Image Credit: Live Nation
Plummeting revenues that saw losses of 95% last year have not kept Live Nation down, as they now look to the future with stocks looking more optimistic than ever.
The fallout of Coronavirus is still very much resonating around the world, and a year which saw the near-total cancellation of the live events industry carries on. Though there is hope on the horizon, vaccines are being rolled out across the globe and concert logistics are being tested to see how soon we can bring back live music and manage the crowds it naturally incurs.
With the return of live events in sight once more, the industries finally have a route to recovery. This has been clearly felt by Live Nation, one of the world’s largest events companies, whose stock has returned to it’s pre-COVID levels.
This is a huge relief to the company which, in December, we reported to have lost $7 billion as their revenues dropped by 95% from a lack of business. They have been bolstered by the optimism of what this Summer holds with vaccinations in sight and regulations being worked out. Live Nation CEO Michael Rapino revealed that two-thirds of fans had held onto their tickets for cancelled events to roll them over when they return.
Live Nation’s President, Joe Berchtold, said in December: “We start to see with much greater clarity what the path to return to live is, and certainly a lot of confidence about that return to live.”
With this in mind, Live Nation’s stock prices have recovered from a massive decline in 2020 to an all time high of $76.54 per share, on Tuesday. The company started 2020 at $72 a share and dropped down to $21.70 at their worst in March last year as the effects of COVID on the live industry were only just being realised.
With the return of live music inevitable, it is also clear how keen many music lovers and events-goers are to see music and other performances in the flesh once more after an extended drought. By the time events return, it will have been over a year since attending a live event for most people.
On the same day that Live Nation announced their impressive stock recovery, they revealed that they had made a majority stake in Veeps. The livestream platform offers ticketed virtual events and is a great diversification for the company who has seen such a detrimental period thanks to the closure of in-person shows. This has no doubt enhanced investor confidence.