Live event and venue management company Live Nation Inc. (LYV), Monday reported lower profit for the third quarter compared to last year, despite 14% more revenues, in the absence of contribution from discontinued operations that boosted year-ago results.
Third quarter net income attributable to Beverly Hills, California-based Live Nation decreased to $69.25 million or $0.78 per share from $137.99 million or $1.66 per share last year. The year-ago net income included $47.55 million from discontinued operations, net of tax.
On average, four analysts polled by Thomson Reuters were looking at earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.
Income from continuing operations was, however, significantly higher at $79.2 million, compared with $30.7 million in 2008, after adjusting for a tax benefit of $64.1 million recorded in discontinued operations last year.
Revenues for the three-month period increased to $1.81 billion from $1.59 billion last year, well ahead of $1.62 billion expected by Wall Street analysts.
The company's North American Music operations contributed 7.7% more than last year at $1.04 billion,
due primarily to higher attendance at arena shows and third-party venues, the opening of new 'House of Blues' clubs in Houston and Boston.
International Music had 20.5% more sales at $726.9 million for the quarter, driven by the re-opening of the O2 in Dublin, strong festival performance in the UK, Belgium and high-fetching tours of artists U2 and Madonna.
Ticketing revenue received a boost after the opening of a new e-commerce ticketing site, contributing $30.2 million to total revenues for the recently ended July-September period, compared with $6.7 million last year.
Operating income was higher at $114.82 million versus $75.78 million a year-ago. Adjusted operating income was $160.8 million compared with $109.5 million last year.
Iincome taxes of the company, which owns and operates more than 159 music venues world-over, were an expense of $17.92 million in third quarter, while last year it was a benefit of $32.32 million.
For the nine-month period, Live Nation slipped to a loss of $60.66 million or 0.74 per share from a profit of $100.1 million or $1.31 per share year-ago. Revenues were higher at $3.37 billion, versus $3.25 billion reported in the comparable period of 2008.
LYV finished Monday's regular trading sessions up 4.72% or 33 cents, at $7.32 on the NYSE. In after-hours trading, shares lost 10 cents or 1.35%, at $7.22.
For comments and feedback: editorial@rttnews.com