Live Nation shares plunge on poor ticket sales

LOS ANGELES – Investors sold off shares in Live Nation Entertainment Inc. on Thursday, despite the concert promotion and ticket-selling giant's bid to overcome a rash of negative press about a weak summer concert season.

Live Nation took its case directly to Wall Street analysts, but midway through the meeting, its shares plummeted more than 16 percent, wiping out some $322 million in market value. The stock recovered somewhat to end the day with an 11 percent decline, down $1.24 at $10.19.

The company said its adjusted operating income for 2010 is expected to be $405 million, down from $445 million last year, despite the benefits of its merger with Ticketmaster Entertainment. Earnings could fall to $365 million if things get worse, the company said.

Chief Executive Michael Rapino said he noticed the reaction of analysts and investors attending the New York presentation as the company shared its earnings outlook. "We had a real buzz kill," he said.

Executive Chairman Irving Azoff, who presented via video conference, chided investors for the sell-off, at one point looking off camera and calling the stock "ridiculously cheap," and said investors would be "shortsighted" to sell.

The executives emphasized that Live Nation is doing better than the overall industry, which has been hurt by a series of tour cancellations.

Live Nation sold 4 percent fewer tickets in the first six months of the year compared to last year. For the Top 100 bands in the industry as a whole, the drop was 12 percent.

The company's gross ticket revenue was down 9 percent to $822 million for the first six months. That compared to a 17 percent decline to $966 million for the Top 100 tours, according to tracking firm Pollstar.

It said industry ticket volumes could fall 15 percent in the second half, even as it struggles to fill its summer amphitheaters by using steep discounts.

U2's postponement of its tour until next year will cost the company $6 million this year, although it should make it up next year on the rescheduled tour.

Other acts, such as Rihanna, The Eagles, Simon and Garfunkel, The Jonas Brothers and Limp Bizkit have also canceled or postponed tour dates.

The company said that while the most popular acts continue to sell out, less popular ones are having trouble.

"It's not a U2 or a Lady Gaga problem," said Jason Garner, the chief executive of Live Nation's global music group. "There's that middle segment of the bands ... that's trying to have that same $50 or $60 price that Jay-Z has. They're getting nipped in the bud."

More artists are going out on tour to make money because recorded music sales continue to fall. That's creating a glut of acts whose tickets are priced too high for this economy, said Pollstar editor-in-chief Gary Bongiovanni.

"Prices have to come down to a level that the public will accept," he said.

[news.yahoo.com]

Huh.


Imagine that.

Where have all the Ticketmaster outlets gone? They're as hard to find now as a pay phone.

good , i hope they go away .i hate these greedy bastards .

live nation/ticketmaster ,whatever you wanna call them suck and i hope they lose all there money .greedy bastards with all there service charges and there exclusive deals (cohl he sucks too).

It's nice to see this monster half to choke on its ego. Eddie Vedder and of course Pearl Jam were right to try and fight it. He knew he couldn't win but he was clear on his disgust and why.

And Live Nation/Ticketmaster now they get to reap what they sowed.

Quote
Sam Spade
Live Nation shares plunge on poor ticket sales

LOS ANGELES – Investors sold off shares in Live Nation Entertainment Inc. on Thursday, despite the concert promotion and ticket-selling giant's bid to overcome a rash of negative press about a weak summer concert season.

Live Nation took its case directly to Wall Street analysts, but midway through the meeting, its shares plummeted more than 16 percent, wiping out some $322 million in market value. The stock recovered somewhat to end the day with an 11 percent decline, down $1.24 at $10.19.

The company said its adjusted operating income for 2010 is expected to be $405 million, down from $445 million last year, despite the benefits of its merger with Ticketmaster Entertainment. Earnings could fall to $365 million if things get worse, the company said.

Chief Executive Michael Rapino said he noticed the reaction of analysts and investors attending the New York presentation as the company shared its earnings outlook. "We had a real buzz kill," he said.

