Live Nation Entertainment's Q3 Results

(Reuters) – Ticketmaster-parent Live Nation Entertainment (NYSE:LYV) exceeded Wall Street estimates for third-quarter profit on Monday, driven by cost controls, leading to a 5.1% rise in shares during extended trading.

The Beverly Hills, California-based company is capitalizing on high concert ticket prices, even as some customers are more cautious with their spending in the face of high interest rates.

CEO Michael Rapino stated, "We wrapped up our most active summer concert season ever, our show pipeline has never been bigger, and brand sponsorships are accelerating."

In May, the U.S. Department of Justice, along with more than two dozen states, filed a lawsuit to dismantle Live Nation, alleging that the major concert promoter and its Ticketmaster unit unlawfully inflated concert ticket prices, harming artists in the process.

Live Nation reported a profit per share of $1.66, surpassing analysts' average estimate of $1.59, according to data compiled by LSEG.

Revenue declined approximately 6% to $7.65 billion for the quarter ending Sept. 30, falling short of the expected $7.75 billion. This marked the company’s first revenue decline since 2021.

Operating expenses for the quarter decreased to $5.78 billion from $6.30 billion a year earlier.

The company’s concert business, encompassing merchandise sales and live music event production, generated $6.58 billion, forming the majority of its overall revenue, followed by $693.7 million from ticketing.