Live Nation Lifts Sponsorship Margins With Online Assets
Music industry bellwether, Live Nation, continues to see growth in its sponsorship and advertising sales segment on both the top and bottom line. Sponsorship and advertising revenue at the company increased $3.1 million, or 9%, during the first three months of 2012 as compared to the same period a year ago, but excluding the impact of foreign exchange rates, revenue increased $3.6 million, or 11%. Key to the growth was online sponsorship sales, which the company says increased the operating income in its sponsorship and ad division by 13%.
Other metrics the company uses to measure sponsorship performance include average revenue per sponsor, total revenue generated through sponsorship arrangements, percent of expected revenue under contract and the online revenue received from sponsors advertising on Live Nation websites.
"We are off to a great start for 2012 with solid first quarter performance in all our segments. The company delivered year over year growth in revenue, profitability and free cash flow in the quarter. Importantly, we also saw a 6% increase in ticket sales this quarter as compared to last year, reflecting strong demand for our live events and giving us great confidence that we are well positioned for the summer concert season," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment.