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Live Nation (LYV) Q2 Earnings & Revenues Beat Estimates

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Live Nation Entertainment, Inc. (LYV - Free Report) reported solid second-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics also improved year over year. Following the results, the company’s shares increased 2.1% in after-hour trading session on Aug 3.

The company has been benefiting from pent-up demand for live events, robust ticket sales in the United States and the U.K. It is of the opinion that with vaccine rollouts in Canada and Europe increasing, more markets are likely to open broadly in the coming months. The company’s ticket sales and concert attendance have been growing at faster-than expected pace. Ticketmaster North America was the fourth best month in the history for transacted ticket volume.

Earnings & Revenues

In second-quarter 2021, the company reported adjusted loss per share of 90 cents, narrower than the Zacks Consensus Estimate of a loss of $1.35. In the prior-year quarter, the company had reported adjusted loss per share of $2.67.

The company’s revenues amounted to $576 million, beating the Zacks Consensus Estimate of $470 million. The top line improved a whopping 678.4% year over year.

Segmental Discussion

Concerts: The segment’s revenues totaled $287 million, up from the prior-year quarter figure of $141.8 million. However, adjusted operating loss of narrowed to $84 million from a loss of $210.7 million in the year-ago quarter. Total estimated events increased to 1,684, up from the prior year quarter of 132 events.

Ticketing: The segment’s revenues amounted to $244 million, up from the prior-year quarter figure of ($87) million. Adjusted operating income increased to $99.4 million, against a loss of ($203.9) million reported in the prior-year quarter. Total estimated ticket sold rose to 48,561,000.

Sponsorship & Advertising: The segment’s revenues were $44.6 million, up from the prior-year quarter’s $18.4 million. However, adjusted operating income rose to $13 million from a loss of ($1.8) million.

Operating Highlights

Net cash provided by operating activities was $1,095.4 million, against ($1,022.1) million reported in the prior-year quarter. The company reported adjusted free cash of ($81.7) million, versus ($450.2) million in the year-ago quarter.

Balance Sheet

Cash and cash equivalents as of Jun 30, 2021, totaled $4,042.6 million compared with $2,537.8 million as on Dec 31, 2020. Goodwill in the second quarter were $2,122.7 million compared with $2,129.2 million at 2020-end. Total long-term debt, net increased to $5,295.2 million, compared with $4,855.1 million as on Dec 31, 2020.

Zacks Rank & Key Picks

Live Nation currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the Leisure space include WW International, Inc. (WW - Free Report) , Cedar Fair, L.P. (FUN - Free Report) and Caesars Entertainment, Inc. (CZR - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WW International has an impressive long-term earnings growth rate of 15%.

Cedar Fair’s 2021 earnings are expected to witness growth of 69.4%.

Caesars Entertainment’s 2021 earnings are expected to witness growth of 83.5%.

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