Live Nation Entertainment – The Largest Entertainment Company In The World
Table of Contents
Corp. Intro.
Original: Our company is committed to providing the highest quality products and services to our customers.
Paraphrased: Our organization is dedicated to delivering the finest goods and services to our clients.
Possessions
Debts
Ownership
Income and expenses
Ratios
Risk factors
Business Summary
Live Nation Entertainment promotes concerts and is the biggest live entertainment company worldwide. Their popularity is not affected by the fact that they are competing with other entertainment companies and promoters such as AEG. Live Nation is home to nearly 580 million people in 40 different nations. They also have access to 220 venues which include Fillmore’s in the United States. Live Nation is more than a promoter. Live Nation does not only promote artists, but also manages ticketing companies like Ticketmaster. According to Sec -10k, their strategy is for more tickets to be sold, which will in turn increase live show revenues.
Live Nation’s headquarters and offices are located in Beverly Hills. Clear Channel Communications created it on August 2, 2005. Clear Channel Communications separated it from the company in August 2005. In December, Live Nation was formed. Live Nation Entertainment was established in January 2010 after it merged into Ticketmaster. Live Nation has a financial quarters. Live Nation is responsible for three main segments of the live entertainment industry. These are: Live music events such as festivals and concerts. ), venue operations, and management, sponsorship/advertising and ticketing services. The reportable live entertainment segment included concerts, operation management, and music festivals. This segment accounted for 76.3%/$7.9 million of total revenue. The revenue was calculated by ticket volume, concerts sold, revenue from concessions or ticket resale. The total revenue was 4.3%/$45 millions. Because festivals are the primary source of sponsorship revenue, the quarters with the highest revenue were the second and the third. These events typically take place in the second or third quarters of each fiscal year. 20%/$2.1 billion was made up of ticket sales. Tickets were sold via websites, phone apps, call centers, outlets, and Ticketmaster sold 292 million tickets. They were audited in Los Angeles by Ernst and Young. Assets. Live Nation reports thousands of numbers on their balance sheet. Cash and cash equivalents are the first items reported. Cash flows from operations or borrowing are their main sources of short-term funds. Cash flows from operations, long-term borrowing and cash flow from operations are their primary sources of cash for the long-term. Cash was used to purchase sales, acquires and spend. It shows cash and cash alternatives of $1.8 trillion on the balance sheets. Cash and cash equivalents of $769.4 Million and $591 Million of cash received includes the face values of tickets. They also recognize an receivable. This is reported less their allowances ($32,755 from 2016 and 2017 and $29634, respectively), prepaid expenses (546,713 and others (inventory and etc.) The total assets are now at $3,152,000.742. For plant assets they have land, buildings, improvements and equipment valued at $955937 in 2017, $312,962 furniture, $610,924 and $133.906 construction. The total is $2,013,729. The plant assets are now at $885,936 due to the $(1,127.793) accumulation of depreciation. Live Nation also recognizes immaterial assets. These intangibles include a net value of definite assets of $729 265 and an indefinite value of $369 023. They also have $1,754,589 in goodwill. The total assets are $7,505,263. Live Nation has liabilities totaling $3,577,000. They all fall under current liabilities and must be paid within one year. Long-term liabilities include $1,952,366, $137,635 deferred income taxes, and $174,391. EquityEquity comprises stockholder’s equity. This includes preferred stock at $.01, common stock at $.01 totaling $2,000. Additional paid-in capital is $2,374,006; losses of $ (1,079,472), $ (6865) in accumulated deficit, and $(108.542 in accumulated losses. This brings equity total to $1,418,144, and the total liabilities to $7,505,263.
Income and expensesThe total revenue for 2017 was $10,337.448, which is the highest ever. Music, ticketing and advertisement saw double-digit growth. The total revenue increased $2 billion/23% in comparison to 2016. The biggest revenue growth was in the concert category, with $1.6 billion. This is a 25% increase on 2016. The attendance at concerts grew by 21% while festivals grew 14%. Advertising and sponsorship revenue increased by 18% to $67.5million, an 18% rise from 2016. The ticketing revenue increased by 315.9M, or 17%, from 2016. Operating income was $91,397. The concert section is open all year but generates more revenue in the second or third fiscal quarters. When an event occurs, the costs and revenue are recognised. If the event is not Live Nation’s, revenue is recognised when tickets are sold. Revenue is only recognized when an event is held by Live Nation. Operating expenses include $7,748,791 direct operating expense (a $1,100,00 increase compared to 2016), selling, administrative, and depreciation costs of $1907,723, $455,534, and a loss of operating assets of $(969). Corporate expenses are $134.972. Direct operating expenses cover the artist’s performance, production and marketing costs. They have an expense in interest of $106,722 with a loss at extinguishment for debt of $1.048. They had a net loss of $ (7,774) and a loss on extinguishment of debt of $1,048. The operation also suffered from the settlement of a legal dispute. They have a multi-step income statement. Live Nation has 8,800 employees who are full-time. There are 5,700 North Americans and 3,100 International employees. 8,600 of them work in operations, while 200 work in the corporation. They also have part-time and seasonal employees who work at festivals and concerts. They have approximately 12,500 seasonal workers and part-time employees. However, in 2017, 28,000 employees were employed. Collective bargaining agreements apply to the employees. The union agreement is valid for a period of three years. Ratios Live Nation’s return on assets is.001%. This was calculated by subtracting $7,770,000 of the net income from $7,504,263,000. This shows that Live Nation makes $.001 per dollar they put towards their current assets. This means that Live Nation receives very little income. Their 2017 debt ratio was 81.1%. This was calculated using their total liabilities at $6,086,119,000 divided by their assets at $7,504,263,000. This is because the company is more leveraged than it would be without this debt ratio. Live Nation’s current ratio is 88.1%. This was calculated using their current assets (3,152,742,000) and current liabilities (3,577,000,000. This was done by dividing Live Nation’s current assets of $3,152.742,000 by their current liabilities of $3,577,000,000. Factors that could affect Live Nation Entertainment’s ability to attract top artists to perform at its events. They might not be in a position to meet the needs of their customers and could result in a decrease in ticket sales. Some artists do not enjoy touring. The same goes for the handful of artists who can headline a show and sellout a tour. Live Nation may lose business if it is unable or unwilling to negotiate with such artists. Losing money could result if an artist isn’t performing as often or as often as they wish. The ticketing business relies entirely upon others to produce the tickets and predict how many people will want them. Incorrectly anticipating demand could result in a decrease in revenue. Online ticket sales are dependent on computer systems. If there is an error in the system or a virus, tickets could be unavailable for sale and revenue would drop. The relationships between artists, agents and promoters as well as clients can also impact revenue. Any changes to these relationships can affect financial conditions, operations, or business. There may be a lot of competition for venues and artists. They may be unable to find these venues or artists in order to increase revenue, and could lose money. Unsecured venues and security breaches can cause revenue to drop as people are less likely to purchase tickets to events that they fear. Bad weather and natural catastrophes are also possible.
