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Live Nation Entertainment (LYV)
NYSE:LYV
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Live Nation Entertainment
(NYSE:LYV)
73Outperform
Positive Factors
Concert Revenue
Management indicated that they are pacing to a record summer for Concerts.
International Growth
Venues are another major and predictable growth vector both internationally and domestically with 20%+ anticipated ROIs.
Regulatory Impact
The passage of the TICKET act in the U.S. House is a positive for LYV despite aggressive lobbying by secondary market operators.
Negative Factors
Public Perception
Many consumers will blame Ticketmaster for high concert prices, even in the secondary market where it does not participate.
Ticketing Activity
Lower than expected ticketing activity from external promoters and non-concert events.
Live Nation Entertainment (LYV) vs. S&P 500 (SPY)
Market Cap
$31.31B
Dividend YieldN/A
Average Volume (3M)2.68M
Price to Earnings (P/E)49.3
Beta (1Y)1.11
Revenue Growth1.79%
EPS Growth99.46%
CountryUS
Employees16,200
SectorCommunication Services
Sector Strength81
IndustryEntertainment
Share Statistics
EPS (TTM)2.71
Shares Outstanding234,089,510
10 Day Avg. Volume2,264,821
30 Day Avg. Volume2,683,689
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.11
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.97
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$166.56Price Target Upside24.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Live Nation Entertainment Business Overview & Revenue Model
Company DescriptionLive Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues; operates and manages music venues; produces music festivals; creates associated content; and offers management and other services to artists. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients for tickets and event information through its primary websites livenation.com and ticketmaster.com, as well as provides ticket resale services. This segment sells tickets for its events, as well as for third-party clients in various live event categories, such as arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters through websites, mobile apps, and ticket outlets. The Sponsorship & Advertising segment sells international, national, and local sponsorships and placement of advertising, including signage, promotional programs, rich media offering that comprise advertising related with live streaming and music-related content; and ads across its distribution network of venues, events, and websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events or programs for specific brands. As of December 31, 2021, it owned, operated, or leased 165 entertainment venues in North America and 94 entertainment venues internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.
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 Key Performance Indicators (KPIs)
Any
Tickets Sold
Measures the volume of ticket sales, indicating demand for events and the company's ability to attract audiences, which impacts revenue and market position.
Measures the volume of ticket sales, indicating demand for events and the company's ability to attract audiences, which impacts revenue and market position.
Data provided by:
Main Street Data
Main Street DataLive Nation Entertainment Financial Statement Overview
Summary
Live Nation Entertainment shows strong profitability and robust cash flow generation, despite challenges in revenue growth and a high leverage profile. The efficient use of equity and solid cash flow metrics indicate a strong financial position, albeit with potential risks due to high debt levels.Income Statement
Live Nation Entertainment shows strong profitability with a gross profit margin of 34.8% and a net profit margin of 4.3% in TTM (Trailing-Twelve-Months). The company has experienced a revenue decline of 1.8% from the previous year, which indicates some challenges in maintaining growth. However, the EBIT margin of 4.3% and EBITDA margin of 7.5% suggest operational efficiency.78
Positive
Balance Sheet
The company's debt-to-equity ratio is high at 22.31, indicating significant leverage which could pose financial risk. However, a positive return on equity of 918.9% reflects efficient use of equity. The equity ratio is low at 0.5%, suggesting reliance on external financing.65
Positive
Cash Flow
Live Nation's cash flow is robust, with a free cash flow growth rate of 30.0% TTM. The operating cash flow to net income ratio is favorable at 2.11, indicating strong cash generation relative to profits. The free cash flow to net income ratio is 1.40, underscoring healthy cash conversion.82
Very 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 |
| 1.70B | 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 |
| 8.27B | 8.44B | 7.70B | 7.46B | 6.46B | Net Debt |
| 2.18B | 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 | |||
| 1.05B | 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
Positive
133.77
Price Trends
129.82
Positive
134.32
Negative
121.73
Positive
Market Momentum
1.12
Negative
56.61
Neutral
82.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYV, the sentiment is Positive. The current price of 133.77 is above the 20-day moving average (MA) of 128.57, above the 50-day MA of 129.82, and above the 200-day MA of 121.73, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYV.
