Q2 2022 Live Nation Entertainment Inc Earnings Call
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Good day, everyone. My name is Hector and I'll be your conference operator on today's call.
At this time I would like to welcome everyone to live Nation Entertainment's second quarter 2022 earnings Conference call.
Today's conference is being recorded following management's prepared remarks, we will open the call for Q&A instructions will be given at that time before.
Before we begin live nation has asked me to remind you that this afternoon's call will contain certain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ including statements related to the company's anticipated financial performance business prospects, new developments and similar matters. Please.
Please refer to live nation's SEC filings, including the risk factors and cautionary statements included in the company's most recent filings on forms 10-K, 10-Q, and 8-K for a description of risks and uncertainties that could impact the actual results.
Live nation will also refer to some non-GAAP measures on this call in accordance with the SEC regulation G. Live nation has provided definitions of these measures and a full reconciliation to the most comparable GAAP measures in their earnings release or website supplement, which also contains other financial or statistical information.
<unk> to be discussed on this call.
The release reconciliation and website supplement can be found under the financial information section on live nation's website at investors Dot live nation Entertainment Dot com.
It is now my pleasure to turn the conference over to Michael Rapino, President and Chief Executive Officer of live Nation Entertainment. Please go ahead Sir.
Good afternoon. Thank you for joining us the second quarter confirmed that log entertainment industry is back globally and bigger than ever.
Live Nation led this return and continues to deliver the best Global network to support artists placed shows for the fans around the world.
Every key operating metric is at an all time high as we promoted more concerts had more fans to 10 shows.
Get more money sold more tickets and enable brands to connect with fans at our scale, we have never seen before.
As a result relative to 2019, which over 40% increase in revenue to $4 4 billion and a 50% increase to $480 million.
With most of the world fully reopened it's clear the constant you remain a high priority for fans consumers are seeking out and spending more on experiences and the growing demand for live music events is driving our business to record levels.
Pacing any macro issues or cost increases.
Momentum across our business has remained strong in recent months and weeks and demand combined with substantial concert pipeline gives us confidence in our ongoing growth this year and into 2023.
During the second quarter, we promoted over 12000 Congress for $33 5 million fans each up over 20% relative to the second quarter 2019.
Of the over 6 million additional fans this quarter $5 million of that growth came from international markets driven by the addition of assessor and the reopening of most global markets with particularly strong focus and demand through Europe and Latin America.
Growth was broad based with double digit attendance increased venues of all types demonstrating strong demand for events at all sizes from large scale stadiums and festivals sentiment clubs and theaters.
Even though show count and attendance group fans demonstrated their willingness to pay more for the best seats with the average price of a ticket for a concert Fisher up 10% globally relative to 2019, which remains less U S inflation level over the period.
At the same time, our average entry price for concerts remain affordable at $33 up only 5% from 2019.
With market based pricing being widely adopted by most tours, we expect to shift over $500 million from the secondary market to artist this year continuing to support those who created the concert and ensuring they're benefiting from it.
On the venue side of our concert business, we continued to build our portfolio of operated venues with an active pipeline of almost 30, new venues across the globe.
We're seeing the benefit of operating more venues as a number of fans who attended shows and our owned and operated venues during the quarter was up 13% to over $14 million and we expect that figure to reach over 15 million fans for the full year.
And fans are spending more on site with average per fan revenue up 20% at each of our amphitheaters festivals theaters and clubs relative to 2019 with the average per fan revenue at our amphitheaters. This year at $38 50 up 30% relative to 2019.
Our ticket business also demonstrated strong growth in the quarter transacted fee bearing ticket volume up 48% to 77 million tickets and transacted GTD up 76% to seven 3 billion loss relative to 2019.
This was our highest fee bearing <unk> quarter ever with April may and June accounted for three of our top five all time fee bearing months.
75% of this growth came from concerts another indicator of the high demand for live music.
Along with the volume increase transacted ticket prices globally was up approximately 15% for the first half of the year relative to 2019 as both concerts and sporting events saw similar low double digit price increases during the period, even with strong primary ticketing sales and increased pricing demand for live events.
