WASHINGTON (dpa-AFX) - Live Nation Entertainment Inc. (LYV) on Wednesday reported a wider loss for the first quarter, reflecting a tax benefit last year. However, revenues rose from the year-ago period. Loss per share was narrower than analysts 'expectations, while revenues beat their estimates.
Separately, Live Nation said it has acquired Cream Holdings Ltd, a UK-based electronic music company and owner of the exclusive rights to the Creamfields Music Festivals. The live entertainment company's shares gained almost 6 percent in extended trade.
Michael Rapino, Chief Executive Officer of Live Nation Entertainment said, 'The company delivered year over year growth in revenue, profitability and free cash flow in the quarter. Importantly, we also saw a 6% increase in ticket sales this quarter as compared to last year, reflecting strong demand for our live events and giving us great confidence that we are well positioned for the summer concert season.'
Revenue from concerts edged down slightly from the year-ago period to $448.7 million, while ticketing revenues rose 3 percent to $326.5 million. Artist Nation revenues grew 14 percent to $61.4 million.
Beverly Hills, California-based Live Nation's first-quarter net loss widened to $69.15 million or $0.37 per share from $48.46 million or $0.27 per share in the year-ago period.
On average, five analysts polled by Thomson Reuters expected the company to report loss of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 2 percent to $868.00 million from $849.41 million in the prior-year quarter and beat analysts' consensus estimate of $867.37 million.
Operating loss narrowed to $42.80 million from $721.16 million in the same period last year, reflecting lower direct operating expenses as well as selling, general and administrative expenses.
Income tax expense for the quarter was $4.28 million, compared to income tax benefit of $44.94 million in the same period last year.
Separately, Live Nation said it has acquired Cream Holdings, further expanding its position in electronic music and concert platform. Financial terms of the deal were not disclosed.
Rapino said, 'With this acquisition, Live Nation further establishes its position in electronic music and expands its concert platform. We intend to launch new festivals in key markets in North America, Europe, and Southeast Asia.'
Rapino added that James Barton, the founder and CEO of Cream Holdings, has agreed to join the Live Nation Entertainment team as President of Live Nation Electronic Music.
Since its launch in 1998, Cream has grown to organize sell-out artist tours, nine Creamfields Festivals and DJ club events. In 2012, Cream plans on attracting more than 350,000 fans to its festivals around the world, including over 100,000 at its Creamfields UK festival alone.
LYV closed Wednesday's trading at $8.31, up $0.10 or 1.22 percent on a volume of 735,897 shares. In after-hours, the stock further gained $0.49 or 5.90 percent to $8.80.
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© 2012 AFX News
