Please ensure Javascript is enabled for purposes of website accessibility

Live Nation Has Already Sold 38 Million Concert Tickets for 2020

By John Ballard - Feb 28, 2020 at 9:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors may be overreacting to coronavirus fears based on the latest earnings results.

Shares of Live Nation Entertainment (LYV 1.51%) have dropped sharply over fears of the coronavirus, but the concert operator had encouraging news for investors.

The company said it has already sold 38 million tickets for shows in 2020. That's an increase of 10% compared to this time last year. What's more, management reported that they have seen no slack in demand from concertgoers as a result of the outbreak. 

A large crowd in front of a stage with bright lights.

Image source: Getty Images.

Momentum for 2020

Live Nation reported fourth-quarter results on Thursday after the market close, and the numbers highlight a strong finish to 2019. Revenue for the full year was up 7% to $11.5 billion. Good cost discipline allowed operating income to climb 19% to $325 million for 2019. 

For the year, attendance was up 5% to 98 million. Live Nation is also seeing strong growth in its high-margin sponsorship business with revenue up 17%. Also, management said they have deployed Ticketmaster's new digital ticketing system, called Presence, in over 700 venues in 2019, operating events for 120 million fans. 

Demand remains healthy

Looking ahead to 2020, cancellations in China and Italy related to the coronavirus represent only 0.5% of the expected attendance at shows this year. While management is prepared for more outbreak around the world, Live Nation President Joe Berchtold said, "Thus far, we have seen no pullback in fan demand or ticket buying outside of the specifically affected areas." Berchtold added that 70% of attendance is weighted toward the second half of the year. 

Live Nation continues to benefit from global demand for concerts, including festivals, theaters, and clubs. Concerts have lower ticket prices on average than sporting events and spending per visitor at the show has been trending higher. Both of those metrics are a healthy sign for Live Nation's long-term growth prospects. 

John Ballard has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Live Nation Entertainment. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Live Nation Entertainment, Inc. Stock Quote
Live Nation Entertainment, Inc.
LYV
$97.89 (1.51%) $1.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.