Tencent Music Entertainment Group (TME) Q2 2025 Earnings Call August 12, 2025 07:00 AM ET Speaker0Good evening, good morning, and welcome to Tencent Music Entertainment Group's Second Quarter twenty twenty five Earnings Conference Call. I'm Milson Tew, Head of IR. We announced our quarterly financial results earlier today before The U. S. Market opened.The earnings release is now available on our IR website and via Newswire services. During today's call, you will hear from Mr. Kushan Peng, our Executive Cha ...

Core Insights - The company is experiencing significant growth in global touring, with record fan attendance and strong ticket sales across all price points, indicating a robust demand for live events [1][2][4] - Investments are being made in expanding the global venue portfolio and supporting artists, positioning the company for continued double-digit growth in operating income and adjusted operating income [1][4] Financial Performance - Revenue reached $7 billion, a 16% increase year-over-year, with operating income of $487 million, up 4%, and adjusted operating income of $798 million, up 11% [4][8] - Concerts segment achieved record profitability with adjusted operating income of $359 million, reflecting a 33% increase [4][8] - Global attendance for concerts increased by 14% to 44 million fans, with stadium attendance tripling [4][8] Ticket Sales and Market Trends - Ticketmaster's gross transaction value rose 7% to $9 billion, with over 130 million tickets sold for Live Nation concerts, a 6% increase [4][8] - Strong international growth was noted, with concert fans, Ticketmaster gross transaction value, and sponsorship sales all up by double digits [4][8] - The company sold 1.5 million $30 lawn seats during the "Ticket to Summer" promotion, consistent with historical levels [4] Venue Expansion and Investments - The company plans to invest $15 billion in artist events globally in 2025, making it the largest financial supporter of the artist community [4][9] - Four new amphitheaters have been opened in the U.S., with additional venues expected to come online in the second half of 2025 [4][9] - The venue development pipeline is expanding, with ten new large venues anticipated to open next year, each with a capacity of 3,000 or more [4][9] Deferred Revenue and Future Outlook - Concert-related deferred revenue reached $5.1 billion, up 25%, while Ticketmaster's deferred revenue hit an all-time high of $317 million, up 22% [4][9] - The company expects to host approximately 70 million fans this year, with double-digit growth anticipated in the second half of 2025 [4][9] - Full-year adjusted operating income margins are projected to be consistent with previous years, indicating stable profitability [4][9]

Core Insights - The Chinese concert ticketing market is experiencing rapid growth, with ticket sales expected to exceed 26 billion in 2024, representing a year-on-year increase of 78.1% [4] - The secondary ticket market plays a crucial role in redistributing ticket resources, providing additional purchasing avenues for consumers unable to secure tickets through primary sales [1][2] Group 1: Market Dynamics - The ticketing market consists of a primary market with fixed pricing and a secondary market characterized by dynamic pricing, allowing for price fluctuations based on demand [1][2] - The secondary market enhances consumer satisfaction and market vibrancy by addressing supply-demand imbalances, particularly for popular events [1] Group 2: Industry Growth - The concert ticketing market is projected to grow significantly, with the number of attendees surpassing 29 million in 2024, marking a 45.0% increase year-on-year [4] - Major ticketing platforms like Maoyan and Damai are reporting substantial growth in gross merchandise volume (GMV), with Maoyan's concert ticketing GMV increasing by approximately 90% and Damai's revenue reaching 2.057 billion, up 236% [5][7] Group 3: Regulatory Challenges - Despite regulatory efforts to curb ticket scalping and refund issues, challenges remain, with reports indicating that publicly available tickets for some concerts are less than 50% of total ticket sales [9] - The 2023 regulations mandate real-name ticket purchases and entry, but enforcement and compliance issues persist, leading to ongoing consumer complaints [9][11] Group 4: Consumer Complaints - The primary complaint in the online ticketing sector is related to refund issues, accounting for 56.94% of complaints, followed by unfair terms at 19.44% [11][14] - Recommendations include improving legal frameworks for refunds, enhancing consumer awareness of rights, and increasing penalties for scalping to maintain market order [14]

Live Nation Entertainment (LYV) FY Conference Summary Industry Overview - The concert industry is experiencing strong global demand driven by digitization and social media, allowing artists to reach fans worldwide [3][4] - The company is focusing on expanding its global footprint, particularly in international markets like Latin America and Asia [10][11] Key Points Demand and Supply Dynamics - Live Nation's business model benefits from strong structural tailwinds, with global demand for concerts increasing significantly over the past two decades [3][4] - The company aims to grow its fan base to 200 million, indicating that current figures represent only about 10% of the potential market [6] - The demand is evident as artists like Bad Bunny have successfully sold over a million tickets for international tours [5] Venue Strategy - The company emphasizes the need for modern infrastructure to support concert tours, particularly in international markets [7][8] - Live Nation has successfully expanded its Latin American operations, increasing its fan base from 2 million to 16 million over five years [10][11] - The acquisition of Hip in Japan is expected to enhance market access and drive local artist development [12][13] Ticket Sales and Performance - As of mid-May, Live Nation has sold 100 million tickets, surpassing the total for the entire year of 2019 [17][18] - The majority of growth is coming from international markets, with strong sales in festivals and concerts [18][27] - The company is cautious about pricing strategies, maintaining accessible ticket prices while optimizing revenue from premium offerings [20][21] Economic Considerations - Live Nation is prepared to adjust its cost structure in response to economic downturns, having already streamlined operations during the pandemic [23] - The company is focused on maintaining high utilization rates for concerts and ticketing, leveraging dynamic pricing strategies [22][24] Festival Market Health - Demand for festivals remains strong, with no signs of degradation in consumer behavior despite economic concerns [27][30] - The company reported record ticket sales for events like Austin City Limits, indicating robust interest in major festivals [28] Future Events Impact - The upcoming FIFA World Cup in 2026 is expected to shift concert dynamics in the U.S., leading to a focus on amphitheater and arena shows [31][32] - Live Nation is exploring opportunities for temporary stadiums to accommodate high demand [32] Venue Nation Growth - The company anticipates double-digit fan growth at its operated venues in 2025, with several new venues opening [37][39] - Recent renovations and new constructions are aimed at enhancing fan experiences and maximizing revenue [38][40] Ticketmaster Insights - Ticketmaster's gross transaction volume (GTV) has seen significant growth, with expectations for continued increases in the second half of the year [54][56] - The company is addressing supply issues in sports and family events, with a focus on growth in the latter half of the year [56][60] Sponsorship and Brand Partnerships - Live Nation is leveraging its platform to create value through brand partnerships, with a focus on long-term collaborations rather than one-off sponsorships [68][72] - The company is committed to enhancing fan experiences through strategic partnerships with emerging brands [69][72] Regulatory Environment - Live Nation is advocating for increased transparency in ticketing practices to address regulatory scrutiny and improve consumer trust [75][78] - The company is implementing measures to enhance the ticket purchasing experience, including clearer communication during high-demand sales [77][78] Conclusion Live Nation Entertainment is positioned for continued growth in the concert industry, driven by strong global demand, strategic venue expansions, and a focus on enhancing the fan experience. The company is navigating economic challenges while maintaining a commitment to transparency and innovation in ticketing and sponsorship.