The conference call is being hosted by Live Nation's operator, John, and Amy Yong is introducing the company's President and CEO, Michael Rapino, and President and CFO, Joe Berchtold. The call will include forward-looking statements and non-GAAP measures, and the company's SEC filings should be referred to for a description of potential risks and uncertainties. Joe Berchtold addresses the recent press reports about the DOJ potentially filing a lawsuit against Live Nation and Ticketmaster.

The company is about to discuss the issues being investigated with senior division leadership, which is typically the final phase of an investigation. The DOJ's investigation appears to be focused on specific business practices, not the legality of the merger. The company does not believe a breakup of Live Nation and Ticketmaster would be a legally permissible remedy, as the DOJ previously approved the merger subject to divestitures and other remedies. The company is hopeful for an amicable resolution, but is prepared to defend itself in court if necessary.

During the question-and-answer session, a question was asked about the relative value of Ticketmaster within Live Nation versus as a separate company. The CEO responded by stating that they view Ticketmaster as an integral part of their portfolio and a successful business on its own. He also reiterated their confidence in achieving double-digit AOI growth this year, despite deferred being down in the first quarter.

Joe Berchtold, responding to a question about the profitability per fan based on the venue mix, explains that there are two aspects to consider: consumer demand and the technical numbers. He emphasizes that there is no weakness in consumer demand, with strong sell-through and higher overall grosses for artists compared to last year. He also mentions that there is no cannibalization despite a growth in the number of arena shows. On the technical side, he explains that deferred revenue and ticket sales are consistent with their previous expectations, as stadium tickets tend to sell earliest.

The speaker addresses the high price of tickets and the resulting deferred revenue, as well as the shift towards more arenas and amphitheaters. They also mention a potential decrease in revenue, but express confidence in double-digit growth. The speaker then responds to a question about festival demand, stating that their company has not seen any issues and has actually experienced double-digit growth in ticket sales and sponsorship. They also mention launching new festivals and shutting down underperforming ones.

The speaker discusses the current trend in music festivals, noting a shift towards more niche one or two day festivals with higher per head and sponsorship values. They also mention the difficulty in securing a unique headliner for larger festivals and the success of partnering with third parties for venue deployment.

The speaker discusses partnership opportunities with Legends and Spanaway Group in Boston and their plans to expand their retail footprint in sports arenas. They also mention potential partnerships with NBA, NHL, and NFL owners for concourse retail areas. The company is excited about this division and has a long pipeline of projects. They have the option to do projects on their own or partner with developers. Additionally, they have strong demand for partnerships and are seeing more opportunities than they can currently execute on. The next question is about sponsorship revenue, which increased 24% in the quarter, driven by international growth.

The growth in international markets is driving the strong performance in Q1, with festivals being a major contributor. The company expects to see continued growth in sponsorship in Q1 and Q4, especially in South America and Asia. The growth is a testament to the company's strong performance in recent years and the high demand for live events.

The demand for live experiences and festivals is high among brands, and this trend is expected to continue. The concert segment margin is expected to be higher than last year, but this could be affected by factors such as currency fluctuations, Q4 arena bookings, and the strong outlook for stadiums in 2025.

The speaker discusses the accounting impact of putting shows on sale in Q4 and incurring marketing expenses for stadiums. They mention that this may affect margins but overall, they are optimistic about delivering double-digit growth for the year. The higher CapEx outlook also indicates potential for growth and opportunities in new venue investments.

The growth of the company's concerts and sponsorship businesses will be the main drivers of growth, while Ticketmaster may experience slower growth due to the loss of high-ticket price shows. The company is seeing strong performance and a growing pipeline for venue build-out projects, and believes it can continue to achieve double-digit growth for many years to come even without building large arenas outside the US.

The speaker discusses the importance of long-term planning and returns on capital for a company's growth. They mention that venues are a significant component of their plan and that they use a standard return on invested capital metric. They also address potential changes in disclosure practices, stating that they currently do not plan to separate venues as a separate segment and are still considering the implications of recent FASB requests.

The speaker explains that the increase in concert attendance in North America compared to international attendance in the first quarter is due to fewer international stadiums and an increase in North American stadiums. They expect growth to come mainly from international amphitheaters in the future.

The speaker discusses the company's focus on international growth and the potential for increased concert attendance per capita in the US and abroad. They also mention plans for upgrading ticketing platforms globally.

The company is focusing on driving growth through additional venues and international markets, while also implementing a hyper local strategy in more penetrated markets like the U.K. They are also investing in their ticketing system and developing new products for both enterprise customers and the marketplace. Overall, they expect stable investment levels in the coming years. The CEO, Michael Rapino, thanks everyone for participating in the teleconference and looks forward to speaking again in the summer.

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