NYSE$LYV

Live Nation Entertainment Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a challenging quarter due to the halt of concerts in mid-March, but expressed confidence in the long-term dynamics of the live concert industry.

Live Nation Entertainment reported a challenging first quarter due to the impact of the COVID-19 pandemic, which led to a halt in concerts in mid-March. Despite the difficulties, the company highlighted positive signs, including over 90% of fans holding onto tickets for rescheduled shows and a strong desire among live music goers to return to concerts. Live Nation is implementing cost reduction and cash management programs to navigate the crisis and remains confident in the long-term potential of the live entertainment industry.

  • Over 90% of fans are opting to keep tickets for shows instead of refunds.
  • 91% of global live music goers say they want to return to concerts.
  • Targeting $600 million cost reduction program in 2020.
  • Targeting $1.0 billion cash management program in 2020.

Headline financials

Total Revenue

$1.37B

Previous: $1.73B-21.0%
EPS (adj)

-$0.94

Previous: -$0.31-203.2%
Fee-bearing tickets sold

36.2M

Previous: 50.0M-27.6%
Total estimated fans

10.4M

Previous: 14.9M-30.2%
Capital Expenditures

-$84.6M

Previous: -$57.1M-48.0%
Free Cash Flow

-$269M

Previous: -$110M-145.8%
Net Income

-$185M

Previous: -$52.4M-252.3%
Operating Income

-$173M

Previous: -$23.9M-623.6%
Gross Profit

$492M

Previous: $576M-14.6%
Cash & Equivalents

$3.27B

Previous: $2.67B+22.4%
Total Assets

$11.9B

Previous: $10.3B+15.1%
Stock-Based Comp

$11.7M

Previous: $13.2M-11.2%

Revenue & EPS history

Live Nation · Revenue · Quarterly

$1.37B

Q1 2020-21%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Live Nation · $1.37B total across 3 segments · Q1 2020

  • Concerts
    $993M-24.6%
  • Ticketing
    $284M-15.8%
  • Sponsorship & Advertising
    $90.3M+20.2%

Forward guidance

Live Nation anticipates challenges in the near term but expects a strong rebound in 2021 based on fan demand and rescheduled events.

Tailwinds

  • Over 90% of fans are holding on to their tickets for rescheduled shows, indicating strong pent-up demand.
  • A global survey indicates over 90% of live music goers will return to concerts when possible.
  • 80% of shows have been rescheduled rather than canceled, suggesting a return to normal volume.
  • 2021 can return to show volume and fan attendance at levels consistent with recent years.
  • Innovations such as virtual tours, drive-in concerts, and digital ticketing are helping to keep fans engaged.

Headwinds

  • Operational challenges in achieving strategic objectives.
  • Risk that the company's markets do not evolve as anticipated.
  • Potential impact of any economic slowdown.
  • Operational challenges associated with selling tickets and staging events.
  • Ensuring health and safety at venues will require new protocols and may impact capacity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.5%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+3.1%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+17.6%

Q3 2021

Best reaction

-10.7%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+2.4%+1.8%
Q4 2025+1.6%-1.4%-5.5%
Q3 2025-10.7%-4.9%-7.6%
Q2 2025+3.3%+7.1%+10.2%
Q1 2025+1.8%+2.1%+4.5%
Q4 2024-1.9%-6.7%-19.2%
Q3 2024+5.4%+4.9%+9.5%
Q2 2024+1.0%+2.1%+4.4%
Q1 2024+6.0%+7.9%+5.0%
Q4 2023+4.5%+2.6%+16.2%
Q3 2023-0.9%+3.0%+12.8%
Q2 2023-8.8%-11.0%-13.4%
Q1 2023+14.7%+15.4%+23.1%
Q4 2022-8.8%-4.5%-12.6%
Q3 2022-7.9%-5.1%-3.7%
Q2 2022-1.3%-3.0%-8.6%
Q1 2022-6.9%-11.3%-4.1%
Q4 2021+6.3%+3.2%-0.6%
Q3 2021+17.6%+10.8%-4.1%
Q2 2021+0.5%+7.9%+9.6%
Q1 2021+1.5%+4.0%+13.3%
Q4 2020-1.8%+0.1%-7.1%
Q3 2020+2.4%+19.2%+27.9%
Q2 2020-0.6%+6.4%+20.6%
Q1 2020+9.0%-0.9%+48.0%
Q4 2019+0.0%-5.2%-22.4%
Q3 2019-7.3%-13.0%-2.0%
Q2 2019+3.8%+1.7%-0.2%
Q1 2019+1.0%+0.2%-4.6%
Q4 2018+8.3%+8.3%+12.8%
Q3 2018+4.9%+5.9%+6.5%
Q2 2018-3.9%-6.0%-5.6%
Q1 2018+13.4%+7.3%+8.6%
Q4 2017-7.8%-9.7%-13.3%
Q3 2017+3.2%+7.0%+5.3%
Q2 2017+4.6%+4.0%+7.3%
Q1 2017+7.5%+5.8%+10.1%
Q4 2016-6.1%-7.5%-3.8%
Q3 2016+4.1%+6.5%+4.6%
Q2 2016+5.4%+1.4%+0.8%
Q1 2016+2.5%
Q4 2015+4.4%
Q3 2015-0.3%
Q2 2015+1.3%
Q1 2015+5.7%
Q4 2014-2.0%
Q3 2014+5.1%
Q2 2014-9.4%
Q1 2014+7.8%
Q4 2013+8.6%
Q3 2013-8.2%
Q2 2013+10.2%
Q1 2013+7.4%
Q4 2012+0.2%
Q3 2012+1.9%
Q2 2012+3.7%
Q1 2012+10.2%
Q4 2011-6.1%
Q3 2011-5.1%
Q3 2010-5.1%
Q2 2011+3.6%
Q1 2010-0.9%
Q1 2011-0.9%
Q2 2010-0.9%
Q4 2010+1.1%

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