Press Release

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

LIVE NATION REPORTS STRONG THIRD QUARTER 2009 RESULTS

- Revenue growth of 14% to $1.8 billion driven by a 12% increase in attendance -

- Income from continuing operations before taxes growth of 53% to $96 million -

- Free Cash Flow nearly doubles to $123 million -

LOS ANGELES – November 9, 2009 – Live Nation (NYSE: LYV) released financial results for the three months ended September 30, 2009 today.


Quarterly Summary Results
Unaudited; $ in millions
	Q3 2009		Q3 2008

Revenue	$	1,808.3	$	1,588.5

Adjusted Operating Income	$	160.8	$	109.5

Operating Income	$	114.8	$	75.5

Free Cash Flow	$	123.2	$	64.4

“We generated robust organic growth from our operations during the third quarter as we focused on executing our fundamentals with excellence during the peak concert season,” said Michael Rapino, President and Chief Executive Officer of Live Nation. “Our dedication to driving efficiencies across our core operations helped drive solid free cash flow of $123 million in the third quarter as we continue to focus on reducing our overall leverage. Our ability to generate strong attendance growth of 12% despite the worst economic climate in decades speaks to the strength of our concert platform and our ongoing focus on improving how we promote, price and distribute live music products to millions of fans globally.”

“The launch of our new e-commerce ticketing site has allowed us to start vertically integrating into a high-growth sector and improve our core business of selling more tickets directly to fans,” Rapino continued. “There is more that we want to do, but Livenation.com is already a highly ranked music destination attracting millions of fans daily, seeking tickets and information on their favorite concerts. Despite a challenging advertising environment, we have also grown our sponsorship revenue by almost 5% year-to-date which illustrates our ability to connect brands, concerts and music fans. With these growth levers, along with our disciplined approach to cost management, we believe that we are well-positioned to deliver healthy gains in our annual cash flows with a priority on reducing our long-term debt and strengthening our balance sheet.”

Highlights:

•

Recently completed the sale of our remaining U.K. theater assets, in two transactions, for aggregate gross sales proceeds of approximately $160 million. Half of the net proceeds, currently estimated at approximately $111 million, will be applied as a permanent reduction in our term loans.

•

Through our LiveNation.com network, we have sold 10.6 million tickets globally since the beginning of 2009, including 3.0 million tickets sold in the third quarter of 2009. This total for the year includes 1.7 million tickets sold internationally.

•

We had continued success with our “No Service Fee Wednesday” promotion, selling over 816,000 tickets in North America through this program during 2009.

•

Our LiveNation.com network was ranked 5^th by Nielsen NetView among the most-visited domestic music websites, with 5.0 million unique visitors in the month of July. Traffic to our website has increased by over 55% in the first nine months of the year as compared to last year.

•

Reported revenue of $1.8 billion for the third quarter reflects an increase of $220 million over the third quarter of 2008. Revenue on a constant currency basis was up 19% over the prior year.

•

Sponsorship revenue totaled $78.5 million during the third quarter, an increase of 4.4% over the prior year. In October 2009, Live Nation formed a multi-year strategic sponsorship and marketing alliance with Coca-Cola that leverages the company’s artist-to-fan distribution platform.

•

Income from continuing operations for the third quarter was $79.2 million as compared to $30.7 million in 2008, after adjusting 2008 for the tax benefit of $64.1 million recorded in continuing operations related to discontinued operations. For the first nine months of 2009, the loss from continuing operations was ($50.8) million as compared to ($59.6) million in 2008, after adjusting 2008 for the tax benefit of $83.1 million recorded in continuing operations related to discontinued operations.

•

We continue the process of seeking regulatory approval for our pending merger with Ticketmaster Entertainment, Inc. and we currently expect that this transaction will be completed in the first quarter of 2010. For the third quarter of 2009, we incurred $7.8 million of acquisition transaction expenses. These costs are now required to be expensed under new accounting rules in 2009 and therefore reduced our operating income for the period.