Our secondary ticketing marketplace remained high and as a result, our GTD more than doubled for the quarter relative to 2019.
We are continuing to see the benefits of our technology investments at Ticketmaster, including our global leadership in digital ticketing between new capabilities and the sales effectiveness of our ticketing marketplace.
We consistently deliver high ticket sales for event organizers as a result, we continue to win business from new and existing clients to the first half of this year, we had a $12 8 million net new fee bearing tickets to our marketplace.
Let again this year by our international markets, which accounted for 60% of this new growth.
Sponsorship is also benefited from the concert flywheel this quarter driving 74% growth in revenue relative to 2019.
As we further enabled more brands to connect with an increasing number of fans on a global basis.
Festival sponsorship, which performed particularly well during the first half of the year more than doubling from 2019 led by nine new festivals in our Mexico, and Latin American businesses that accounted for roughly half this increase along with broad growth in sponsorship levels across most of the North American festivals.
And we continue adding more clients and technology telecom and purchase path integration, including Google AWS and Hulu with these categories collectively more than doubling the sponsorship since 2019.
As we look forward to the second half of 2022 and into 2023.
We have sold over 100 million tickets for our concerts this year more than we sold for the entire year of 2019.
Demand remained strong and continued growth in ticket volume and onsite spending.
And given the long term nature of most of our sponsorship partnerships are planned sponsors for the year is not fully committed as we prepare for 2023 everywhere globally is helping for concerts and we're actively really all of our markets with the largest artist pipeline we've ever seen at this point of the year and for the 2023 tours, we have put on sale. So.
All signs continue pointing to strong fan demand with that I'll, let Joe take you through more details of our results.
Thanks, Michael and good afternoon, everyone as with last quarter 2019 is the best comparison for us in terms of understanding of our operations and key performance indicators. So most of our focus will be relative to Q2 of 2019.
For the company our reported revenue of $4 $4 billion for the quarter was $1 $3 billion better than Q2, 2019, or an increase of 40% on a constant currency basis. Our revenue was $4 6 billion for the quarter. So there was roughly a 4% impact due to the strengthening of the U S. Dollar.
<unk>.
And our reported AOI of $480 million for the quarter was $160 million better than 2019 up 50% and led by an improvement of over $100 million in ticketing and $80 million in sponsorship.
On a constant currency basis, our Q2 was $502 million the FX.
Impact of negative $23 million or 4% was largely driven by the devaluation of the euro and the pound.
This was not only our highest Q2 ever but it was also our highest quarterly AOE ever beating our prior record quarter, which was Q3 of 2019 by 12%.
Notable given the Q3 is traditionally our highest AOI quarter, each year and we converted almost 80% of this AI to adjusted free cash flow of $379 million.
Let me give a bit more color on each division then I will give you more on full year leading indicators.
First in concert.
It was $123 million for the quarter, which compares to $133 million in Q2 of 2019. It was one of concert strongest second quarters ever Despite limited activity in our Asia Pacific region, and operating cost increases. Additionally, while <unk> had a very strong return to activity, it's largely flow through sponsor.
And ticketing, while their concerts division absorbed most of its costs.
In the quarter, we had over 33 million fans at 10 12500 events.
Growing nearly 25% compared to Q2 of 2019, when we had 27 million fans attend 10000 shows.
And we continue to see growth in our onsite spend with no signs of change here's what we're seeing so far this year by venue type across our owned or operated buildings in our amphitheaters ancillary per fan revenue has risen to $38 $5, an increase of $9 per fan over 2019 levels or 30% growth.
At our theaters and clubs in the U S. Ancillary per fan revenue has increased by over 25% driven by higher concession sales and increased purchases of premium packages fast Lane entry a night of show up sells.
In our theaters and clubs in the U K ancillary per fan revenue has risen by 20% compared to 2019, largely as a result of increased food and beverage consumption pricing optimization as well as the shift to cashless payment.
Finally at our major festivals increased spending on concessions campaign and VIP experiences is driven ancillary per fan revenue by over 30%.
The consistent theme here is that as we continue elevating our hospitality operations and create more premium options.
Answer eager to enhance their experience at this point, we still have a lot more room to grow these higher quality experience offerings throughout our owned or operated portfolio, which includes over 400 venues and festivals globally at this point.
Next ticketing had another very successful quarter, delivering $231 million of AOE, making it the most profitable quarter ever for ticketing, beating the record set just last year in the fourth quarter and nearly doubling the Q2 2019 AOE results of $124 million.
Our growth came from both primary and secondary ticketing with transact could ticketing GTA V up 69% and 141% respectively.
Transact at ticket volume, excluding refunds was 77 million tickets, our highest quarter ever testing, our former record of 65 million tickets in Q4, 2021 by 18% and 25 million tickets or 48% higher than Q2 of 2019.
Transacted ticketing G. TV, excluding refunds was $7 3 billion, our highest quarter ever besting, our former record of $6 $6 billion of Q4 of 2021 by 11%.
And $3 1 billion and 76% higher than Q2 of 2019.
International markets are now largely back in contributing to this growth with transact at ticketing GTD up 67% relative to Q2 2019.
As Michael mentioned, approximately 75% of our growth came from concerts, which was due to both higher fan attendance at our concerts and also timing with a number of on sales expected to happen in Q3 getting moved up into Q2.
Even as more of the tickets value is captured for content organizers are secondary marketplaces continued to grow rapidly with four of our five best III sale days ever in Q2 and.
And 12 of our top 20 resale days in 2022.
We continue to believe that the secondary market as a leading indicator for primary pricing opportunities over the next few years as well as a buffer against any demand fluctuations.
Finally sponsorship had its biggest quarter ever with AOE of $178 million, 80% higher than our Q2 2019 AOE of $98 million.
With the U S. The UK and now mainland Europe , all fully open.
We had high growth in both onsite and online sponsorship with each delivering record Q2 AOE.
The growth in our large multiyear multi asset sponsors speaks to our value of connecting live music fans with global brands.
We are nearing in on 100, such major sponsors that in total generate well over half a billion dollars in revenue and represents nearly 75% of our growth relative to 2019.
As we look to the remainder of 2022, starting with our leading indicators through late July all relative to 2019.
<unk> confirmed show bookings are up over 30% driven by double digit increases in every market and across all venue types.
Our concert ticket sales through the end of July our over 100 million tickets.
For events, this year up 38% and higher than our full year 2019 fan count.
As a result, we expect a very strong Q3 for concerts more shows and higher attendance.
Including fan growth at our owned or operated venues, where we're continuing to see strong ACF increases.
Also similar to last year, we are extending the amphitheater later in the year, adding over 1 million fans in Q4 this year relative to 2019.
Michael also gave the numbers around much of our Q2 fan growth being driven by international markets, which is a great indicator of the broadly global health of our fan base, but.
But I don't want anyone to over extrapolate this to the U S market as we expect North America will drive much of our fan growth.
In Q3.
Second ticketing has sold $183 million primary fee bearing tickets for events this year up 30%.
Of these 122 million tickets or four concert events, which was 42% higher than 2019.
Related to this we have $3 $2 billion in event related deferred revenue.
<unk> our level in Q2 of 2019. These are largely tickets that have been sold by Ticketmaster for live nation concerts, but the revenue and AOI hasn't flowed through yet and we will do so over the course of the next year as the events occur.
We remain on course for a strong Q3 in ticketing is our deferred revenue is recognized but also impacted by the shift of some of the on sales that moved into Q2.
On the sponsorship side, we expect to see continued growth driven by our strong Q3 festival lineup with some of this activity also involving onsite activation support.
On the cost side increases continue to impact us primarily in the venues, we operate amphitheater theaters and clubs and festivals, but in all cases, we are delivering increased profitability per fan due to increased ticket and ancillary revenue.
A few other points on 2022.
