Concert giant and Ticketmaster owner Live Nation says 2025 is shaping up to be a boom year in stadium shows, but the company’s revenue took an unexpectedly large tumble amid foreign exchange headwinds, a drop in non-concert activity and ongoing efforts to optimize pricing.
Deferred revenue – from events to take place later this year – was up 24% YoY to $5.4 billion in Live Nation’s Concerts segment, while at Ticketmaster, it was up 13% YoY to $270 million.
In the year to mid-April, total ticket sales were up by double digits to 95 million, with stadium ticket sales up 80% YoY, Live Nation said. Gross transaction value at Ticketmaster was up 10%, while ticket sales volume rose 5% YoY.
Additionally, 85% of all expected sponsorships for 2025 have been committed, up by double digits from last year, Live Nation said.
All of that points to “a historic year for live music,” Live Nation CEO Michael Rapino said.
“Ticket sales are pacing well ahead of last year, with deferred revenue for both concerts and ticketing at record levels. To support even more fans seeing their favorite artists, we’re continuing to expand our global venue network, adding 20 major venues through 2026. As the global experience economy grows, the live music industry is leading the way, and we’re positioned to compound growth by double-digits over many years,” Rapino said in a note to investors.
“As the global experience economy grows, the live music industry is leading the way, and we’re positioned to compound growth by double-digits over many years.”
Michael Rapino, Live Nation
However, unexpected weakness in non-concert activity translated into lower-than-expected revenue in Q1.
Overall revenue at Live Nation came in at $3.38 billion in the quarter ended March 31, down 11% YoY or 8% YoY at constant currency. That fell short of a $3.62 billion forecast.
Earnings per share also missed forecasts, coming in at -$0.32 versus the expected -$0.22.
CFO Joe Berchtold said on the earnings call that the revenue decline was driven by non-concert activity and revenue from third-party promoters, while concerts and in-house promotion saw an increase.
Live Nation shows sold through Ticktetmaster were up 12% YoY, while shows from other promoters fell 2%. Non-concert categories like sports, arts and family events were down 9% YoY, while concert revenue was up 4%.
“When we were doing our planning… a few months back on expectations for the quarter, at that point, we didn’t have any reason to anticipate this lower level of activity in the other parts of the business,” Berchtold said.
“Everything that we’ve seen points to supply, not no demand issues. It’s just less supply, year-on-year.”
Amid concerns of a possible recession and a global tariff war that has turned markets jittery, Rapino said he isn’t seeing any signs of a pullback in consumer demand.
“We haven’t felt it at all yet,” Rapino said.
“Right now, up until last week – whether it’s a festival on sale or a new tour or a show that went on sale – [we’re seeing] complete sell through and strong demand, beating last year’s numbers. So we haven’t seen a consumer pullback in any genre – pub, theater, stadium, amphitheater.”
Rapino noted that the sponsorships business remains strong.
“We still see brands flocking and exploring and we’re attracting new brands all the time… So far, those three legs of the stool – consumer demand, sponsorship and on-site [sales] – we haven’t seen what others are seeing yet.”
Berchtold noted that Live Nation’s H1 earnings were dragged down by the fact that advance ticket sales for the busier second half of the year aren’t recognized in the earnings until the events take place, while costs incurred are included in earlier quarters’ earnings.
Revenue in the Concerts segment came in at $2.48 billion, down 14% YoY or down 11% YoY on a constant currency basis.
Ticketing revenue fell 4% YoY, or 1% at constant currency, to $694.7 million. Sponsorship and ad revenue came in at $216.1 million, up 2% YoY or 9% at constant currency.
Live Nation reported consolidated operating income of $114.8 million, versus a loss of $41.4 million in the same quarter a year earlier. Adjusted operating income (AOI) was $341.1 million, down 6% YoY or down 0.5% at constant currency.
Currency fluctuations impacted operating income by 11% and AOI by 5%, Live Nation said. About 60% of the impact was absorbed by Ticketmaster, Berchtold added.
“While FX has rebounded for a lot of markets, for Mexico and Latin America, it’s still a headwind,” he said. “It’s going to have a little bit of a reported impact in the short term.”
“I would say we’re still in the early innings of the industry becoming better at pricing, smarter at it.”
Michael Rapino, Live Nation
Live Nation’s leadership team also noted they continue to work on optimizing prices through greater tiering of ticket prices and efforts to sell the back of the house through lower prices.
“I would say we’re still in the early innings of the industry becoming better at pricing, smarter at it,” Rapino said, adding that it’s “somewhere between a science and an art right now.”
One result of those efforts is that year to date in the US, the average get-in price across stadiums was 8% below last year’s levels, at $60.
Rapino said there’s “still lots of opportunity for the industry to continue to price [tickets] better to sell-through, as well as maximize some of the [more in-demand] tickets.”
Berchtold hinted to analysts that, if revenue continues to surprise to the downside, Live Nation has leeway to improve margins through cost-cutting.
“While we’re generally growing, we learned during Covid – we know how to take costs out. And if we need to take costs out as a business, we’re fully capable and ready to do that. We don’t think we’re in that situation, but we have every lever at our disposal [and] we’ll continue to monitor.”Music Business Worldwide
