Live Nation posts 2Q loss on weak concert season

[ChicagoSTYX]

LOS ANGELES (AP) -- Concert promoter and ticket-seller Live Nation Entertainment Inc. said Thursday that its second-quarter loss worsened after a weak summer concert season hurt results.

The company kept its forecast for a decline in adjusted operating profit for the year, and CEO Michael Rapino said there were no big acts that would help lift the company out of the current slump.

"We don't have a sizable big lineup this (third or fourth quarter) of A-artists and arenas," he said.

The company is grappling with the postponement of major acts such as U2, which delayed its North American tour until next year after lead singer Bono's back surgery in May. Other acts, such as Rihanna, The Eagles, Simon and Garfunkel, The Jonas Brothers and Limp Bizkit have canceled or postponed tour dates amid poor ticket sales.

Live Nation's net loss in the three months to June 30 grew to $34.6 million, or 20 cents per share, from $27.2 million, or 33 cents per share, a year earlier.

Revenue fell 10 percent to $1.27 billion when including Ticketmaster's results prior to its merger with Live Nation in January.

Analysts surveyed by Thomson Reuters expected a loss of 2 cents per share on $1.38 billion in revenue.

The earnings come on the heels of a disastrous investor day presentation in mid-July, which knocked 17 percent off the stock after executives projected declining profits despite $40 million in cost-saving benefits from the merger.

Shares fell a further 21 cents, or 2.2 percent, to $9.25 in after-hours trading Thursday after the release of results.

The company maintained its outlook for adjusted operating income, which excludes merger-related costs and other special items. For the year, it expects that figure to be $405 million, down from $445 million last year.

Standard & Poor's equity analyst Tuna Amobi said the outlook looks increasingly difficult to meet.

"Right now my sense is they're really going to have to pull something short of a miracle to make the adjusted (operating income)," he said.

Executive Chairman Irving Azoff, who runs the Front Line artist management subsidiary, said 2011 will likely improve as major artists who sat on the sidelines this year get back on the road.

Those who took this year off include Kenny Chesney, Fleetwood Mac, Van Halen, Neil Diamond and Christina Aguilera. They all plan to tour next year, pushed by declining revenue from recorded music sales, he said.

"Their livelihood depends on touring. Acts are not going to stop touring. They're just going to try and tour smarter," Azoff said.

Azoff said he hoped this year's dismal turnout would convince artists to lower their guarantees to help reduce ticket prices.

Total concert attendance fell 6 percent to 12.4 million in the second quarter, and revenue per attendee dropped 1 percent to $69.47, compared to a year earlier.

Including tickets sold for non-concert events, the company sold 23.9 million tickets online, down 10 percent from a year ago.

[Archetype]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

[froy]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

[Toph]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

And let's be real....Styx, Kansas, and Foreigner haven't exactly been selling out their arenas. And they have had to give a way a ton of tickets....

[Archetype]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

And let's be real....Styx, Kansas, and Foreigner haven't exactly been selling out their arenas. And they have had to give a way a ton of tickets....

I'm speaking based on what I saw at First Niagara Pavilion and what I've seen in youtube videos of other United In Rock stops. They did what they had to do to deliver the show. Jonas Brothers just let their ego get in the way and canceled their tour.

[willspups]

Ticket prices and the outrageous convenience charges have gotten way out of control. I have a huge dislike for Ticketmaster and have no sympathy for Live Nation.

These organizations are greedy and have been pushing the limit for several years to see how much concertgoers will pay for tickets. I would love to see a backlash by the fans. The same reason I won't pay $179 for Styx is the same reason I decided not to go see Tears for Fears at the Hammerstein Ballroom in NYC. I feel like a sucker paying these prices and it simply takes the joy out of seeing a show. A concert ticket shouldn't cost more than 50 or 60 bucks, 75 at most. Artists like McCartney and the Eagles, etc. who are already multi-millionares should especially feel ashamed at the prices they charge for tickets. So instead of seeing 10 shows a year, I judiciously attend only one or two.

[cittadeeno23]

I promise you that Paul McCartney And Don Henley have no problem taking our money.
And I agree that these prices are insane. Especially when 20 percent of America is out of work.

[cittadeeno23]

And a convenience charge is just a convenient way of ripping us off!

[brywool]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

And let's be real....Styx, Kansas, and Foreigner haven't exactly been selling out their arenas. And they have had to give a way a ton of tickets....

"A Ton?"- Gee, really? In the thousands Toph? I highly doubt it. Ever since there've been rock shows, tickets were given away. Radio stations did it all the time and still do. It's part of the business and ALWAYS has been. Kudos to Styx, Kansas, and Foreigner for having the smarts to ratchet down their egos and share the stage so that everyone makes more money. It's a business and that's what they should be doing.

Seriously dude, if you're going to keep bitching about the band, at least bitch at them for the right reasons. They were smart to do this, as was Journey, Heart, and Cheap Trick last year.
That tour gave them a much more broad audience. Like it or not, big bands from the 80s (outside of U2) can't sell out stadiums. It's not a statement about the bands. It's a statement about time moving on. Their audiences have grown up and don't care about them anymore- save a few lunatics on message boards. Radio also isn't the same as it was.

With U2, they've been able to adapt and change with the times. AND they've got great management. Styx tried it with Cyclorama and people reamed them for it because it didn't sound like 1977. That record was a current sounding album and with a proper label behind them, it would've done well. Same with Loverboy's last album. Great record, but there isn't a record company out there that has a friggin' clue what to do with bands from the 80s ROCK market, so that record also was a big stiff. The fact that Styx tours EVERY SINGLE YEAR and the shows have several thousand in the audience is pretty damned good.

[styxfanNH]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

And let's be real....Styx, Kansas, and Foreigner haven't exactly been selling out their arenas. And they have had to give a way a ton of tickets....

That is the reason the triple bill. together 2 thousand fans each, together 10,000 fans plus. Say what you want about their individual draw, they know the power of these triple bills.

[brywool]

Just got the Styx Lounge email (another one).
Says the Regeneration deal will be available at their shows. Doesn't mention their site...
They should be doing it on both.

[Everett]

Just got the Styx Lounge email (another one).
Says the Regeneration deal will be available at their shows. Doesn't mention their site...
They should be doing it on both.

Well that's total bs.

[Boomchild]

I think it's pretty cool that Rihanna, The Jonas Brothers, etc had to cancel tours while acts like Kansas, Foreigner, Styx, Rush, Dream Theater, Iron Maiden have been playing to mostly full pavilions all around the country.

Take Styx alone Kansas Alone and Foreigner alone and those tours would have not even happened,.
They only happened because they tripled together.

And let's be real....Styx, Kansas, and Foreigner haven't exactly been selling out their arenas. And they have had to give a way a ton of tickets....

Styx tried it with Cyclorama and people reamed them for it because it didn't sound like 1977. That record was a current sounding album and with a proper label behind them, it would've done well.

I think there was a lot more to it then just the label being at fault. If the fans bitched about the album not sounding like what it seems the fans wanted, then maybe the band should have listened to their fans more.

[Boomchild]

Just got the Styx Lounge email (another one).
Says the Regeneration deal will be available at their shows. Doesn't mention their site...
They should be doing it on both.

Maybe they are going to test the waters by starting with the concerts. That way they could see if it makes sense to add website sales to the mix.