Our presence in the UK and mainland Europe , we've experienced the FX headwinds and through the end of June our Oi has been adversely impacted by $23 million. This.
This was almost entirely in the second quarter as the U S dollar strengthened significantly against the euro and the British pound.
Based on current rates, we expect our NOI to continue having a 3% to 4% hit in the second half.
We provide a detailed guidance on line items that impacted our EPS calculation last quarter and Theres, just one update that I wanted to make here.
Which is as noted we expect the headwinds with FX rates to continue through the remainder of the year, which at current forward rates result in approximately $15 million.
Quarterly below the line expense due to currency exchange losses.
The revaluation of our foreign balance sheet balances to U S dollars.
In anticipation of the growth opportunities ahead of us. This year, we continue to expect 2022 capital expenditures to be approximately $375 million.
With two thirds allocated to revenue generating projects.
We expect free cash flow conversion from AOI to be back in the mid $50 for the full year.
And we ended Q2 with $2 5 billion of available liquidity between free cash an untapped revolver capacity, giving us sufficient flexibility to continue investing in growth.
Vertebral with our leverage with over 85% of our debt at a fixed rate and our average cost of debt of roughly four 3% positioning us well in this interest rate environment.
With that let me open the call for questions operator.
Thank you.
We'll now be conducting a question and answer session if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment please while.
We pull for questions.
Our first question comes from David Karnofsky with J P. Morgan. Please proceed with your question.
Hi, Thank you Michael wanted to get your thoughts on pricing and VIP tickets.
We've seen artist embrace VIP inventory, even a bit some pushback of negative press switch.
Looks to me to be a break from prior years. So do you think the industry is collectively gotten to a place where artists are now kind of comfortable reclaim in the secondary market economics, and then how much more room is there to kind of drive this process.
Yes. Thank you I think we've been saying for a few years.
Over time, we believe that that secondary.
$10 billion $12 billion, depending on what number you see globally.
Has to start getting captured by the artist at some level.
Just too transparent for more the more they see all of the online pricing.
They work so hard to put that show on so I do think right now are just looking at our same.
I'd like to count some of it in the front end I don't want to be sold out at <unk> one.
At $200 to have someone else make $2000.
Fans not getting a deal anyways their spend in 2000 from somebody else. So do you think they are looking and saying by the front of the house can we can recapture some demand.
The advantages.
<unk> has one objective as we do as the venue to fill every seat.
You never looking for the growth you are looking to make sure that every seat is filled for the best experience.
We want that just wants that so I do think the new dynamic pricing the better we have become.
Tools to the artist Theyre looking at the holistic picture, maybe I can charge a bit more on the front row.
Hard to lessen the backrow, because net I'm going to sell through the back into the house, maybe it's always spot in our business now if you can still get the same growth, but you can lower the ticket price in the back part of the house, that's a win for everyone. So.
So we're right now Joe Joe has the exact math, we looked at yesterday.
It's still a small percentage of the total growth is priced platinum and or dynamic one 2% kind of numbers.
And really are non existent outside of America, we have just.
So yes, there's a long runway where the artist will look at the small again, even as much noise as you heard about the Springsteen sale.
The 1% of the tickets were priced a little higher.
To capture the second.
Versus 99% of the house so to the artist I think they look at us.
The premium the dynamic how do I better price my product filled the house lowered the price in the back capture more of the front.
And we think that's got many years of runway for us to expand on a global basis.
Okay, Great and then I just wanted to ask on concerts AOI in the quarter I think it was roughly flat versus 19.
And thats, what the increase in vans and the per caps. Just wondering if you could speak to the impact of things like cost inflation mix. I know you said APAC wasn't fully open and then maybe timing as well I think Q2 19, if I remember correctly had had some pull forward from Q3 of that year.
This is Joe I'll take that.
We laid out a handful of factors that we think we're at some combination of timing and one offs that impacted this quarter.
Asia Pacific is not fully opened yet we've got the organization up and running and to prepare for being open.
