Live Nation Entertainment Inc., the largest concert promoter and ticket seller, jumped to the highest price in more than five years after reporting profit that beat analysts’ estimates on increased concert sales.
The stock rose 12 percent to $18.32 at the close in New York, the highest level since November 2007, after the company released its second-quarter results yesterday. Shares of Beverly Hills, California-based Live Nation have gained 97 percent this year.
Adjusted operating income rose 9.5 percent to $159.9 million, from a year earlier, Live Nation said in a statement late yesterday. Analysts on average had estimated $146.8 million, according to data compiled by Bloomberg.
“This is shaping up to be our strongest concert season ever,” Chief Executive Officer Michael Rapino said yesterday on a conference call.
The company has sought to boost revenue and extract more profit from its ticketing division as well as minimize money-losing events. Revenue from concerts rose 11 percent while ticketing sales rose 2.7 percent.
Net income rose to $58.1 million, or 30 cents a share, from $7.69 million, or 4 cents, a year earlier. Revenue rose to $1.68 billion in the quarter ended June 30 from $1.55 billion, ahead of the $1.63 billion average estimate of analysts.
John Malone’s Liberty Media Corp. is the company’s largest shareholder.