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Tuesday, November 4, 2025 at 5 p.m. ET Call participants President and Chief Executive Officer — Michael RapinoPresident and Chief Financial Officer — Joe BerchtoldSenior Vice President, Investor Relations and Corporate Development — Amy Yong Need a quote from a Motley Fool analyst? Email [email protected] Total Revenue -- Up 11%, with international growth and stadium strength driving this increase.Operating Income -- Up 24%, reflecting effective cost management and favorable segment mix.Adjusted Operating Income (AOI, non-GAAP) -- Up 14%; growth attributed to higher stadium activity and improved per-fan profitability.Stadium Segment -- Stadiums up 60% in activity, providing the primary driver for revenue and AOI increases.Concert Segment AOI -- Gained approximately $40 million, with incremental profitability stemming from 120 additional stadium shows; over $1 million new fans contributed.Amphitheater Shows -- About 250 fewer events held, with management indicating cyclical factors rather than structural issues as the driver.Operated Arenas -- Flat overall, with new capacity additions including the Portugal Arena contributing to growth in operated venue attendance.International Fan Count -- On track to exceed U.S. fan count for the first time, with management expecting further mix shift toward international markets.Ticketmaster Secondary Market -- Secondary revenue represents a low single-digit percentage of overall revenue; company expects no financial impact from Trade Desk shutdown.Identity Verification Initiatives -- Over one million high-risk accounts canceled, using new verification tools to reduce excessive abuse in ticket purchasing.Projected AOI Impact from Anti-Scalping Changes -- Management expects a "low to mid-single-digit impact to Ticketmaster's AOI next year," with limited effect on overall growth strategy.Deferred Revenue Growth -- Significant increases in both event-related and ticketing deferred revenues, with the majority expected to benefit the following year's results.Sponsorship Segment Growth -- Sponsorship revenue increased 14%, continuing years of double-digit growth as new venues and international expansion provide greater inventory.Food and Beverage Revenue -- Consistent year-over-year growth across amphitheaters, festivals, and owned clubs, driven by enhanced hospitality and premium offerings.Consumer Demand -- Management sees "no pullback anywhere yet" in show and festival demand, noting rapid ticket sales for next year across diverse venue scales.Ticket Sales Pipeline -- Ticket sales for the next year's shows are currently up double digits; new venue pipeline and capacity remain intact, supporting multi-year growth outlook.Regulatory Proceedings -- DOJ litigation has reached completion of discovery; March trial date confirmed, with management referencing the Remedy's decision in the Google search cases very much validated our view regarding limited breakup risk.Organizational Change -- Appointment of a new global president for Ticketmaster, with explicit intention to accelerate adoption of AI-driven improvements and enterprise standardization. Live Nation Entertainment (LYV +1.99%) reported double-digit gains in revenue, operating income, and AOI, with management attributing growth predominantly to record stadium performance and continued international expansion. The company has canceled over a million high-risk accounts using new identity verification technology, following regulatory attention on ticket scalping and secondary market practices. Ticket sales and deferred revenues provide leading indicators for sustained strong pipeline activity into the next fiscal year, while new venue openings and operational initiatives support management's view that double-digit AOI growth is achievable, pending confirmation with complete data in February. Management expects that, despite anti-scalper measures and compliance costs, effects on Ticketmaster's AOI will be limited to mid-single-digit percentages, without undermining the overall growth trajectory across segments. Joe Berchtold directly stated, "we don't have any reason to think it would be more than a low to mid-single-digit impact to Ticketmaster's AOI next year."The current regulatory process includes a DOJ trial set for March, and management emphasized its expectation that, even with adverse outcomes, a forced breakup of assets is not supported by comparable recent legal decisions.Venue pipeline expansion remains a priority, with international market share growth and new capacity coming online expected to continue driving fan count and AOI upward.No evidence of softening in consumer demand for live events was cited, with management highlighting broad-based appetite across all venue sizes and market segments.The appointment of a new global president to Ticketmaster is aimed at advancing artificial intelligence