Live Nation Entertainment Reports Second Quarter 2011 Financial Results

Live Nation Entertainment Reports Second Quarter 2011 Financial Results

LOS ANGELES, Aug. 8, 2011 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three and six months ended June 30, 2011 today.

"2011 has shown solid performance for two quarters, with improved results across most of our key financial metrics, providing the basis for profit growth over the full year. The company is now delivering strong results, with growth driven through increased ticket sales, improved show profitability in Concerts and growth in our advertising businesses," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "We are seeing the global ticketing business stabilize and concert business grow year-over-year, and we remain optimistic about continued growth opportunities in the industry long term. In addition to delivering this year's results, we remain focused on strategically expanding our global presence, innovating our ticketing platform and maximizing ticket sales, while carefully managing our costs."

The company will host a teleconference today, August 8, 2011 at 5:00 p.m. Eastern Daylight Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int'l) and referencing passcode 83007613. To access the call via webcast, please visit the Investor Relations section of the company's website at www.livenation.com/investors. Please visit the website approximately ten minutes prior to the start time to ensure a connection. Additional statistical and financial information to be provided on the call, if any, will be posted supplementally under that same link. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the Live Nation website through August 15, 2011.

The financial results of operations for the first six months of 2010 only include Ticketmaster results following the date of the merger (January 25) through June 30, 2010. ((1))

FINANCIAL HIGHLIGHTS - 2nd QUARTER and SIX MONTHS
-------------------------------------------------
(Unaudited; $ in millions)
--------------------------

Q2 2011 Q2 2010 Growth
------- ------- ------
Revenue
Concerts $1,082.2 $859.5 25.9%
Ticketing 283.8 264.4 7.3%
Artist Nation 118.4 88.7 33.5%
eCommerce 37.4 18.9 97.9%
Sponsorship 49.6 38.8 27.8%
Other & Eliminations (12.5) (3.6) **
----- ---- ---
$1,558.9 $1,266.7 23.1%
======== ======== ====

Adjusted Operating
Income (Loss)
Concerts $19.8 $24.3 (18.5%)
Ticketing 71.9 64.8 11.0%
Artist Nation 15.8 9.8 61.2%
eCommerce 15.1 3.2 **
Sponsorship 32.6 26.4 23.5%
Other & Eliminations 0.1 (0.6) **
Corporate (16.8) (14.7) (14.3)%
----- ----- ------
$138.5 $113.2 22.3%
====== ====== ====

Operating Income
(Loss)
Concerts $(9.1) $2.1 **
Ticketing 38.8 28.5 36.1%
Artist Nation (2) 2.3 (2.2) **
eCommerce 11.9 2.6 **
Sponsorship 32.4 26.2 23.7%
Other & Eliminations 0.2 0.5 (60.0%)
Corporate (21.8) (19.1) (14.1%)
----- ----- -------
$54.7 $38.6 41.7%
===== ===== ====

Acquisition Expenses $2.3 $13.0
---- -----
$52.4 $25.6
===== =====

6 months 6 months Growth
-------- -------- ------
2011 2010
---- ----
Revenue
Concerts $1,531.5 $1,267.6 20.8%
Ticketing 580.2 473.5 22.5%
Artist Nation 172.6 158.3 9.0%
eCommerce 66.8 37.0 80.5%
Sponsorship 74.4 60.1 23.8%
Other & Eliminations (17.2) (6.4) **
----- ---- ---
$2,408.3 $1,990.1 21.0%
======== ======== ====

Adjusted Operating
Income (Loss)
Concerts $(21.5) $(18.2) (18.1%)
Ticketing 152.5 111.2 37.1%
Artist Nation 15.0 10.7 40.2%
eCommerce 25.8 10.9 **
Sponsorship 43.6 35.0 24.6%
Other & Eliminations 0.2 (0.4) **
Corporate (32.0) (33.8) 5.3%
----- ----- ---
$183.6 $115.4 59.1%
====== ====== ====

Operating Income
(Loss)
Concerts $(78.5) $(70.7) (11.0%)
Ticketing 83.0 41.0 **
Artist Nation (2) (40.5) (10.1) **
eCommerce 20.3 7.6 **
Sponsorship 43.2 34.6 24.9%
Other & Eliminations 0.4 0.6 (33.3%)
Corporate (42.3) (52.1) 18.8%
----- ----- ----
$(14.4) $(49.1) 70.7%
====== ====== ====

Acquisition Expenses $5.4 $31.6
---- -----
$(19.8) $(80.7)
====== ======

** percentages are not meaningful

(1) Reported results for the six months ended June 30, 2010, include
the results of the legacy Ticketmaster operations following the date
of the merger through June 30. Results for the legacy Ticketmaster
operations for the period January 1-January 25, 2010, or the stub
period (which are not included in the reported results above),
include $76.1 million in revenue, primarily in the Ticketing
segment, and $5.0 million in adjusted operating income, of which
$7.7 million was related to the Ticketing segment. Ticketmaster's
operating income for the stub period was $14.8 million, including a
$30.1 million gain on sale of IATS.

