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Wednesday, July 31, 2024

Live Nation Misses Quarterly Profit Estimates


Ticketmaster-parent Live Nation Entertainment missed analysts' estimates for second-quarter profit on Tuesday, hurt by higher operating expenses, sending its shares down more than 3% in extended trading, reports Reuters.

Red-hot ticket prices have forced concert-goers to curtail discretionary spending amid higher interest rates and economic uncertainty.

This cautious approach has reverberated throughout the entertainment sector, particularly impacting companies like Live Nation Entertainment, which are struggling with high costs associated with organizing events and customer reluctance to shell out for high ticket prices.

Meanwhile, Live Nation continues to be under tight scrutiny in the United States, where the Justice Department has filed a lawsuit seeking to break up entertainment industry giant and its Ticketmaster unit. The case could go to trial in early 2026, a judge in New York said in June.

Operating expenses for the June quarter rose to $4.41 billion, up from $4.16 billion, a year earlier.

Net income available to shareholders for the April-June period was $251.4 million, compared with analysts' average estimate of $254.2 million, according to LSEG data.

Revenue for the second-quarter stood at $6.02 billion in line with estimates

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