Live Nation Sponsorship Revenue Up 24% in First Six Months of '11
Live entertainment giant, Live Nation, reported better than expected earnings, supported in part by better ticket sales and strong growth across its ecommerce and sponsorship operations. Net income in the second quarter came to $13.3 million, compared with a loss of $32.8 million the second quarter of last year, while revenue grew 23 percent in the second quarter to $1.56 billion.
Meanwhile, sponsorship revenue at the company rose to $74,400,000 in the first six months of 2011, a jump of 23.8 percent. During the second quarter, revenue from sponsorship alliances was $49,600,000, an increase of 27.8 percent from Q2 2010.
“2011 has shown solid performance for two quarters, with improved results across most of our key financial metrics, providing the basis for profit growth over the full year. The company is now delivering strong results, with growth driven through increased ticket sales, improved show profitability in Concerts and growth in our advertising businesses,” said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. “We are seeing the global ticketing business stabilize and concert business grow year-over-year, and we remain optimistic about continued growth opportunities in the industry long term. In addition to delivering this year’s results, we remain focused on strategically expanding our global presence, innovating our ticketing platform and maximizing ticket sales, while carefully managing our costs.”
In the first six months of 2011, revenue per sponsor also grew from $117,000 in 2010 to $146,000 in the first half of this year.
During the first half of the year, Live Nation signed new sponsorship deals with UPS, Lands' End and Carnival Cruise Lines, while renewing a major global alliance with Starwood Hotels and Resorts.