(2) Artist Nation's operating loss for the six months ended June 30,
2011 was driven by $24.4 million of stock-related compensation
expense due to the acquisition of the remaining equity of Front Line
Management in February 2011.

Free cash as of June 30, 2011 was $328.0 million. Free cash flow was $78.2 million for the second quarter of 2011 as compared to $64.4 million for the same period in 2010, and $71.3 million for the first six months of 2011 compared to $32.2 million for the same period in 2010.

About Live Nation Entertainment:

Live Nation Entertainment is the world's leading live entertainment and eCommerce company, comprised of four market leaders: Ticketmaster.com, Live Nation Concerts, Front Line Management Group and Live Nation Network. Ticketmaster.com is the global event ticketing leader and one of the world's top five eCommerce sites, with over 26 million monthly unique visitors. Live Nation Concerts produces over 20,000 shows annually for more than 2,000 artists globally. Front Line is the world's top artist management company, representing over 250 artists. These businesses power Live Nation Network, the leading provider of entertainment marketing solutions, enabling nearly 800 advertisers to tap into the 200 million consumers Live Nation delivers annually through its live event and digital platforms. For additional information, visit www.livenation.com/investors.

LIVE NATION ENTERTAINMENT, INC.
KEY OPERATING METRICS

Three Months Ended
June 30,
2011 2010

Concerts (1)
Total Estimated Events:
North America 4,243 3,671
International 1,591 1,887
----- -----
Total estimated events 5,834 5,558
----- -----

Total Estimated
Attendance (rounded):
North America 8,858,000 7,830,000
International 4,193,000 4,471,000
--------- ---------
Total estimated
attendance 13,051,000 12,301,000
---------- ----------

Ancillary net revenue
per attendee:
North America
amphitheaters $19.21 $18.57

Ticketing (2)
Number of tickets sold
(in thousands):
Concerts 17,672 15,594
Sports 6,498 5,768
Arts and theater 4,266 4,418
Family 2,918 2,045
Other (3) 2,057 1,150
----- -----
33,411 28,975
------ ------

Gross value of tickets
sold (in thousands) $2,086,782 $1,803,420

Sponsorship/Advertising

Online advertising
revenue (in thousands) $12,967 $8,389

Estimated average
sponsorship dollars
per sponsor (rounded) $97,000 $76,000

eCommerce
Gross value of tickets
sold online (in
thousands) $1,642,194 $1,446,516
Number of customers in
database (rounded)
----------------------

Six Months Ended June
30,
2011 2010

Concerts (1)
Total Estimated Events:
North America 7,326 6,710
International 3,112 3,478
----- -----
Total estimated events 10,438 10,188
------ ------

Total Estimated
Attendance (rounded):
North America 12,859,000 11,844,000
International 7,146,000 7,432,000
--------- ---------
Total estimated
attendance 20,005,000 19,276,000
---------- ----------

Ancillary net revenue
per attendee:
North America
amphitheaters $19.34 $18.53

Ticketing (2)
Number of tickets sold
(in thousands):
Concerts 34,538 27,848
Sports 14,124 10,510
Arts and theater 8,829 7,994
Family 7,335 4,813
Other (3) 3,230 1,908
----- -----
68,056 53,073
------ ------

Gross value of tickets
sold (in thousands) $4,104,436 $3,162,471

Sponsorship/Advertising

Online advertising
revenue (in thousands) $21,292 $16,826

Estimated average
sponsorship dollars
per sponsor (rounded) $146,000 $117,000

eCommerce
Gross value of tickets
sold online (in
thousands) $3,332,890 $2,860,302
Number of customers in
database (rounded) 103,598,000 85,304,000
---------------------- ----------- ----------

(1) Events generally represent a single performance by an artist.
Attendance generally represents the number of fans who were present
at an event. Festivals are counted as one event in the quarter in
which the festival begins but attendance is split over the days of
the festival and can be split between quarters. Events and
attendance metrics are estimated each quarter.

