Live Nation Entertainment Posts 98% Loss in Second Quarter Results

The entertainment company posted results for its second-quarter earnings on Wednesday. Live Nation (LYV) saw a 98% drop in its revenue for the just reported quarter which ended June 30, 2020. The company, however, predicts that 2021 and 2022 will produce better results.

In the second quarter, Live Nation’s revenue was $74 million 98% down from $3.2 billion in the same period a year ago. The company also saw a net loss of $568 million compared to a net loss of $172 million in the same period last year.

“Over the past three months, our top priority has been strengthening our financial position to ensure that we have the liquidity and flexibility to get through an extended period with no live events,” a company spokesperson said. “Our expectation is that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows.”

While the numbers may be drastically down, the company in its earnings call on Wednesday mentioned that it has “sufficient liquidity to maintain critical operations until shows return,” with much anticipation to happen in a big way.

“We won’t be doing DJ sets in the Hamptons any time soon, said CEO /president Michael Rapino with reference to the Chainsmokers show in New York which drew negative attention from government officials. “We’re gonna play long and safe.”

In its earnings call, Live Nation said that 86% of its fans have held onto their tickets for rescheduled shows rather than ask for refunds of their money. The entertainment company sees it as an indication of “a strong desire to attend concerts in the future.” The company also said that 19 million tickets have been sold against 4,000 shows in 2021.

“We didn’t want deferred revenue to have any false narrative to it. We are leading the industry,” Rapino said while offering refunds to fans who were interested in them.

Part of Live Nation’s certainty for business to jack up by 2021 is its hope in the coronavirus vaccines that will soon be available to curb the disease and make the world a safer place.

“I believe ’21, ’22 will be record years,” he said. “Regardless of what quarter exactly we scale at, the business will be stronger than ever.”

The company also mentioned its expectations for a “robust outdoor summer season in 2021”, saying that a multitude of the shows for 2021 are fans who have voluntarily deferred their tickets to next year.

“Between the tickets held by fans for rescheduled shows and these festival onsales, we have already sold 19 million tickets to more than four thousand concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year.” The spokesperson added that “surveys continue to show that concerts remain fans’ highest priority social event when it is safe to gather, with almost 90% of fans globally planning on attending concerts again.”