Driven by the field of entertainment, the confidence of the capital market in the music industry is continuing to grow.
Editor’s note: This article is from WeChat public account “Music Finance” (ID: musicbusiness)< /a>, author of the little antler data.
$8.3 billion – This is the market value growth of the seven head-on-the-scenes listed companies in the past two years. Among them, the growth of 7 billion US dollars came from the first 7 months of this year.
It must be said that these two figures are very representative of the capital market’s confidence in the continued growth of the field entertainment industry.
The seven head entertainment companies listed are Live Nation from the United States, Madison Square Garden Company and eBay with the second-class ticketing platform StubHub, live entertainment company CTS Eventim from Germany and Deutsche Entertainment AG from Brazil. T4F Entertainment (Time 4 Fun), plus Vivendi, the parent company of Universal Music Group in France.
In addition, there is a comprehensive media company, Liberty Media, which has a one-third stake in Live Nation but has little to do with its live entertainment business. Eventbrite, a ticketing management platform that was just launched at the end of 2018, VR site in the UK Entertainment application company MelodyVR, live live broadcast company LiveXLive, and Singapore show organizer Unusual.
Leaders that can’t be ignored
And the difference can’t be ignored
The global live entertainment giant Live Nation has undoubtedly played the most important role in this team. At the end of the first half of fiscal year 2019, its stock price stood firmly at 66..25 dollars. The positive rating from stock market analysts, coupled with the continuous increase in institutional investors, Live Nation market value has increased by more than 40% since August 2018.
△Live Nation’s stock price fluctuation chart from January 1, 2017 to June 30, 1919, data source: Yahoo Finance
The 2019 Live Nation show sold a total of 73 million tickets, up 6% from the previous year in mid-July. This means that nearly 100 million fans have participated in nearly 38,000 concerts this year. In addition, sponsors and advertising revenues increased by 18%, Ticketmaster fees also increased by 11%, and mobile revenues accounted for an increasing proportion, currently accounting for 45% of global ticket sales.
US stock market analyst and journalist Manfred Tari said that Live Nation’s performance is better than the Dow Jones Industrial Average, which can be compared with the 30 large listed companies in the US, such as Walt Disney, Nike and even Apple.
Although it is in the ranks of live entertainment giants, these seven companies are not all optimistic. Although eBay’s share price is growing, its performance of the ticketing platform StubHub related to the live entertainment business in the annual report has led to a decline in its market value, and the market value of Brazilian live entertainment company T4F is also in a negative growth state.
In addition, there are some live entertainment listed companies that are not included in this article due to size or other reasons.
Experience economy is getting mature
Industry diversification is stable
Since the beginning of the 2019 year, various turbulences have occurred in different regions of the world. But at least for now, the performance of the live entertainment market is not as negative as it is, but nearly 85% of the $8.3 billion in growth occurred in 2019.
The reason behind this phenomenon must be diverse and complex, but one thing that both industry and experts agree with is that the market for “experience economy” has matured and is accepted by users. IndustryAnalyst Chris Carey analyzed: “The whole society and cultural system is paying more and more attention to the sense of experience and the moment, especially the experience and moments with social attributes and social values. The development of the live entertainment industry is very much in such an era. There are advantages.”
In addition, Spotify officially landed on the stock market on behalf of music streaming companies in 2018. Although it uses unconventional “direct listing”, its impact on the entire music and entertainment industry can not be underestimated. “Although Spotify’s listing is not a blockbuster event, the steady development of the company in the stock market has given the capital market more confidence in the music industry, which has driven the rise of other companies in the industry, such as Vivendi, the parent company of Universal Music Group. Carey analyzed.
According to Carey’s prediction, in the case of the saturation of the live entertainment market in developed countries, developing countries with high development space will be the next challenge for the industry, especially when entering a new market; At the same time, in the saturated market, live entertainment content and talents will also usher in a new round of innovation.
Details of 12 live entertainment listed companies
(with the stock price fluctuation chart of each company listed to date)
Live Nation Entertainment
Listing date: December 21, 2005
IPO issue price:11 USD
2019H1 share price (market capitalization): $66.25 ($13.88 billion)
2017H1 share price (market capitalization): $34.80 ($7.16 billion)
2 years year-on-year change:+90.37%
Main business: Performance hosting, venue operation
Comment: The growth of Live Nation’s share price over the two years is astronomical in the stock market. According to the company’s 2018 financial report, its revenue is as high as $1.7 billion, and it is in a double-digit growth ratio, and this is the company.The eighth consecutive year of record revenues. Not only the Dow Jones Industrial Average, Live Nation’s H1 stock price in 2017 H1-2019 also exceeded the S&P 500 index, which was favored by most analysts on Wall Street and was labeled as “recommended purchase”.
CTS Eventim
Listing date: February 2, 2000
IPO issue price:3.075 Euro
2019H1 share price (market capitalization):40.92 euros (3.93 billion euros)
2017H1 share price (market capitalization): 39.24 euros (3.77 billion euros)
2 years year-on-year change:+4.28%
Main business: Performance hosting, ticketing platform
Comment: CTS Eventim is a German show host and ticket sales company. After the announcement of the acquisition of another major European ticketing platform, Fnac’s France Billet, at the end of July 2019, its share price has reached its highest level. The market value of 46.88 euros also rose to the highest of 4.5 billion euros. And in early 2019, its share price also experienced a large increase from 33 euros to 41 euros, so most analysts are also very optimistic about the company.
