Despite the billion dollar loss shouldered by Live Nation Entertainment this last year, the company's CEO, Michael Rapino, has high hopes for 2021. He cites the imminent influx of demand for post-pandemic live events as a driving force expected to propel the events hub through "the light at the end of the tunnel," according to IQ Magazine.
Given the recent success of Live Nation's stocks, it appears their predictions may not be unfounded. On February 25th, share prices skyrocketed above the $90 mark for the first time in the company's history, reaching $91.80. IQ notes that this is nearly $15 higher than the price pre-pandemic. The change may have been spurred by the 48 hour-sellout of Live Nation-produced festival Creamfields, for which Alesso, Carl Cox, Nina Kraviz and Afrojack are scheduled to appear.
"It appears that the timing to release [fans'] pent-up supply and demand is now approaching," Rapino explained. "They are excited to get back to the show as soon as we get the green lights in these markets to open up."
Keeping his eyes on the future, Rapino predicts 2022 will be a massive year for international tours, with nearly double the typical amount of major touring artists set to be on cycle that year. However, it's all dependent on local vaccine availability: "For both the US and UK, projections indicate that everyone who wants a vaccine will be able to get one by May or June, with Europe and most other markets following a few months later," he said.
On the financial side of things, it appears Live Nation has weathered the storm, providing the liquid capital necessary to facilitate a major rollout of events. This success can be attributed to various cost savings and restructuring plans, investments in virtual concerts, and the recent acquisition of streaming platform Veeps, Rapino said, perhaps providing a model for other events companies to follow.
Source: IQ Magazine