Live Nation Entertainment (NYSE:LYV) shares gained nearly 4% in the early session today after the live entertainment company posted robust fourth-quarter numbers. Revenue jumped by 36.1% year-over-year to $5.84 billion as demand for live music remained buoyant. The figure surpassed estimates by a wide margin of about $1.1 billion. In sync, its adjusted operating income jumped to $116.9 million from $97.8 million in the year-ago period.
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For the full year, Live Nation’s revenue rose by 36% to $22.7 billion, and operating income increased by 46% to $1.07 billion. The year was marked by all-time highs in attendance, ticket sales, and sponsorship activity for the company. While concert attendance rose by 20%, ancillary spending per fan ticked up in double digits across different types of venues. Additionally, fee-bearing gross transaction value (GTV) increased by 30% to about $36 billion.
At the same time, Live Nation increased its investments in artists by 40% to $13 billion. It had nearly 7,000 touring artists in more than 40 countries. Importantly, LYV is experiencing robust demand trends for 2024. Its ticket sales for 2024 have increased by 6% to 57 million, with 65% of the entire year booked (versus 50% last year). For Fiscal Year 2024, the company anticipates capital expenditures of $540 million. Further, LYV expects growth to be more weighted towards Q2 and Q3 compared to prior year trends.
Is Live Nation a Good Stock to Buy?
Shares of the company have rallied by nearly 24% over the past year. Overall, the Street has a Strong Buy consensus rating on Live Nation, and the average LYV price target of $115.80 points to a further 23.9% potential upside in the stock. However, it’s worth noting that estimates will likely change following today’s earnings report.
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