With concerts still on hold due to the COVID-19 pandemic, perhaps no one is suffering more than the live music industry. From cancelled festivals across the United States to COVID-19 Relief bills hanging in limbo to music retail store closures and independent venue shutdowns, the economic impact of the virus can arguably be felt the strongest for music professionals.
As for corporate giants like Live Nation and AEG, the conglomerates have slashed their budgets, laid-off workers with furlough pay, and even cut executives pay scales by up to 100 percent—all in the concerted effort to socially distance and keep their companies afloat. Joe Berchtold, Live Nation’s president, told their shareholders over CNBC that they were balancing the books for a summer 2021 and possible 2022 return. That all rests on whether a suitable vaccine is found.
In the last quarter’s earnings report, during the three months ending on September 30, Live Nation has now reported a 95 percent (year-over-year) decline in quarterly revenues. The Beverly Hills-based company disclosed the grim third-quarter figure and other performance statistics to the public on November 5, 2020. The discouraging numbers fall in line with Live Nation’s second-quarter reports, when quarterly revenues dropped 98 percent from Q2 the previous year in 2019.
During the three-month stretch, Live Nation concert revenues earned $154.8 million, a 95 percent decline from the $3.17 billion delivered during last year’s Q3. Ticketing revenues also fell off dramatically when compared to Q3 2019. Sponsorship and advertising income finished at $47.9 million, down 78 percent from this time in 2019. Live Nation CEO Michael Rapino noted of the analysis that “there have been no major changes in our business conditions or outlook” since the Q2 report’s release.
During trading hours, Live Nation’s stock price enjoyed a small boost of 3.11 percent. However, the earnings report went public when the market closed on November 4. During after-hours trading, that figure dropped 3.40 percent from the day’s closing price, showing a slight decrease. Therefore, Live Nation’s stock landed at $54.51 per share.
Read Live Nation’s full Q3 earnings report for more highlights.