Live Nation Entertainment(US:LYV)2025-08-07 20:27PART I—FINANCIAL INFORMATION Item 1. Financial Statements Unaudited consolidated financial statements for H1 2025 reflect significant asset growth, strong revenue increases, and improved operating income, driven by Concerts segment performance Consolidated Balance Sheets Total assets increased to $23.15 billion by June 30, 2025, driven by higher cash and deferred revenue, while total liabilities also grew Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. December 31, 2024) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $11,823,151 | $9,290,137 | | Cash and cash equivalents | $7,056,975 | $6,095,424 | | Total Assets | $23,150,333 | $19,638,771 | | Total Current Liabilities | $13,458,572 | $9,358,279 | | Deferred revenue | $5,910,068 | $3,721,092 | | Total Liabilities | $21,844,751 | $18,465,476 | | Total Equity | $927,917 | $818,993 | Consolidated Statements of Operations Q2 2025 revenue grew 16% to $7.01 billion with operating income up 4%, while H1 2025 revenue increased 6% to $10.39 billion with operating income up 42% Key Performance Indicators - Statement of Operations (Unaudited) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $7,006,641 | $6,023,416 | $10,388,758 | $9,822,945 | | Operating Income | $486,653 | $465,819 | $601,422 | $424,429 | | Net Income | $302,741 | $376,228 | $349,043 | $333,523 | | Net Income Attributable to Common Stockholders | $243,411 | $297,970 | $266,614 | $243,495 | Consolidated Statements of Cash Flows Net cash from operations increased to $1.54 billion in H1 2025, while investing activities used $492.4 million and financing activities used $498.5 million Cash Flow Summary (Six Months Ended June 30) | Activity (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,544,722 | $1,400,954 | | Net cash used in investing activities | $(492,426) | $(434,405) | | Net cash used in financing activities | $(498,452) | $(642,976) | | Net increase in cash | $963,491 | $170,584 | Notes to Consolidated Financial Statements Notes detail business seasonality, new crypto asset accounting, a significant DOJ antitrust lawsuit seeking Ticketmaster divestiture, and the definition of Adjusted Operating Income (AOI) - The Concerts and Sponsorship & Advertising segments experience higher revenue and operating income in the second and third quarters due to outdoor concerts and festivals31 - In May 2024, the U.S. Department of Justice and 29 states filed a civil antitrust complaint seeking Ticketmaster divestiture, which the company plans to vigorously defend69 - Adjusted Operating Income (AOI) is defined as the key performance metric for segment evaluation, excluding specific non-operating items78 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management reported a record Q2 2025 with 16% revenue growth and 11% AOI increase, driven by Concerts, strong deferred revenue, and robust liquidity, despite ongoing legal challenges Executive Overview Q2 2025 was a record quarter with 16% revenue growth to $7.0 billion and 11% AOI increase, driven by Concerts segment performance and strong deferred revenue Q2 2025 Financial Highlights | Metric | Q2 2025 | YoY Change (Reported) | YoY Change (Constant Currency) | | :--- | :--- | :--- | :--- | | Revenue | $7.0 billion | +16% | +15% | | Operating Income | $486.7 million | +4% | +4% | | AOI | - | +11% | - | - Deferred revenue reached $5.9 billion by June 30, 2025, a 23% increase year-over-year, signaling strong future demand92 - The Concerts segment fan count grew by 14% in Q2 2025 to 44.1 million, driven by record stadium content and strong international markets97 Consolidated Results of Operations Q2 2025 revenue increased 16% to $983.2 million with operating income up 4%, while H1 revenue grew 6% with operating income up 42%, driven by Concerts performance Consolidated AOI Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating income | $486,653 | $465,819 | $601,422 | $424,429 | | Consolidated AOI | $798,423 | $716,231 | $1,139,474 | $1,078,738 | Segment Operating Results Concerts segment drove growth with 19% Q2 revenue increase, while Ticketing saw flat AOI due to investments, and Sponsorship & Advertising grew 9% in revenue Concerts Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $5,946.4M | $4,987.0M | +19% | | Operating Income | $204.2M | $115.6M | +77% | | AOI | $358.7M | $270.7M | +33% | Ticketing Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $742.7M | $730.7M | +2% | | Operating Income | $229.3M | $240.8M | -5% | | AOI | $290.1M | $292.5M | -1% | Sponsorship & Advertising Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $340.6M | $312.2M | +9% | | Operating Income | $209.2M | $203.0M | +3% | | AOI | $227.6M | $222.6M | +2% | Liquidity and Capital Resources The company maintained strong liquidity with $7.1 billion cash and $6.5 billion net debt, projecting $900M-$1.0B in 2025 capital expenditures, and acquired additional OCESA interest - As of June 30, 2025, the company held $7.1 billion in cash and cash equivalents and $6.5 billion in total net debt155156 - Full-year 2025 capital expenditures are projected between $900 million and $1.0 billion, with 85% for revenue-generating venue projects173 - Subsequent to quarter-end, the company agreed to acquire an additional 24% interest in OCESA for approximately $646 million on July 29, 2025174 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from foreign currency and interest rates, with mitigation strategies including forward contracts and interest rate swaps - A 10% change in USD value would impact H1 2025 operating income by an estimated $28.4 million181 - With $6.5 billion total debt and $559.7 million floating-rate debt, a 25-basis point interest rate change would alter annual interest expense by approximately $1.4 million183184 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025194 - No material changes were made to internal control over financial reporting during the quarter196 PART II—OTHER INFORMATION Item 1. Legal Proceedings The company faces a significant civil antitrust complaint from the U.S. Department of Justice seeking Ticketmaster divestiture, along with three consumer class actions - The company faces a significant civil antitrust complaint from the U.S. Department of Justice and states, alleging anticompetitive practices and seeking Ticketmaster divestiture69199 Item 1A. Risk Factors No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K were reported - No material changes to the risk factors disclosed in the 2024 Form 10-K were reported200 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2025, the company repurchased 8,747 shares of common stock from employees to satisfy tax withholding obligations on vested restricted stock awards - A total of 8,747 shares were repurchased in Q2 2025, representing shares surrendered by employees to cover taxes on vested stock awards201 Item 3. Defaults Upon Senior Securities The company reported no defaults upon its senior securities during the period - None202 Item 5. Other Information No director or officer adopted or terminated any Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan in Q2 2025203 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files