01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
Live Nation Entertainment, Inc. (NYSE: LYV) reported its best year ever for 2022, with consolidated revenue of $16.7 billiona, up from $6.3 billion in 2021, and operating income of $732 million compared with an operating loss of $418 million in 2021.
Consolidated AOI rose to $1.4 billionb from $324 million. The company describes 2022 as an almost full return to normal operations, with all markets and venues fully open by the fourth quarter of 2022 except China. Net income attributable to common stockholders of Live Nation was $296 million, compared with a loss of $651 million in 2021.
All three segments grew. Concerts revenue rose to $13.5 billionc, with about 43,600 events and about 121 million fans, and Concerts AOI improved to $170 million from a loss of $221 million. Ticketing revenue reached $2.2 billion, with 281 million fee-bearing tickets sold and AOI of $828 million.
Sponsorship & Advertising revenue was $968 milliond, with AOI of $592 million. Cash and cash equivalents were $5.6 billion at December 31, 2022, and total debt, excluding unamortized discounts and issuance costs, was $6.0 billion, with a weighted-average cost of debt of 4.7%.
Risk factors highlighted by the filing include exposure to shifting consumer tastes, dependence on popular artists, a pending Astroworld litigation, a 2019 amended DOJ final judgment restricting certain business practices through 2025, foreign exchange losses, and significant leverage. In January 2023, the company issued $1.0 billion of 3.125% convertible senior notes due 2029 and repurchased $440.0 million of its 2.5% convertible notes due 2023.
02—Key points
Key Highlights
- Consolidated revenue of $16.7 billion in 2022, up $10.4 billion from $6.3 billion in 2021.
- Operating income of $732 million in 2022, compared with an operating loss of $418 million in 2021; consolidated AOI of $1.4 billion versus $324 million.
- Concerts segment revenue of $13.5 billion (80.9% of total revenue), with about 43,600 events and 121 million fans.
- Ticketing segment revenue of $2.2 billion and 281 million fee-bearing tickets sold; resale gross transaction value was nearly $4.5 billion.
- Net income attributable to common stockholders of Live Nation of $296 million, compared with a $651 million loss in 2021.
- Cash and cash equivalents of $5.6 billion and total debt of $6.0 billion at December 31, 2022; weighted-average cost of debt was 4.7%, with about 86% fixed-rate.
- Astroworld litigation involves at least 450 civil lawsuits, and the company says it may incur material liabilities, though it expects liability insurance to provide sufficient coverage.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $16.68B$6.27B | +166.1% |
| SG&A Expenses | $2.96B$1.75B | +68.4% |
| Operating Income | $722.03M-$417.86M | +272.8% |
| Interest Expense | $278.48M$282.44M | −1.4% |
| Net Income | $266.44M-$650.90M | +140.9% |
| EPS (Basic) | $0.53$-3.09 | +117.2% |
| EPS (Diluted) | $0.52$-3.09 | +116.8% |
| Shares Outstanding (Basic) | 224.81M217.19M | +3.5% |
| Shares Outstanding (Diluted) | 231.56M217.19M | +6.6% |
05—Questions
Frequently Asked Questions
How did Live Nation's financial performance change in 2022?
Revenue rose to $16.7 billion from $6.3 billion, and operating income was $732 million versus an operating loss of $418 million in 2021. The company attributes the improvement to fans returning to shows at levels far exceeding 2021, when show activity was largely limited to the United States and the United Kingdom.
Which segment contributed most to revenue growth?
Concerts revenue grew $8.8 billion, from $4.7 billion to $13.5 billion, and represented 80.9% of total 2022 revenue. Ticketing revenue grew $1.1 billion and Sponsorship & Advertising grew $556.2 million.
How much debt does Live Nation carry and what are its key obligations?
Total indebtedness was $6.0 billion at December 31, 2022, excluding unamortized debt discounts and issuance costs of $51.8 million. The senior secured credit facility includes a net leverage covenant, and the company reported $578.7 million of available revolving borrowing capacity.
What are the main legal and regulatory risks disclosed?
The filing discusses the Astroworld litigation, with at least 450 civil lawsuits following the November 2021 event, and an Amended Final Judgment with the U.S. Department of Justice extended through the end of 2025. It also cites restrictions from FTC and state agreements governing ticket resale practices and ongoing Canadian consumer class actions.
What subsequent financing events occurred after year end?
In January 2023 the company issued $1.0 billion of 3.125% convertible senior notes due 2029 and used about $485.8 million of net proceeds to repurchase $440.0 million of its 2.5% convertible senior notes due 2023. It also entered into capped call transactions costing approximately $75.5 million.
06—Continue