capabilities and enterprise-wide process enhancements. Industry glossary AOI: Adjusted Operating Income; a segment-level profitability metric used by Live Nation Entertainment, Inc. reflecting core operating performance before certain non-cash items and allocations.Trade Desk: A tool historically provided by Ticketmaster for brokers to simultaneously manage and list tickets across multiple secondary marketplaces; now discontinued by the company. Full Conference Call Transcript Joe Berchtold: It's been for me. With a install and a long nail with a eyelash and it's glued on. She ain't so thank god for that m skull she wanna be chic when this is mean stride. Operator: Good afternoon. My name is Joe and I will be your conference operator today. At this time, I would like to welcome everyone to Live Nation Entertainment, Inc.'s third quarter 2025 Earnings Call. I would now like to turn the call over to Ms. Amy Yong. Thank you, Ms. Yong. You may begin. Amy Yong: Good afternoon and welcome to the Live Nation Entertainment, Inc. third quarter 2025 Earnings Conference Call. Michael Rapino: Joining us today is our President and CEO, Michael Rapino, and our President and CFO, Joe Berchtold. We would like to remind you that this afternoon's call will contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ, including statements related to the company's anticipated financial performance, business prospects, new developments, and similar matters. Please refer to Live Nation Entertainment, Inc.'s SEC filings, including the Risk factors and cautionary statements included in the company's most recent filings on Forms 10-Ks, 10-Q, and 8-Ks for a description of risks and uncertainties that could impact the actual results. Live Nation Entertainment, Inc. will also refer to some non-GAAP measures on this call. In accordance with the SEC Regulation G, Live Nation Entertainment, Inc. has provided definitions of these measures and a full reconciliation to the most comparable GAAP measures in our earnings release. The release reconciliation can be found under the Financial Information section on Live Nation Entertainment, Inc.'s website. With that, we will now take your questions. Operator? Operator: Thank you. Operator: And the first question comes from the line of Brandon Ross with LightShed Partners. Please proceed. Brandon Ross: Hey, guys. Thanks for taking the questions. First, going into 2025, it seemed like it was one where the sun, the moon, the stars were all gonna align with stadiums and arenas and amphitheaters all coming together. It's turned out it seems to be a great stadium year, but there's definitely been underperformance in the other venue sizes. Can you explain what happened with amps and arenas this year? And what can give us confidence that they will rebound strongly in 2026? And I have a follow-up. Joe Berchtold: Thanks, Brandon. I'll take it. Just to be clear, we had an incredible quarter, incredible year so far. We had revenue up 11%, operating up 24%, AOI 14%. These are numbers you pray for every quarter. So we've had an incredible year. One of the things we've always said about Live Nation Entertainment, Inc. is the great strength you have in investing in us is we are a global diversified business, both geographically and venue type. Sometimes Europe over-delivers and America under-delivers, sometimes the amps are having a record year, sometimes the stadiums are having a record year. And that's always been the pattern here. What's great is at the end of the day, we're going to deliver our AOI 10% growth. We've had incredible growth internationally in Mexico, Latin America, a lot of our European businesses, and stadiums up 60%. Again, we would hope we have this problem every year where stadiums are dominating the business. It just continues to show the strength of the consumer and the buyer. This year, we had a few less amphitheater shows. We're looking towards '26. It looks like it's going to be a great pipeline. We look like amphitheaters, arenas, and stadiums are going to have a very strong year next year, both on an international and American basis. Probably be sitting here a year from now telling you one of those markets over-delivered and that's the strength of our diversified platform. So we don't think there's anything structural. We think there is a lot of content out there. A lot of artists decided not to play arenas and amphitheaters and go for stadiums. Support that on a global basis. And that helped deliver our global revenue growth of over 11%. We think next year, we'll have the same great combination on a global basis and deliver. We've been delivering for many years, record attendance, record revenue, and record AOI will be in the books again for next year with a combination of international apps and arenas. Brandon Ross: Great. And then on the Ticketmaster side, following the FTC suit, it seems like you've really begun