Demand for live events further increased in the third quarter, driving impressive revenue growth and profit expansion for Live Nation Entertainment LYV. Tickets sold since the beginning of the year for Live Nation shows have already exceeded the number of tickets sold for all of 2022. On the advertising and sponsorship front, the company has already secured a full commitment for 2023, with various multi-year deals paving the way, including the recently announced deal with Mastercard. Pathways to advertising revenue growth from 2024 onwards. The Company maintains its fair value estimate of $105. In our view, Narrow Moat’s Live Nation stock remains attractive.
Total revenue increased 32% year-over-year to $8.15 billion, driven by increased concert (up 32%), ticket sales (up 57%) and sponsorship (up 7%) revenues. Increased consumer demand was seen with his 8% more events held during the quarter, while the average number of attendees per event increased by his 10%. Increased ancillary revenue increased his average revenue per fan by nearly 12%. Deferred revenue is up 39% year-over-year, indicating that the impressive revenue growth is likely to continue into the fourth quarter and into his early 2024.
In ticketing, the number of paid tickets sold increased by 6% and the total transaction value of paid tickets increased by 36% due to price increases. The company’s average revenue per paid ticket increased 29% over last year. Consumer demand and reduced economic uncertainty attracted more sponsors and drove growth in the sponsorship sector.
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