Live Nation Entertainment Targets $850 Million in Venue Profit by 2031

Live Nation Entertainment NYSE: LYV outlined plans to expand its venue portfolio, increase ticket sales and use artificial intelligence to reach more concertgoers, as executives presented their case for continued double-digit profit growth.

The company expects its venue investment strategy to generate $850 million in annual adjusted operating income, or AOI, by 2031, up from $125 million this year, Global President of Venue Nation Jordan Zachary said. The projection is a central part of management’s longer-term growth plan and depends on new venues opening and maturing over the coming years.

Venue Investments Drive Growth Plan

Live Nation’s pipeline includes 38 new venues with capacities of more than 3,000, half of them outside the United States, Zachary said. The company expects the venues to attract 33 million fans by 2031. It is targeting $525 million in AOI from the investment strategy in 2029 before reaching $850 million in 2031.

The pipeline represents $5.6 billion in capital, including $1.9 billion funded with Live Nation cash, Zachary said. The balance is expected to come from third-party debt and partners. The company is targeting returns of more than 20% on a project-by-project basis.

Zachary said two amphitheaters opened in Kansas City and Minneapolis generated twice the AOI of a traditional amphitheater in the company’s portfolio during their first year. Premium revenue at the venues was 80% higher than the average for Live Nation amphitheaters, while food and beverage revenue was 15% higher, he said.

President and Chief Financial Officer Joe Berchtold cautioned that the venue rollout will bring pre-opening expenses. He estimated those costs would rise by $40 million to $50 million in 2027 from 2026, with a similar level in 2028, though he said the figures could change with project timing.

Berchtold also said the company aims to increase profitability per fan to more than $6 over the next several years, from $4.30 last year. He attributed this year’s pressure on the measure partly to venue pre-opening costs and marketing expenses for shows going on sale for the following year.

Concert Demand and International Opportunity

Omar Al-joulani, president of touring, said the U.S. concert market grew at a 7% annualized rate from 2022 through 2026 and that the company forecasts growth of 5% to 6% going forward. He cited more artists, improved ticket sell-through and additional large venues as growth drivers.

Live Nation still has about 20 million empty seats to sell across its existing supply of shows, Al-joulani said. Its All Access program has 14 million members, who attended 34% more shows than they had over the prior three years, he said.

International markets offer further room for expansion, according to Paul Antonio, president of EMEA and Asia. Antonio said Live Nation’s assessment found that 46 of the top 75 international cities lacked adequate arena capacity. He also said recent venue deals were expected to generate $90 million in AOI this year, rising to $190 million over the next couple of years as the buildings reach a fuller run rate.

Ticketmaster and AI

Ticketmaster is on track to handle 360 million fee-bearing tickets in 2026 and has a long-term target of 490 million, based on 6% compound annual growth, Ticketmaster President Saumil Mehta said. He pointed to growth in concerts, new clients, international expansion and product improvements.

Ticketmaster recently began selling tickets in Japan, where it plans to scale with promoter HIP in 2027 before expanding further, Mehta said. In Brazil, Ticketmaster expects to handle 9 million fee-bearing tickets this year, compared with fewer than 1 million in 2023.

Mehta said Ticketmaster is also developing its own AI-powered fan agent to provide personalized recommendations, presale information and assistance with ticket purchases. The company is working with outside AI providers as well. Al-joulani said AI tools are being used to help with tour routing, marketing and ticketing decisions.

In sponsorship, President of Sponsorship and Advertising Russell Wallach said he expects continued double-digit growth, supported by larger partnerships, new advertising products and inventory at new venues. Berchtold said Live Nation has no imminent plans for share buybacks, preferring to invest in venue projects while it sees opportunities to earn its targeted returns.

About Live Nation Entertainment (NYSE:LYV)

Live Nation Entertainment, Inc. is a live entertainment company that promotes concerts, operates and manages venues, and provides ticketing services. Its activities span the live-event process, from helping artists plan and promote tours to connecting fans with events. The company's businesses include concert promotion and venue operations, ticketing through Ticketmaster, and sponsorship and advertising services for brands seeking to reach live-event audiences. Ticketmaster provides ticket sales and related technology for concerts and other events.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.