(2) The number and gross value of tickets sold includes primary
tickets only. These include tickets sold during the period
regardless of event timing except for our promoted concerts and our
owned and/or operated buildings and certain European territories
where these tickets are recognized as the concerts occur. The
tickets sold listed above for 2010 do not include 7.1 million
tickets with a gross value of $405.0 million for the pre-merger
period. Tickets sold for the full six months ended June 30, 2010,
including the pre-merger period, were as follows:

Concerts 30,858
Sports 12,169
Arts and theater 9,241
Family 5,811
Other 2,139
-----
60,218
------

(3) Other category includes tickets for comedy shows, facility
tours, donations, lectures, seminars and cinema.

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended
------------------
June 30,
--------
2011 2010
--- ---
(in thousands except share and per
share data)
Revenue $1,558,882 $1,266,735
Operating
expenses:
Direct operating
expenses 1,138,151 896,283
Selling, general
and
administrative
expenses 266,795 252,899
Depreciation and
amortization 76,927 64,308
Loss (gain) on
sale of
operating
assets (660) (637)
Corporate
expenses 24,590 21,882
Acquisition
transaction
expenses 706 6,394
Operating income
(loss) 52,373 25,606
Interest expense 30,845 29,932
Loss on
extinguishment
of debt - 21,172
Interest income (1,298) (791)
Equity in
earnings of
nonconsolidated
affiliates (1,778) (1,708)
Other expense
(income), net 1,331 (565)
Income (loss)
from continuing
operations
before income
taxes 23,273 (22,434)
Income tax
expense
(benefit) 6,659 8,408
Income (loss)
from continuing
operations 16,614 (30,842)
Loss from
discontinued
operations, net
of tax - (377)
Net income
(loss) 16,614 (31,219)
Net income
(loss)
attributable to
noncontrolling
interests 3,357 1,568
----- -----
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $13,257 $(32,787)
======= ========
Basic net income
(loss) per
common share
attributable to
common
stockholders:
Income (loss)
from continuing
operations
attributable to
Live Nation
Entertainment,
Inc. $0.07 $(0.19)
Loss from
discontinued
operations
attributable to
Live Nation
Entertainment,
Inc. - -
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $0.07 $(0.19)
===== ======
Diluted net
income (loss)
per common
share
attributable to
common
stockholders:
Income (loss)
from continuing
operations
attributable to
Live Nation
Entertainment,
Inc. $0.07 $(0.19)
Loss from
discontinued
operations
attributable to
Live Nation
Entertainment,
Inc. - -
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $0.07 $(0.19)
===== ======
Weighted average
common shares
outstanding:

Basic 180,818,826 170,007,727
Diluted 182,790,095 170,007,727

Six Months Ended
----------------
June 30,
--------
2011 2010
---- ----
(in thousands except share and per
share data)
Revenue $2,408,291 $1,990,096
Operating
expenses:
Direct operating
expenses 1,685,275 1,381,039
Selling, general
and
administrative
expenses 539,764 484,495
Depreciation and
amortization 154,408 126,941
Loss (gain) on
sale of
operating
assets 635 3,934
Corporate
expenses 45,626 59,006
Acquisition
transaction
expenses 2,371 15,411
Operating income
(loss) (19,788) (80,730)
Interest expense 60,074 56,493
Loss on
extinguishment
of debt - 21,172
Interest income (1,825) (1,434)
Equity in
earnings of
nonconsolidated
affiliates (2,772) (2,255)
Other expense
(income), net 746 (1,633)
Income (loss)
from continuing
operations
before income
taxes (76,011) (153,073)
Income tax
expense
(benefit) (38,283) 417
Income (loss)
from continuing
operations (37,728) (153,490)
Loss from
discontinued
operations, net
of tax - (680)
Net income
(loss) (37,728) (154,170)
Net income
(loss)
attributable to
noncontrolling
interests (2,525) 830
------ ---
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $(35,203) $(155,000)
======== =========
Basic net income
(loss) per
common share
attributable to
common
stockholders:
Income (loss)
from continuing
operations
attributable to
Live Nation
Entertainment,
Inc. $(0.20) $(0.98)
Loss from
discontinued
operations
attributable to
Live Nation
Entertainment,
Inc. - -
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $(0.20) $(0.98)
====== ======
Diluted net
income (loss)
per common
share
attributable to
common
stockholders:
Income (loss)
from continuing
operations
attributable to
Live Nation
Entertainment,
Inc. $(0.20) $(0.98)
Loss from
discontinued
operations
attributable to
Live Nation
Entertainment,
Inc. - -
Net income
(loss)
attributable to
Live Nation
Entertainment,
Inc. $(0.20) $(0.98)
====== ======
Weighted average
common shares
outstanding:

