Peter Henderson

Peter Henderson noted strong international momentum across all regions (Europe, LATAM, Asia Pacific) and asked about the mix shift implications for margins and capital needs, as well as the biggest constraints internationally (e.g., venues, local partners, regulation, talent routing). He also inquired about the top two or three differentiators that consistently lead venues to choose Ticketmaster today, such as technology, fraud tools, or bot prevention.

Answer

Joe Berchtold, President and CFO, stated that all major cities globally, from São Paulo to Milan, exhibit an equal appetite for live shows and superstar acts. He identified the number one differentiator for venues choosing Ticketmaster as its ability to sell more tickets, empirically leading to higher grosses for shows through effective distribution, marketing capabilities, and pricing tools. He added that while economics drive decisions in mature markets like the U.S., software tools for venue management are more influential in less mature markets, but selling tickets remains the overriding factor.

Peter Henderson asked about the regions showing the best international momentum (Europe, LATAM, Asia Pacific) and the implications for margins and capital needs. He also inquired about the biggest constraints internationally (venues, local partners, regulation, or talent routing). His follow-up question focused on the top two or three differentiators that consistently close deals for Ticketmaster when venues choose them, such as technology, fraud tools, or bot prevention.

Answer

CFO Joe Berchtold stated that all countries, from São Paulo to Milan, show equal appetite for live shows. He then explained that the number one reason venues choose Ticketmaster is its ability to sell more tickets, helping promoters and managers achieve higher grosses through distribution, marketing, and pricing tools. He added that in mature markets like the U.S., economics are a key driver, while in less mature markets, software tools at the venue level matter more.

Peter Henderson asked about the profitability and unit economics of tours by non-English speaking artists compared to traditional tours, and how this trend impacts on-site spending and sponsorship opportunities.

Answer

President and CEO Michael Rapino stated there is 'no real difference' in the economics or margins, as any artist who can sell out a large venue commands market rates. He explained that on-site spending is driven by fan demographics, not the artist's origin, and noted the company is improving its ability to customize on-site offerings to match the specific audience for each show.

Peter Henderson asked about the profitability, unit economics, and on-site spending patterns for tours by non-English speaking artists, and how this trend impacts the global sponsorship opportunity.

Answer

President & CEO Michael Rapino explained that there is no economic difference; tours are priced at market rates based on their ability to sell out venues, regardless of the artist's origin. He noted that on-site spending is tailored to the specific fan demographic of any given show, not the artist's nationality, and the company is improving its ability to customize offerings to match the audience.

Peter Henderson asked about the strategy for managing premium ticket pricing to combat scalpers while maintaining affordability, and for color on the decline in average 'get-in' prices for stadiums.

Answer

President and CEO Michael Rapino explained the strategy involves a 'Robinhood' approach: pricing front-of-house tickets higher to capture value from scalpers, while making back-of-house tickets more affordable. He emphasized that the industry is still in the 'early innings' of optimizing pricing globally, with the primary goal being to sell out every seat.

Peter Henderson asked if Live Nation is seeing any softness or trade-down behavior from the U.S. consumer, particularly at the low end, and inquired about the decision to discontinue the lawn pass program for 2025.

Answer

President and CEO Michael Rapino stated the company is seeing 'no pullback' in consumer demand across any segment, citing strong growth in its club business (+17% YoY) and record festival sales as proof of broad-based strength. He explained the lawn pass was a very small program and was eliminated as part of a new strategy to reduce early-season discounting and consolidate promotional efforts around the larger, more impactful annual 'Concert Week' event.

Peter Henderson asked about the specific initiatives driving per-fan revenue growth and its long-term potential, as well as the remaining opportunity to implement and monetize tiered experiences for premium fans.

Answer

President and CEO Michael Rapino identified premium experiences as a major growth driver, with a goal to expand premium seating to 20% of venues. He stated that per-cap growth is driven by upgrading food and beverage offerings with more variety and higher-end options, similar to modern sports arenas, and that significant runway remains.

Peter Henderson requested an update on the residency pipeline through 2027 and Sphere Entertainment's view on the optimal number of residencies annually.

Answer

James Dolan, Executive Chairman and CEO of Sphere Entertainment, stated that the residency schedule is largely booked through 2026, with limited slots potentially available in 2027. He noted a focus on long weekends to align with the Las Vegas market and a strong interest from artists. The company is also successfully running 'The Wizard of Oz' in tandem with residencies, aiming for customers to attend both.

Peter Henderson asked for an update on the residency pipeline through 2027 and the company's view on the optimal number of annual residencies for the Sphere.

Answer

Executive Chairman and CEO Jim Dolan stated that the Sphere is largely booked for 2026, with limited slots potentially available in 2027. He explained that the strategy focuses on long weekends to align with the Las Vegas market, noting strong artist interest. The company is also running "The Wizard of Oz" in tandem with residencies, aiming to attract customers for both types of events.

Peter Henderson requested more details on international expansion conversations and asked for updated thoughts on a potential strategic transaction for MSG Networks following its debt restructuring.

Answer

Executive Chairman & CEO James Dolan confirmed that international expansion discussions involve both full-size and small-scale Spheres, tailored to market size, but offered no further specifics. Regarding MSG Networks, Dolan acknowledged they are considering strategic options and believe in a consolidated local sports media market, but did not provide details on any potential transaction.

