Wednesday, November 13, 2024

Live Nation Execs Are “Hopeful” For Different Antitrust Approach Under Trump

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As Donald Trump prepares to take office more, Live Nation executives believe his administration, and the Department of Justice under Trump will be more favorable to the company. 

“We are hopeful that we’ll see a return to the more traditional antitrust approach, where the agencies have generally tried to find ways to solve problems they see with targeted remedies that minimize government intervention in the marketplace,” Live Nation President Joe Berchtold said on the company earnings call Monday.

The comments come after the Justice Department sued the company over antitrust violations in late May. The suit alleges that Live Nation had used its position as the nation’s largest concert promoter, ticket seller and venue owner to beat out competitors. One of the proposed remedies is the breakup of Live Nation and Ticketmaster. 

“Without getting into the specifics, at least some parts of the case, we think reflect a much interventionist philosophy today than you’d expect of a Republican administration,” Berchtold said Monday. “Obviously, the request to break up Live Nation and Ticketmaster would be an example of that highly interventionist approach.”

He added that the new administration still needed to make appointments within the DOJ and get things settled, but that Live Nation hopes to engage with them early next year. Asked if the company would also consider additional acquisition opportunities under Trump, Berchtold said they “don’t have any sizable M&A targets.”

Live Nation reported third-quarter revenue Monday of $7.7 billion, down 6 percent from the same period a year ago, and operating income of $640 million for the third quarter, down 2 percent, as the ticketing and promotion company predicts more concert momentum heading into 2025. 

The company’s concert sector brought in $6.6 billion, also down 6 percent from the same period last year, while ticketing fell 17 percent year-over-year. Sponsorship and advertising was up 6 percent. The revenue number missed analyst expectations, while earnings, at $1.72 per share, beat analyst expectations.

Still, Live Nation was bullish about its momentum. In the third quarter, the company reported  its highest concerts profitability with adjusted operating income of $474 million, up 39 percent from the prior year. Venue Nation fans spent more on-site with  double-digit increases in on-site spending per fan at major festivals and up 9 percent at amphitheaters year-to-date.

The company has sold 144 million tickets for Live Nation concerts through October, which is up 3 percent from the prior years. October transacted ticket sales for Ticketmaster were up 15 percent on all ticket volume and up 23 percent for concert events, including Live Nation shows.

Overall, tickets sold globally in September and October were up over 20 percent year-over-year, reflecting continued strong demand.

The company believes momentum will continue to be strong in 2025, with the concerts pipeline in large venues up double-digits compared to this point in 2023 and the stadium pipeline up double-digits compared to this point in 2022. More than 20 million tickets have already been sold for Live Nation concerts in 2025, up double-digits from this point last year, and recent 2025 stadium onsales for artists including Coldplay, Rüfüs Du Sol and Shakira have shown double-digit average growth in show grosses relative to past tours, according to the company. 

“We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating. While operating income will be impacted by one-time accruals, we are pacing toward double-digit AOI growth this year. As we look toward an even bigger 2025, we have a larger lineup of stadium, arena and amphitheater shows for fans to enjoy. Momentum continues to build, as we expand the industry’s infrastructure with music-focused venues to support artists and reach untapped fan demand across the globe,” said Michael Rapino, President and CEO, Live Nation Entertainment.

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