Executive Summary

Q1 2025 revenue fell 11% year over year to $3.38B as concerts and ticketing timing shifted into later quarters; operating income improved to $114.8M from a $(41.4)M loss last year, and AOI was $341.1M with record deferred revenue pointing to strong upcoming recognition .
EPS was -$0.32 vs S&P Global consensus of -$0.43, a modest beat, while revenue of $3.38B missed the $3.50B consensus; management reiterated double‑digit growth in operating income and AOI for 2025 with concert seasonality skewed to Q2–Q3 .
Ticketmaster posted revenue of $695M and AOI of $253M; CFO cited mix (non‑concert down 9%), deferred recognition into Q2/Q3, and FX as drivers of the quarterly softness despite a 13% increase in ticketing deferred revenue .
Record event‑related deferred revenue in Concerts ($5.4B, +24%) and Ticketmaster ($270M, +13%) and a 60% larger 2025 stadium pipeline support management’s view that 2025 will be a “historic year” with AOI margin by segment broadly consistent with last year .
Stock reaction was muted: initial after‑hours move of -0.84% on May 1, 2025, and +1.85% next day price change reported elsewhere; narrative hinges on timing/FX headwinds vs strong forward indicators .

What Went Well and What Went Wrong

What Went Well
- Record deferred revenue supports visibility: Concerts event‑related deferred revenue reached $5.4B (+24% YoY); Ticketmaster deferred revenue $270M (+13%) .
- Sponsorship resilience: revenue $216M and AOI $136M with >80% of 2025 revenue in committed strategic deals; full‑year AOI margin expected in low 60s (consistent with prior years) .
- Concerts profitability inflected: best‑ever Q1 with revenue $2.48B and record AOI $7M (from $(2)M), driven by international markets; CEO: “2025 is shaping up to be a historic year for live music” .
What Went Wrong
- Topline decline and ticketing softness: total revenue -11% YoY; Ticketing AOI -11% YoY to $253M as non‑concert categories fell 9% and activity mix weighed on in‑quarter recognition .
- FX headwinds: foreign exchange reduced operating income and AOI by 11% and 5% in Q1, respectively, with Latin America exposures the key driver .
- Timing effects deferred profitability: higher operated‑venue and international ticketing activity pushed AOI recognition into Q2/Q3; mgmt expects Ticketmaster growth to accelerate in 2H .

Financial Results (vs prior periods)

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$3.80	$5.68	$3.38
Operating Income ($USD Millions)	$(41.4)	$(239.4)	$114.8
Adjusted Operating Income, AOI ($USD Millions)	$362.5	$157.3	$341.1
Diluted EPS ($)	$(0.56)	$0.56	$(0.32)
Operating Margin (%)	-1.1% (OI $(41.4)M / $3.80B)	-4.2% (OI $(239.4)M / $5.68B)	3.4% (OI $114.8M / $3.38B)
Net Income Margin (%)	-1.1% (NI $(42.7)M / $3.80B)	5.0% (NI $281.9M / $5.68B)	1.4% (NI $46.3M / $3.38B)

Results vs S&P Global consensus (Q1 2025)

Metric	Consensus*	Actual	Surprise
Revenue ($USD Billions)	$3.50*	$3.38	-$0.12B
Primary EPS ($)	-$0.43*	-$0.32	+$0.11

Values marked with * were retrieved from S&P Global.

Segment performance (Q1 2025 vs Q1 2024)

Segment	Q1 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q1 2024 AOI ($M)	Q1 2025 AOI ($M)
Concerts	2,879.4	2,484.1	(1.8)	6.6
Ticketing	723.2	694.7	284.1	253.1
Sponsorship & Advertising	211.3	216.1	130.0	136.0

Selected KPIs and indicators

KPI	Q1 2025 / Commentary
Concerts event‑related deferred revenue	$5.4B; record level; +24% YoY .
Ticketmaster deferred revenue	$270M; +13% YoY .
Fans and events	22.3M fans across ~11,300 events (Concerts) .
Fee‑bearing tickets (Ticketmaster)	78M; concerts tickets +4%, non‑concert -9%; concerts = 60% of volume .
2025 stadium pipeline	Up 60% vs prior year period .
Tickets sold for 2025 LN concerts	95M; up double‑digits; stadium ticket sales up >80% .
“Get‑in” pricing	$40 average across venues; $60 average in stadiums (8% below 2024) .
Early Q2 Ticketmaster indicators	First half of April: concert tickets +25%, GTV +45% .

Non‑GAAP adjustments (Q1 2025)

AOI reconciliation included: acquisition expenses $29.7M, amortization of non‑recoupable ticketing advances $24.7M, D&A $149.5M, stock‑based comp $24.6M; no Astroworld contingency expense in Q1 2025 (Q1 2024 included $185.9M) .

