 49% year-on-year in the second quarter, to over $300 million. These then drove Ticketmaster revenue growth of 23%, operating income growth of 28% and AOI growth of 20% for the quarter.
- One key component for continuing Ticketmaster’s growth is opening our marketplace to sell tickets on other distribution platforms, driving increased conversion and tapping into additional fan bases. Through the deployment of APIs with key partners such as Facebook, BandsinTown and roadway.com, along with traditional distribution partners such as Groupon, we increased sales by 30% in the first half to more than 5 million tickets. Going forward, we see these and other distribution partners, including teams and artists, as a key way to extend our reach and continue selling more tickets powered by Ticketmaster.
- And another key part of our growth has been building out our overall portfolio of ticketing products to super-serve specialized vertical segments, notably with Front Gate ticketing serving festivals and TicketWeb serving music clubs. Through these leading platforms in their respective segments, we have been able to deliver the tailored product of a specialist while leveraging the overall power of the Ticketmaster marketplace, selling more tickets and better serving our fans. With this strategy, so far this year in North America we have grown the GTV for our festival segment by 31% and club business by 12%.
- Underlying this success is the continued expansion of our venue client base. During the quarter, we added nearly 400 new clients globally, making us confident that for the seventh consecutive year we will have a net renewal rate of over 100%. With the TM ONE software platform in full rollout, we are delivering an improved workflow for the venues while at the same time selling more tickets, pricing them better, and reducing Ticketmaster’s cost base. As a result of all this, in 2016 we have already had five of the top ten GTV months globally in Ticketmaster’s history.
- As well as Ticketmaster has done this year, I have even greater expectations going forward. Every one of our ticketing verticals has tremendous runway for global growth. We now have a technology platform which enables us to deploy web and app products faster and more flexibly, and opening our platform is powering even more sales. This, combined with a strengthening value proposition to our growing base of venue clients, positions Ticketmaster for ongoing growth.
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