NYSE$LYV

Live Nation Entertainment Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported significant financial impacts due to the COVID-19 pandemic, but demonstrated resilience through cost reduction programs and maintained strong fan engagement for future events.

Live Nation Entertainment reported a challenging second quarter in 2020 due to the COVID-19 pandemic, with a significant drop in revenue. However, the company focused on strengthening its financial position through cost reduction programs and cash management, while also innovating to keep artists and fans connected through virtual events and socially distanced shows.

  • 86% of fans are opting to keep their tickets for rescheduled shows, indicating strong future demand.
  • 19 million tickets have been sold for over 4,000 concerts and festivals scheduled for 2021.
  • The company is targeting $800 million in cost reductions and $1.4 billion in cash management for 2020.
  • Live Nation is innovating with virtual concerts and socially distanced shows to maintain artist and fan connections.

Headline financials

Total Revenue

$74.1M

Previous: $3.16B-97.7%
EPS (adj)

-$2.67

Previous: $0.41-751.2%
Fee-bearing tickets sold

-8.8M

Previous: 53.2M-116.5%
Total estimated fans

49.0K

Previous: 27.0M-99.8%
Capital Expenditures

-$143M

Previous: -$136M-4.8%
Free Cash Flow

-$710M

Previous: -$32.6M-2079.0%
Net Income

-$568M

Previous: $103M-649.1%
Operating Income

-$588M

Previous: $172M-442.7%
Gross Profit

-$120M

Previous: $830M-114.5%
Cash & Equivalents

$3.29B

Previous: $2.27B+44.9%
Total Assets

$11.6B

Previous: $10.5B+10.4%
Stock-Based Comp

$38.5M

Previous: $11.7M+228.8%

Revenue & EPS history

Live Nation · Revenue · Quarterly

$74.1M

Q2 2020-97.7%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Live Nation · $73.2M total across 3 segments · Q2 2020

  • Concerts
    $142M-94.6%
  • Sponsorship & Advertising
    $18.4M-87.9%
  • Ticketing
    -$87M-123.5%

Forward guidance

Live Nation anticipates live events returning at scale in the summer of 2021, preceded by increased ticket sales. They expect to manage operations until then with available liquidity and cost-saving measures.

Tailwinds

  • Live events are expected to return at scale in the summer of 2021.
  • Ticket sales are anticipated to ramp up in the quarters leading up to the shows.
  • The company is well-positioned to weather the crisis.
  • Fans and artists are expected to be ready to enjoy live music again when it is safe.
  • Live Nation will bring back as much live music as possible when it is responsible to do so.

Headwinds

  • Operational challenges in achieving strategic objectives.
  • The 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.
  • Uncertainty regarding the full impact and duration of the COVID-19 pandemic on the live events industry.

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 Q2 2020

Historical avgQ2 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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