The structure of a SaaS is P&L is they really drive their economics through ticketing and sponsorship, whereas most of their cost structure is in concert.
Concert side, we've talked about some operating cost increases for our operated venues still driving per fan profitability increases, but you have some some costs. There and then it's just I wouldnt over read one quarter.
I gave you in mind for instance that a lot of this was in international markets that we had our growth less growth in this quarter in North America, but then we have a lot of growth from Q3 in North America.
As I look at the numbers overall.
North America, if you looked at our $100 million tickets North America is 30% growth. So as that flows through in Q3, you would expect to see some of that slip at around I, just wouldn't read too much into it.
Right now that's really clear thanks.
Your next question comes from Brandon Ross with light shed partners. Please proceed with your question.
Hey, Thank you just wanted to drill down a little more on David's question.
About platinum ticketing and I was wondering Michael if you could just because I think a lot of investors and fans are not really educated on how platinum ticketing works can you talk about who sets the prices and kind of the cadence of ticket releases and how you think about.
The the.
When tickets are going to be released kind of this move from fast ticketing, where everything was available at the on sale too maybe.
Trickling out tickets more overtime and then how you think about the balance of.
Dollars and maximizing profits for the artists with this idea of fandom and fairness and what your role in that.
Alright, Thanks, a lot.
Tried to take some pieces.
We can work for the artist.
We're a <unk> business the artist artist used along with.
Decides when they took probably tour.
Our job is to provide all the tools platform and services to help them.
That tumor.
One 1 billion multi year.
As you said.
Genius brand managers, they have to balance those.
The needs of their family supply demand and pricing.
And some some brands like the rolling stones have been very good at always say expensive experience and.
Where that proud and enable to deliver that brand position.
But I think artists are always trying to find a fine on how do I make the show accessible and I'll make sure all my fans.
Can show, how do I price it fairly.
Versus how much money can im bake.
So I think they see that I think today, while the technologies advancing and Theyre starting to look at more.
<unk> and more pricing data I think they can now good shows and realize that some ways.
One 2% of the house higher.
<unk> achieved some of those economics versus the Sculpsure, while still pricing, 98% of the house that are very global brand position.
So we can achieve both this is an industry that for 30 years, we would do a tour they would set $3 ticket price was 140.
79, <unk> 39, and that would be the three prices in every city.
Good night for the market that you know that's just.
Just not the way it is going to operate forward with different price on a Friday in New York Indianapolis on Tuesday, So dynamic smart pricing, we're able to provide that sophistication. The bands are much more sophisticated and they are now I believe.
To figure out how do I price it better.
Steve some better economics.
Some of the leakage of secondary but still maintain an overall ticket price.
Leaving dollars on the table.
Still finding that balance between the consumer demand the brand and pitch and the economics to secondary they've been losing.
Got it.
Sorry, Brian sorry, Brandon sorry, just one comment to respond to you.
Commentary about trickling out ticket. So that's not a practice that is not something that is the norm or something that we do.
The speed of Decating has to do with just what's the pace at which some of them sell out with the theory being for some artist if they price a lot of tickets at market price. They may not all sell out in the first hour.
So it has nothing to do take a master takes all the tickets that gets put some directly on sale. It does.
Does nothing to try to limit supply or anything in that manner. So I just want to make sure we're crystal clear on that.
No I wasn't yes, great point.
Anyway.
Yes, but I think we're just addressing because marketplace. The consumer obviously gets a little.
About 10 o'clock, just lots of secondary tickets right. So historically the Bruce spanned would've been sold out of 10 and had to go to a secondary to buy that could seat.
So today, we're sorting through that process, where we can provide information, but our job it administers but having said will pick up.
<unk> nine into the secondary market.
And provide.
All the data.
So if you can adjust up and down.
Market adjusts.
Got it and then talking about dynamic pricing if there was to be some kind of downturn in the next year or so that actually affected the live entertainment business do you see kind of the same tools that flexibility to respond to market conditions and bringing.
Ticket prices down.
As you bring them up in the demand environment.
Sure.
What else can be use go ahead Michael.
