Live Nation Reports Fourth Quarter and Full Year 2007 Financial Results

Live Nation Reports Fourth Quarter and Full Year 2007 Financial Results

- Continues to Execute on Vertically Integrated Global Live Music Platform Strategy -

- Improved North American Music Performance Drives 2007 Adjusted OIBDAN to $181 Million, an increase of 16%, and Operating Income to $82.1 Million -

LOS ANGELES, Feb. 28 /PRNewswire-FirstCall/ -- Live Nation (NYSE:LYV), the world's largest live music company, announced today its financial results for the three and twelve months ended December 31, 2007.

For the fourth quarter of 2007, the company reported revenue of $1.0 billion, a decrease of $45.2 million, or 4.3%, as compared to the fourth quarter of 2006 driven primarily by the timing of large music tours during the period. Adjusted OIBDAN was $32.6 million, an increase of $11.8 million, or 56.5%, as a result of improved results in North American and International Music. These improvements were partially offset by the expected decline in Global Artists due to the timing and number of large music tours in 2007 as compared to 2006. Operating income was $4.2 million, an improvement from an operating loss of $14.7 million in 2006. Net loss improved 44.6% to a loss of $18.4 million, or a loss of $0.25 per share.

For the full year 2007, the company reported revenue of $4.2 billion, an increase of $473.3 million, or 12.8%, as compared to 2006 driven by increases in revenue in North American and International Music primarily driven by acquisitions. Adjusted OIBDAN was $180.9 million, an increase of 15.9%, as a result of improved results in North American and International Music and Global Theater. These improvements were partially offset by a decline in Global Artists due to an expected reduction in touring artists during 2007. Operating income was $82.1 million, an increase of $49.0 million, or 148.0%. Net loss was $11.9 million, or a loss of $0.17 per share, compared to a loss of $31.4 million, or a loss of $0.48 per share in 2006. As of December 31, 2007, the company had free cash of $84.7 million as compared to $36.1 million at December 31, 2006.

Michael Rapino, President and Chief Executive Officer of Live Nation, commented: "During 2007, we made substantial progress in executing on our strategic plan to fully capitalize on our global leadership position in live music. We consolidated our global network and strengthened our core business through changes in how we drive revenue, manage our costs and measure our success. Our improved performance reflects early returns from the investments we made in transitioning our core business into a more focused, profit-driven organization. We also made substantial progress in building an integrated platform aimed at further strengthening and monetizing the relationship between artists, fans and sponsors -- before, during and after live events. In the year ahead, we remain focused on driving our core business and implementing our plan to capitalize on the transformation of the global music industry."

"We currently expect 2008 to be another healthy and growing period for the live music industry," Rapino continued. "As a result of our efforts to streamline our core business and expand our revenue streams, we believe we are very well positioned to benefit from the industry's growth. Among other initiatives, we will continue to build out our ticketing and digital media presence as we prepare to take control of our tickets beginning in 2009. We believe the economics of our ticketing business are compelling, given the growth opportunities we plan to pursue and the relatively limited investment we are making in our infrastructure as a result of our partnership with CTS Eventim. We will also focus on signing additional artists to our Live Nation Artists business and expanding our relationships with major corporate sponsors. As the year unfolds, we expect to increasingly demonstrate the benefits of our integrated model, as we continue to execute on our strategic plan."

Recent Highlights:

-- Successfully executed initiatives to improve performance of North
American Amphitheaters, delivering $67.7 million in 2007 pro forma
Amphitheater Adjusted OIBDAN, an increase of 49% over 2006, and
$38.4 million in pro forma Amphitheater Operating Income.
-- Expanded venue and distribution platform through the addition of five
mid-sized music venues and one new House of Blues(R) club in three new
markets in North America in addition to market expansion in Canada and
entry into Dubai.
-- Entered into long-term agreement with CTS Eventim that will enable the
company to launch its own ticketing business and begin selling tickets
for its 2009 events. The new ticketing platform will allow the company
to control customer data, to create enhanced ticket-based concert
products, drive its e-commerce audience and increase advertising and
sponsorship revenue.
-- Entered into ten-year diversified rights and touring agreement with
Madonna, the founding artist for the company's Live Nation Artists
division. The relationship encompasses Madonna's future music and
music-related businesses, including the exploitation of the Madonna
brand, touring, merchandising, fan club/website, DVDs, music-related
television and film projects, distribution of recorded music and
associated sponsorship agreements.
-- Completed divestiture in 2007 of the company's theatrical business in
Chicago and in early 2008 of substantially all of its remaining North
American theatrical business for total gross proceeds of $150 million.
These sales further focus the company on its core music operations.
-- Entered into strategic marketing alliance with Citi(R) that capitalizes
on the company's fully integrated music platform, including concerts,
online ticketing and access to Live Nation Artists, to deliver a
uniquely comprehensive music experience to Citi(R) customers in the
United States.

