Live Nation’s Third Quarter Earnings: Five Questions Answered

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Here are five questions that were answered with the release of Live Nation’s third-quarter earnings

of a successful COVID-19 vaccine trial was released on Monday . Its share price jumped as much as 38.7% Monday morning after drug companies Pfizer and BioNTech announced their vaccine was 90% effective in a large-scale trial. The vaccine could be available late this year and widely distributed before the lucrative summer touring season.

Keeping in mind the recent news, here are five questions that were answered with Live Nation’s third-quarter earnings.Live Nation has enough capital to last through 2021. On Sept. 30, Live Nation had $2.6 billion of total cash and cash equivalents , including $951 million of free cash , and $962.6 million of available debt capacity . Its monthly cash burn from operations dropped to $110 million from $125 million last quarter.

A qualified yes. Virtual concerts are a “great complement to the core business,” Rapino said, but he expects costs to outstrip demand for most artists. Instead, virtual concerts are good for “a few incremental dollars per show” from fans that can’t attend concerts or for in-venue streaming for fans that want to stream video of backstage feeds or different camera angles, for example.

Yes, artists “will adjust their expectations to the reality of the venue and local situation,” said Rapino. Live Nation has said it aims to return to scale by the summer of 2021 — contingent on factors ranging from a working vaccine to local restrictions. Before reaching full strength, audience size will increase in steps as governments ease restrictions. The large tours suspended because of the pandemic will aim for a summer return. New tours should look at fall 2021 or 2022, Rapino said.

 

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