"Live Nation" (which may be referred to as the "Company," "we," "us" or "our") means Live Nation Entertainment, Inc. and its subsidiaries, or one of our segments or subsidiaries, as the context requires. You should read the following discussion of our financial condition and results of operations together with the unaudited consolidated financial statements and notes to the financial statements included elsewhere in this quarterly report.


                 Special Note About Forward-Looking Statements

Certain statements contained in this quarterly report (or otherwise made by us or on our behalf from time to time in other reports, filings with the SEC, news releases, conferences, internet postings or otherwise) that are not statements of historical fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, notwithstanding that such statements are not specifically identified. Forward-looking statements include, but are not limited to, statements about our financial position, business strategy, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition, the effects of future legislation or regulations and plans and objectives of our management for future operations. We have based our forward-looking statements on our beliefs and assumptions considering the information available to us at the time the statements are made. Use of the words "may," "should," "continue," "plan," "potential," "anticipate," "believe," "estimate," "expect," "intend," "outlook," "could," "target," "project," "seek," "predict," or variations of such words and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, those set forth below under Part II-Other Information-Item 1A.-Risk Factors, in Part I-Item IA.-Risk Factors of our 2021 Annual Report on Form 10-K as well as other factors described herein or in our annual, quarterly and other reports we file with the SEC (collectively, "cautionary statements"). Based upon changing conditions, should any risk or uncertainty that has already materialized, such as, for example, the risks and uncertainties posed by the global COVID-19 pandemic, worsen in scope, impact or duration, or should one or more of the currently unrealized risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described in any forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary 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. We do not intend to update these forward-looking statements, except as required by applicable law.

Executive Overview

The second quarter of 2022 saw a continuation of our record start to the year from the first quarter. Fan demand strengthened in the second quarter versus the first quarter of 2022, as Canada and many of our major markets in mainland Europe re-opened, which led to a record second quarter for the Company, reinforcing the health of all three of our segments. Even with inflationary pressures, supply chain delays, and the ongoing conflict in Ukraine, the supply and demand dynamic with artists and fans continues to strengthen. This was our highest quarterly AOI ever, fueled by more fans attending our shows, selling more tickets on the Ticketmaster platform, and collaborating with world class sponsorship partners. The second quarter of 2022 was also our highest quarter ever for both transacted and reported GTV and tickets, signaling the power of our flywheel to deliver results not just through the remainder of this year, but also heading into 2023.

Except for Asia-Pacific, all of our markets and venues were fully open in the second quarter of 2022 for the first time in over two years. While there have been lingering impacts due to cases with tour crew members, these instances have been limited and not material to our operations. As we have since the beginning of the COVID-19 pandemic, we will continue to adhere to local health authorities and monitor progress across all our divisions and markets.

For the quarter, consolidated revenue increased by $3.9 billion, from $576 million in 2021 to $4.4 billion this year. The increase was $4.0 billion without the impact of changes in foreign exchange rates. All three of our segments had revenue growth in the quarter with the largest increase coming from our Concerts segment. We had consolidated operating income of $319 million in the second quarter of 2022, compared to an operating loss of $127 million in the second quarter of 2021, an improvement of $446 million, resulting from fans returning to our shows at levels unseen since prior to the pandemic. Consolidated AOI for the second quarter increased by $470 million, from $10 million in 2021 to $480 million this year. The increase was $493 million without the impact of changes in foreign exchange rates. With the United States dollar notably strengthening over the past three months, it has impacted both our revenues and adjusted operating income from international operations. We expect this trend to continue through the remainder of the year.


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Table of Contents For the first six months of 2022, our consolidated revenue grew $5.4 billion, from $867 million in 2021 to $6.2 billion this year. The increase was $5.6 billion without the impact of changes in foreign currency exchange rates. We had consolidated operating income of $346 million for the first six months of 2022, compared to an operating loss of $430 million for the first six months of 2021, an improvement of $776 million, resulting from the re-opening of all our major markets this year. Consolidated AOI for the first six month increased by $831 million, from a loss of $142 million in 2021 to $689 million this year. The increase was $854 million without the impact of changes in foreign exchange rates.

Having provided the foreign currency exchange impacts for the organization overall and in light of their relative materiality, all of the segment financial comments to follow are based on reported foreign currency exchange rates.