Pro Forma Financial Highlights (unaudited):

Total Company
Pro Forma(1)
(in thousands) Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 % 12/31/2007 12/31/2006 %
Revenue $1,041,612 $1,168,157 (10.8%) $4,386,137 $4,409,228 (0.5%)
Adjusted
OIBDAN $34,258 $29,229 17.2% $197,663 $190,057 4.0%
% Margin 3.3% 2.5% -- 4.5% 4.3% --
Operating
Income (Loss) $5,832 ($8,273) ** $98,871 $55,737 77.4%
% Margin 0.6% (0.7%) -- 2.3% 1.3% --

(1) Includes the divestiture of a portion of our North American sports
representation business and our UK sports representation business
throughout 2006, the acquisition of CPI in May 2006, the acquisition
of Trunk in June 2006, the acquisition of Musictoday in September
2006, the acquisition of House of Blues in November 2006, the
acquisition of Gamerco in December 2006, the divestiture of Donington
Racetrack in January 2007, the divestiture of the remaining stake in
Phantom - The Vegas Spectacular in March 2007, the divestiture of the
Nashville amphitheater in April 2007, the divestiture of Hammersmith
Apollo and the Forum in June 2007, the acquisition of the remaining
50% interest in House of Blues Concerts Canada and consolidation of
those results in June 2007, the consolidation of Academy Music Group's
financial results which occurred in July 2007, the sale of selected
Mean Fiddler venues in August 2007, the sale of the Odeon venue in
August 2007, the acquisition of Anthill Trading in October 2007, the
disposition of Broadway in Chicago and the Oriental Theater in
December 2007 and the acquisition of Signatures Network in December
2007 as if all of these transactions were completed on the first day
of the period presented.

** Variance is not meaningful

Fourth Quarter

The decrease in revenue on a pro forma basis was primarily due to:
-- reduction in touring revenue in our Global Artists segment,
-- decreased revenue in our North American Music segment driven by a
reduction in the number of amphitheater events, and
-- reduction in International Music due to shut-down of The Point in
Ireland for expansion in August 2007 (the venue is expected to re-open
in early 2009),
-- offset by increased revenue in our International Music segment due to
an increase in the number of events and attendance.

The increase in Adjusted OIBDAN on a pro forma basis was primarily due to:
-- improved North American Music amphitheater operations and cost savings
realized from the 2006 House of Blues acquisition,
-- higher results for International Music promotions, and
-- reduction in operating expenses due to employee bonus conversion from
stock to cash,
-- partially offset by the shut-down of The Point in Ireland for
expansion, and
-- Global Artists reductions due to reduced touring activity and increased
costs to build the Live Nation Artists platform.

The increase in operating income on a pro forma basis was primarily due to:

-- increased Adjusted OIBDAN as described above, and
-- increased gain on sale of operating assets due primarily to the sale of
our Chicago theatrical business,
-- partially offset by an increase in non-cash compensation expense during
the quarter.

Full Year 2007

The slight decrease in revenue on a pro forma basis was primarily due to:
-- reduced revenue in our North American Music segment due to fewer events
in our amphitheaters,
-- decreased revenue from reduced touring activity in Global Artists, and
-- reduction in International Music due to shut-down of The Point for
expansion,
-- offset by increased revenue from our International Music operations
from increased promotion events and attendance and improved festival
results.