to crack down a lot on ticket scalpers. Can you remind us of the actions that you've taken so far? And what impact you expect each to have on both LYB Financials and the broader ticketing industry? And it seems like most of the work that you're doing, most of the changes you're making are concerts only, as opposed to both concerts and sports. So any color on why that's the case? Thank you. Joe Berchtold: Sure, Brandon. I'll get going, and Michael can jump in. First, again, as always, just set the context. Secondary is a low single-digit percentage of our revenue. It's a feature to us as we've long talked. We focus on primary and helping content get the tickets priced and sold how they want. First, just to answer sports versus concerts, it's very different. Sports, the teams and leagues use secondary as a distribution platform for disaggregation of season tickets. So the secondary area I would think about is being as it's really heavily a liquidity market in sports. In concerts, because they're all sold one-off, there is no liquidity market. It's all a price arbitrage market. So as we look at it, it's a matter of how much are the scalpers taking, how much arbitrage are they getting, and the actions that we're taking, I think, are heavily driven by the fact when we look hard at it, it's just too much. So the pieces, first, even though it gets press, is less important is Trade Desk. It's a tool that brokers use to manage their tickets and simultaneously place them on multiple marketplaces. It started because of sports. It's often confused that somehow it's a tool that the brokers could use to get tickets in some advantage form relative to fans. It's not this. It's never been this. But just to eliminate the noise, we're shutting it down. We don't expect it to have any financial impact on us or on the market. We expect most of these folks will either do it manually or go to one or the other multitude of platforms that offer this service. More impactful to the industry is the identity verification tools we've started to deploy. So now when our system identifies high-risk accounts, based on 100 different signals, we can require validation that the account holder is a and their government ID matches the account. This is a key tool we've used in canceling over a million accounts over the past month. And on a recent high-demand on sale, they got some press. We used it after the fact looking at the signals and putting fans through to determine whether they were real fans or it was bought purchase. So that's been helpful. We're optimistic that in the short term, this can help rein in some of the excessive abuse that's developed. But we're frankly, we're also realistic that without legislative and enforcement changes, the scalpers will continue to invest in new tools to fool our systems and mask the fact that their bots. So it's hard to fully translate into financial impacts. But I think given the low percentage of revenue that secondary accounts for, what we've seen so far in terms of the activity and the volume, we don't have any reason to think it would be more than a low to mid-single-digit impact to Ticketmaster's AOI next year. But even more importantly, we don't see this fundamentally impacting our growth strategy given our focus on the primary side. So as we lay out our multiyear strategy tomorrow, this isn't going to have an impact on that strategy or on the numbers that we would show you in terms of where we think we can get to. Brandon Ross: Great. Thank you very much. Operator: The next question comes from the line of Stephen Laszczyk with Goldman Sachs. Please proceed. Stephen Laszczyk: Hey guys, thanks for taking the questions. Joe, maybe on the Concert segment for the quarter, was wondering if you could help us break down some of the puts and takes to Concert segment AOI growth in 3Q? I think there's a number of factors that investors are trying to better understand. You have growth in Venue Nation attendance and the profitability that might be coming on. As you layer on some new capacity there. You have more stadium activity as you called out. Earlier and then some pressure on amp and arena attendance. I think any color to help us better understand the sizing of some of these drivers would be helpful as we look into next year. Would appreciate any of that. And then I have a follow-up. Joe Berchtold: Sure. I'll give you the detail on the quarter. Overall for the Concert segment, grew AOI by about $40 million with roughly $1 million or just over $1 million fans. So pretty good per fan incremental profitability. It's 120 more stadium shows that really drove the growth, which was pretty well balanced between the U.S. and international. And it was also heavily driven by stadiums that we operate. So it's not your GMP reopening and building back up the Rogers Stadium in Toronto. So it was a lot of hands that we operate at, which is what drove