A Walk Through Ticketmaster's Financials
Ticketmaster filed a 10-Q quarterly report yesterday. Now that it is a standalone company, it's easier to go through its financial performance than when it was part of IAC. And we're better able to see what companies like Live Nation are eager to capture for themselves.
For the three months ended June 30, 2008, total revenue was $382.37 million, up 30% over the previous year. Domestic revenue was up 31%. The average revenue per ticket increased 10% ("higher convenience and processing fees due, in part, to annual contractual increases"). The number of tickets sold increased 9%.
For the six months ended June 30, 2008, total revenue was $731.35 million, an increase of 23%. The number of tickets sold increased 5% while the average revenue per ticket increased 8%. Domestic revenue growth, driven by acquisitions of TicketsNow and Paciolan, increased 22%.
Live Nation, Inc. (including its subsidiary House of Blues) represented approximately 18% ($68.83 million) and 23% ($67.49 million) of its combined revenue for the three months ended June 30, 2008 and 2007, respectively, and approximately 17% ($124.33 million) and 20% ($119.4 million) of Ticketmaster's combined revenue for the six months ended June 30, 2008 and 2007, respectively.
For the six months ended June 30, 2008, operating income dropped 19% to $55.7 million.
For the six months ended June 30, 2008, head count increased 22% and gross margin slipped to 36% from 38%.
Live Nation represented a large chunk of Ticketmaster's revenues. The company does not plan to renew its contracts with Ticketmaster, the last of which expire on March 1, 2010, according to this SEC filing, and has announced it will begin its ticketing service in January 2009.
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