Guidance Changes

Metric/Topic	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Operating income & AOI growth	FY 2025	Double‑digit OI and AOI growth in 2025	On track for double‑digit OI and AOI growth	Maintained
Concerts AOI margin	FY 2025	Not specified for 2025	Full‑year Concerts AOI margins expected consistent with last year	New specificity
Ticketmaster AOI margin	FY 2025	High‑30s (consistent with prior years)	High‑30s (consistent with prior years)	Maintained
Sponsorship AOI margin	FY 2025	Low‑60s (consistent with prior years)	Low‑60s (consistent with prior years)	Maintained
Capex	FY 2025	$900M–$1.0B; ~$700–$800M for venues; ~$250M third‑party funding	$900M–$1.0B; $700–$800M for venues; ~$200–$250M funding	Maintained (minor funding range update)
D&A	FY 2025	+~$75M vs 2024	+~$75M vs 2024	Maintained
Accretion	FY 2025	To increase with AOI	~$125M higher than last year, driven by OCESA	Raised specificity
Share count	FY 2025	Not expected to change materially from 2024	Not expected to change materially from 2024	Maintained
FX outlook	Q2 2025	Q1 headwind: revenue & AOI mid‑to‑high single digits; OI low‑teens	Q2 headwind expected low single digits to revenue, OI, AOI	Improved near‑term outlook

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Consumer demand	Strong demand across venues; on‑sales strength into 2025	“We haven’t felt [consumer pullback] at all yet” across genres/venues; sponsorship >80% contracted	Stable/Robust
Ticketmaster activity & FX	Anticipated strong Q4’24/Q1’25 on‑sales, but LatAm FX a headwind	Q1 softness from mix (non‑concert -9%), timing/deferred, and FX; deferred up 13%, growth expected to accelerate 2H	Improving 2H setup
Pricing & affordability	Emphasis on premium and venue upgrades; dynamic pricing scaling	More price tiers to keep back‑of‑house affordable; stadium “get‑in” down 8% YoY; optimize without ceding to scalpers	Balanced optimization
Venue expansion (Venue Nation)	Large global pipeline; capex weighted to international	20 large venues by 2026; four to open in 2025; full run‑rate in 2027	Execution underway
Regulatory/legal (DOJ)	Expected to engage post appointments	Trial timing early March 2026; discovery ongoing; open to discussions	No change
Secondary market & reforms	Advocacy for transparency, tech investments	Supports BOTS Act enforcement, all‑in pricing; secondary low‑teens % of GTV; not a growth driver	Tightening standards

Management Commentary

CEO Michael Rapino: “2025 is shaping up to be a historic year for live music… Ticket sales are pacing well ahead of last year, with deferred revenue for both concerts and ticketing at record levels” .
Demand: “We haven’t felt [consumer pullback] at all yet… complete sell‑through and strong demand… beating last year’s numbers” .
Pricing strategy: “Price the front a little better… and price the back end of the house a little cheaper… we’re still in early innings of the industry becoming better at pricing” .
Ticketmaster Q1 dynamics: “More Live Nation concerts activity, less other promoters and non‑concerts… deferred up 13%… AOI recognized when events take place (largely Q2/Q3)… FX a short‑term headwind” .
Venues: “Out of the 20, four… open by end of the year… full run‑rate going into ’27” .
DOJ status: “Early March 2026 date for the court case… discovery and depositions ongoing” .

Q&A Highlights

Ticketmaster softness drivers: Mix shift (non‑concert down 9%), more operated venues/international, and FX concentrated the headwind; deferred growth signals revenue/AOI recognition in Q2–Q3 .
Consumer elasticity: No pullback evident; sponsorship >80% contracted; on‑site spend stable; management ready to flex costs if needed .
Concerts margins: Despite stadium mix, scale benefits and Venue Nation per‑cap initiatives support margins “around the same” as last year .
Pricing & affordability: More tiers to sell out the full house while protecting fans from scalpers; stadium “get‑in” price down YoY supports affordability .
Venue pipeline: Four major venues expected to open in 2025; broader set through 2026 with run‑rate impact by 2027 .

Estimates Context

S&P Global consensus for Q1 2025: revenue $3.50B (19 estimates) vs actual $3.38B; Primary EPS -$0.43 (13 estimates) vs actual -$0.32; small EPS beat, revenue miss as timing/FX deferred recognition into Q2–Q3 .
Values retrieved from S&P Global.

Key Takeaways for Investors

Timing and FX, not demand, drove the revenue miss; record deferred revenue and April on‑sale strength support a catch‑up in Q2–Q3 and 2H acceleration, especially at Ticketmaster .
Segment quality intact: Concerts AOI turned positive in Q1 and is expected to maintain margins YoY; Sponsorship delivered AOI growth with >80% of 2025 revenue already committed .
Ticketmaster set up for 2H recovery: higher deferred, strong April transacted growth, and substantial stadium slate underpin management’s confidence in full‑year growth with AOI margin in the high‑30s .
Venue Nation compounding: 20 large venues by 2026 (four opening in 2025) expand capacity and drive per‑cap upside; capex $900M–$1B with targeted >20% returns and partner funding to offset cash needs .
Macro/regulatory watch: DOJ case timing into 2026; near‑term FX outlook improved to low single‑digit impact for Q2; no signs of consumer softness across price points .
Trading setup: Narrative should pivot to 2H execution (deferred recognition and stadium load‑in); volatility likely around quarterly timing, but fundamental demand and backlog remain robust .

Stock reaction notes: initial after‑hours decline of ~0.8% on the release; another source reported +1.85% next‑day move—market response was modest, consistent with a timing/FX narrative rather than a demand reset .

Live Nation Entertainment, Inc. (LYV)·Q1 2025 Earnings Summary