Live Nation has published its financial results for 2015, with growth in revenues and customers – and some new figures quantifying how secondary ticketing sits within the company’s Ticketmaster business.
Key stats – we’re using the company’s ‘reported’ figures rather than its separate, slightly higher ‘constant currency’ figures – Live Nation reported $7.25bn of revenues for 2015 as a whole, split between concerts ($4.97bn), ticketing ($1.64bn), its Artist Nation management arm ($434.2m), sponsorship and advertising ($333.7m) and other activities ($126.8m).
“For the full year, all of our segments delivered double-digit revenue growth,” CFO Kathy Willard told analysts. Live Nation’s Concerts division also reported strong growth in bums on seats: “adding 5 million fans in 2015 for a total of over 63 million fans, while promoting 25,000 concerts, up 12% in the year from last year,” as CEO Michael Rapino put it.
As for ticketing, Ticketmaster was a $25bn gross-transaction-value (GTV) business in 2015 – the amount actually spent on tickets by punters, versus the company’s cut – up 12% year-on-year.
Yet secondary ticketing grew faster: up 34% year-on-year to a GTV of $1.2bn (these numbers *are* the constant-currency stats). Secondary is only 4.8% of Ticketmaster’s business, then, but it’s growing nearly three times faster than primary sales.
COO Joe Berchtold told analysts that Live Nation estimates it now has a secondary market share “in the 20s” versus eBay subsidiary StubHub’s “likely in the 50s” percentage-wise.
“Now that we’re in 13 countries and at varying levels of integration between the primary and secondary, I think we remain very positive about 2016 with that business,” he said.