Live Nation Entertainment is the world’s largest live entertainment company. Live events and entertainment has been subject to lockdowns and restrictions as the world fights a historic pandemic. The sector has faced serious headwinds throughout 2020. However, the future may look more optimistic as vaccinations are approved and the pandemic eventually subsides. Investors looking to position themselves for this uptrend in the sector may want to consider stocks like Live Nation Entertainment. Before the pandemic hit the world, Live Nation Entertainment was on track for record earnings. It performed well from January to mid-March.
Live Nation Announces Q32020 Earnings After Another Tough Quarter
Live Nation Entertainment released its Q32020 earnings in early November 2020. Revenues were down significantly from $3.77 billion in Q32019 to $184 million in Q32020. The company recorded a net loss of $2.45 per share as opposed to a net income of $0.71 per share on a diluted basis in Q32019.
According to company CEO Michael Rapino, “We also continue to see strong fan demand across the board. Our sales and survey data tell us fan demand will be there when the time is right. Our refund rate on rescheduled shows remained consistently low with 83% of fans globally keeping their tickets. Our recent global survey indicates that 95% of fans are planning to return to live events when restrictions are lifted, the highest point of confidence since the start of the pandemic. Festival on sales for next year have been strong, with EDC Las Vegas 2021 selling out in 24 hours at a higher capacity than last year, and ticket sales for Redding, Creamfields and Isle of Wight festivals pacing ahead of last year.”
Live Nation Entertainment’s stock closed at $69 on 25th January 2021. The stock has gained more than 3X in a 5-year period. It was around the $20 level in early 2016. Over the last year, the stock is down 2.3% as the pandemic took a toll on the entire industry in which Live Nation Entertainment operates.