- Second-quarter sales climb 23% as company puts on more shows
- Sponsorship and ticketing accounted for 84 percent of income
Live Nation Entertainment Inc., the world’s largest concert promoter, rose to a nine-month intraday high after the company posted second-quarter results that surpassed analysts’ forecasts.
Sales increased 23 percent to $2.18 billion, Los Angeles-based Live Nation said Thursday in a statement, beating the $1.88 billion average of five analysts’ estimate compiled by Bloomberg. Net income more than doubled to $37.7 million, or 13 cents a share.
Chief Executive Officer Michael Rapino attributed the jump in sales to growth in the concert business, which contributes more than 70 percent of the company’s revenue and spurs sales of tickets and advertising, two higher-margin businesses. Sponsorship and ticketing accounted for 84 percent of adjusted operating income, which rose 28 percent from a year ago.
The shares rose as much as 9.2 percent to $28.10 in New York trading Friday, the biggest intraday jump and highest price since October. They were trading at $27.73 at 10:48 a.m.
Selling tickets through partners like Facebook helped boost sales 30 percent for Ticketmaster, Rapino said.
“Going forward, we see these and other distribution partners, including teams and artists, as a key way to extend our reach and continue selling more tickets powered by Ticketmaster,” he wrote in a letter to shareholders.
Billionaire John Malone’s Liberty Media Group is the company’s largest stockholder. Shares of Liberty Media were up as much as 8.2 percent Friday, the most in three months.