No.
Before.
Last call I mean, we looked at the last recession there was.
Big buckets in ticket sales, but we were years.
Years ago, not even in the same lake dedication on pricing nor did we have the tools. So yes, we look at data pricing now dynamic pricing looking.
Look in all market data algorithms to figure out what is the price point that will sell through.
And we do believe that because of the upside right now in the premium secondary side of our business that if we had to pull back ticket sales in crop prices by five or 10%.
To match supply demand of inflation, we have so much flexibility in pricing to get that done and still sell through the house and lower price that was needed for a band to.
To sell tickets.
And artist.
So number one goal is to number one.
Every ticket so.
There are always going to be in the variable quality and how do I price it.
What do I got to reduce our in house the front end of the house.
Do we need to do is sell through on a Tuesday night, Indianapolis, let's adjust pricing.
Okay.
The other part of the buffer Brandon is just the secondary market itself and.
And how big it is and its continued growth I gave you the numbers the secondary market for US grew a 140%. This quarter. So that tells you that even in some pricing is going up in the primary side. The second area is growing up going up even faster both in terms of volume and price points. So our first.
Line of defense is keeping our eye on secondary.
And using that buffer if there is any variations.
And demand.
Got it and then finally, if you could just double click a little on 30 additional venues that you were that you are talking about adding.
Those types.
Types are those and how impactful do you see that.
To be in the future.
Well I think.
Our Investor Conference, we wanted to kind of highlight I think it's always been a.
Strong business, but we put more focus on it from an operational design development.
We've got over those three 300 venues we manage.
We've been adding 20 to 30, a year or a few years.
As you know with Boston.
Incredible success.
Which will provide will return and those 30 that we have in the pipe now another 75 behind those on a global basis are everything from clubs to arenas, depending on where the hole in the market may exist.
Yes, we see great great platform, there and as we've said before when we show.
<unk> operated venue that we had the sponsorship and ticketing and the food and beverage and all the revenue streams, that's our highest return.
For us.
Great. Thanks for the time.
Your next.
<unk> comes from Stephen Stephen <unk> with Goldman Sachs. Please proceed with your question.
Hey, great. Thanks for taking my questions on fan growth for the year, maybe for Joe I think you mentioned in.
In your prepared remarks, not extrapolating the international growth or contribution on the U S markets. This year can you maybe unpack that for us a little bit and maybe touch on what portion of fan growth you expect will come from acquisitions versus organic growth in markets like the U S or the UK this year.
Yeah.
Sure I'll use as the basis, the 100 or so million tickets that we sold through July because I think that just that gives the numbers the facts.
And as I indicated within that the U S is up about just over 30% and international was up 40 odd percent. So you have strong organic growth across both North America and international our primary.
Our primary acquisition of course would be.
SASSA and that would be.
Somewhat less than half of the international growth. So the international growth given absent acquisitions would be in the mid to high <unk>.
So again this is not a acquisition dependent growth this is organic plus acquisition.
Great. That's helpful. And then maybe one for Michael I was curious if youre seeing any unique trends develop in terms of fan behavior. This year. For example, maybe are you seeing more first time concert goers.
Come out this year or fan set to attend events with greater frequency I'd be curious if youre seeing any of those data points or or think that any of these trends that youre seeing open portions of the market.
Going forward that maybe you haven't seen.
Coming to the industry before it thank you.
Yes, I'll take this Michael is having some audio problems here.
What we're seeing is a very broad based high priority of going to concerts again spans that are interested in going to concerts.
It's a bit of all of the above where certainly we have people who haven't gone to concerts in a long time going we have contracts that will go to one now go into two we have contracts we have.
People that are going to many so.
Its not I don't think you could pull it apart as one factor I think youre seeing a broad base.
Demand returned to shows and when they're there.
<unk> base.
A broad base spending pattern onsite.
Great. Thanks, a lot Jeff.
Your next question comes from the line of Steven <unk> with Cowen. Please proceed with your question.
Alright, thanks for the question.