Key operating metrics related to our business for the third quarter and nine months ended September 30 are outlined below:

METRICS


(Unaudited; $ in millions except as noted)

Key Drivers	Q3 2009			Q3 2008			Variance		9 months 2009			9 months 2008			Variance
Global Music
Talent Costs and Other Event Direct Operating Expenses	$	1,459.2		$	1,288.6		13.2	%	$	2,659.3		$	2,559.3		3.9	%
Talent and Other Event Expenses as % of Total Revenue		82.8	%		82.3	%				81.5	%		80.9	%
Number of Live Rights (Concerts) (est.)		4,750			4,790		(0.8	)%		14,902			15,103		(1.3	)%
Total Attendance (est.)		19,551,000			17,471,000		11.9	%		39,721,000			38,836,000		2.3	%
Ancillary Revenue per Attendee - NA Music Amps only*	$	17.58		$	17.02		3.3	%	$	17.78		$	17.24		3.1	%
Total Revenue per Attendee	$	90.18		$	89.60		0.6	%	$	82.13		$	81.47		0.8	%

Sponsorship
Number of Sponsors (est.) - as of September 30, 2009		793			770		3.0	%		793			770		3.0	%
Sponsorship Revenue Recognized	$	78.5		$	75.2		4.4	%	$	144.6		$	138.2		4.6	%
Average Revenue per Sponsor (rounded, whole $)	$	99,000		$	98,000		1.0	%	$	182,000		$	179,000		1.7	%

*	Excludes rentals

FINANCIAL HIGHLIGHTS – 3^r^d QUARTER

(Unaudited)


	Q3 2009			Q3 2008			Growth
	*$ in millions*
Revenue
North American Music	$	1,036.2		$	962.3		7.7	%
International Music		726.9			603.1		20.5	%
Ticketing		30.2			6.7			**
Other		15.0			16.4		(8.5	)%

	$	1,808.3		$	1,588.5		13.8	%


									Margins
Adjusted Operating Income (Loss)									Q3 2009		Q3 2008
North American Music	$	99.4		$	75.5		31.6	%	9.6	%	7.8	%
International Music		57.6			47.2		22.0	%	7.9	%	7.8	%
Ticketing		12.5			(5.1	)		**	41.4	%		**
Other		5.4			2.6			**
Corporate		(14.1	)		(10.7	)	(31.8	)%

	$	160.8		$	109.5		46.9	%	8.9	%	6.9	%

Operating Income (Loss)
North American Music	$	71.9		$	56.6		27.0	%	6.9	%	5.9	%
International Music		50.7			38.6		31.3	%	7.0	%	6.4	%
Ticketing		9.5			(6.5	)		**	31.5	%		**
Other		6.4			0.4			**
Corporate		(15.9	)		(13.6	)	(16.9	)%

	$	122.6		$	75.5		62.4	%	6.8	%	4.8	%

Acquisition Transaction Expenses:
International Music		(0.7	)		—			**
Corporate		(7.1	)		—			**

	$	114.8		$	75.5		52.1	%	6.3	%	4.8	%

**	percentages not meaningful

The highlights of our financial information for the third quarter of 2009, as compared to the third quarter of 2008, are as follows:

Revenue change – Total increase of $219.8 million, primarily driven by:

•

$218.3 million – Increase in International Music due to the re-opening of the O₂ in Dublin, strong festival performance in the United Kingdom and Belgium and strong stadium shows for our global touring artists U2 and Madonna.

•

$57.2 million – Increase in North American Music primarily due to higher attendance at arena shows and third-party venues and the opening of our new House of Blues clubs in Houston and Boston.

•

$24.5 million – Acquisition of De-Lux in North American Music.

•

$23.5 million – Increase in Ticketing due to increased service charge revenue from our new ticketing platform.

•

($16.8) million – Decrease in International Music related to the divestiture of F&P Italia.