Live Nation Entertainment Risk Analysis
Live Nation Entertainment disclosed 25 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.65B | 10.59 | 20.09% | 1.09% | 4.29% | 177.70% | |
73 Outperform | $31.31B | 49.30 | 827.53% | ― | 1.79% | 99.46% | |
73 Outperform | $153.46B | 27.56 | 5.54% | 1.03% | 3.97% | 89.53% | |
64 Neutral | $15.75B | 31.05 | 100.20% | 2.35% | 0.75% | 9.36% | |
59 Neutral | $13.76B | 7.65 | -2.18% | 3.85% | 2.32% | -36.56% | |
58 Neutral | $6.92B | ― | -37.30% | 5.24% | -2.84% | -249.80% | |
50 Neutral | $21.13B | ― | -28.54% | ― | -4.91% | -259.71% |
* Communication Services Sector Average
Performance Comparison
LYV
Live Nation Entertainment
133.77
37.89
39.52%
SIRI
Sirius XM Holdings
20.47
-10.14
-33.13%
DIS
Walt Disney
92.49
-22.93
-19.87%
FOXA
Fox
49.47
17.28
53.68%
WMG
Warner Music Group
30.26
-4.42
-12.75%
WBD
Warner Bros
8.54
0.58
7.29%
Live Nation Entertainment Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 1.85%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook with strong growth in concerts and international expansion but challenges in Ticketmaster's revenue and FX impacts. The deferred revenue and sponsorship growth are positive signs for future performance.Q1-2025 Updates
Positive Updates
Strong Concert Activity
Live Nation concerts through Ticketmaster were up 12% year-on-year, and overall concerts were up 4%. The company expects two-thirds of the Live Nation concert fan growth to occur in the second half of the year.
Deferred Revenue Growth
Deferred revenue for Ticketmaster increased by 13% for the quarter, indicating strong future revenue potential as events are scheduled for later in the year.
Successful International Expansion
Live Nation completed the acquisition of Hayashi, a key player in Japan, allowing them to directly promote in Japan, a major market.
Venue Nation Growth
Expectations for double-digit growth in fans at Venue Nation venues, with four new venues opening by the end of the year.
Continued Sponsorship Growth
Over 80% of sponsorship business is contracted for the year, showing growth over the previous year.
Negative Updates
Ticketmaster Revenue Decline
Ticketmaster reported a decline in revenue and AOI despite high ticketing activity, due to timing of ticket sales and international market factors.
Foreign Exchange Impact
FX headwinds, particularly in Mexico and Latin America, have impacted Ticketmaster, with a significant portion of the company’s FX headwinds occurring in Q1.
Non-Concert Activity Decline
Non-concert categories such as sports, arts, and family events experienced a 9% decline in activity.
Company Guidance
During Live Nation's First Quarter 2025 Earnings Call, the company provided guidance indicating a robust outlook for the remainder of the year, despite a dip in Ticketmaster's Q1 revenue and AOI. Live Nation's concert activity showed a 12% year-on-year increase in Live Nation concerts through Ticketmaster, although other promoters and non-concert activities saw declines. Deferred revenue for Ticketmaster grew 13%, signaling anticipated future revenue recognition. The company expects a significant portion of fan growth to occur in the second half of the year, with two-thirds of Live Nation concert fan growth expected during this period. Concert margins are projected to remain flat for 2025, leveraging increased volume and scale, particularly through Venue Nation's expansion. The company remains confident in its pricing strategy, which balances maximizing revenue and maintaining affordability, with an 8% decline in the average get-in price for stadiums reflecting efforts to manage affordability. Additionally, Live Nation continues to advocate for better enforcement of the BOTS Act to improve ticketing transparency and reduce the impact of scalpers. Overall, the company remains optimistic about its prospects, buoyed by strong demand trends and strategic developments such as the acquisition of Hayashi in Japan, despite regulatory challenges.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.