Disclaimer: Reader acknowledges that all information appearing on Divergent View is provided for informational purposes only and does not constitute financial advice. The Divergent View does not guarantee the completeness or accuracy of any information presented herein. Readers should consult with their own advisors and conduct their own due diligence.
For a detailed company description, refer to LYV’s company profile page.
Below is an ongoing record of notes from select LYV investor presentations and earnings calls (newest content shown first).
Goldman Sachs Communacopia Conference, September 13, 2018
Michael Rapino, Chief Executive Officer
- 30k events over 40 countries
- Had a very strong summer and on pace for a record year. “Had a monster August.”
- Artists are touring more than ever so pie is getting bigger
- Artists really need to get on the road to earn a living and connect with fans
- More secondary market venues being built
- Strategy is to grow shows / fans and monetize through sponsorship, ticketing, etc
- Highest margin business is putting a show into a venue we own or manage
- We used to manage 30ish theater / clubs and now well over 220 – $30-40mm EBITDA business
- In 2015, was doing $20 in on-site fan spending and recently at $27 and long-term target is $30
- Historically, F&B has not been a focus (outsourced)…in last 3 years, we looked at F&B as being a skill we need to grow internally. Will do well over $300mm revenue in F&B and believe we are in the early stages of F&B.
- Higher quality food, better quality alcohol, more POS terminals
- LYV has 500 sponsorship sales people – no outside sales agencies
- Brought ticketing in-house (Ticketmaster)
- Similarly, can bring more of the ecosystem in-house (such as F&B)
- 2019 pipeline looks like will have more events than 2018
- Music is the only global sport and rest of the world is 20 years behind the US
- South America, Asia, South Africa – many of these regions are just starting to figure out that they need to build arenas to get big name artists
- A lot of cities in the US and Canada are still underdeveloped and looking to add concert venues
- Top artists – 80% of income from touring
- Ticketmaster – moving ticketing to digital environment (away from printed barcodes) which creates much better relationship with consumer. More data on the customer, we know who they are and will unlock the idea that we get to know our 90mm customers
- 20% of concert tickets go unsold down from 31% a few years ago. Driving it down another 5% would drive $70mm of Adjusted Operating Income. Marketing shows in the future will become much more direct as our customer data and database continues to grow
- Ticketmaster – when we bought it, it was a closed platform to Ticketmaster venues only. We expanded to be an open platform so every month for the next few years, we will be adding more and more inventory. We are also adding more secondary tickets