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what happened
Shares of Ticketmaster’s parent company Live Nation Entertainment (lie 15.04%) There are swings on Wall Street today. The stock rose about 15% after the company reported impressive first-quarter sales late Thursday.
so what
Live Nation posted strong sales figures and record results, driven by unprecedented global demand for live events.
Analysts had expected earnings per share (EPS) of $0.41 and income $2.28 billion. However, Live Nation posted a loss of $0.25 per share on revenue of $3.13 billion, showing strong revenue growth compared to the year-ago quarter. Sales soared 73%.
Emphasizing the strength of the live events market, Live Nation CEO Michael Rapino said, “From our results and operational metrics, it is clear that the global demand for live events continues to reach new heights – demand has long been growing Time, and it shows no sign of letting up.”
However, it’s worth noting that $47.4 million of net income was attributable to “non-controlling interests,” resulting in a net loss of $3.2 million for common stockholders. The company has nearly 600 subsidiaries, with Live Nation owning just under 49 percent.
what to do
10x deal free cash flow and 0.9 times sales volume, Live Nation Entertainment looks valuable, but its complicated corporate structure may put some investors off. The massive profit sharing with venues, event organizers and other front-line organizations looks a lot like another category of operating costs under a different name.
While the stock has potential due to impressive sales and growing consumer interest in its ticket sales, Live Nation’s convoluted setup and lack of shareholder-friendly accounting policies may be reasons to stay away from this investment idea.
Anders Bylund Have no positions in any of the stocks mentioned above. The Motley Fool recommends Live Nation Entertainment. The Motley Fool has a Disclosure Policy.
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