Live Nation Entertainment Inc., the world’s biggest concert promoter and ticket seller, said second-quarter profit fell 42 percent, missing analysts’ estimates, as the company held fewer events.
Net income for the quarter slid to $7.69 million, or 4 cents a share, from $13.3 million, or 7 cents, a year ago, Beverly Hills, California-based Live Nation said yesterday in a statement. Analysts estimated an average 5-cent-a-share profit, excluding items, according to data compiled by Bloomberg.
Live Nation held fewer concerts amid a stalling economic recovery in the U.S. and a sovereign debt and banking crisis in Europe. Touring activity by Live Nation’s major artists was less than in the period a year earlier and activity during the U.S. summer will also be lower than in 2011, the company said.
Sales fell 0.5 percent to $1.55 billion from a year earlier, missing the $1.58 billion average estimate of analysts. Revenue was hurt by a $43.7 million charge from currency exchange rates.
The company’s events in the period drew 6.1 percent more attendees than a year ago and its Ticketmaster division sold $2.19 billion in tickets to attractions including concerts and sports events, a 6.7 percent gain from a year earlier.
Live Nation rose 1.1 percent to $9.23 at the close. The stock had climbed 11 percent this year.
Spain and Italy, markets that contribute about 3 percent of the concert division’s sales, were affected by economic conditions, the company said in a separate statement. Live Nation said concert attendance in the countries is expected to be flat this year.
Revenue, adjusted operating income and free cash flow will grow this year, Live Nation forecast. The ticketing division’s fixed costs will rise by about $10 million in 2012 from a year earlier and ticket sales will be “slightly up” compared with 2001.
The Ticketmaster unit is investing in new sales technologies, including mobile and social-media products, according to the statement.
The concerts business will deliver “a high single-digit” percentage increase in attendance this year and grow adjusted operating income on a constant currency basis, Live Nation said.
Adjusted operating income, on a constant currency basis, from sponsorship and advertising will increase this year by a “low double-digit” percentage, the company also said.