Live Nation reported second quarter earnings Tuesday, reporting continued demand globally for concerts amid the overhang of the Justice Department lawsuit.
The company, which owns Ticketmaster, reported no signs of a slowdown in demand for concerts, with revenue up 7 percent year-over-year to reach $6 billion and operating income up 21 percent to reach $466 million.
Thirty-nine million fans globally attended Live Nation concerts in the quarter, up 5 percent year-over-year, with double-digit growth at Live Nation arenas and amphitheaters. Year-to-date ticket sales for 2024 Live Nation concerts have hit 118 million, higher than this point in 2023.
“We continue to see strong demand globally, with a growing variety of shows attracting both casual and diehard fans who are buying tickets at all price points, which speaks to the unique experience only live concerts can provide. Venue Nation’s strategic investments in hospitality and infrastructure are driving strong returns as more attendees maximize their onsite experiences. While operating income will be impacted negatively by one-time accruals, we are on track to deliver double-digit AOI growth for the year and look forward to a very busy 2025,” said Michael Rapino, President and CEO, Live Nation Entertainment.
The company noted it faced an additional $94 million in accruals related to the Astroworld litigation, which is expected to represent the remaining settlements in the wrongful death lawsuits filed against the copmany, after 10 concertgoers died at Travis Scott’s music festival. Live Nation has paid out a total of $280 million this year.
This is Live Nation’s first earnings report since the Justice Department sued the company over antitrust violations in late May. The suit, which was also brought by 29 states and the District of Columbia, alleges that Live Nation had used its position as the nation’s largest concert promoter, ticket seller and venue owner to beat out competitors.
This has included what the suit says is illegally locking venues into yearslong exclusive ticketing contracts, buying up competitors in order to remain dominant and retaliating against rival companies.
The lawsuit now looks to break up Live Nation and Ticketmaster, even though their merger was approved in 2010.
“Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment, such as the fact that the bulk of service fees go to venues, and that competition has steadily eroded Ticketmaster’s market share and profit margin,” Live Nation said at the time.
The lawsuit itself was not discussed in the earnings release, but may be a topic on the earnings call later Tuesday.
The Justice Department has been investigating Live Nation since 2022, as it looked into claims that the company had continued to violate the terms of its merger agreement with Ticketmaster by forcing venues to use Ticketmaster’s services in order to host Live Nation performers.
The company has also been under fire since fans experienced errors trying to buy tickets for Taylor Swift’s Eras tour in November 2022. This, in turn, sparked a Senate hearing, with Sen. Klobuchar (D-MN) calling the company “the definition of a monopoly.”