Last bit of city news, promise, Live Nation, formerly the live entertainments division of Clear Channel of course, yesterday issued a financial report for its fourth quarter and last financial year, revealing that, while revenues were up, the company made an overall loss.
Revenues were up 4.7% year on year to nearly $3 billion, but the company had a combined operating loss of $13.2 million, compared to a profit of $59 million in 2004. Rises in revenues were attributed to growth in the company's music operations, especially in the last quarter, while the fall in profits was attributed to losses in the theatre sector and costs related to the restructure that followed the company's split from the Clear Channel group.
Commenting on the financial report, Live Nation CEO Michael Rapino told reporters: "The fourth quarter of 2005 represented a new beginning for our company. We entered the public markets on December 22nd as an independent company under new leadership, with a new strategy, identity and a strong balance sheet. Our primary focus during the fourth quarter was on rightsizing our cost structure and tightening our strategic and operational focuses."
He continued: "Our new strategy is to provide value to artists and fans before, during and after the live event. By expanding our relationships with our customers beyond the two hour experience of the show, we believe we can further unlock value in our key assets. In addition, we believe the establishment of the Live Nation brand will open up new marketing opportunities for both our artist and advertising partners. Going forward, we will focus our resources on maximizing the high margin opportunities within all of our businesses."