Peter Henderson of Bank of America asked about the long-term plan for MSG Networks following its debt restructuring and about the outlook for Sphere's operating costs and potential efficiencies.

Answer

Executive Chairman and CEO James Dolan addressed the MSG Networks question, stating they are pursuing a new hybrid linear/streaming model and are open to strategic partnerships. EVP, CFO, and Treasurer Robert Langer answered the cost question, confirming a focus on SG&A efficiencies while maintaining a structure to support global growth.

Peter Henderson requested an update on the planned Abu Dhabi Sphere, including construction costs and opening timeline, and asked about discussions for expansion into other markets, particularly domestically.

Answer

EVP and CFO Robert Langer addressed the Abu Dhabi project, stating they are working with their partner on venue design and will share details on timing and cost later, reiterating that the partner is fully funding construction. Executive Chairman and CEO James Dolan added that the company is designing a smaller, 5,000-seat Sphere model to deploy in more markets and anticipates having more to share by year-end.

Peter Henderson requested an update on the timing, content genre, and cost of the next original production at Sphere. He also asked for details on the considerations and expected outcome of the MSG Networks term loan workout.

Answer

Executive Chairman and CEO James Dolan declined to provide specifics on the next original production, calling it the "special sauce" and stating more would be shared later. EVP, CFO, and Treasurer David Byrnes addressed the second question, confirming the forbearance period for the MSG Networks loan was extended to November 26 to allow more time for negotiating a restructuring agreement acceptable to all parties.

Peter Henderson asked about current consumer demand trends across the portfolio, specifically regarding attendance and per-capita spending, how these are tracking compared to previous quarters and years, and insights into future onsale activity. He also inquired about the company's capital return strategy, including the key inputs for deciding the size and timing of returns.

Answer

David Collins, EVP and Chief Financial Officer, reported strong consumer demand, citing record revenues and attendance for the Christmas Spectacular, sold-out concerts, better-than-expected concert performance, and robust Harry Styles presales. Regarding capital allocation, Collins outlined three priorities: maintaining a strong balance sheet (net debt of $437 million), ensuring flexibility for compelling opportunities (no major capital projects currently), and opportunistically returning capital to shareholders, noting $25 million in stock repurchases year-to-date with $45 million remaining under authorization.

Peter Henderson from Bank of America asked about current consumer demand trends across the portfolio, including attendance and per-capita spending, comparing them to previous quarters and years, and looking at onsale activity. He also inquired about the company's capital return strategy, specifically the key inputs weighed when deciding to lean in and size buybacks, such as valuation, free cash flow visibility, or leverage comfort.

Answer

David Collins, EVP and Chief Financial Officer, reported strong consumer demand, citing exceptional Christmas Spectacular performance with record revenues, attendance, and per caps. He noted that most concerts were sold out, and sell-through rates for upcoming concerts are pacing ahead year-over-year. Regarding capital allocation, Collins outlined three priorities: maintaining a strong balance sheet (net debt $437M), pursuing compelling opportunities (no major projects flagged), and opportunistically returning capital to shareholders, with $45M remaining under the current buyback authorization.

Peter Henderson from Bank of America inquired about the current ticket sales trends for the Christmas Spectacular, the growth potential from increasing the show count to 211, and the strategy for balancing ticket sales volume with pricing for the upcoming season.

Answer

David Collins, EVP & CFO, stated that advanced ticket revenue is pacing well ahead of the prior year, driven by higher average ticket yields and individual ticket volume. He noted the increase to 211 shows offers growth, with potential for more if demand is strong. Collins emphasized the production is well-priced compared to alternatives, allowing for strategic inventory management to maximize revenue per show.

Peter Henderson of Bank of America questioned MSG Entertainment's future capital return strategy, given the company's 2.5x net leverage and the absence of significant upcoming capital projects.

Answer

EVP and CFO David Collins reiterated the company's three capital allocation priorities: maintaining a strong balance sheet, investing in the core business, and opportunistically returning capital to shareholders. Collins confirmed no major capital projects are planned and highlighted the $40 million in stock repurchased this fiscal year, with $70 million remaining under the current authorization.

Peter Henderson inquired about the concert booking pace for the remainder of fiscal 2025 and the first half of fiscal 2026.

Answer

Lee Weinberg, Interim CFO, acknowledged a challenging year-over-year comparison for the Garden in fiscal 2025 due to the end of the Billy Joel residency. However, he noted that looking ahead to the first quarter of fiscal 2026, both the Garden and the company's theaters are pacing ahead of the prior year's record first quarter, driven by a diverse lineup of acts and multi-night residencies.

Peter Henderson inquired about the recent slowing in concert bookings, asking for the underlying causes and an updated outlook for the Garden and theaters for the remainder of fiscal 2025.

Answer

Michael Grau, EVP and CFO, attributed the slowdown to a tough year-over-year comparison without the Billy Joel residency, a spike in tour cancellations (e.g., Aerosmith, Jennifer Lopez), and a significant shortage of available arena-level acts in the New York DMA for the spring. He noted that while fiscal '25 expectations are down, bookings for fiscal '26 are currently pacing ahead of last year, suggesting a timing issue.