The return of concerts in the U.S. and abroad is sweet music to Live Nation’s ears after the pandemic-caused live music shutdown dropped revenues by 95% or more in the last three quarters of 2020. Live Nation’s earnings for the first quarter of 2021 showed only the precursors to the comeback, as concert revenue ticked up 34.2% from the fourth quarter of 2020 compared to the 76% decline compared to the first quarter of 2020 that was almost untouched by the pandemic.
CEO Michael Rapino said in a statement that Live Nation is “confidently planning our reopening, particularly for outdoor shows, and we expect many of our other major markets will follow this summer.” The percent of people with at least one vaccination stands at 40% in the U.S. and 50% in the U.K. “Although Europe remains a few months behind on vaccinations,” he said, “they are progressing and recent disclosures about reopening to international visitors this summer are encouraging.”
Rapino also optimistically noted that Bonnaroo, Electric Daisy and Rolling Loud Festivals sold out “in record time at full capacity.” In the U.K., where Live Nation has 11 festivals planned for the summer, Reading, Leeds and Parklife are also sold out. Rhythm and Vines, New Zealand’s largest festival, has sold out as well.
Breaking down Live Nation’s earnings further:
Financial metrics – year-over-year (Q1 2021 vs. Q1 2020)
- Revenue: $291.6 million, down 79% from $1.37 billion
- Operating loss: $303.2 million, up 76% from $172.7 million
- Net loss: $322.7 million, up 53% from $210.9 million
Financial metrics – sequential (Q1 2021 vs. Q4 2020)
- Revenue: $291.6 million, up 22.4% from $237.4 million
- Operating loss: $303.2 million, down 21.9% from $388 million
- Net loss: $322.7 million, down 53% from $463.8 million
Sales metrics – year over year (Q1 2021 vs. Q1 2020)
- Concerts: $239.4 million, down 76% from $993.4 million
- Ticketing: $28.3 million, down 90% from $284.3 million
- Advertising and sponsorships: $22.6 million, down 75% from $90.3 million
Financial metrics – sequential (Q1 2021 vs. Q4 2020)
- Concerts: $239.4 million, up 34.2% from $178.4 million
- Ticketing: $28.3 million, up 160% from $10.9 million
- Advertising and sponsorships: $22.6 million, down 52% from $47.4 million
Additional financial information
- Liquidity at March 31, 2021, was $2.1 billion, a combination of $964 million in available debt capacity and $1.1 billion in free cash.
- Long-term debt (net) at March 31, 2021, was $5.29 billion, up 9% from $4.86 billion at Dec. 31, 2020, and up 94% from $2.72 billion on March 31, 2019
