Live Nation delivered its eighth consecutive year of growth in 2018, posting revenue of $10.8 billion, up 11% on 2017.
Posting its full year results yesterday (February 28), the Michael Rapino-led company said that attendance to its concerts was up 8% to 93 million in 2018.
According to Live Nation’s earnings statement, consumer spending on live experiences has grown by $5bn in the past 10 years, with the company’s double-digit attendance growth across its arenas, amphitheaters and theaters & clubs coming as a result of this strong demand growth.
The concert company says that it invested over $6bn to promote 35,000 shows in 40 countries, in 2018 and claims to be “by far the largest financial supporter of artists in music”.
Live Nation also reports that its growth is continuing into 2019, with ticket sales for shows this year already up double-digits through mid-February.
The company’s ticketing business Ticketmaster saw a 14% increase in ticketing revenue for the year, with a total platform GTV (gross transaction value) of $33 billion.
On the sponsorship side of the business, Live Nation grew its revenue, operating income and AOI all by 13% in 2018.
Citing “top strategic sponsors” as having been a “key driver of this growth”, Live Nation saw 75 sponsors collectively spending over $350 million to reach its fans, up 11% over 2017.
Sponsorship at Live Nation festivals grew 13%, driven by new deals with brands including Heineken, Barclays, State Farm and Frito-Lay.
In December MBW reported on 2018’s highest grossing tours, with Live Nation-promoted artists Jay / Beyonce and Bruno Mars selling around 2m and 1.2m tickets across the year respectively.
“We believe that the live business will continue to have strong growth for years to come as fans globally drive demand, artists are touring more and on-site spending, sponsorship and ticketing all benefit from the concerts flywheel.”
Michael Rapino, Live Nation
“We believe that the live business will continue to have strong growth for years to come as fans globally drive demand, artists are touring more and on-site spending, sponsorship and ticketing all benefit from the concerts flywheel,” said Michael Rapino President and Chief Executive Officer Live Nation Entertainment, Inc.
“In 2019, I expect us to further extend our global concerts position while enhancing our on-site hospitality business and capturing additional pricing opportunities.
“Our sponsorship business will continue driving double-digit growth as more brands look for that direct connection with music fans. And as Ticketmaster continues its transformation to a truly digital ecosystem, it will also benefit from continued growth in concert ticket sales and further expansion of our global footprint.
“We believe that the combination of macro trends and our demonstrated ability to execute are strong indicators of our capability to continue to grow the business for many years to come.”Music Business Worldwide