LIVE NATION RESULTS OFF
For the period, the company posted losses of $45.6 million on revenues of $584.2 million, which compares unfavorably to year-ago profits of $5.3 million on revenues of $516.6 million.
While revenues increased, the company lot money on heavier operational liabilities, including the acquisition of House of Blues and merchandising company Trunk Ltd. Live Nation pointed to the expenses generated by the acquisitions during a traditionally soft first quarter, though a number of other factors were also cited.
Among the other factors, a tepid touring schedule ranked highly. Last year, U2, Coldplay, Billy Joel, Aerosmith, Toby Keith, Rascal Flatts and Depeche Mode delivered heavy profits and per-person receipts. The recent-quarter collection included Josh Groban, Bob Seger and The Who, a group that produced less powerful returns.
Company President/CEO Michael Rapino commented: "The concert business is a seasonal and cyclical business with a cycle of generally one to three years. If a major artist tours in one year, it is typically unlikely for that artist to tour for the next year or two."
That three-year window was cited by Rapino as the basis for a company transformation into a vertically integrated live events powerhouse. That has fueled the latest string of acquisitions, setting the stage for a more aggressive move into ticketing.