some of the high profitability per fan. We had about 250 fewer amp shows as Michael alluded to, just from a cyclical standpoint, fewer shows. And arenas are about flat, we did grow our activity in our operated arenas with the new Portugal Arena coming online and some of our other European arenas. So a big shift to stadiums and overall in some of the large venues outside of the Amps. We had more activity in our operated venues that helped in the context of the few ramp shows. Stephen Laszczyk: Great. Thanks for that. And then maybe secondly, just as a follow-up on regulatory and the commitments you made on the FTC side. Just would love any other color you could provide about where we stand in your dialogue with the FTC and then maybe related to that where we stand in the DOJ's process and to what extent you feel like maybe some of the more recent dialogue you've had maybe perhaps both agencies is created a framework or common ground with these agencies or more or lawmakers. Joe Berchtold: Sure. I'll start with the FTC. I think the government shutdown pretty much immediately after that came out. So no real action there. What I would say, and we've said this before when this happened, we feel very good about our case with the FTC. We think it's an extremely expansionist view of the BOD SAC. The fact that they would file this suit when we do more to stop bots and to counter a lot of this activity than the rest of the industry combined. We find to be very far afield. And from a legal standpoint, we don't believe that they have a strong case. A lot of the changes that we just talked about are friendly things that have been motion for a while. Obviously, you don't roll out identity verification in two weeks. That's a tool we've been building. And we're just ready to deploy it. So we have done so. On the DOJ, that case is advanced procedurally. Generally speaking, discovery is complete. Everybody's exchanged expert reports and in the middle of some of the expert depositions. All that's left is a few scraggler depositions. So that process continues. The judge reaffirmed the March date for the trial. So we'll continue on that process for now. The other development that I think is of real note is we think the Remedy's decision in the Google search cases very much validated our view that the claims our case, can't lead to a breakup of Live Nation Entertainment, Inc. and Ticketmaster even if the DOJ prevails on one claim or another. So we expected that but certainly welcome news on that side. Stephen Laszczyk: Great. Thank you, Joe. Operator: The next question comes from the line of Cameron Mansson-Perrone with Morgan Stanley. Please proceed. Cameron Mansson-Perrone: Thank you for taking the questions. First on the ticketing side of the business, you've talked about the competitiveness in the ticketing industry in the past, particularly in the U.S. I was wondering if you could just kind of describe how that landscape has been evolving and how you've been responding to that level of competitiveness? And particularly whether it raises your appetite or the attractiveness of capturing international growth within that segment of your business? Joe Berchtold: Yes. Cameron, don't think we think of it as an either-or. We look at it as a global business. We're a global platform or global in concerts or global in ticketing. We're underdeveloped in international markets in Ticketmaster. Particularly if you look at Latin America, you look at Asia, even parts of Europe. So there's a heavy focus on building out our presence in those markets. We think we have the best ticketing platform and enterprise tools out there. And that's clearly been helping us win a lot of businesses. We've given you those numbers over the past several years in international markets. North America is competitive, but that's fine. Most businesses in life are competitive. And I think we continue to win a lot because we can compete effectively on all dimensions. And we've continued to add clients and tickets in North America as well. We'll continue to fight that fight. But we certainly see international over the next several years as a great growth opportunity. Cameron Mansson-Perrone: Got it. Thanks. And then on the numbers in the release around deferred revenue, some pretty healthy growth both in event-related deferred revs and ticketing revs. Any color you can provide in terms of we should think about that as indicative of 4Q activity relative to indicative of 2026 activity? Joe Berchtold: Yes. I think most of that will be getting into next year at this point, given the size of those numbers and the fact that is cyclically one of the smaller quarters. And it goes hand in hand with the other things we've given you on the strength of the pipeline. For '26 in terms of large venues and the fact that our ticket sales for shows next year are up double digits. Ticketmaster, you'll continue to see