Madison Square Garden Company
Listing date: January 25, 2010
IPO Issue Price: $20
2019H1 share price (market capitalization):279.94US dollar (US$ 6.65 billion)
2017H1 share price (market capitalization): $200.50 ($4.72 billion)
2 years year-on-year change:+39.62%
Main Business: Venue Operations, Sports Events and Brokers
Comment: Madison Square Garden Company is based in New York, USA. It is a well-known US venue operator and sports team operator. In recent years, the company has also entered the eSports industry and become an important player in the industry. . Beginning in 2018, MSG has planned two new venues based on the MSG Sphere high-tech concept, one in Las Vegas and the other in London, England, which is the first step for MSG to expand overseas. MSG’s earnings report for the third quarter of FY 2019 also announced that the MSG Sphere project and the sports business have made significant progress, and the company’s CEO Jim Dolan also has great confidence in the company’s continued growth.
DEAG
Listing date: November 9, 1998
IPO issue price: 19.26 euros
2019H1 share price (market capitalization): 4.27 euros (85.57 million euros)
2017H1 share price (market capitalization): 2.48 euros (45.63 million euros)
2 years year-on-year change:+72.18%
Main Business: Performance Hosting
Comment: German live entertainment company DEAG just finished its 40th birthday in 2018. Although the company is small compared to CTS Eventim, its market value has increased from 2017 to the present. Not small, up to 75%. This growth is mainly due to the company’s series of mergers and acquisitions in Germany and the UK, as well as success in music live events, home entertainment activities and ticket sales.
T4F
Listing date: May 24, 2011
IPO issue price:14.98 reais
2019H1 share price (market capitalization): 5.21 real ($88.2 million)
2017H1 share price (market capitalization): $6.15 ($106 million)
2 years year-on-year change:-14.3%
Main Business: Performance Hosting
Comment: The political turmoil in Latin America in the last two years and the hyperinflation in Argentina and Brazil have had some negative impact on the business of T4F, a live entertainment company based in São Paulo, Brazil. Its market value has also declined in the past two years. After selling nearly 2 million tickets in 2018 and earning a net profit of $148 million, T4F hopes to return the company to a historic level this year.
Vivendi
Listing date: January 3, 2000
IPO issue price: $87.19
2019H1 share price (market capitalization): $27.43 ($33.78 billion)
2017H1 share price (market capitalization): $23.06 ($28.38 billion)
2 year-on-year change:+18.95%
Main business: Performance hosting, ticketing platform
Comment: owned by VivendiOlympia Production and U Live are two live entertainment companies, See Tickets and Digitick, two ticketing platforms, and operate several performance venues in France and Africa. According to the company’s 2019 financial report for the first half of the year, revenue from these businesses ($70.9 million) was less than 0.9% of the company’s total revenue ($8.14 billion). And after the company announced that it will sell 50% of its global music group, and 10% of it will be taken over by Tencent, this proportion will need to be improved.
eBay
Listing date: September 24, 1998
IPO fundraising scale:$63,000,000
IPO Issue Price: $18
2019H1 share price (market capitalization): $39.50 ($34.43 billion)
2017H1 share price (market capitalization): $35.31 ($38.22 billion)
2 years year-on-year change:-11.87%
Main business: Ticketing platform
Comment: eBay’s second-tier ticketing platform, StubHub, traded $1.1 billion in 2018, accounting for about one-eighth of eBay’s total transaction of $8.485 billion. EBay’s share price has risen by about 40% this year, although the main reason for the increase is that eBay will spread the rumors of StubHub’s change of ownership, but it is not difficult to see that the capital market is supporting eBay to take this action.
Liberty Media (Formula One Group)
Listing date:201July 8th, 4th
IPO Issue Price: $26.23
2019H1 share price (market capitalization): $37.41
Main Business: Performance Hosting
Comment: Liberty One’s Formula One Group owns a 34% stake in Live Nation, but the company does not have much of a live entertainment related business.
Eventbrite
Listing date: September 20, 2018
IPO fundraising scale: $230,000,000
IPO Issue Price: $23
2019H1 share price (market capitalization): $16.20 ($1,307 million)
Main business: Ticketing platform
Comment: Eventbrite has not been better since its launch in 2018. The profitability of the platform has not satisfied investors and has frequently missed earnings expectations. After the acquisition of another ticketing platform, Ticketfly, the situation has not improved, but has increased the negative impact of the company in the capital market. Therefore, although Eventbrite’s core ticketing business is growing, the company’s prospects are still affected by the cost of integrating Ticketfly.
MelodyVR
Listing date: September 7, 2018
IPO issue price: 7.92 pence
2019H1 Price:11.93 Pence
Main business: Live music VR application
Comment: MelodyVR is an app for watching music performances in VR, including free and partially charged content, followed by support for Oculus GO and other devices. After losing £11.3 million in 2018, MelodyVR will transform its mobile side.
LiveXLive
Listing date: May 11, 2017
IPO fundraising scale: $20,000,000
IPO Issue Price: $4
2019H1 share price (market capitalization): $4.15
Main business: Live music live
Comment: Since 2014, LiveXLive has provided live streaming services for live music festivals around the world, with an average of 3 million users per day. The company will also add augmented reality and virtual reality experience to the live broadcast service.
UnUsUaL Feifan Co., Ltd.
Listing date: April 10, 2017
IPO funding scale:S$17,400,000
IPO Issue Price:0.20 Singapore Dollar
2019H1 Price (Market Value):0.29 Singapore Dollar
Main business: Performance hosting
Comment:UnUsUaL Feifan Co., Ltd. is a Singapore live entertainment sponsoring company affiliated with mm2 Asia Ltd. Recently, concerts have been held for famous artists such as Jacky Cheung, JJ Lin, and Jiang Daniel.
Data source: official website of each company, Yahoo Finance