The increase in Adjusted OIBDAN on a pro forma basis was primarily due to:
-- improved North American Music amphitheater operations and cost savings
realized from the 2006 House of Blues acquisition, and
-- improved International Music promotion and festival operations,
-- offset by reduced results in North American Music arena and third-party
events,
-- reduction due to the shut-down of The Point for expansion, and
-- Global Artists reductions due to reduced touring activity and increased
costs to build the Live Nation Artists platform.

The increase in operating income on a pro forma basis was primarily due to:

-- increased Adjusted OIBDAN as described above, and
-- higher gain on sale of operating assets in 2007,
-- partially offset by an increase in non-cash compensation expense during
the year.

North American Music:

Pro Forma(2)
(in thousands) Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 % 12/31/2007 12/31/2006 %
Revenue $463,271 $479,187 (3.3%) $2,013,959 $2,063,329 (2.4%)
Adjusted
OIBDAN % Margin $14,857 ($5,779) ** $77,293 $52,959 45.9%
3.2% (1.2%) -- 3.8% 2.6% --
Operating Income
(Loss) ($13,252) ($22,030) 39.8% $16,138 ($33,945) **
%Margin (2.9%) (4.6%) -- 0.8% (1.6%) --

(2) Includes the acquisition of House of Blues in November 2006, the
divestiture of the Nashville amphitheater in April 2007, the
acquisition of the remaining 50% interest in House of Blues Concerts
Canada and consolidation of those results in June 2007 and the sale
of the Odeon club in August 2007 as if all of these transactions were
completed on the first day of the period presented.

** Variance is not meaningful

Fourth Quarter

North American Music pro forma revenue decreased due to fewer events at our amphitheaters, consistent with our strategy to reduce unprofitable, low-attendance events, partially offset by higher arena revenues based on higher attendance and ticket prices and incremental revenues from several new mid-sized venues including the Dodge Theatre, the Hollywood Palladium and The Fillmore Miami Beach at the Jackie Gleason Theater.

Pro forma Adjusted OIBDAN increased due to improved amphitheater operations, cost savings realized from the 2006 acquisition of House of Blues and bonus payments for certain employees that will be paid in stock in lieu of cash. These increases were partially offset by reduced arena and third-party promotion activity results.

The increase in pro forma operating income is primarily a result of the improvement in Adjusted OIBDAN discussed above partially offset by an increase in non-cash compensation expense for bonuses to be paid in stock.

International Music:
Pro Forma(3)
(in thousands) Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 % 12/31/2007 12/31/2006 %
Revenue $304,513 $218,245 39.5% $1,088,339 $909,593 19.7%
Adjusted
OIBDAN $19,547 $15,674 24.7% $82,912 $77,137 7.5%
% Margin 6.4% 7.2% -- 7.6% 8.5% --
Operating
Income (Loss) $13,034 $8,611 51.4% $80,885 $56,981 42.0%
% Margin 4.3% 3.9% -- 7.4% 6.3% --

(3) Includes the acquisition of Gamerco in December 2006, the divestiture
of Hammersmith Apollo and the Forum in June 2007, the consolidation
of Academy Music Group's financial results which occurred in July
2007 and the sale of selected Mean Fiddler venues in August 2007 as
if all of these transactions were completed on the first day of the
period presented.

Fourth Quarter

International Music pro forma revenue increased due to an increase in revenue from our European operations driven by increased promotion activity in Italy, Finland, Spain, Norway and Holland and stronger results for several festivals in the United Kingdom. Partially offsetting these increases was a decline in revenue from the shut-down of The Point for expansion.

Pro forma Adjusted OIBDAN increased due to stronger results at several of our festivals in the United Kingdom and improved promotion activity in several European countries, partially offset by a reduction due to the shut-down of The Point for expansion.

The increase in pro forma operating income for International Music was due to the increase in Adjusted OIBDAN as noted above.

Pro Forma(4)
(in thousands) Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 % 12/31/2007 12/31/2006 %
Revenue $165,227 $328,798 (49.7%) $783,118 $911,345 (14.1%)
Adjusted OIBDAN $1,895 $22,013 (91.4%) $15,639 $45,382 (65.5%)
% Margin 1.1% 6.7% -- 2.0% 5.0% --
Operating Income
(Loss) ($8,928) $17,439 ** (7,700) 37,506 **
% Margin (5.4%) 5.3% -- (1.0%) 4.1% --

(4) Includes the acquisition of CPI in May 2006, the acquisition of Trunk
in June 2006, the acquisition of Musictoday in September 2006, the
acquisition of Anthill in October 2007 and the acquisition of
Signatures in December 2007 as if all of these transactions were
completed on the first day of the period presented.

