Dwell Nation reported a year-over-year drop in third quarter income regardless of experiencing what it says was its “most energetic summer season live performance season ever.”
The live performance big on Monday (November 11) printed its newest monetary outcomes, exhibiting a 6% YoY decline in Q3 income to USD $7.65 billion, from $8.15 billion within the identical quarter a 12 months earlier.
Nonetheless, Dwell Nation’s earnings per share of $1.66 beat Wall Road estimates, sending the corporate’s inventory value larger in after-hours buying and selling on Monday evening. The inventory was set to open at round $133 per share on Tuesday morning, up from a closing value of $123.85 on Monday.
In Q3, general income was weighed down by a 17% YoY drop in ticketing income to $693.7 million, and a 6% decline in concert events income to $6.58 billion.
Whereas the corporate mentioned concert events delivered “file profitability” in Q3, it acknowledged a 30% decline in stadium attendance. This, nevertheless, was offset by a 3% YoY bounce in general live performance attendance to 112 million followers in Q3. Dwell Nation mentioned it recorded “double-digit development” in attendance at area and amphitheater exhibits.
In the meantime, Dwell Nation’s income from sponsorships and promoting grew 6% YoY to $390.3 million.
“We wrapped up our most energetic summer season live performance season ever, our present pipeline has by no means been greater, and model sponsorships are accelerating. Whereas working earnings will likely be impacted by one-time accruals, we’re pacing towards double-digit AOI development this 12 months,” Michael Rapino, President and CEO, Dwell Nation Leisure, mentioned.
“Whereas working earnings will likely be impacted by one-time accruals, we’re pacing towards double-digit AOI development this 12 months.”
Michael Rapino, Dwell Nation
In Q3, the corporate posted adjusted working earnings (AOI) of $909.8 million, up 4% from $871.2 million in the identical quarter a 12 months earlier. This was pushed by a 39% bounce in AOI from its concert events division to $474.1 million. The division’s AOI margin stood at 7.2%, which the corporate says is “on monitor to ship 2024 margins towards pre-pandemic ranges.”
Dwell Nation additionally recorded a 10% improve in AOI at its sponsorship and promoting division, additional offsetting the 33% drop in ticketing AOI to $235.7 million.
Venue Nation, the corporate’s venue operation division, registered double-digit will increase in on-site spending per fan, and up 9% at amphitheaters year-to-date.
A complete of 144 million tickets had been bought for 2024 Dwell Nation concert events via October, up 3% from a 12 months earlier. In September and October alone, tickets bought globally surged 20% YoY. Dwell Nation additionally famous that Ticketmaster’s ticket gross sales had been up 15% general in Q3, with ticket gross sales for live performance occasions alone rising 23%.
Joe Berchtold, President and Chief Monetary Officer of Dwell Nation, advised analysts throughout an earnings name on Monday that the corporate expects a “nice stadium and area pipeline to begin to present itself in This fall and ship a really robust This fall in Ticketmaster.”
“We anticipate subsequent 12 months’s Ticketmaster to look extra like a ’23 the place you’ve received that nice quantity of stadium exercise that you simply get with the on sale, however then you definitely additionally get because it performs off and a number of the deferred occasions that you’ve in Europe that you simply acknowledge because the occasions play off.”
Joe Berchtold, Dwell Nation
“Subsequent week alone we have now over 200 stadium and area exhibits occurring sale. So, we’re, I feel, in a interval of unprecedented stage of exercise for Ticketmaster in This fall. After which that may proceed into Q1 and thru subsequent 12 months.
“We anticipate subsequent 12 months’s Ticketmaster to look extra like a ’23 the place you’ve received that nice quantity of stadium exercise that you simply get with the on sale, however then you definitely additionally get because it performs off and a number of the deferred occasions that you’ve in Europe that you simply acknowledge because the occasions play off.”
Trying forward, Venue Nation expects to host about 60 million followers in 2024, up 8% from 2023. Dwell Nation attributed the forecast to “main enhancements” to its venue portfolio in 2024 together with the reopening of Mexico Metropolis’s Estadio GNP in the summertime, the reopening of New York’s Northwell at Jones Seashore amphitheater following a renovation, and the opening of Brooklyn Paramount earlier this 12 months, with its VIP Membership producing over 30% of income per present.
For 2025, Dwell Nation has already bought greater than 20 million tickets, together with stadium exhibits for Coldplay, Rüfüs Du Sol, and Shakira. Rapino expressed optimism about continued development, citing plans to broaden music-focused venues globally.
“As we glance towards a fair greater 2025, we have now a bigger lineup of stadium, area, and amphitheater exhibits for followers to get pleasure from. Momentum continues to construct, as we broaden the trade’s infrastructure with music-focused venues to assist artists and attain untapped fan demand throughout the globe,” Rapino mentioned.
Relating to the continued US Division of Justice antitrust lawsuit in opposition to Dwell Nation and Ticketmaster, Berchtold expressed hope for “a return to the extra conventional antitrust method” with focused cures. He famous that sure features of the case, together with the proposal to break up Dwell Nation and Ticketmaster, mirror a “far more interventionist philosophy.” The corporate expects to start engagement with the DOJ in early 2025.
“We’ll clearly be prepared to have interaction as quickly as they’re. They should get via the appointments and get issues settled on their finish, however we’d actually be hopeful that we might begin participating with them early in subsequent 12 months,” Berchtold mentioned.
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