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Live Nation Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 10, 2012 06:17AM

Live Nation Inc. (LYV) filed Quarterly Report for the period ended 2012-03-31. Live Nation Ent has a market cap of $1.68 billion; its shares were traded at around $8.31 with and P/S ratio of 0.3.



Highlight of Business Operations:

Our revenue increased $18.6 million, or 2%, during the three months ended March 31, 2012 as compared to the same period of the prior year. Excluding the decrease of approximately $7.4 million related to the impact of changes in foreign exchange rates, revenue increased $26.0 million, or 3%. The overall increase in revenue was primarily due to increases in our Ticketing and Artist Nation segments of $9.0 million and $7.3 million, respectively.

Concerts revenue decreased $0.6 million during the three months ended March 31, 2012 as compared to the same period of the prior year. Excluding the decrease of $4.9 million related to the impact of changes in foreign exchange rates, revenue increased $4.3 million, or 1%, primarily due to more shows and higher overall attendance in arenas and increased theater shows. Partially offsetting these increases was a reduction of global touring activity due to the timing of tours.

Ticketing revenue increased $9.0 million, or 3%, during the three months ended March 31, 2012 as compared to the same period of the prior year. Excluding the decrease of $2.1 million related to the impact of changes in foreign exchange rates, revenue increased $11.1 million, or 4%, primarily due to incremental revenue of $7.9 million resulting from the acquisitions of TGLP in January 2011 and Serviticket in April 2011. These increases were partially offset by a decline in North America ticket revenue based on an increase in per ticket contracts versus royalty contracts along with strong ticket fees in 2011 for the 2012 London Olympics. For per ticket contracts, we record only our share of the service charges, whereas with royalty contracts, we record all of the service charges and record the clients’ share in direct operating expenses. Revenue related to ticketing service charges for our events where we control ticketing is deferred and recognized as the event occurs.

Sponsorship & Advertising revenue increased $3.1 million, or 9%, during the three months ended March 31, 2012 as compared to the same period of the prior year. Excluding the decrease of $0.5 million related to the impact of changes in foreign exchange rates, revenue increased $3.6 million, or 11%, primarily due to higher online sponsorship activity in North America and Europe.

Cash provided by operations was $264.8 million for the three months ended March 31, 2012, compared to $127.8 million for the three months ended March 31, 2011. The $137.0 million increase resulted primarily from net changes in the event-related operating accounts which are dependent on the timing of ticket sales along with the size and number of events for upcoming periods. During the first three months of 2012, we received more deferred revenue and paid less accrued event-related expenses partially offset by higher payments of prepaid event-related expenses as compared to the same period in the prior year. In addition, we collected more accounts receivable in this year as compared to the prior year.

Read the The complete Report



Stocks Discussed: LYV,
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