With ongoing restrictions on large gatherings and events worldwide, concert giants Live nation reported another quarter of gains, which didn't exactly excite investors.
The revenue number included a 95% decrease in revenue from the third quarter of 2019, resulting in an operating loss of $ 504 million for the quarter. Despite the unsightly financial results, Live Nation CEO Michael Rapino spoke in favor of a rosier outlook for the company in the coming year. In addition to continued efficiency in cutting costs, Rapino said the company "expects to see scale shows next summer."
Given the current uncertainties about government pandemic restrictions and the use of an effective vaccine, this is a bullish statement. Rapino cited advances in testing, sanitation and ticketing, including Live Nation's SmartEvent contactless ticketing and tracing platform, as a backup of its belief. "In the meantime, we're working on a roadmap to get back to life safely," he said. "We are encouraged to see advances in testing technological treatments and vaccines that will help us create our plans."
Rapino also suggested keeping the demand for shows high in 2021, citing low refund rates for festivals currently on the books for next summer. However, Rapino left some room for flexibility in his comments, qualifying that the path to return to events on a 2021 scale will not be linear and the bigger picture of events will vary by region.
Source: IQ Magazine