Basic 178,568,320 158,219,805
Diluted 178,568,320 158,219,805

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS

December
June 30, 31,
2011 2010
---- ----
(unaudited) (audited)
(in thousands)
ASSETS
Current assets
Cash and cash equivalents $1,003,960 $892,758
Accounts receivable, less allowance of
$10,839 as of June 30, 2011 and
$10,898 as of December 31, 2010 487,843 329,947
Prepaid expenses 494,099 348,309
Other current assets 49,589 32,483
------ ------
Total current assets 2,035,491 1,603,497
Property, plant and equipment
Land, buildings and improvements 861,792 850,124
Computer equipment and capitalized
software 237,494 218,294
Furniture and other equipment 169,041 168,508
Construction in progress 47,453 24,528
------ ------
1,315,780 1,261,454
Less accumulated depreciation 580,901 524,390
------- -------
734,879 737,064
Intangible assets
Definite-lived intangible assets, net 947,655 997,268
Indefinite-lived intangible assets 377,974 375,214
Goodwill 1,260,759 1,226,416
Investments in nonconsolidated
affiliates 45,769 30,077
Other long-term assets 249,701 226,024
------- -------
Total assets $5,652,228 $5,195,560
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, client accounts $491,369 $462,301
Accounts payable 133,645 76,876
Accrued expenses 581,154 498,864
Deferred revenue 641,322 335,539
Current portion of long-term debt 57,648 54,150
Other current liabilities 32,481 46,491
------ ------
Total current liabilities 1,937,619 1,474,221

Long-term debt, net 1,675,294 1,677,714
Long-term deferred income taxes 187,402 219,143
Other long-term liabilities 162,801 215,273
Commitments and contingent liabilities

Redeemable noncontrolling interests - 107,541

Stockholders' equity
Common stock 1,867 1,724
Additional paid-in capital 2,224,861 2,053,233
Accumulated deficit (697,378) (662,175)
Cost of shares held in treasury (5,381) (6,122)
Accumulated other comprehensive income
(loss) 32,240 (22,244)
------ -------
Total Live Nation Entertainment, Inc.
stockholders' equity 1,556,209 1,364,416
Noncontrolling interests 132,903 137,252
------- -------
Total stockholders' equity 1,689,112 1,501,668
--------- ---------
Total liabilities and stockholders'
equity $5,652,228 $5,195,560
========== ==========

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended
June 30,
2011 2010
---- ----
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(37,728) $(154,170)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation 58,935 60,696
Amortization 95,473 66,245
Deferred income tax benefit (35,444) (3,423)
Amortization of debt issuance costs 2,906 1,826
Amortization of debt discount/
premium, net 3,507 3,524
Provision for uncollectible accounts
receivable and advances 1,653 15,189
Non-cash loss on extinguishment of
debt - 8,272
Non-cash compensation expense 32,192 32,798
Unrealized changes in fair value of
contingent consideration (8,908) 4,555
Loss on sale of operating assets 635 4,614
Equity in earnings of nonconsolidated
affiliates (2,772) (2,255)
Other, net 1,251 -
Changes in operating assets and
liabilities, net of effects of
acquisitions and dispositions:
Increase in accounts receivable (148,233) (63,659)
Increase in prepaid expenses (138,161) (238,446)
Increase in other assets (55,756) (47,098)
Increase in accounts payable, accrued
expenses and other liabilities 69,903 17,644
Increase in deferred revenue 293,212 461,967
------- -------
Net cash provided by operating
activities 132,665 168,279

CASH FLOWS FROM INVESTING ACTIVITIES
Collections (advances) of notes
receivable (626) 638
Distributions from nonconsolidated
affiliates 7,481 964
Investments made in nonconsolidated
affiliates (5,926) -
Purchases of property, plant and
equipment (44,651) (30,082)
Proceeds from disposal of operating
assets, net of cash divested 7,163 20,753
Cash paid for acquisitions, net of
cash acquired (19,904) 566,144
Purchases of intangible assets (103) (1,363)
Other, net (525) 297
---- ---
Net cash provided by (used in)
investing activities (57,091) 557,351

