Published Aug 06, 2020As you might suspect, the live music and entertainment industries are hurting pretty bad over COVID-19 shutdowns. Live Nation in particular has seen a massive decrease in profits over the last quarter, now reporting a revenue loss of a whopping 98 percent.
According to Deadline, the company still saw revenue reach $74 million USD in the second quarter despite coronavirus shutdowns — but that amount is a significant decrease from $588 million USD after profiting $174 million USD the year before.
On the bright side for the promoter, 86 percent of ticketholders for rescheduled shows opted to keep their tickets instead of asking for a refund, and over 60 percent of festival pass holders have opted to defer their ticket to next year's event rather than get a refund.
"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," Live Nation CEO Michael Rapino said in a statement.
Further, he remains optimistic about returning to business as usual soon — as early as summer 2021. So far, the company has already sold 19 million tickets for events scheduled for next year.
"The company believes this level of liquidity and our associated burn rates, along with our credit actions, provide it with the ability to fund operations until the expected return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year," he added.
See the company's full Q2 financial report below.
We are confident in the future of live music and @LiveNation. We're focused on keeping artists & fans connected digitally, and planning for the responsible return of the concert experience we all know and love https://t.co/Md6wlsErVV— Michael Rapino (@Michael_Rapino) August 6, 2020