| SEGMENT DATA |
SEGMENT DATA
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 and six months ended June 30, 2019 and 2018:
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Concerts |
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Ticketing |
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Sponsorship
& Advertising |
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Other |
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Corporate |
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Eliminations |
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Consolidated |
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(in thousands) |
Three Months Ended June 30, 2019 |
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Revenue |
$ |
2,639,531 |
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$ |
370,765 |
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$ |
151,537 |
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|
$ |
790 |
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|
$ |
— |
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$ |
(5,614 |
) |
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$ |
3,157,009 |
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Direct operating expenses |
2,186,767 |
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|
120,630 |
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|
25,631 |
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— |
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— |
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(5,614 |
) |
|
2,327,414 |
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Selling, general and administrative expenses |
338,054 |
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|
146,382 |
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|
28,169 |
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|
892 |
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— |
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— |
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|
513,497 |
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Depreciation and amortization |
54,219 |
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|
39,513 |
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|
6,374 |
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|
138 |
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|
3,582 |
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— |
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|
103,826 |
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Loss (gain) on disposal of operating assets |
(210 |
) |
|
109 |
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— |
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— |
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— |
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— |
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(101 |
) |
Corporate expenses |
— |
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— |
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— |
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— |
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|
40,787 |
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— |
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|
40,787 |
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Operating income (loss) |
$ |
60,701 |
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$ |
64,131 |
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$ |
91,363 |
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$ |
(240 |
) |
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$ |
(44,369 |
) |
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$ |
— |
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$ |
171,586 |
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Intersegment revenue |
$ |
2,131 |
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$ |
3,483 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(5,614 |
) |
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$ |
— |
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Three Months Ended June 30, 2018 |
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Revenue |
$ |
2,380,736 |
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$ |
351,195 |
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|
$ |
139,938 |
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|
$ |
1,177 |
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$ |
— |
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$ |
(4,731 |
) |
|
$ |
2,868,315 |
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Direct operating expenses |
1,990,254 |
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|
119,787 |
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|
29,200 |
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|
597 |
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— |
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(4,731 |
) |
|
2,135,107 |
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Selling, general and administrative expenses |
302,019 |
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|
147,350 |
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|
23,114 |
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|
3,955 |
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— |
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— |
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|
476,438 |
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Depreciation and amortization |
46,519 |
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|
34,989 |
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|
7,132 |
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|
178 |
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|
967 |
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— |
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|
89,785 |
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Loss (gain) on disposal of operating assets |
114 |
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(6 |
) |
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— |
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— |
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— |
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— |
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|
108 |
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Corporate expenses |
— |
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— |
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— |
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— |
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|
32,152 |
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— |
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|
32,152 |
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Operating income (loss) |
$ |
41,830 |
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$ |
49,075 |
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$ |
80,492 |
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$ |
(3,553 |
) |
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$ |
(33,119 |
) |
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$ |
— |
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$ |
134,725 |
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Intersegment revenue |
$ |
1,111 |
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|
3,620 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(4,731 |
) |
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$ |
— |
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Six Months Ended June 30, 2019 |
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Revenue |
$ |
3,957,648 |
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$ |
708,407 |
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$ |
226,615 |
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$ |
1,581 |
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$ |
— |
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$ |
(9,414 |
) |
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$ |
4,884,837 |
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Direct operating expenses |
3,217,036 |
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|
232,379 |
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|
39,017 |
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— |
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— |
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(9,414 |
) |
|
3,479,018 |
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Selling, general and administrative expenses |
633,819 |
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|
292,272 |
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|
50,606 |
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|
1,666 |
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— |
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— |
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|
978,363 |
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Depreciation and amortization |
105,580 |
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|
76,903 |
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|
13,448 |
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|
259 |
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|
6,548 |
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— |
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|
202,738 |
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Loss (gain) on disposal of operating assets |
(355 |
) |
|
107 |
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— |
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— |
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— |
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— |
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|
(248 |
) |
Corporate expenses |
— |
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— |
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— |
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— |
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|
77,243 |
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— |
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|
77,243 |
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Operating income (loss) |
$ |
1,568 |
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$ |
106,746 |
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$ |
123,544 |
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$ |
(344 |
) |
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$ |
(83,791 |
) |
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$ |
— |
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$ |
147,723 |
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Intersegment revenue |
$ |
2,940 |
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$ |
6,474 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(9,414 |
) |
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$ |
— |
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Capital expenditures |
$ |
78,873 |
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$ |
48,745 |
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$ |
3,301 |
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$ |
— |
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$ |
9,231 |
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$ |
— |
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$ |
140,150 |
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Concerts |
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Ticketing |
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Sponsorship
& Advertising |
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Other |
|
Corporate |
|
Eliminations |
|
Consolidated |
|
(in thousands) |
Six Months Ended June 30, 2018 |
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Revenue |
$ |
3,419,657 |
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$ |
723,568 |
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$ |
214,496 |
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$ |
1,954 |
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$ |
— |
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$ |
(8,976 |
) |
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$ |
4,350,699 |
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Direct operating expenses |
2,786,419 |
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|
244,071 |
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|
44,951 |
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|
726 |
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— |
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(8,976 |
) |
|
3,067,191 |
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Selling, general and administrative expenses |
563,110 |
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|
296,933 |
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|
43,209 |
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|
7,797 |
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— |
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— |
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|
911,049 |
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Depreciation and amortization |
92,054 |
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|
68,622 |
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|
14,742 |
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|
387 |
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|
1,851 |
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— |
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|
177,656 |
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Loss on disposal of operating assets |
135 |
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|
11 |
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|
— |
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|
— |
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|
— |
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|
— |
|
|
146 |
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Corporate expenses |
— |
|
|
— |
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|
— |
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— |
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|
65,962 |
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|
— |
|
|
65,962 |
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Operating income (loss) |
$ |
(22,061 |
) |
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$ |
113,931 |
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$ |
111,594 |
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$ |
(6,956 |
) |
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$ |
(67,813 |
) |
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$ |
— |
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$ |
128,695 |
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Intersegment revenue |
$ |
1,360 |
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$ |
7,616 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(8,976 |
) |
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$ |
— |
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Capital expenditures |
$ |
49,488 |
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$ |
43,562 |
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$ |
1,892 |
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$ |
26 |
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$ |
2,969 |
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$ |
— |
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$ |
97,937 |
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