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of
issuance costs (756) 1,318,637
Payments on long-term debt (15,081) (1,182,507)
Redemption of preferred stock - (40,000)
Contributions from noncontrolling
interests - 13
Distributions to and purchases/sales
of noncontrolling interests (59,999) (8,198)
Proceeds from exercise of stock
options 3,082 4,254
Proceeds from sale of common stock 76,492 -
Equity issuance costs - (357)
Purchases of common stock - (1,567)
Payments for deferred and contingent
consideration (13,807) (11,109)
------- -------
Net cash provided by (used in)
financing activities (10,069) 79,166
Effect of exchange rate changes on
cash and cash equivalents 45,697 (41,823)
------ -------
Net increase in cash and cash
equivalents 111,202 762,973
Cash and cash equivalents at beginning
of period 892,758 236,955
------- -------
Cash and cash equivalents at end of
period $1,003,960 $999,928
========== ========

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 company's potential profit growth over the full year and for the industry in the long term; stabilization of the global ticketing business; year-over-year growth in the concert business; and the company's focus on strategically expanding its global presence, innovating its ticketing platform and maximizing ticket sales, while carefully managing its costs. 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, challenges related to the post-merger integration of Live Nation and Ticketmaster, the potential impact of the economic slowdown and operational challenges associated with selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q and its 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 the company's 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 Operating Income (Loss), or AOI, is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration arrangements, merger bonuses, payments under the Azoff Trust note and acquisition-related severance), depreciation and amortization (including goodwill impairments), loss (gain) on sale of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which are classified as liabilities). The company uses AOI to evaluate the performance of its operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of the portfolio of the businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in the company's business. Accordingly, AOI 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 GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to noncontrolling interest partners, plus distributions from investments in nonconsolidated affiliates net of contributions to investments in nonconsolidated affiliates. The company uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than maintenance capital expenditures. The company believes that information about free cash flow provides investors with an important perspective on the cash available to service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with GAAP. A limitation of the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of the company's ability to fund its cash needs. Accordingly, free cash flow should be considered in addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and for cash collected on behalf of others for ticket sales, plus event-related prepaids. 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 venue and other revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from 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 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.

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

Reconciliation of Adjusted Operating Income (Loss) to Operating
Income (Loss)
---------------------------------------------------------------

($ in millions) Adjusted Non-cash
operating and
stock-
income based
(loss) compensation
expense
Three months ended June 30, 2011
--------------------------------

Concerts $19.8 $1.3
Ticketing 71.9 1.2
Artist Nation 15.8 0.4
eCommerce 15.1 -
Sponsorship 32.6 0.1
Other &
Eliminations 0.1 -
Corporate (16.8) 4.6
----- ---
Total Live
Nation $138.5 $7.6
====== ====

Three months ended June 30,
2010
----------------------------

Concerts $24.3 $1.6
Ticketing 64.8 3.6
Artist Nation 9.8 1.6
eCommerce 3.2 0.2
Sponsorship 26.4 0.1
Other &
Eliminations (0.6) (0.1)
Corporate (14.7) 3.9
----- ---
Total Live
Nation $113.2 $10.9
====== =====
Six months ended June
30, 2011
----------------------

Concerts $(21.5) $3.0
Ticketing 152.5 2.7
Artist Nation 15.0 27.6
eCommerce 25.8 0.1
Sponsorship 43.6 0.2
Other &
Eliminations 0.2 -
Corporate (32.0) 9.4
----- ---
Total Live
Nation $183.6 $43.0
====== =====

Six months ended June 30, 2010
------------------------------

Concerts $(18.2) $3.6
Ticketing 111.2 9.3
Artist Nation 10.7 3.1
eCommerce 10.9 0.2
Sponsorship 35.0 0.2
Other &
Eliminations (0.4) 0.1
Corporate (33.8) 17.0
----- ----
Total Live
Nation $115.4 $33.5
====== =====

($ in millions) Loss Depreciation
(gain)
on and
sale of amortization
operating
assets
Three months ended June 30, 2011
--------------------------------

Concerts $(0.7) $28.3
Ticketing (0.1) 32.0
Artist Nation - 13.1
eCommerce - 3.2
Sponsorship - 0.1
Other &
Eliminations 0.1 (0.2)
Corporate - 0.4
--- ---
Total Live
Nation $(0.7) $76.9
===== =====

