(Reuters) – Ticketmaster parent Live Nation Entertainment beat Wall Street estimates for second-quarter revenue on Thursday, helped by high prices of concert tickets and pent-up demand after the pandemic.
Surging demand for long-awaited tours by artists like Taylor Swift and Beyonce has driven up ticket prices, with supply falling short at times despite the addition of more shows.
The company reported a 27% surge in revenue to $5.63 billion, compared with analysts’ average estimate of $4.95 billion, according to Refinitiv data.
The majority of its revenue, or about $4.63 billion, came from the concerts business, which consisting of merchandise sales and production of live music events, followed by $709.3 million from ticketing.
Live Nation’s total estimated events fell 2.4% year-over-year to 12,241, but 37.1 million fans attended its shows – nearly double the 19.5 million in the previous quarter.
Total estimated tickets sold in the quarter ended June 30 stood at 150.1 million, compared with 145.8 million in the previous quarter.
The red-hot demand has come with some risks though.
Ticketmaster drew the ire of U.S. lawmakers earlier this year after it canceled planned ticket sales to the general public for Taylor Swift’s highly anticipated “Era’s Tour” when unprecedented ticket requests overwhelmed the website.
In July, it paused ticket sales for Swift’s tour in France blaming a third-party provider for a widely condemned glitch.
Beginning in September, Live Nation will start providing a new all-in pricing for concerts at venues and festivals that it operates across the United States, the company said in June.
The company reported profit of $1.02 per share, while analysts were expecting 63 cents. Its adjusted operating income stood at $589.7 million, compared with estimates of $532.5 million.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)