•

($88.1) million – Foreign exchange movements, primarily in International Music.

Adjusted Operating Income (Loss) change – Total increase of $51.3 million, primarily driven by:

•

$24.3 million – Increase in North American Music primarily due to increased show results for arena tours combined with lower fixed costs due to cost-saving initiatives.

•

$17.7 million – Increase in International Music primarily due to strong stadium shows and festivals in the United Kingdom and Belgium and the reopening of the O₂ Dublin.

•

$17.6 million – Increase in Ticketing due to increased net revenue from ticket service charges related to events that occurred during the third quarter of 2009.

•

($8.5) million – Foreign exchange movements, primarily in International Music.

Operating Income (Loss) change – Total increase of $39.3 million, primarily driven by:

•

$51.3 million – Overall increase in adjusted operating income noted above.

•

($5.9) million – Higher depreciation and amortization expense due to an increase primarily in our North American Music segment driven by higher amortization of intangible assets associated with certain artist rights agreements.

•

($7.8) million – Acquisition transaction expenses in Corporate and International Music which are now required to be expensed under new accounting rules in 2009. These costs are primarily related to our planned merger with Ticketmaster Entertainment, Inc.

FINANCIAL HIGHLIGHTS – NINE MONTHS ENDED SEPTEMBER 30

(Unaudited)


	9 months 2009			9 months 2008			Growth
	*$ in millions*
Revenue
North American Music	$	2,051.8		$	1,989.1		3.2	%
International Music		1,210.6			1,175.0		3.0	%
Ticketing		60.5			19.8			**
Other		47.7			67.0		(28.8	)%

	$	3,370.6		$	3,250.9		3.7	%


									Margins
Adjusted Operating Income (Loss)									9 months 2009		9 months 2008
North American Music	$	101.9		$	100.7		1.2	%	5.0	%	5.1	%
International Music		85.9			69.7		23.2	%	7.1	%	5.9	%
Ticketing		8.6			(11.1	)		**	14.2	%		**
Other		16.5			12.5		32.0	%
Corporate		(35.3	)		(30.3	)	(16.5	)%

	$	177.6		$	141.5		25.5	%	5.3	%	4.4	%

Operating Income (Loss)
North American Music	$	20.5		$	36.9		(44.4	)%	1.0	%	1.9	%
International Music		61.4			42.6		44.1	%	5.1	%	3.6	%
Ticketing		(1.1	)		(14.7	)		**	(1.8	%)		**
Other		14.6			6.3			**
Corporate		(41.9	)		(38.1	)	(10.0	)%

		53.5			33.0		62.1	%	1.6	%	1.0	%

Acquisition Transaction Expenses:
International Music		(0.8	)		—			**
Corporate		(25.7	)		—			**

	$	27.0		$	33.0		(18.2	)%	0.8	%	1.0	%

**	percentages not meaningful

The highlights of our financial information for the nine-month period ended September 30, 2009, as compared to the same period in 2008, are as follows:

Revenue change – Total increase of $119.7 million, primarily driven by:

•

$239.6 million – Increase in International Music driven by strong stadium shows for global touring artists including U2 and Madonna, improved festival performance in the United Kingdom and Belgium and the reopening of the O₂ Dublin.

•

$63.5 million – Acquisitions of De-Lux in North American Music and DF Concerts and other smaller acquisitions in International Music.

•

$40.7 million – Increase in Ticketing due to our new ticketing platform and ticketing-related sponsorship revenue.

•

$37.6 million – Increase in North American Music primarily due to the opening of our new House of Blues clubs in Houston and Boston and increased attendance and average ticket prices and/or ancillary revenue per fan at third-party venues and arenas.

•

($33.8) million – Decrease in International Music related to the divestiture of F&P Italia.

•

($223.0) million – Foreign exchange movements, primarily in International Music.

