Live Nation Entertainment Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

SEGMENT DATA

3 Months Ended

Mar. 31, 2019

Our reportable segments are Concerts, Ticketing and Sponsorship & Advertising. Our Concerts segment involves the promotion of live music events globally in our owned or operated venues and in rented third-party venues, the production of music festivals, the operation and management of music venues, the creation of associated content and the provision of management and other services to artists. Our Ticketing segment involves the management of our global ticketing operations, including providing ticketing software and services to clients, and consumers with a marketplace, both online and mobile, for tickets and event information, and is responsible for our primary ticketing website, www.ticketmaster.com. Our Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related original content, and ads across our distribution network of venues, events and websites.

Revenue and expenses earned and charged between segments are eliminated in consolidation. Our capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from outside parties such as landlords or replacements funded by insurance proceeds.

We manage our working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, our management to allocate resources to or assess performance of the segments, and therefore, total segment assets have not been presented.

The following table presents the results of operations for our reportable segments for the three months ended March 31, 2019 and 2018:



	Concerts			Ticketing			Sponsorship & Advertising		Other			Corporate			Eliminations			Consolidated
	(in thousands)
Three Months Ended March 31, 2019
Revenue	$	1,318,117		$	337,642		$	75,078	$	791		$	—		$	(3,800	)	$	1,727,828
Direct operating expenses	1,030,269			111,749			13,386		—			—			(3,800		)	1,151,604
Selling, general and administrative expenses	295,765			145,890			22,437		774			—			—			464,866
Depreciation and amortization	51,361			37,390			7,074		121			2,966			—			98,912
Gain on disposal of operating assets	(145		)	(2		)	—		—			—			—			(147		)
Corporate expenses	—			—			—		—			36,456			—			36,456
Operating income (loss)	$	(59,133	)	$	42,615		$	32,181	$	(104	)	$	(39,422	)	$	—		$	(23,863	)
Intersegment revenue	$	809		$	2,991		$	—	$	—		$	—		$	(3,800	)	$	—
Capital expenditures	$	33,593		$	23,655		$	1,185	$	—		$	4,333		$	—		$	62,766
Three Months Ended March 31, 2018
Revenue	$	1,038,921		$	372,373		$	74,558	$	777		$	—		$	(4,245	)	$	1,482,384
Direct operating expenses	796,165			124,284			15,751		129			—			(4,245		)	932,084
Selling, general and administrative expenses	261,091			149,583			20,095		3,842			—			—			434,611
Depreciation and amortization	45,535			33,633			7,610		209			884			—			87,871
Loss on disposal of operating assets	21			17			—		—			—			—			38
Corporate expenses	—			—			—		—			33,810			—			33,810
Operating income (loss)	$	(63,891	)	$	64,856		$	31,102	$	(3,403	)	$	(34,694	)	$	—		$	(6,030	)
Intersegment revenue	$	249		$	3,996		$	—	$	—		$	—		$	(4,245	)	$	—
Capital expenditures	$	19,613		$	20,305		$	382	$	12		$	854		$	—		$	41,166