In the second quarter of 2022, the concert promoter set revenue records, with adjusted operating income reaching a record $479.6 million, an 50% above pre-pandemic levels in the same period of 2019.
Concert attendance reached 33.5 million fans, at 12,500 concerts, each more than 20% above 2019 levels. The number of fans at venues owned and operated by live nation it rose 13% to more than 14 million in the quarter.
The value of tickets traded increased 48% to 77 million tickets and GTV traded increased 76% to a record $7.3 billion from the same period in 2019.
live nation has generated more ticketing revenue by selling some seats using dynamic prices that rise and fall to meet demand, something he highlighted in Bruce Springsteen tour ticket prices.
But raising the prices of some primary tickets, which puts money in the pockets of artists rather than resellers, is becoming more common and accepted within the artist community.
That’s a big change in value from the secondary to the primary market. “With market-based pricing widely adopted by most tours, we expect to transfer over $500 million from the secondary market to artists this year, continue to support those who produce the concert, and ensure they benefit from it.” CEO said Michael Rapino.
At the same time, the average ticket price for concerts was just $33, 5% more than the same period in 2019. While the inflation US spending is the highest in four decades and inflation-adjusted consumer spending in June is the slowest in two years, music fans are showing their willingness to spend on live music.
The average price of concert tickets in 2022 increased 10% relative to 2019, roughly in line with inflation during that time period. On-site fan spending increased by more than 20% across venues live nationand 30% in amphitheatres, compared to the same period in 2019.
International markets were responsible for 5 of the 6 million additional fans in the quarter. Sponsorship income benefited from the high demand for live music. Festival sponsorships more than doubled from the same period in 2019, including nine new festivals in Mexico Y Latin America which accounted for about half of the increase.
The rest of the year and 2023 are looking strong.
live nation it sold more than 100 million concert tickets this year, more than calendar year 2019. Concert bookings were up 30% for all venue types compared to the same period in 2019.
The company says its artist pipeline for 2023 is the largest in history at the mid-year point. “Fan demand remains strong, with continued growth in ticket purchases and venue spending,” he said. Rapine.
“And given the long-term nature of most of our partnerships, our planned sponsorship for the year is now fully committed.”
The actions of live nation they rose 3.6% to $101.00 in after-hours trading immediately after the earnings release.
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Live Nation sets records in the second quarter of 2022 – Music Industry