Live Nation Entertainment(LYV) - 2024 Q2 - Quarterly Report

Revenue Growth - Revenue for the six months ended June 30, 2024, increased by $1.1 billion to $9.8 billion, a 12% increase compared to the same period in 2023[140]. - Concerts segment revenue increased by $951.9 million, Ticketing segment revenue increased by $66.8 million, and Sponsorship & Advertising segment revenue increased by $50.5 million during the same period[140]. - Revenue for the six months ended June 30, 2024, was $7.87 billion, a 14% increase from $6.91 billion in the same period last year[178]. Operating Income - Operating income for the six months ended June 30, 2024, was $429.3 million, a decrease of 19% compared to $529.1 million in the prior year[140]. - Operating income for the three months ended June 30, 2024, was $465.8 million, representing a 21% increase compared to $386.4 million in the prior year[164]. - Operating income increased by $79.4 million for the three months ended June 30, 2024, compared to the same period last year, driven by Concerts segment ($37.1 million), Ticketing segment ($2.2 million), and Sponsorship & Advertising segment ($28.8 million)[165]. - AOI (Adjusted Operating Income) increased by 61% to $270.7 million for the three months ended June 30, 2024, compared to $168.1 million in the same period last year[178]. Net Income - Net income attributable to common stockholders for the six months ended June 30, 2024, was $251.2 million, down from $290.5 million in the same period of 2023[140]. Expenses - The income tax expense for the six months ended June 30, 2024, was $115.6 million, compared to $65.5 million in the same period of 2023[143]. - Direct operating expenses for the six months ended June 30, 2024, were $6.47 billion, a 13% increase from $5.72 billion in the same period last year[178]. - Direct operating expenses for the Concerts segment increased due to higher shows and fan growth, impacting overall operating income[152]. Ticketing and Concerts Performance - Ticketing revenue increased by $21.3 million, or 3%, during the three months ended June 30, 2024, primarily due to higher arena and amphitheater sales[156]. - Concerts revenue increased by $353.7 million for the three months ended June 30, 2024, primarily due to increased shows and fan growth across the United States[176]. - Total estimated events for Concerts reached 14,678 in North America and 4,688 internationally for the three months ended June 30, 2024, compared to 12,241 and 4,130 respectively in the same period last year[173]. - Total estimated tickets sold increased to 153,595 for the three months ended June 30, 2024, compared to 150,115 in the same period last year[173]. Cash Flow and Investments - Cash used in investing activities increased by $135.2 million for the six months ended June 30, 2024, primarily due to higher purchases of property, plant, and equipment[193]. - The company completed various acquisitions resulting in cash paid, net of cash acquired, of $17.6 million during the six months ended June 30, 2024[190]. - The company repaid $370 million of principal related to its revolving credit facility during the six months ended June 30, 2024[188]. Debt and Interest Rates - Total debt as of June 30, 2024, was $6.3 billion, with $5.8 billion in fixed-rate debt and $462 million in floating-rate debt[196]. - Each 25-basis point change in interest rates would affect annual interest expense by approximately $1.2 million[196]. - An interest rate swap agreement with a notional amount of $500 million ensures floating-rate debt does not exceed 3.445%[196]. Foreign Operations and Currency Exposure - Foreign operations reported an operating income of $306.3 million for the six months ended June 30, 2024[195]. - A 10% change in the value of the United States dollar relative to foreign currencies would change operating income by $30.6 million[195]. - The analysis of foreign exchange exposure includes significant currencies such as Euro, British Pound, and Australian Dollar[195]. - Forward currency contracts outstanding as of June 30, 2024, had an aggregate notional amount of $242.6 million[195]. - The company operates in hyper-inflationary countries, but the impact on operations was not material for the reporting periods[195]. Disclosure Controls - Disclosure controls and procedures are effective as of June 30, 2024, ensuring timely reporting and decision-making[200]. - The company does not expect disclosure controls to prevent all errors and fraud but provides reasonable assurance of achieving objectives[200].