Three months ended June 30,
2010
----------------------------

Concerts $(1.2) $21.8
Ticketing 0.6 32.1
Artist Nation - 10.4
eCommerce - 0.4
Sponsorship - 0.1
Other &
Eliminations - (1.0)
Corporate - 0.5
--- ---
Total Live
Nation $(0.6) $64.3
===== =====
Six months ended June
30, 2011
----------------------

Concerts $(0.7) $54.7
Ticketing (0.1) 66.9
Artist Nation 1.2 26.7
eCommerce - 5.4
Sponsorship - 0.2
Other &
Eliminations 0.2 (0.4)
Corporate - 0.9
--- ---
Total Live
Nation $0.6 $154.4
==== ======

Six months ended June 30, 2010
------------------------------

Concerts $(1.3) $50.2
Ticketing 5.2 55.7
Artist Nation - 17.7
eCommerce - 3.1
Sponsorship - 0.2
Other &
Eliminations - (1.1)
Corporate - 1.3
--- ---
Total Live
Nation $3.9 $127.1
==== ======

($ in millions) Acquisition Operating
expenses income
(loss)
Three months ended June 30, 2011
--------------------------------

Concerts $(1.2) $(7.9)
Ticketing 0.7 38.1
Artist Nation (2.8) 5.1
eCommerce - 11.9
Sponsorship - 32.4
Other &
Eliminations - 0.2
Corporate 5.6 (27.4)
--- -----
Total Live
Nation $2.3 $52.4
==== =====

Concerts $0.6 $1.5
Ticketing 2.8 25.7
Artist Nation 5.7 (7.9)
eCommerce 0.4 2.2
Sponsorship (0.2) 26.4
Other &
Eliminations - 0.5
Corporate 3.7 (22.8)
--- -----
Total Live
Nation $13.0 $25.6
===== =====
Six months ended June
30, 2011
----------------------

Concerts $(5.8) $(72.7)
Ticketing 0.8 82.2
Artist Nation (2.2) (38.3)
eCommerce - 20.3
Sponsorship - 43.2
Other &
Eliminations - 0.4
Corporate 12.6 (54.9)
---- -----
Total Live
Nation $5.4 $(19.8)
==== ======

Concerts $0.6 $(71.3)
Ticketing 6.5 34.5
Artist Nation 5.8 (15.9)
eCommerce 0.7 6.9
Sponsorship 0.1 34.5
Other &
Eliminations - 0.6
Corporate 17.9 (70.0)
---- -----
Total Live
Nation $31.6 $(80.7)
===== ======

Reconciliation of Adjusted Operating Income (Loss) to Free Cash Flow
--------------------------------------------------------------------

Q2
($ in millions) 2011 Q2 2010
--------------- ----- -------
Adjusted operating income $138.5 $113.2
Less: Cash interest expense -
net (26.2) (26.6)
Cash taxes (13.8) (5.6)
Maintenance capital expenditures (17.9) (15.3)
Distributions to noncontrolling
interests (4.1) (1.5)
Distributions from (contributions
to) investments in
nonconsolidated affiliates 1.7 0.2
--- ---
Free cash flow $78.2 $64.4
Revenue generating capital
expenditures (8.6) (2.5)
---- ----
Net $69.6 $61.9
--- ----- -----

6 6
($ in millions) months months
--------------- ------ ------
2011 2010
---- ----
Adjusted operating income $183.6 $115.4
Less: Cash interest expense -
net (51.8) (49.6)
Cash taxes (23.2) (3.8)
Maintenance capital expenditures (28.9) (22.6)
Distributions to noncontrolling
interests (10.0) (8.2)
Distributions from (contributions
to) investments in
nonconsolidated affiliates 1.6 1.0
--- ---
Free cash flow $71.3 $32.2
Revenue generating capital
expenditures (15.8) (7.2)
----- ----
Net $55.5 $25.0
--- ----- -----

Reconciliation of Cash and Cash Equivalents to Free Cash
--------------------------------------------------------

($ in millions) June 30,
2011
Cash and cash equivalents $1,004.0
Client cash (397.2)
Deferred revenue - event
related (546.7)
Accrued artist fees (47.1)
Collections on behalf of
others (40.8)
Prepaids related to artist
settlements/events 355.8
-----
Free cash $328.0
--------- ------

SOURCE Live Nation Entertainment

Photo:http://photos.prnewswire.com/prnh/20100603/LA14899LOGO
http://photoarchive.ap.org/
Live Nation Entertainment

CONTACT: Media & Investors, Linda Bandov Pazin, +1-310-867-7000, lindabandov@livenation.com

Web Site: http://www.Ticketmaster.com

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Profile: intent