Live Nation Entertainment, Inc. operates as a live entertainment company. The company operates through Concerts, Sponsorship & Advertising, Ticketing, and Artist Nation segments. The Concerts segment promotes live music events in its owned and/or operated venues, and in rented third-party venues; operates and manages music venues; and produces music festivals and creates associated content. The Sponsorship & Advertising segment sells international, national, and local sponsorships and placement of advertising, including signage, online advertising, and promotional programs, as well as media offerings, such as live streaming and music-related original content; and ads across the company's distribution network of venues, events, and Websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events or programs for clients' specific brands. The Ticketing segment manages the ticketing operations, including providing ticketing software and services to clients, and ticket resale services, as well as offers online access for customers relating to ticket and event information through its primary Websites livenation.com and ticketmaster.com. This segment sells tickets through Websites, mobile applications, ticket outlets, and telephone call centers. The Artist Nation segment provides management and other services to music artists; and creates and sells merchandise for music artists. As of December 31, 2016, the company owned, operated, or leased 98 entertainment venues and 130 other facilities in North America; and 33 entertainment venues and 107 other facilities internationally. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.
Business Analysis of Live Nation Entertainment
The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Live Nation Entertainment compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Live Nation Entertainment to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Live Nation Entertainment with an interactive chart.
- Revenue Growth: Live Nation Entertainment reported a revenue growth of 15.3% year-on-year during 2016. Recreational Services Industry grew at 6.2% in the same period
- COGS share of Revenues: As a percentage of revenue, Live Nation Entertainment spent 72.8% of its total revenues on COGS. Recreational Services industry average (COGS share of revenue) in the same period was 63.5%
- R&D share of Revenues: Live Nation Entertainment R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Live Nation Entertainment spent 20.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Recreational Services industry average SG&A spending in the same period was 13.9%
- Inventory share of Revenues: Live Nation Entertainment Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Live Nation Entertainment invested 9.4% of its total revenues on Accounts Payable (A/P) Recreational Services industry average Accounts Payable investment in the same period was 5.7%
- Accounts Receivable share of Revenues: As a percentage of revenue, Live Nation Entertainment invested 6.8% of its total revenues on Accounts Receivable (A/R). Recreational Services industry average Accounts Receivable investment in the same period was 3.9%
- PP&E share of Revenues: As a percentage of revenue, Live Nation Entertainment invested 9.0% of its total revenues on Property, Plants, and Equipments (PP&E). Recreational Services industry average PPE investment in the same period was 137.7%
- Intangibles share of Revenues: As a percentage of revenue, Live Nation Entertainment invested 35.0% of its total revenues on Intangibles. Recreational Services industry average Intangibles investment in the same period was 35.4%
- Net Margins: Live Nation Entertainment Net Margins in the year 2016 were 0.0%. Recreational Services industry average Net Margins in the same period were 9.7%
Sector and Industry Association of Live Nation Entertainment
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Live Nation Entertainment is associated with Travel & Leisure Sector and Recreational Services Industry.
Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:
- Airline industry includes companies primarily engaged in providing passenger air transport.
- Car Rental Services industry includes companies engaged in providing car rental services.
- Casino industry includes providers of gambling and casino facilities.
- Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
- Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.
Industry Ranking of Live Nation Entertainment
With $8.4 billion revenues, Live Nation Entertainment ranked number 3 of all the companies in the US Recreational Services industry. There were a total of 24 public companies in the US Recreational Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Recreational Services industry by revenues during 2016 were:
- Carnival ($16.4 billion)
- Royal Caribbean Cruises ($8.5 billion)
- Live Nation Entertainment ($8.4 billion)
- Norwegian Cruise Line Holdings ($4.9 billion)
- AMC Entertainment Holdings ($3.2 billion)
- Regal Entertainment Group ($3.2 billion)
- Cinemark Holdings ($2.9 billion)
- SeaWorld Entertainment ($1.3 billion)
- Six Flags Entertainment ($1.3 billion)
- Churchill Downs ($1.3 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Live Nation Entertainmentand its peers on select key performance indicators by clicking the reports provided below