** Variance is not meaningful

Fourth Quarter

Global Artists revenue decreased due to a decline in global touring revenue driven by a decline in the average ticket price and the timing and mix of global tours in 2007.

Adjusted OIBDAN decreased due to a decline in global touring activity during 2007 along with the investment made in building the Live Nation Artists division during the period.

The increased operating loss was a result of a decline in global tour activity and the increased amortization expense for intangible assets related to our acquisition of CPI and artist rights agreements.

Global Digital:

(in thousands) Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 % 12/31/2007 12/31/2006 %
Revenue $2,324 $3,682 (36.9%) $11,358 $8,893 27.7%
Adjusted OIBDAN ($2,443) ($880) 177.6% ($5,877) ($5,579) 5.3%
% Margin (105.1%) (23.9%) -- (51.7%) (62.7%) --
Operating Income
(Loss) ($4,354) ($1,057) 311.9% (10,460) (6,102) 71.4%
% Margin (187.3%) (28.7%) -- (92.1%) (68.6%) --

Fourth Quarter

Global Digital revenue decreased slightly due to timing of sponsorship revenues.

Adjusted OIBDAN decreased due to increased salary related to new staff, increased maintenance and consultant expenses related to our internal information technology and our website management.

Operating loss increase was due to the increased salary, maintenance and consultant expenses related to our internal information technology and our website management and higher depreciation costs for systems completed and in operation.

About Live Nation:

Live Nation is the future of the music business. With the most live concerts, music venues and festivals in the world and the most comprehensive concert search engine on the web, Live Nation is revolutionizing the music industry: onstage and online. Headquartered in Los Angeles, California, Live Nation is listed on the New York Stock Exchange, trading under the symbol "LYV".

Conference Call: The company will host a teleconference today, February 28th, 2008 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321- 1019 (Int'l) and referencing passcode 36254047. To access the call via webcast, please visit the Investor Relations section of the company's website at http://www.livenation.com/ under "About Us".

Forward Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the potential health and growth of the live music industry in 2008; Live Nation's competitive position within the industry and its potential to benefit from that anticipated growth; the company's efforts to build out its ticketing and e-commerce businesses, and the potential economics and growth opportunities related to those businesses; the company's intention to sign additional artists to its Live Nation Artists business; and the expectation that the company will expand its relationships with major corporate sponsors. Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company's plans, the risk that the company's markets do not evolve as anticipated, the potential impact of any general economic slowdown, competition for corporate sponsors and in the industry generally, operational challenges associated with building out the company's ticketing and digital media operations and difficulties in attracting established artists away from more traditional contract structures.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided below.

Adjusted OIBDAN is a non-GAAP financial measure that the company defines as operating income (loss) before certain unusual and/or non-cash charges, depreciation and amortization, loss (gain) on sale of operating assets and non-cash compensation expense. The company uses Adjusted OIBDAN to evaluate the performance of its operating segments. The company believes that information about Adjusted OIBDAN assists investors by allowing them to evaluate changes in the operating results of the company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted OIBDAN is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of Adjusted OIBDAN as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the company's business. Accordingly, Adjusted OIBDAN should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted OIBDAN as presented herein may not be comparable to similarly titled measures of other

Free cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less event-related deferred income, less accrued artist fees, less collections on behalf of others plus prepaids related to artist settlements/events. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance new venue expenditures. Free cash is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available for operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

Year Ended December 31,
2007 2006 2005
(in thousands except share and per share data)

