NYSE$LYV

Live Nation Entertainment Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported third quarter 2020 results, highlighting cost reduction and cash management programs, and enduring fan demand for live events.

Live Nation Entertainment reported its third quarter 2020 results, noting an 83% ticket retention rate for rescheduled shows and progress on cost reduction and cash management programs. The company is preparing for the return of live events, focusing on technology and venue standards.

  • 83% of fans are keeping tickets for rescheduled shows.
  • The company targets $900 million in cost reductions for 2020.
  • The company targets $1.5 billion in cash management for 2020.
  • Fan demand for live events remains strong.

Headline financials

Total Revenue

$184M

Previous: $3.77B-95.1%
EPS (adj)

-$2.45

Previous: $0.71-445.1%
Fee-bearing tickets sold

1.3M

Previous: 55.3M-97.6%
Total estimated fans

269.0K

Previous: 31.6M-99.1%
Capital Expenditures

-$187M

Previous: -$226M+17.2%
Free Cash Flow

-$716M

Previous: -$46.9M-1426.6%
Net Income

-$529M

Previous: $179M-395.6%
Operating Income

-$504M

Previous: $260M-294.0%
Gross Profit

$53.3M

Previous: $973M-94.5%
Cash & Equivalents

$2.63B

Previous: $1.8B+46.2%
Total Assets

$10.9B

Previous: $9.97B+9.2%
Stock-Based Comp

$56.7M

Previous: $12M+372.5%

Revenue & EPS history

Live Nation · Revenue · Quarterly

$184M

Q3 2020-95.1%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Live Nation · $183M total across 3 segments · Q3 2020

  • Concerts
    $155M-95.1%
  • Sponsorship & Advertising
    $47.9M-77.7%
  • Ticketing
    -$19.8M-105.1%

Forward guidance

Live Nation anticipates shows at scale next summer, but the exact timeline will vary by region. The company is focused on flexibility and innovation.

Tailwinds

  • Progress on testing technology, treatments, and vaccines is encouraging.
  • Ticketmaster is creating tools for safety precautions and enhanced fan experience.
  • Live Nation is developing standards for executing shows at its venues.
  • The company will maintain flexibility and focus on innovating.
  • Event-related deferred revenue is forecasted to be approximately $1.4 billion by the end of 2020.

Headwinds

  • The path to live events will not be a straight line.
  • The exact timeline of the return to live events will vary by region.
  • Operational challenges in achieving strategic objectives and executing plans.
  • Potential impact of any economic slowdown.
  • Operational challenges associated with selling tickets and staging events.

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 Q3 2020

Historical avgQ3 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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