Live Nation posts 2nd-quarter loss on weak summer concert season

Live Nation posts 2Q loss on weak concert season

LOS ANGELES — Concert promoter and ticket-seller Live Nation Entertainment Inc. said Thursday that its second-quarter loss worsened after a weak summer concert season hurt results.

The company kept its forecast for a decline in adjusted operating profit for the year, and CEO Michael Rapino said there were no big acts that would help lift the company out of the current slump.

“We don’t have a sizable big lineup this (third or fourth quarter) of A-artists and arenas,” he said.

The company is grappling with the postponement of major acts such as U2, which delayed its North American tour until next year after lead singer Bono’s back surgery in May. Other acts, such as Rihanna, The Eagles, Simon and Garfunkel, The Jonas Brothers and Limp Bizkit have canceled or postponed tour dates amid poor ticket sales.

Live Nation’s net loss in the three months to June 30 grew to $34.6 million, or 20 cents per share, from $27.2 million, or 33 cents per share, a year earlier.

Revenue fell 10 percent to $1.27 billion when including Ticketmaster’s results prior to its merger with Live Nation in January.

Analysts surveyed by Thomson Reuters expected a loss of 2 cents per share on $1.38 billion in revenue.

The earnings come on the heels of a disastrous investor day presentation in mid-July, which knocked 17 percent off the stock after executives projected declining profits despite $40 million in cost-saving benefits from the merger.

Shares fell a further 21 cents, or 2.2 percent, to $9.25 in after-hours trading Thursday after the release of results.

The company maintained its outlook for adjusted operating income, which excludes merger-related costs and other special items. For the year, it expects that figure to be $405 million, down from $445 million last year.

Standard & Poor’s equity analyst Tuna Amobi said the outlook looks increasingly difficult to meet.

“Right now my sense is they’re really going to have to pull something short of a miracle to make the adjusted (operating income),” he said.

Executive Chairman Irving Azoff, who runs the Front Line artist management subsidiary, said 2011 will likely improve as major artists who sat on the sidelines this year get back on the road.

Those who took this year off include Kenny Chesney, Fleetwood Mac, Van Halen, Neil Diamond and Christina Aguilera. They all plan to tour next year, pushed by declining revenue from recorded music sales, he said.

“Their livelihood depends on touring. Acts are not going to stop touring. They’re just going to try and tour smarter,” Azoff said.

Azoff said he hoped this year’s dismal turnout would convince artists to lower their guarantees to help reduce ticket prices.

Total concert attendance fell 6 percent to 12.4 million in the second quarter, and revenue per attendee dropped 1 percent to $69.47, compared to a year earlier.

Including tickets sold for non-concert events, the company sold 23.9 million tickets online, down 10 percent from a year ago.