Revenue $4,184,981 $3,711,715 $2,936,845
Operating expenses:
Direct operating expenses 3,333,572 2,997,863 2,310,925
Selling, general and
administrative expenses 653,811 530,340 518,907
Depreciation and amortization 120,828 128,167 64,622
Loss (gain) on sale of operating
assets (51,226) (11,640) 4,859
Corporate expenses 45,854 33,863 50,715
Operating income (loss) 82,142 33,122 (13,183)
Interest expense 61,915 37,218 6,059
Interest expense with Clear
Channel Communications -- -- 46,437
Interest income (14,479) (12,446) (2,506)
Equity in losses (earnings) of
nonconsolidated affiliates (4,806) (8,407) 276
Minority interest expense 7,869 12,209 5,236
Other expense (income) -- net (13) (1,220) 446
Income (loss) before income
taxes 31,656 5,768 (69,131)
Income tax expense (benefit):
Current 35,943 26,876 (53,025)
Deferred 7,649 10,334 114,513
Net loss (11,936) (31,442) (130,619)
Other comprehensive income
(loss), net of tax:
Unrealized holding gain (loss)
on cash flow derivatives (1,888) 104 --
Foreign currency translation
adjustments 37,579 27,032 (4,398)
Comprehensive income (loss) $23,755 $(4,306) $(135,017)

Basic and diluted net loss
per common share $(0.17) $(0.48) $(1.96)
Basic and diluted weighted
average common shares
outstanding 68,440,582 64,853,243 66,809,394

CONSOLIDATED BALANCE SHEETS

December 31,
2007 2006
(in thousands except share data)

ASSETS
CURRENT ASSETS
Cash and cash equivalents $338,991 $313,880
Accounts receivable, less allowance of
$18,928 in 2007 and $13,465 in 2006 264,316 250,831
Prepaid expenses 186,379 136,938
Other current assets 44,722 38,519
Total Current Assets 834,408 740,168
PROPERTY, PLANT AND EQUIPMENT
Land, buildings and improvements 1,018,079 999,561
Furniture and other equipment 236,320 193,290

Construction in progress 51,725 43,370
1,306,124 1,236,221
Less accumulated depreciation 391,079 360,049
915,045 876,172
INTANGIBLE ASSETS
Intangible assets -- net 382,999 73,398
Goodwill 471,542 423,169
OTHER ASSETS
Notes receivable, less allowance
of $745 in 2007 and $545 in 2006 1,703 2,613
Investments in nonconsolidated affiliates 23,443 59,283
Other assets 122,963 50,199
Total Assets $2,752,103 $2,225,002

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $79,273 $40,646
Accrued expenses 529,984 471,414
Deferred revenue 259,868 230,179
Current portion of long-term debt 36,345 31,721
Total Current Liabilities 905,470 773,960

Long-term debt 786,261 607,425
Other long-term liabilities 91,465 88,790
Minority interest liability 61,841 76,165
Series A and Series B redeemable preferred
stock 40,000 40,000
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Preferred stock - Series A Junior Participating,
$.01 par value; 20,000,000 shares authorized; no
shares issued and outstanding -- --
Preferred stock, $.01 par value; 30,000,000 shares
authorized; no shares issued and outstanding -- --
Common stock, $.01 par value; 450,000,000 shares
authorized; 74,893,005 and 67,174,912 shares
issued and outstanding in 2007 and 2006,
respectively 749 672
Additional paid-in capital 940,848 757,748
Retained deficit (130,941) (119,005)
Cost of shares held in treasury (1,697,227
shares in 2006) -- (21,472)
Accumulated other comprehensive income 56,410 20,719
Total Shareholders' Equity 867,066 638,662
Total Liabilities and Shareholders'
Equity $2,752,103 $2,225,002

Reconciliation of Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures
(Unaudited)

Reconciliation of North American Music Adjusted OIBDAN to Operating
Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)

Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 12/31/2007 12/31/2006
Adjusted OIBDAN $14,857 ($8,724) $74,538 $33,662
Depreciation and
amortization 22,036 15,309 60,286 77,775
Loss (gain) on sale
of operating assets 101 (62) (6,725) (63)
Non-cash compensation
expense 5,972 216 9,151 769
Non-cash impairment
charge 0 0 0 0
Operating Income
(Loss) ($13,252) ($24,187) $11,826 ($44,819)

Reconciliation of North American Amphitheater Adjusted OIBDAN to Operating
Income / (Loss) - Full Year
($ in thousands)
Twelve Months Ended,
12/31/2007 12/31/2006
Adjusted OIBDAN $68,441 $40,506
Depreciation and amortization 31,614 69,620
Loss (gain) on sale of operating assets (572) (66)
Non-cash compensation expense 0 0
Non-cash impairment charge 0 0
Operating Income (Loss) 37,399 (29,048)