Adjusted Operating Income (Loss) change – Total increase of $36.1 million, primarily driven by:

•

$29.0 million – Increase in International Music due to the reopening of the O₂ Dublin and improved festival performance in the United Kingdom and Belgium.

•

$19.7 million – Improvement in Ticketing due to increased net revenue from ticket service charges related to events that occurred during the first nine months of 2009 along with ticketing-related sponsorships.

•

($17.4) million – Foreign exchange movements, primarily in International Music.

Operating Income (Loss) change – Total decrease of $6.0 million, primarily driven by:

•

$36.1 million – Overall increase in Adjusted Operating Income (Loss) noted above.

•

($26.5) million – Acquisition transaction expenses in Corporate and International Music, primarily related to our planned merger with Ticketmaster, which are now required to be expensed under new accounting rules in 2009.

•

($18.9) million – Higher depreciation and amortization expense primarily due to increases in our North American Music and Ticketing segments associated with artist rights amortization, the Boston asset sale impairment in the first quarter and the opening of our new venues, along with increased depreciation related to our ticketing and website platforms.

Other Information –

•

As of September 30, 2009, our cash and cash equivalents were $258.1 million and our total long-term debt was $854.6 million, including $150.0 million outstanding on our revolving credit facility. Free cash as of September 30, 2009 was $9.6 million and free cash flow was $123.2 million for the third quarter of 2009 as compared to $64.4 million for the same period in 2008.

•

For the nine months ended September 30, 2009, maintenance capital expenditures were $13.9 million and capital expenditures for revenue generating projects were $25.4 million, a total decline of $99.2 million compared to last year due to the 2008 development and renovation of various venues, including the O₂ Dublin, House of Blues clubs in Houston and Boston and the AMG venue expansion in Sheffield, along with the ticketing roll-out.

•

For the nine months ended September 30, 2009, our net cash provided by operating activities was $58.1 million, an increase of $129.5 million over the same period in 2008 primarily from the changes in event-related operating accounts which are dependent on the timing, size and number of events for upcoming periods.

About Live Nation:

Live Nation’s mission is to maximize the live concert experience. Our core business is producing, marketing and selling live concerts for artists via our global concert pipe. Live Nation is the largest producer of live concerts in the world, annually producing over 22,000 concerts for 1,600 artists in 33 countries. During 2008, the company sold over 50 million concert tickets and drove over 70 million unique visitors to LiveNation.com. Live Nation is transforming the concert business by expanding its concert platform into ticketing and building the industry’s first artist-to-fan vertically integrated concert platform. The company is headquartered in Los Angeles, California and is listed on the New York Stock Exchange, trading under the symbol LYV. For additional information about the company, please visit www.livenation.com/investors.

Conference Call:

The company will host a teleconference today, November 9^th, 2009 at 5:30 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int’l) and referencing passcode 33530649. 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 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 November 16, 2009.


Media Contact:		Investor Contact:

John Vlautin		Linda Bandov
Live Nation, Inc.		Live Nation, Inc.
(310) 867-7000		(310) 867-7000
johnvlautin@livenation.com		lindabandov@livenation.com

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	(in thousands except share and per share data)

Revenue	$	1,808,296		$	1,588,462		$	3,370,569		$	3,250,886
Operating expenses:
Direct operating expenses		1,470,674			1,295,416			2,689,397			2,589,443
Selling, general and administrative expenses		164,104			174,245			472,379			495,311
Depreciation and amortization		37,401			31,490			117,699			98,761
Gain on sale of operating assets		(2,672	)		(1,230	)		(3,658	)		(781	)
Corporate expenses		16,190			13,062			41,284			35,177
Acquisition transaction expenses		7,780			—			26,515			—

Operating income		114,819			75,479			26,953			32,975
Interest expense		17,438			17,220			50,702			51,307
Interest income		(348	)		(2,978	)		(2,019	)		(8,406	)
Equity in earnings of nonconsolidated affiliates		(499	)		(1,979	)		(1,982	)		(871	)
Other expense (income) — net		2,206			277			2,815			(838	)