Ticket prices, when we get back to that being up 10% year over year versus 2019, Joe can you just break out how much of this increase is being driven by market pricing versus set price ticketing increases at the onset.
Yes.
Yeah, Mark as Michael said there.
Dynamically priced tickets represent a very small percentage of the overall tickets.
So it's not going to be.
Felt by most people I would I don't have the exact numbers I would guess that it's.
Less than half of the impact is from that and then there is a general increase it can probably use the fact that the entry price of $33 is up about 5%.
2019, as a proxy for what's going on with the overall ticket pricing and then maybe the remainder is driven by the more front of house activity.
That's very helpful. Thank you and again those numbers are because because theres a lot of attention on how much. The overall ticket prices are up if you look at the U S market. The U S is up between 12 and 13% in terms of inflation over the past three years as a comparative.
Yes. Thanks.
Your next question comes from David Katz with Jefferies. Please proceed with your question.
Hi afternoon, everyone. Thanks for taking my question.
Wanted to just get a little more color if we count about.
International markets and international landscapes, and if we obviously are seeing a lot of strong demand is it relatively even if we look at international markets relative to the U S.
That are stronger or weaker et cetera.
Yes, we're seeing note no difference right now in demand across the globe.
You can look at I guess Springsteen just went on last week global stadiums across Europe everywhere sold out just as fast.
In Europe as it did here.
Similar to <unk>.
Post Malone Kendrick the tours that are selling here are selling just as fast in our international markets Latin America, Mexico.
Continue to see completely record demand in all of those markets. We're also still seeing.
Walk up strong at our festivals and on site as of last weekend right. So that's kind of current data, they're still spending money there are still buying tickets.
At high demand. So we have no pullback yet in Europe or any international market.
Great and then my permitted a follow up or would you prefer I went back in the queue.
Go ahead.
With respect to digital.
Initiatives around ticketing.
If you could just talk about kind of obviously exciting and productive sort of what inning, you would say were in an any observation surprising or otherwise so far.
We're still in early innings. This is the first summer that we're really deploying at scale.
Data and the technology, so that we can reach out to fans once they've bought the ticket to ourselves first people, who are going to shows that our venues connecting them with sponsors seeing some very good increases in our upsell levels as we've talked about some of our average per fan spending.
And the increase.
On premiums at.
At our amphitheaters for instance, more premium parking more premium entry VIP clubs. It certainly enhanced by our ability to reach have a platform that can reach out and sell to those fans effectively and youre not dependent on them just figuring it out and so we're very happy with the early progress we're making.
Perfect. Thanks very much.
Your next question comes from Ryan Sundby with William Blair. Please proceed with your question.
Hey, guys. Thanks for the question.
With Asia Pac So limited this quarter I was wondering if you could talk a little bit.
More about one how quickly that ramps from here and then maybe to a little more on the long term opportunity here.
So she's in Thailand, and the Philippines, I think plans in place to Fremont.
India next year any color on how that kind of comes together and how long.
Would be would be great. Thanks.
Yes, most of that I think with Asia referenced.
We're currently in 40 countries. The 100 100 offices in 40 countries varying degree of market share from the U S too.
To Cape Town, South Africa. So we've got a global platform that was always our first priority. So we can say that any artists. We can put you on the road in any market.
Marketing sponsorship make it happen.
Then when we get kind of our flag in the ground, we start to maybe launch or build festivals.
Operate venues buildup our ticketing.
Sponsorship model in the flywheel start to work.
You can kind of look at our business across the globe.
Different markets are we're in varying degrees of that growth Latin America, we were very very.
Undeveloped in all markets, obviously now.
We've got that flywheel in Mexico, we bought festivals in.
In America with rock in Rio and then bringing Lala.
A couple of promoters, we're going to get some venues going so the flywheel starting to work in Brazil, Colombia and Argentina.
But we're kind of go from zero market share to big opportunity. There. So that will continue to be a big focus for us.
Western Europe , there is still some markets where undeveloped in.
These Portugal, Spain certain markets, we don't have the full flywheel and Youll see us continually at a.