Our Concerts segment revenue for the quarter grew by $3.3 billion, from $287 million in the second quarter of 2021 to $3.6 billion in the second quarter of 2022. The revenue growth was a result of more shows and fans coming back to venues to enjoy their favorite artists. The number of events for the quarter was approximately 12,500 compared to approximately 1,720 in the second quarter of 2021. The number of fans for the quarter was approximately 33.4 million compared to approximately 1.4 million last year. This was our highest fan count for a quarter ever, powered by growth across our major divisions as well as the addition of the OCESA business in Mexico. In particular, stadium fan count doubled in North America compared to the second quarter of 2019 while it increased by nearly 50% in Europe. Some of the top acts in the quarter included Coldplay, Harry Styles and Dua Lipa. EDC Vegas, Bonnaroo and Governors Ball played to an aggregate three quarters of a million fans in the United States while Download, Isle of Wight and Graspop got the European festival season off to a stellar start. Concerts AOI for the quarter increased by $207 million, from a loss of $84 million in 2021 to an income of $123 million in 2022. For the first six months of 2022, Concerts revenue grew $4.3 billion, from $526 million in 2021 to $4.8 billion in 2022. Concerts AOI for the first six months increased by $232 million, from a loss of $159 million in 2021 to an income of $74 million in 2022. Along with the increased number of fans, we are seeing very strong onsite spend across all of our venue types. Since 2019, our last full year of operations prior to the global COVID-19 pandemic, per fan spend has increased by $9 at our owned and operated amphitheaters, representing strong double-digit percentage growth. In our Theaters and Clubs across the United States and the United Kingdom, we are also seeing double-digit percentage growth. Lastly, at our festivals, we have also seen growth in onsite spend, with concessions, camping, and, in particular, VIP sales up substantially at our marquee events. From what we have seen so far this year, the increases to ancillary spend per fan, along with ticket price increases for those seats highest in demand, are outpacing higher labor and materials costs at our venues and festivals.

Our Ticketing segment revenue for the quarter grew by $331 million, from $244 million in the second quarter of 2021 to $575 million in the second quarter of 2022. Ticketing AOI for the quarter increased by $131 million, from $99 million in 2021 to $231 million in 2022. The improvement resulted from an increase in ticket sales, upward pricing momentum due to higher fan demand, and higher ancillary revenue streams. Our fee-bearing ticket sales for the quarter were 72 million, 46 million higher than in the second quarter of last year. This was a record quarter for reported ticket sales, exceeding our last record set in the fourth quarter of 2018 by 9 million tickets or 15%. The increase was largely driven by sales in the United States, the United Kingdom, our mainland European markets, and the addition of OCESA. Our resale business continued to excel, with nearly a billion dollars in GTV for the second quarter of 2022, more than doubling resale GTV in the second quarter of 2019. It was our second highest resale quarter ever, powered by both Concerts and all the major sporting leagues. For the first six months of 2022, our Ticketing revenue grew by $783 million, from $272 million in 2021 to $1.1 billion in 2022. Ticketing AOI for the first six month increased by $400 million, from $37 million in 2021 to $437 million in 2022. Through the end of June, our fee-bearing ticket sales are 124 million tickets, 91 million ahead of 2021 and, notably, 20 million ahead of 2019 when all markets were fully open. Resale GTV through the end of June 2022 was over $1.8 billion which is 90% of our full-year resale GTV in 2019. Overall pricing on our fee-bearing tickets for the first half of the year is up more than 15% compared to 2019. Consumer demand for premium seats and VIP experiences has continued, with our Ticketmaster dynamic price sales and GTV growing by 2.5 times the volume in 2019. Lastly, we have signed 13 million net new tickets so far this year, which gives us confidence that the Ticketmaster features and functionality will continue to fuel growth going forward.

Our Sponsorship & Advertising segment revenue for the quarter grew by $219 million, from $45 million in the second quarter of 2021 to $264 million in the second quarter of 2022. The improvement was due to additional revenues from purchase path integration with various new partners, the restart of a full festival season and the addition of the Mexico market to our portfolio. Sponsorship & Advertising AOI for the quarter increased by $165 million, from $13 million in 2021 to $178 million in 2022. For the first six months of 2022, our Sponsorship & Advertising revenue grew $312 million, from $67 million in 2021 to $379 million in 2022. Sponsorship & Advertising AOI for the first six month increased by $231 million, from $17 million in 2021 to $248 million in 2022.

As ticket sales and events have scaled up in key markets, we have balanced our ramp-up with the cost-savings initiatives we implemented across the organization during the COVID-19 pandemic and are also protecting our liquidity by managing cash outflows associated with all our major expenditures: operating expenses, capital expenditures, acquisitions, and advances in both our ticketing and concert businesses. We are optimistic about the long-term potential of our Company and are focused on the key elements of our business model: expanding our concerts platform and improving the on-site experience for our fans,


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