Income (loss) from continuing operations before income taxes		96,022			62,939			(22,563	)		(8,217	)
Income tax expense (benefit):
Current		17,918			(32,318	)		30,590			(37,870	)
Deferred		(1,068	)		470			(2,360	)		6,132

Income (loss) from continuing operations		79,172			94,787			(50,793	)		23,521
Income from discontinued operations, net of tax		—			47,550			—			76,456

Net income (loss)		79,172			142,337			(50,793	)		99,977
Net income (loss) attributable to noncontrolling interests		9,925			4,344			9,865			(123	)

Net income (loss) attributable to Live Nation, Inc.)	$	69,247		$	137,993		$	(60,658	)	$	100,100

Basic net income (loss) per common share attributable to common stockholders:
Income (loss) from continuing operations attributable to Live Nation, Inc.	$	0.82		$	1.17		$	(0.74	)	$	0.31
Income from discontinued operations attributable to Live Nation, Inc.		—			0.61			—			1.00

Net income (loss) attributable to Live Nation, Inc.	$	0.82		$	1.78		$	(0.74	)	$	1.31

Diluted net income (loss) per common share attributable to common stockholders:
Income (loss) from continuing operations attributable to Live Nation, Inc	$	0.78		$	1.10		$	(0.74	)	$	0.31
Income from discontinued operations attributable to Live Nation, Inc		—			0.56			—			1.00

Net income (loss) attributable to Live Nation, Inc.	$	0.78		$	1.66		$	(0.74	)	$	1.31

Weighted average common shares outstanding:
Basic		83,631,558			76,230,900			82,296,605			75,647,661

Diluted		92,717,666			84,513,127			82,296,605			76,230,602

CONSOLIDATED BALANCE SHEETS


	September 30, 2009			December 31, 2008
	(unaudited)			(audited)
ASSETS	(in thousands)
CURRENT ASSETS
Cash and cash equivalents	$	258,089		$	199,660
Accounts receivable, less allowance of $5,914 as of September 30, 2009 and $10,376 as of December 31, 2008		324,835			217,286
Prepaid expenses		330,985			194,355
Other current assets		40,405			28,517

Total Current Assets		954,314			639,818
PROPERTY, PLANT AND EQUIPMENT
Land, buildings and improvements		1,006,324			990,433
Furniture and other equipment		276,020			260,524
Construction in progress		27,819			41,282

		1,310,163			1,292,239
Less accumulated depreciation		457,685			404,504

		852,478			887,735

INTANGIBLE ASSETS
Intangible assets — net		488,440			514,469
Goodwill		209,098			205,296
OTHER LONG-TERM ASSETS
Notes receivable, less allowance of $556 as of September 30, 2009 and $562 as of December 31, 2008		255			672
Investments in nonconsolidated affiliates		18,193			18,519
Other long-term assets		174,083			210,214

Total Assets	$	2,696,861		$	2,476,723

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	88,294		$	53,563
Accrued expenses		540,617			378,992
Deferred revenue		275,535			225,664
Current portion of long-term debt		50,106			48,637
Other current liabilities		23,840			64,381

Total Current Liabilities		978,392			771,237
Long-term debt, net of discount		804,477			775,483
Other long-term liabilities		140,219			146,360
Series A and Series B redeemable preferred stock		40,000			40,000
Commitments and contingent liabilities
STOCKHOLDERS’ EQUITY
Common stock		859			785
Additional paid-in capital		1,090,953			1,063,564
Retained deficit		(434,264	)		(373,606	)
Cost of shares held in treasury		(9,514	)		(7,861	)
Accumulated other comprehensive income (loss)		8,634			(961	)

Total Live Nation, Inc. stockholders’ equity		656,668			681,921
Noncontrolling Interests		77,105			61,722

