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Live Nation Entertainment (LYV)
NYSE:LYV
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Live Nation Entertainment
(NYSE:LYV)76Outperform
Positive Factors
Earnings
LYV reported record 4Q AOI with year-over-year improvement driven by Ticketing, highlighting sustained industry momentum and consumer demand.
Future Outlook
Management expects double-digit AOI growth to continue into the foreseeable future, driven by strong performance across all parts of the business.
Negative Factors
Currency Impact
Currency fluctuations and FX rates, especially in the OCESA Latin markets, may temper 1Q25 Adjusted Operating Income if current spot rates persist.
Live Nation Entertainment (LYV) vs. S&P 500 (SPY)
Market Cap
$30.30B
Dividend YieldN/A
Average Volume (3M)2.52M
Price to Earnings (P/E)47.0
Beta (1Y)1.37
Revenue Growth1.79%
EPS Growth99.46%
CountryUS
Employees14,700
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)2.71
Shares Outstanding231,112,990
10 Day Avg. Volume3,062,023
30 Day Avg. Volume2,515,175
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)N/A
Price to Sales (P/S)1.32
Price to Cash Flow (P/CF)7.30
P/FCF Ratio8.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$169.07Price Target Upside32.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Live Nation Entertainment Business Overview & Revenue Model
Company DescriptionLive Nation Entertainment, Inc. is a leading global entertainment company, primarily operating in the live events industry. It is involved in the promotion and management of live concerts, the production and sale of tickets, and the operation of entertainment venues. Live Nation Entertainment is composed of three main sectors: Concerts, Ticketmaster, and Sponsorship & Advertising. Through its extensive portfolio of artists, venues, and partnerships, the company plays a pivotal role in the live music and events market, delivering memorable experiences to millions of fans worldwide.
How the Company Makes MoneyLive Nation Entertainment generates revenue through multiple streams, primarily driven by its Concerts, Ticketmaster, and Sponsorship & Advertising segments. The Concerts segment is a major revenue driver, earning money from the sale of tickets to live events, merchandise, and concessions. This includes hosting and promoting concerts, festivals, and other live performances. Ticketmaster, a subsidiary of Live Nation, acts as a ticketing agent for various events, earning revenue through service fees charged on ticket sales. Additionally, Live Nation capitalizes on its scale and influence through Sponsorship & Advertising, partnering with brands to create marketing opportunities and exclusive sponsorship deals. These partnerships provide an additional revenue stream by leveraging the company's access to large, engaged audiences. The diversified nature of these revenue streams helps Live Nation maintain a robust financial position in the entertainment industry.
Live Nation Entertainment Financial Statement Overview
Summary
Live Nation Entertainment shows significant financial recovery and growth post-pandemic. Strong revenue and profit growth with a considerable debt reduction improve financial stability. However, the low equity level remains a concern. Cash flow generation supports operational needs and potential strategic initiatives.Income Statement
Live Nation Entertainment has demonstrated strong revenue growth with a significant increase from $6.27 billion in 2021 to $23.16 billion in 2024, showcasing a robust recovery post-pandemic. The company has maintained a healthy gross profit margin, remaining stable at approximately 100% in recent years, indicating efficient cost management. However, the EBIT margin has slightly decreased from 4.69% in 2023 to 3.56% in 2024, pointing to increased operational expenses relative to revenue. Nevertheless, the net profit margin improved to 3.87% in 2024 from 2.48% in 2023, driven by a strong net income increase, reflecting enhanced profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a significant decrease in total debt from $8.44 billion in 2023 to $2.09 billion in 2024, showcasing improved leverage and reduced financial risk. Despite this improvement, stockholders' equity remains low at $173.26 million, resulting in a high debt-to-equity ratio. The equity ratio has improved but is still a concern at 0.88% of total assets, indicating reliance on liabilities for asset financing. Return on equity has turned positive, driven by increased net income, but the low equity base remains a potential risk.72
Positive
Cash Flow
Cash flow analysis shows a strong free cash flow growth, with free cash flow increasing from $895.54 million in 2023 to $1.08 billion in 2024, reflecting improved cash generation capabilities. Operating cash flow has also increased, supporting the company's operational activities. The operating cash flow to net income ratio is favorable, indicating efficient conversion of income into cash. The free cash flow to net income ratio is robust, further supporting the company's liquidity and potential for reinvestment or debt reduction.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.16B | 22.75B | 16.68B | 6.27B | 1.86B | Gross Profit |
| 5.83B | 5.46B | 4.34B | 1.91B | 458.78M | EBIT |
| 824.51M | 1.07B | 732.12M | -413.62M | -1.65B | EBITDA |
| 1.62B | 1.85B | 1.21B | 45.33M | -1.12B | Net Income Common Stockholders |
| 896.29M | 563.28M | 409.19M | -608.79M | -1.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.10B | 6.23B | 5.61B | 4.88B | 2.54B | Total Assets |
| 19.64B | 19.07B | 16.46B | 14.40B | 10.59B | Total Debt |
| 2.09B | 8.44B | 7.70B | 7.46B | 6.46B | Net Debt |
| -4.00B | 2.21B | 2.09B | 2.58B | 3.92B | Total Liabilities |
| 17.69B | 17.59B | 15.70B | 14.04B | 10.45B | Stockholders Equity |
| 173.26M | -17.15M | -367.57M | -582.65M | -471.77M |
| Cash Flow | Free Cash Flow | |||
| 1.08B | 895.54M | 1.48B | 1.62B | -1.31B | Operating Cash Flow |
| 1.73B | 1.37B | 1.83B | 1.78B | -1.08B | Investing Cash Flow |
| -854.28M | -695.80M | -784.69M | -566.96M | -224.06M | Financing Cash Flow |
| -658.55M | -87.28M | -143.34M | 1.17B | 1.35B |
Live Nation Entertainment Technical Analysis
Negative
127.51
Price Trends
140.14
Negative
133.83
Negative
115.32
Positive
Market Momentum
-2.53
Positive
28.15
Positive
8.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYV, the sentiment is Negative. The current price of 127.51 is below the 20-day moving average (MA) of 145.50, below the 50-day MA of 140.14, and above the 200-day MA of 115.32, indicating a neutral trend. The MACD of -2.53 indicates Positive momentum. The RSI at 28.15 is Positive, neither overbought nor oversold. The STOCH value of 8.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYV.