Executive Chairman Irving Azoff, who presented via video conference, chided investors for the sell-off, at one point looking off camera and calling the stock "ridiculously cheap," and said investors would be "shortsighted" to sell.

The executives emphasized that Live Nation is doing better than the overall industry, which has been hurt by a series of tour cancellations.

Live Nation sold 4 percent fewer tickets in the first six months of the year compared to last year. For the Top 100 bands in the industry as a whole, the drop was 12 percent.

The company's gross ticket revenue was down 9 percent to $822 million for the first six months. That compared to a 17 percent decline to $966 million for the Top 100 tours, according to tracking firm Pollstar.

It said industry ticket volumes could fall 15 percent in the second half, even as it struggles to fill its summer amphitheaters by using steep discounts.

U2's postponement of its tour until next year will cost the company $6 million this year, although it should make it up next year on the rescheduled tour.

Other acts, such as Rihanna, The Eagles, Simon and Garfunkel, The Jonas Brothers and Limp Bizkit have also canceled or postponed tour dates.

The company said that while the most popular acts continue to sell out, less popular ones are having trouble.

"It's not a U2 or a Lady Gaga problem," said Jason Garner, the chief executive of Live Nation's global music group. "There's that middle segment of the bands ... that's trying to have that same $50 or $60 price that Jay-Z has. They're getting nipped in the bud."

More artists are going out on tour to make money because recorded music sales continue to fall. That's creating a glut of acts whose tickets are priced too high for this economy, said Pollstar editor-in-chief Gary Bongiovanni.

"Prices have to come down to a level that the public will accept," he said.

[news.yahoo.com]

Good, I have nothing but contempt for Live Nation and the very likes of Live Nation, and nothing but contempt for the f***ing pigs that set up secondary market re-selling sites such as Getmein, Seatwave, Double8 tickets, Viagogo, and similarly nothing but contempt for the hopeless incompetent and downright deceitful primary vendors like Ticketmaster that are obviously and more bloody obviously in cahoots to a varying degree with these fundamentally equally deceitful organisations. And last but not least, I have nothing but even MORE contempt for any f***ing pig that sells a ticket at more than face value to anyone anytime anywhere and in any circumstance ... shame shame shame on you all.

folk in the arts, in the business, in the government ... have all turned a blind eye to legalised scalping in the hope (if EVER there was a MISGUIDED hope this was it) that the industyry would self regulate. Are they clinically deranged ? Asking scum to regulate their filthy habits is akin to asking a bear not to have a dump in the woods, it simply ain't gonna happen.

Personally, I hope Live Nation goes down the pan, it deserves to.

O for a world where ticket sales are honest, transparent, prices are affordable, scalping is illegal, and greed isn't in the equation. Yeah ...... I know. DREAM ON !!!!!

[ I want to shout, but I can hardly speak ]

why cant obama regulate the ticket industry? just like the goverment took over health care .why not this industry that bleeds us to death .i would rather pay a TAX then be bleed to death with all these service charges and then how live nation/ticketmaster scalps it's own tickets through re sell agencies.

You gotta love the "convenience charge". Especially when YOU are at the window buying the tickets - no "convenience" there.

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The Greek
why cant obama regulate the ticket industry? just like the goverment took over health care .why not this industry that bleeds us to death .i would rather pay a TAX then be bleed to death with all these service charges and then how live nation/ticketmaster scalps it's own tickets through re sell agencies.

If Obama does to the ticket industry what he did to healthcare reform, I think we could easily end up paying more for tickets.

Yeah but...everyone will be able to get one!

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skipstone
Yeah but...everyone will be able to get one!

lol, we'll be required to, and fined if we don't.

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The Greek
why cant obama regulate the ticket industry?

I would imagine something like that is pretty far down on his "To Do" list. I would also imagine that no one who cares very much about this issue is ever going to be president.

I got tickets for Sublime on Sunday, and the venue charged me $3 just to pick them up at will-call. Bastids.