The conference call for Live Nation's fourth quarter and full year 2023 earnings has begun, with President and CEO Michael Rapino and President and CFO Joe Berchtold in attendance. The operator, John, introduces Ms. Yong, who begins the call and reminds listeners of the forward-looking statements and non-GAAP measures that will be discussed. The call is then opened for questions, with the first being about the mix shift towards amphitheaters and Sponsorship.

Joe Berchtold explains how the mix shift in the Concerts and Ticketing segments will impact revenue growth and margin expansion in 2024. He also discusses the impact of deferred revenue and how the shift towards more outdoor events will affect the timing and profitability of concerts. Additionally, Michael is asked about the notable tailwinds in the Sponsorship business, including the replacement of Amex by MasterCard and the bi-annual event Rock in Rio.

In the fourth quarter, Ticketmaster had fewer on sales due to the timing of amphitheater shows. However, Ticketmaster still outperformed and increased their number of fee-bearing tickets. These tickets will not contribute to Ticketmaster's AOI until they are played in the second and third quarters. In terms of sponsorship, Live Nation is expecting a great year with high concert supply in arenas and amphitheaters. They are also anticipating a strong stadium year in 2025. Decisions were made to have certain artists perform in arenas instead of stadiums this year, which will contribute to a strong AOI margin and cash flow.

The company expects continued growth in the live events industry over the next 10 years, with strong demand for sponsorships and partnerships. The CEO also mentioned the potential for growth in the amphitheater business, citing their global scale and opportunities for monetization.

The company has focused on building scale for the past 10 years, but since COVID, they have launched a new division focused on hospitality and VIP experiences. They believe they can double their business by investing in on-site upgrades and increasing the percentage of premium offerings. This would result in higher returns on capital and increased revenue from fans attending shows.

The company's utilization rate for amphitheaters is currently at 35%, leaving room for growth. The rollout of Platinum ticketing, which involves dynamic pricing, has been a significant contributor to the growth of both the Concerts and Ticketmaster businesses. The company is still in the early stages of implementing Platinum internationally, with plans to expand to South America, Australia, and other regions. Promoters have been receptive to the concept.

The artist industry is becoming more aware of the impact of scalpers on ticket prices and are looking to implement better pricing strategies to increase their profits. This is seen as a multi-year opportunity to continue growing their top-line and bottom-line. The typical secondary ticket is almost twice the price of a primary ticket, so artists are seeking to have more control over the pricing of their tickets. The company is confident in their ability to execute at their amphitheaters and has given a double-digit AOI expectation for Q4, which is earlier than usual.

The company is confident in their ability to drive profitability from their fan base, which will lead to double-digit growth this year. They plan to spend $540 million in capital expenditures, with two-thirds going towards revenue-generating projects and one-third towards maintenance. The top-four projects, including a major renovation of a stadium in Mexico City and Jones Beach, are expected to have a return in the 20%s. The company also provided an update on the DOJ investigation, stating that it is still in the mid stages.

The company plans to generate additional revenue through tactical improvements in existing venues, the creation of new VIP clubs and viewing decks, and new bar designs. They are closely monitoring maintenance costs and are confident in their global venue development team's ability to secure new venues. The company is cooperating with the Department of Justice and has no major updates to report at this time.

Cameron Mansson-Perrone asks Michael Rapino about the current shift in the promotion business from national booking to global booking. Rapino explains that all-in pricing has led to higher conversion rates and may be legislated in the future. He also discusses the three-level shift in promoters, emphasizing the importance of having strong local staff to execute contracts.

The speaker discusses how artists have evolved over the last 10 years and have become more globalized brands. They now seek out national or global partners to help with their touring and marketing needs. As a result, there is a shift towards more global touring plans and a need for a common agenda. The speaker also mentions that the company has been consistent with their 2-2.5% CapEx ratio, but the question is raised as to why they don't consider investing more given the high returns on invested capital in the business.

The speaker discusses the company's progress in recovering from the financial impact of COVID-19 and their plans for future growth. They mention their strong balance sheet and hiring new staff, as well as their successful returns on invested capital. They also mention the positive performance of recent ticket sales for upcoming shows.

The company is experiencing strong consumer demand across all of its businesses, with high-merch numbers and sold-out shows. The demand is seen at all price points and the company's per-cap on-site spending is showing year-on-year growth. The CEO also mentions the benefits of scale in the Sponsorship business, with brands wanting to reach customers at a large scale.

In this paragraph, the speaker discusses the growth and success of the Sponsorship side of the business. They mention that they are seeing a lot of demand and have reached over $1 billion in revenue. They also mention the increasing number of fans and tickets sold through Ticketmaster. The speaker believes that this growth will continue and that Sponsorship could potentially outgrow Concerts in the future. They also mention that Concerts has consistently grown faster than Sponsorship since 2010. The speaker ends by thanking the listeners for their support and mentioning that they will provide an update at the end of Q1.

This summary was generated with AI and may contain some inaccuracies.