Reconciliation of International Music Adjusted OIBDAN to Operating
Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)

Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 12/31/2007 12/31/2006
Adjusted OIBDAN $19,547 $11,977 $78,425 $68,574
Depreciation and
amortization 3,072 5,495 14,928 15,006
Loss (gain) on sale
of operating assets
(157) (114) (18,807) 1,041
Non-cash compensation
expense 3,598 44 4,122 159
Non-cash impairment
charge 0 0 0 0
Operating Income
(Loss) $13,034 $6,552 $78,182 $52,368

Reconciliation of Global Artists Adjusted OIBDAN to Operating Income /
(Loss) - Fourth Quarter and Full Year
($ in thousands)

Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 12/31/2007 12/31/2006
Adjusted OIBDAN $606 $20,914 $9,595 $36,018
Depreciation and
amortization 9,461 4,265 19,849 6,121
Loss (gain) on sale
of operating assets 0 0 0 0
Non-cash compensation
expense 1,210 156 2,882 621
Non-cash impairment
charge 0 0 0 0
Operating Income
(Loss) ($10,065) $16,493 ($13,136) $29,276

Reconciliation of Global Digital Adjusted OIBDAN to Operating Income /
(Loss) - Fourth Quarter and Full Year
($ in thousands)
Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 12/31/2007 12/31/2006
Adjusted OIBDAN ($2,443) ($880) ($5,877) ($5,579)
Depreciation and
amortization 1,141 172 3,311 501
Loss (gain) on sale of
operating assets 0 0 0 0
Non-cash compensation expense 770 5 1,272 22
Non-cash impairment charge 0 0 0 0
Operating Income (Loss) ($4,354) ($1,057) ($10,460) ($6,102)

Reconciliation of Total Adjusted OIBDAN to Operating Income / (Loss) -
Fourth Quarter and Full Year
($ in thousands)
Three Months Ended, Twelve Months Ended,
12/31/2007 12/31/2006 12/31/2007 12/31/2006
Adjusted OIBDAN $32,624 $20,841 $180,934 $156,097
Depreciation and
amortization 41,144 34,280 120,828 128,167
Loss (gain) on sale of
operating assets (30,292) (139) (51,226) (11,640)
Non-cash compensation
expense 17,582 960 29,190 3,431
Non-cash impairment charge 0 400 0 3,017
Operating Income (Loss) $4,190 ($14,660) $82,142 $33,122

Reconciliation of North American Music Pro Forma to Actual Adjusted OIBDAN
to Operating Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)
As Reported
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 463,271 416,628 1,955,059 1,629,247
Adjusted OIBDAN 14,857 (8,724) 74,538 33,662
% Margin 3.2% (2.1%) 3.8% 2.1%
Operating Income
(Loss) (13,252) (24,187) 11,826 (44,819)
% Margin (2.9%) (5.8%) 0.6% (2.8%)

Acquisitions/Divestitures (2)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 0 62,559 58,900 434,082
Adjusted OIBDAN 0 2,945 2,755 19,297
% Margin
Operating Income
(Loss) 0 2,157 4,312 10,874
% Margin

Pro Forma
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 463,271 479,187 2,013,959 2,063,329
Adjusted OIBDAN 14,857 (5,779) 77,293 52,959
% Margin 3.2% (1.2%) 3.8% 2.6%
Operating Income
(Loss) (13,252) (22,030) 16,138 (33,945)
% Margin (2.9%) (4.6%) 0.8% (1.6%)

Reconciliation of North American Amphitheater Pro Forma to Actual Adjusted
OIBDAN to Operating Income / (Loss) - Full Year
($ in thousands)
Acquisitions/
As Reported Divestitures (2) Pro Forma
Twelve Twelve Twelve Twelve Twelve Twelve
Months Months Months Months Months Months
Ended Ended Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06 12/31/07 12/31/06
Revenue 571,136 566,199 869 78,924 572,005 645,123
Adjusted OIBDAN 68,441 40,506 (722) 4,988 67,719 45,494
% Margin 12.0% 7.2% 11.8% 7.1%
Operating Income
(Loss) 37,399 (29,048) 993 3,409 38,392 (25,639)
% Margin 6.5% (5.1%) 6.7% (4.0%)