Festival, or a promoter or venue for those markets.
Asia, we have a good platform we have people on the ground, we've got a really strong business.
In Australia, and New Zealand, but as we moved up specific room, we've been slowly building the flywheel in all those markets, Japan is probably the one market with the best and biggest in that market.
We've got to do more more work on that.
But we look at Asia, as really undeveloped territory low market share huge opportunity over the next the next while we like everyone else in the World. We look at Asia, We look at Latin America.
And we look into the middle East and Eastern Europe as areas, where we have no real market share but.
That consumer now on Tictoc knows Drake dropped the video last night, whether they live in Singapore, India Cape Town. So we've got a global product and we've got lots of opportunity to keep growing.
Great. Thanks.
Your next question comes from Matthew Harrigan with benchmark. Please proceed with your question.
Thank you recognizing that your channels are the weather nature after theater.
And then all that Youre really gives me a lot of serial correlation I think activity Newmont concert goers I mean people are going back.
Even when people go to movie theaters people, there's a hit movie and that tends to be a lot of repeat behavior.
You think that all the initiatives.
Youre undertaking are going to alter the seasonality in your business somewhat and maybe make Q4, a lot more active even on a relative basis than historically it feels like there are a lot of things pushing in that direction.
Let's take out concerns with weather and all of that thanks.
Yes. This is Joe I gave you some numbers in our amphitheaters, we do expect to have about $1 million.
More fans attending shows than we had in 2019. So we're certainly seeing an expansion of the amphitheater outdoor season, particularly through the more southern states theaters and clubs have always been very active.
In.
In Q4 arenas tend not to be quite as big just because it.
Routing gets interrupted by more of the holidays. So.
So we will see a bit I don't pick it up dramatically changed.
But it will be.
While we look at our business is global and the U S.
Arenas NBA NHL NFL clog up the venues in the fall into the winter.
But that's why we take a lot of these artists now and say lets go through Asia Pacific growth in Latin America lets get off cycle of America and go to those markets as well.
Let's open up so there is a big 12 months a year on a global basis.
Interesting focus too much on the U S Western Europe summer business, but you are right.
The business expands in a lot of those markets.
12 months strong market, where you can put a fill up show.
Other markets, while you are waiting for some of our business here.
Makes sense. Thank you.
Yes.
Your next question comes from Paul Golding with Macquarie Capital. Please proceed with your question.
Thanks, so much and Michael Joe Congrats on the quarter.
I just wanted to ask given the strong demand that we're seeing across the board here.
And what I presume is some overflow in terms of demand that is unable to get a seat where does streaming fit into the medium term strategy now I know it was more of a focal point of course during the pandemic, but.
Just seeing opportunity for sponsorship <unk> advertising through that how much ink.
Incremental focus will there be on that going forward or sort of walking back from that a bit just help us think about monetization there were investment if it's still a.
Our strategic point for you. Thanks.
Thank you I think I think we were clear anything that we were not booked.
T system along.
In a moment.
Okay to the digital world.
Always.
This is magic two hours.
Great.
Yes.
Thanks.
The space.
Can't be duplicated.
It shows.
Absolutely.
And dedicated band that you can extend that show.
As a person.
To watch.
Favorite artist.
Weekend.
Credible broadcasts on Hulu.
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And Brian <unk>.
The festival look back.
So we've always thought the screen.
An extension, it's great for sponsorship business, where we have 900 sponsors looking always.
Part of the show both on and off so we love the we love them.
Opportunity.
Jos.
We think it's a ancillary business that helps our overall sponsorship business as well as our committed festival business.
Our business is so big now I wouldn't say, it's a material piece on its own we never thought it would be but it's another service we provide to both the artist festival in sponsor and its something you have to be in.
Alright, thanks, so much.
Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to Michael Rapino for closing remarks.
Thank you everybody have a great summer and we'll talk in the fall.
This concludes today's conference you may disconnect your lines at this time. Thank you all for your participation.
Okay.
Thank you.
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