Total Stockholders’ Equity		733,773			743,643

Total Liabilities and Stockholders’ Equity	$	2,696,861		$	2,476,723

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Nine Months Ended September 30,
	2009			2008
	(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(50,793	)	$	99,977
Reconciling items:
Depreciation		76,033			57,981
Amortization of intangibles		41,666			54,572
Impairment of operational assets		—			16,035
Deferred income tax expense (benefit)		(2,360	)		6,132
Amortization of debt issuance costs		2,763			3,106
Amortization of debt discount		6,528			5,923
Non-cash compensation expense		10,011			9,588
Gain on sale of operating assets		(3,658	)		(167,797	)
Equity in losses (earnings) of nonconsolidated affiliates		(1,982	)		673
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Increase in accounts receivable		(108,003	)		(126,615	)
Increase in prepaid expenses		(73,228	)		(83,259	)
Increase in other assets		(22,522	)		(89,552	)
Increase in accounts payable, accrued expenses and other liabilities		184,611			89,288
Increase (decrease) in deferred revenue		(995	)		52,885
Decrease in other — net		—			(401	)

Net cash provided by (used in) operating activities		58,071			(71,464	)
CASH FLOWS FROM INVESTING ACTIVITIES
Collections of notes receivable		616			106
Advances to notes receivable		(555	)		—
Distributions from nonconsolidated affiliates		2,223			4,976
Investments made in nonconsolidated affiliates		(821	)		(255	)
Purchases of property, plant and equipment		(39,358	)		(138,550	)
Proceeds from disposal of operating assets, net of cash divested		38,516			194,286
Cash paid for acquisitions, net of cash acquired		(12,538	)		(35,977	)
Purchases of intangible assets		(27,863	)		(18,816	)
Decrease in other — net		187			308

Net cash provided by (used in) investing activities		(39,593	)		6,078
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of debt issuance costs		430,511			275,242
Payments on long-term debt		(416,143	)		(327,614	)
Contributions from noncontrolling interest partners		—			8,847
Distributions to noncontrolling interest partners		(816	)		(1,845	)
Proceeds from exercise of stock options		—			636
Issuance of treasury stock		1,553			—
Payments for purchases of common stock		(5,803	)		(3,628	)

Net cash provided by (used in) financing activities		9,302			(48,362	)
Effect of exchange rate changes on cash and cash equivalents		30,649			(19,327	)

Net increase (decrease) in cash and cash equivalents		58,429			(133,075	)
Cash and cash equivalents at beginning of period		199,660			338,991

Cash and cash equivalents at end of period	$	258,089		$	205,916

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 potential health and growth of Live Nation’s business, including its prospects for delivering increased annual cash flows, reducing its long-term debt and strengthening its balance sheet; the company’s anticipated achievement of its strategic objectives, including with respect to its new e-commerce ticketing site; the company’s planned capital expenditures for the remainder of 2009; and the anticipated timing of the closing of the company’s pending merger with Ticketmaster Entertainment, Inc. 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, 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, as amended and as updated by the company’s Current Reports on Form 8-K filed with the SEC on May 28, 2009 and September 16, 2009, 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) is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition transaction expenses, depreciation and amortization, loss (gain) on sale of operating assets and non-cash compensation expense. The company uses Adjusted Operating Income (Loss) to evaluate the performance of its operating segments. The company believes that information about Adjusted Operating Income (Loss) assists investors by allowing them to evaluate changes in the operating results of the company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted Operating Income (Loss) is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of Adjusted Operating Income (Loss) as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the company’s business. Accordingly, Adjusted Operating Income (Loss) 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 U.S. GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted Operating Income (Loss) 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 net cash interest expense, less current tax expense, less maintenance capital expenditures, less 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 U.S. generally accepted accounting principles. 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 it is not necessarily a measure of our ability to fund our 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 U.S. GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented above 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 event-related deferred revenue, less accrued artist fees, less collections on behalf of others plus prepaids related to artist settlements and events. 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 expenditures. Free cash is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available for 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 U.S. 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 operating income (loss)			Non-cash compensation expense		Loss (gain) on sale of operating assets			Depreciation and amortization		Acquisition transaction expenses		Operating income (loss)
	Three months ended September 30, 2009