Live Nation Entertainment Risk Analysis
Live Nation Entertainment disclosed 24 risk factors in its most recent earnings report. Live Nation Entertainment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Live Nation Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $30.30B | 46.99 | 827.53% | ― | 1.79% | 99.46% | |
74 Outperform | $190.74B | 34.26 | 5.54% | 0.90% | 3.97% | 89.53% | |
74 Outperform | $17.90B | 35.29 | 100.20% | 2.06% | 0.75% | 9.36% | |
73 Outperform | $11.19B | ― | -5.37% | ― | 18.03% | 82.15% | |
63 Neutral | $1.52B | 12.14 | 1222.83% | ― | 7.44% | 71.46% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
48 Neutral | $8.55B | ― | -37.33% | 4.25% | -2.84% | -249.80% |
* Communication Services Sector Average
Performance Comparison
LYV
Live Nation Entertainment
127.51
27.45
27.43%
SIRI
Sirius XM Holdings
25.23
-14.91
-37.14%
DIS
Walt Disney
105.51
-5.79
-5.20%
ROKU
Roku
76.67
12.26
19.03%
WMG
Warner Music Group
34.39
1.07
3.21%
MSGE
Madison Square Garden Entertainment Corp.
31.85
-5.79
-15.38%
Live Nation Entertainment Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -16.29% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong consumer demand, particularly in stadiums, festivals, and clubs, and expectations for continued AOI growth. However, concerns were raised about Ticketmaster's volume growth and the ongoing DOJ trial, which introduces uncertainty.Highlights
Strong Consumer Demand
Despite increased stadium supply, Live Nation reported strong demand with sell-through rates at the stadium level higher than any previous year, with a first-week on sales exceeding 75%.
Double-Digit AOI Growth
Live Nation expects continued double-digit AOI growth driven by strong performance in Ticketmaster and sponsorship businesses, with stadium and concert segments performing well.
International Expansion Opportunities
Live Nation sees a growing pipeline of large venue opportunities internationally, particularly in arenas, and is committed to expanding its venue ownership to capture more value.
Record Festival and Club Business Performance
Live Nation's festival business is selling at record levels, and the club business is up 17% year-over-year, indicating strong consumer interest across all venue types.
Lowlights
Ticketmaster Volume Growth Concerns
Ticketmaster's transacted ticket volume was up only 3%, while concert tickets were up 10%, indicating a potential disconnect between concert growth and Ticketmaster's overall volume.
Deferred Revenue Timing Differences
Event-related deferred revenue grew 11%, influenced by different on-sale timing compared to the previous year, particularly in the arena and amphitheater segments.
DOJ Antitrust Trial Uncertainty
The ongoing DOJ antitrust trial is set for early next year, with no current discussions for settlement, adding a layer of uncertainty to Live Nation's operations.
Long Pass Program Discontinuation
Live Nation decided to end its Long Pass program for 2025, indicating a shift in strategy to consolidate discount programs and focus on larger sales events like Concert Week.
Company Guidance
During Live Nation's Fourth Quarter and Full Year 2024 earnings call, the company provided optimistic guidance with several key metrics highlighted. CEO Michael Rapino noted a robust consumer demand, with stadium sell-through rates exceeding 75% in the first week on sale, higher than previous years, indicating strong market interest. Joe Berchtold, President and CFO, emphasized expected revenue growth driven by a high volume of stadium shows, which benefits Ticketmaster significantly, given that one stadium show generates revenue comparable to 10 amphitheater shows. The company anticipates double-digit AOI growth despite the mixed shift towards stadiums, with sponsorships already 75% sold and up double-digits. Additionally, Live Nation plans a substantial increase in capital expenditure to $900 million in 2025, focusing on expanding venue ownership and operations internationally, particularly in arenas, which is expected to yield attractive returns and sustain long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.