Reconciliation of International Music Pro Forma to Actual Adjusted OIBDAN
to Operating Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)

As Reported
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 304,513 201,195 1,078,696 867,423
Adjusted OIBDAN 19,547 11,977 78,425 68,574
% Margin 6.4% 6.0% 7.3% 7.9%
Operating Income
(Loss) 13,034 6,552 78,182 52,368
% Margin 4.3% 3.3% 7.2% 6.0%

Acquisitions/Divestitures (3)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 0 17,050 9,643 42,170
Adjusted OIBDAN 0 3,697 4,487 8,563
% Margin
Operating Income
(Loss) 0 2,059 2,703 4,613
% Margin

Pro Forma
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 304,513 218,245 1,088,339 909,593
Adjusted OIBDAN 19,547 15,674 82,912 77,137
% Margin 6.4% 7.2% 7.6% 8.5%
Operating Income
(Loss) 13,034 8,611 80,885 56,981
% Margin 4.3% 3.9% 7.4% 6.3%

Reconciliation of Global Artists Pro Forma to Actual Adjusted OIBDAN to
Operating Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)
As Reported
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 137,101 283,710 640,620 623,147
Adjusted OIBDAN 606 20,914 9,595 36,018
% Margin 0.4% 7.4% 1.5% 5.8%
Operating Income
(Loss) (10,065) 16,493 (13,136) 29,276
% Margin (7.3%) 5.8% (2.1%) 4.7%

Acquisitions/Divestitures (4)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 28,126 45,088 142,498 288,198
Adjusted OIBDAN 1,289 1,099 6,044 9,364
% Margin
Operating Income
(Loss) 1,137 946 5,436 8,230
% Margin

Pro Forma
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 165,227 328,798 783,118 911,345
Adjusted OIBDAN 1,895 22,013 15,639 45,382
% Margin 1.1% 6.7% 2.0% 5.0%
Operating Income
(Loss) (8,928) 17,439 (7,700) 37,506
% Margin (5.4%) 5.3% (1.0%) 4.1%

Reconciliation of Total Pro Forma to Actual Adjusted OIBDAN to Operating
Income / (Loss) - Fourth Quarter and Full Year
($ in thousands)

As Reported
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 1,013,500 1,058,697 4,184,981 3,711,715
Adjusted OIBDAN 32,624 20,841 180,934 156,097
% Margin 3.2% 2.0% 4.3% 4.2%
Operating Income
(Loss) 4,190 (14,660) 82,142 33,122
% Margin 0.4% (1.4%) 2.0% 0.9%

Acquisitions/Divestitures (1)
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 28,112 109,460 201,156 697,513
Adjusted OIBDAN 1,634 8,388 16,729 33,960
% Margin
Operating Income
(Loss) 1,642 6,387 16,729 22,615
% Margin

Pro Forma
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
12/31/07 12/31/06 12/31/07 12/31/06
Revenue 1,041,612 1,168,157 4,386,137 4,409,228
Adjusted OIBDAN 34,258 29,229 197,663 190,057
% Margin 3.3% 2.5% 4.5% 4.3%
Operating Income
(Loss) 5,832 (8,273) 98,871 55,737
% Margin 0.6% (0.7%) 2.3% 1.3%

Reconciliation of Cash and Cash Equivalents to Free Cash - Full Year
($ in thousands)

December 31, December 31,
2007 2006
Cash and Cash Equivalents $338,991 $313,880
Deferred Income $(223,702) $(183,471)
Accrued Artist Fees $(28,393) $(19,108)
Collections on Behalf of Others $(117,165) $(136,643)
Prepaids related to artist settlements/events $114,991 $61,429
Free Cash $84,722 $36,087

First Call Analyst:
FCMN Contact:

Source: Live Nation

CONTACT: Media, John Vlautin of Live Nation, +1-310-867-7000, or
Investors, Brad Edwards of Brainerd Communicators, Inc., +1-212-986-6667

Web site:

http://www.livenation.com/

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Profile: intent