Live Nation Reports 92% Loss of Revenue in Fourth Quarter
The company saw an 84% loss in all of 2020
Published Feb 26, 2021In Q2 and Q3, Live Nation reported a devastating loss of revenue, dipping 98 percent and 95 percent, respectively. Now, the company has shared its final quarter's report, which shows a 92 percent loss of revenue in the fourth quarter and an overall loss of 84 percent in 2020, with the company earning just $1.86 billion in revenue last year.
Despite a massive dip in concerts and events' viability during the pandemic, CEO Michael Rapino remains optimistic about the company's survival. Live Nation's full Q4 report shows that fans are continuing to hold onto their postponed tickets instead of refunding them, with 83 percent of ticket holders opting to wait for rescheduled shows.
"As we look back on 2020, it is clearly not the year anyone predicted, but I am very proud of how Live Nation has dug in and focused on turning this challenge into an opportunity to improve our business," Rapino wrote in a statement.
He continued: "All our data continues to show that there is substantial pent-up demand for concerts on the consumer demand side. [Surveys] demonstrate the high demand for concerts globally, with 95 percent of fans likely to attend a show when restrictions are lifted."
Rapino also noted that a projected $2.4 trillion USD surplus in the States "is a key indicator of consumer spending potential" and that the company expects a robust 2022 touring schedule, with almost double the number of artists signed on to tour than would normally be reported.
"While the timing of our return to live will continue to vary across global markets, every sign points to it beginning safely in many countries sometime this summer and scaling further from there," said Rapino.
The report indicates that vaccine rollout in the U.S. should also offer some relief to the industry, which has taken a massive hit over the last year due to gathering restrictions as a result of the COVID-19 pandemic.
In closing out Q3 last year, Live Nation and Ticketmaster also announced a new pandemic-era ticketing tool called SmartEvent to help in the recovery of the live music industry in the coronavirus era.
Safety protocols built into the SmartEvent tool include contactless box offices, payment and entry, mobile ordering, contact tracing, timed entries, entry rate monitoring and ticket transferring and more. Live Nation has yet to announce whether it will amend the SmartEvent tool since the emergence of new COVID variants that have altered safety precautions globally.
Read Live Nation's full Q4 report here.