Live Nation tops Q3 profit and revenue estimates on concert attendance

Live Nation Entertainment (LYV) reported third-quarter revenue of $10.11 billion, up 19%, and diluted earnings of $1.69 per share, above the $1.56 per share consensus estimate.

Fan attendance rose 19% to 61 million in the quarter.

Here's how the company did:

• Diluted EPS: $1.69 vs. $0.73 a year earlier, against a $1.56 per share consensus estimate
• Revenue: $10.11 billion vs. $8.50 billion a year earlier, against a $9.69 billion consensus estimate
• Adjusted operating income: $1.18 billion vs. $1.03 billion a year earlier

"In a world of endless screens and AI-generated everything, the one thing that can't be replicated is being there," President and CEO Michael Rapino said.

Segment results

Concerts generated revenue of $8.75 billion, up 20%, and adjusted operating income of $603 million, up 17%.

Ticketing revenue was $870 million, up 9%, with adjusted operating income of $316 million, up 10%. Fee-bearing tickets rose 10% to 98 million.

Sponsorship and advertising revenue was $506 million, up 14%. Adjusted operating income in the segment was $350 million, up 12%. International markets drove most of the sponsorship growth.

Guidance

The company now expects nearly 180 million fans in 2026. Full-year adjusted operating income growth is now expected to be up high single digits.

Venue Nation attendance for the year is expected to exceed 75 million, up more than 15%. Concerts remain on track for double-digit adjusted operating income growth for the full year.

Cash, capital and debt

Year-to-date operating cash flow was $2.1 billion, up 45%. Free cash flow, adjusted, was $1.6 billion, up 25%.

Year-to-date capital expenditures totaled $722 million. The company expects full-year spending of nearly $1.1 billion.

An October refinancing extended maturities to 2031. About 80% of the company's debt is fixed-rate, with a weighted average cost of debt of 4.3%.

The company expects net interest expense of about $280 million for the year, and depreciation and amortization to grow 12% to 15%.