North American Music	$	99.4		$	1.5	$	(0.1	)	$	26.1	$	—	$	71.9
International Music		57.6			0.3		(0.1	)		6.7		0.7		50.0
Ticketing		12.5			0.1		—			2.9		—		9.5
Other		5.4			—		(2.5	)		1.5		—		6.4
Corporate		(14.1	)		1.6		—			0.2		7.1		(23.0	)

Total Live Nation	$	160.8		$	3.5	$	(2.7	)	$	37.4	$	7.8	$	114.8


	Three months ended September 30, 2008

North American Music	$	75.5		$	0.9	$	(0.7	)	$	18.7	$	—	$	56.6
International Music		47.2			0.3		—			8.3		—		38.6
Ticketing		(5.1	)		0.1		—			1.3		—		(6.5	)
Other		2.6			—		—			2.2		—		0.4
Corporate		(10.7	)		2.4		(0.5	)		1.0		—		(13.6	)

Total Live Nation	$	109.5		$	3.7	$	(1.2	)	$	31.5	$	—	$	75.5


	Nine months ended September 30, 2009

North American Music	$	101.9		$	3.3	$	(1.0	)	$	79.1	$	—	$	20.5
International Music		85.9			1.1		(0.2	)		23.6		0.8		60.6
Ticketing		8.6			0.2		—			9.5		—		(1.1	)
Other		16.5			—		(2.5	)		4.4		—		14.6
Corporate		(35.3	)		5.5		—			1.1		25.7		(67.6	)

Total Live Nation	$	177.6		$	10.1	$	(3.7	)	$	117.7	$	26.5	$	27.0


	Nine months ended September 30, 2008

North American Music	$	100.7		$	4.9	$	(0.8	)	$	59.7	$	—	$	36.9
International Music		69.7			0.5		—			26.6		—		42.6
Ticketing		(11.1	)		0.3		—			3.3		—		(14.7	)
Other		12.5			—		(0.2	)		6.4		—		6.3
Corporate		(30.3	)		4.8		0.2			2.8		—		(38.1	)

Total Live Nation	$	141.5		$	10.5	$	(0.8	)	$	98.8	$	—	$	33.0

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


in ($ in millions)	Q3 2009			Q3 2008
Adjusted operating income	$	160.8		$	109.5
Less: Cash interest expense — net		(13.8	)		(10.6	)
Current tax expense		(17.9	)		(31.7	)
Maintenance capital expenditures		(5.3	)		(2.6	)
Distributions to noncontrolling interest partners		(0.5	)		(1.4	)
Distributions from (contributions to) investments in nonconsolidated affiliates		(0.1	)		1.2

Free cash flow	$	123.2		$	64.4


in ($ in millions)	9 months 2009			9 months 2008
Adjusted operating income	$	177.6		$	141.5
Less: Cash interest expense — net		(39.4	)		(33.9	)
Current tax expense		(30.6	)		(45.3	)
Maintenance capital expenditures		(13.9	)		(21.7	)
Distributions to noncontrolling interest partners		(0.8	)		(1.8	)
Distributions from (contributions to) investments in nonconsolidated affiliates		1.4			4.7

Free cash flow	$	94.3		$	43.5

Reconciliation of Cash and Cash Equivalents to Free Cash


($ in millions)	September 30, 2009
Cash and cash equivalents	$	258.1
Deferred revenue – event-related	$	(258.2	)
Accrued artist fees	$	(63.3	)
Collections on behalf of others	$	(91.8	)
Prepaids related to artist settlements/events	$	164.8

Free cash	$	9.6