some growth in the deferred also as we're adding more venues and the tickets for those venues get deferred. Cameron Mansson-Perrone: Got it. Helpful. Thanks. Operator: The next question comes from the line of David Karnovsky with JPMorgan. Please proceed. David Karnovsky: Hi, thank you. Want to see if you could refresh on the venue pipeline that will impact in 2026 in terms of the buildings opening in the second half of this year and those planned for the coming year? And we look at your fan count, growth at Venue Nation, I think you had previously guided this to around 7 million fans. Any reason to think you wouldn't be able to sustain a pace comparable to that next year? Joe Berchtold: Hey, David. This is Joe. Go ahead. Oh, I was just gonna jump in. The good news, David, is we're gonna take this through our Investor Day tomorrow and get into more detail on the venue stuff. So that's probably the best place for it. But no, we continue to see the same pipeline of growth as we've outlined previously, and we've made great progress this year. Getting these buildings either started or opened up this year. And tomorrow, we'll take you through kind of the longer-term vision of it. David Karnovsky: Okay. And then just on the stadium outlook, just wanted to see if you could check-in on the pipeline for next year. I know there had been some hope expressed in September that you could get to a comparable year in the U.S. with the growth internationally despite the FIFA factor? Just want to get an update there. Joe Berchtold: Yeah. I would say, you know, the World Cup FIFA, some of those fears that everyone had earlier haven't seemed to come to life. We are looking right now at this time of year, which is early still, but good for stadiums to have a very strong year next year. International, which already had a spectacular year, looks very strong on a global basis, so we look at next year being a very, very strong stadium year again. Joe Berchtold: And going to Brandon's concern, add a few extra shows in amphitheaters and arenas and you're back to your annual higher double-digit fan growth that we've been able to do for the last fifteen years or so. So we see that consistency will continue onward for the next few years. Operator: The next question comes from the line of Robert Fishman with MoffettNathanson. Please proceed. Robert Fishman: Hi, good afternoon. I have two for either Michael or Joe. Maybe just following up on where you just went. The earnings release calls out the international fan count. Is on track to surpass The U.S. for the first time. I'm just wondering if you can shed some additional light on where you see that mix shift going with international fan growth over time. How much that factors into your confidence of delivering another year of double-digit AOI growth in 2026? I'll start there. Thanks. Joe Berchtold: I'm not sure I got the question right, but I think if you're asking it about international, we believe this will be a continued global international business. And most of our growth both in Ticketmaster sponsorship venues, concerts will continue to be on a global basis. Given there's so many markets that we're not very high-end market share or haven't entered yet. So that mix will continue to grow and continue to be an international story for many years to come. Robert Fishman: Got it. And then just secondly, can you discuss your recent hire of a new global president for Ticketmaster and maybe how that you expect that to help in the AI transformation of your overall business? Or least with Ticketmaster? Joe Berchtold: Yeah. I think we thought it was time. Mark's done an incredible job growing the business dramatically. Our focus under Mark based out of London originally was to really focus Ticketmaster to be a much more international business. Away from being just solely U.S.-focused and about a global platform. We had many different technologies at that time. And Carlos and Mark have done a fabulous job standardizing our global business launching in many markets. And Mark will continue as Chairman, and that'll be his focus to keep running hard on international. We absolutely want to find somebody that had a very strong technical background, engineering AI-based that could look at the platform overall and just how do we make the enterprise and marketplace better, but of course, how do we make sure we are leading the charge on AI an agent perspective at the front door to all the places that we're adding on the enterprise level. Robert Fishman: Great. Thank you very much. Operator: The next question comes from the line of Peter Supino with Wolfe Research. Please proceed. Logan Angress: Hi, this is Logan Angress on for Peter. Just a quick question for me. Your release reiterates your expectations for long-term AOI compounding. But doesn't discuss 2026 specifically. I'm curious given all the strong leading indicators that you've