Live Nation reports losses of $7 billion as revenues drop 95%
Image credit: Live Nation
The renowned events company details their heavy losses in 2020 and plans for the future with the release of their Q3 2020 report.
Live Nation has faced a devastating year in the wake of COVID-19. Specialising in live events from concerts to some of the world’s biggest festivals, the company has lost almost all of their business this year as events have been cancelled.
Their Q3 earnings report really cements the difficulty the company is in, showing that their revenues have declined by 95% from the same period last year. Revenues of $184 million in the third quarter of 2020 represent a significant drop from the $3.77 billion made last year in the same period.
However, the figures do represent faint optimism compared to Live Nation’s Q2 results which saw a 98% decline. With vaccines entering the conversation and the potential for the return of events once more on the horizon, the company is now looking ahead with plans to re-invigorate their business to heal from their huge losses.
Live Nation has made various cuts this year to reduce costs by up to $900 million by the end of the year, as their new target sets out. In April, company CEO Michael Rapino forfeited his year’s salary of $3 million to help cut costs, whilst other senior executives cut their salaries by up to 50%.
Looking forward to 2021, Rapino says the company have a “focus on remaining flexible” as events return but at varying rates. They report that tickets for next year are still selling well in anticipation of the return of live music, adding that “EDC Las Vegas sold out in less than 24 hours at a higher capacity than last year.”
The company told investors that they “believe this level of liquidity provides it with the ability to fund operations until the expected return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year.”