called out is it fair to assume that you can continue to grow AOI double digits next year? Or are there mitigating factors that we should keep in mind? Joe Berchtold: Thank you. Hey, this is Joe. I think what I would say is no mitigating factors. We've just never sitting in November before the year has started made that call. I think that's traditionally a conversation that we have in February. I think what we try to give you now, which is what we're looking at is the leading indicators that have to do with our show pipeline, ticket sold, our sponsorship committed, our deferred revenue, a lot of factors that are pointing extremely positively. But I think we all view we'll get to and nothing no mitigating, no concerns, but we generally want to wait and get to February and have the full data set to make that call. Logan Angress: Got it. Thank you. Your point is what we've been saying for year after year, last few years, we think this business on a global basis has incredible growth ahead of it. That would mirror history we've been able to deliver. Operator: The next question comes from the line of Peter Henderson with Bank of America. Please proceed. Peter Henderson: Yes. Thank you for taking the question. I guess, just ask one on sponsorship. Jason Bazinet: And the next question comes from the line of Jason Bazinet with Citi. Please proceed. I know you guys have long held that your business is not particularly economically sensitive. But there seems to be growing press reports about maybe the low-end consumer sort of running out of gas. And I just wonder underneath the hood, are you seeing any sort of signs of maybe sort of bimodal behavior where the high-end consumer spending more, but you are seeing a little bit of pressure at the low end offset some of the strength at the high end? Or is that not what you're observing? Joe Berchtold: No. Have not seen any of that. We have you know, our business is very diverse. It is it's powered from clubs to arenas to festival stadiums. Small town to big on a global basis. So we see it all. And we need all levels of consumers consuming to make the show sell out. And you know, we're already on sale for next year. For many shows and festivals. I'm certain sizes, and they are selling as fast as ever. So the appetite, the consumption, going to that show still seems to be number one priority for them. And saw no pullback anywhere yet. Operator: The next question comes from the line of Eric Handler with ROTH Capital. Please proceed. Eric Handler: Yes, good afternoon. Thanks for the question. Just wondering if could talk about corporate appetite for sponsorships now and in terms of what they're willing to do and sort of how much they're willing to spend? Joe Berchtold: Yeah. Again, our sponsorship numbers you saw the 14%. They've been growing for double digits for years. And as we grow our business, we provide more inventory. The more arenas, the more international, the more cities we add, more inventory our team has to sell. So we think that live show continually right now to a marketer is a really good return on investment. They may not have all the other media channels solved, while they're figuring out where to put their dollars, but if you want to absolutely touch consumers on a live location like sports, or music, these two places are where marketers tend to be spending more money today. So we're a match that with them. We have the best inventory in the world. And we see continued growth for a long time in sponsorship and brands that want to be part of that exciting two hours of magic. Eric Handler: Thank you. Operator: The next question comes from the line of Ian Moore with Bernstein Research. Please proceed. Ian Moore: Hi, thanks guys. I just wanted to zoom in a little bit, hone in on food and beverage spend. I was just wondering if you could stratify the growth that you're seeing a little bit across different venue types and then front of the house, back of the house, VIP, if possible? Thanks. Joe Berchtold: Yeah. We've had a strong year again in food and beverage. In our amphitheaters, our festivals. Owned and operated clubs. We delivered on our growth targets this year again. Continue to be better at diversifying our portfolio, increasing our hospitality, increasing our kind of our offerings. Across all platforms. So had a strong year. We continue to see year over year growth on-site food and beverage VIP, hospitality, premium, all of the ancillary revenues. When they come to that show, they still wanna find that place to have fun and spend some dollars to enjoy it. Ian Moore: Thank you. Operator: There are no further questions at this time. I'd like to hand the call back to Michael Rapino for closing remarks. Michael Rapino: Thank you, everyone, for your and we'll talk to you tomorrow afternoon at our Investor Day. Look forward to it. Thank you. Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
