SEGMENTS AND REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2025

Our reportable segments are Concerts, Ticketing and Sponsorship & Advertising. We use AOI to evaluate the performance of our operating segments and define AOI as operating income (loss) before certain acquisition expenses (including ongoing legal costs stemming from the Ticketmaster merger, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. We also exclude from AOI the impact of estimated or realized liabilities for settlements or damages arising out of the Astroworld matter that exceed our estimated insurance recovery, due to the significant and non-recurring nature of the matter. Ongoing legal costs associated with defense of these claims, such as attorney fees, are not excluded from AOI. AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results.

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 and noncontrolling interest partners 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 our segments, and therefore, total segment assets and related depreciation and amortization have not been presented.

The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”) and evaluates the operating performance of our operating segments based on AOI. The CODM uses segment AOI for evaluating performance of each segment and for making decisions on allocating capital and other resources to each segment. We have not identified any segment expenses that are considered significant and segment expenses are not regularly provided to the CODM. Other segments items are direct operating expenses and selling, general and administrative expenses (excluding acquisition expenses, amortization of non-recoupable ticketing contract advance, Astroworld estimated loss contingencies and stock-based compensation expense) which represents the difference between each operating segment’s revenue and AOI.

The following table presents the results of operations for our reportable segments for the three and six months ended June 30, 2025 and 2024:


	Concerts		Ticketing		Sponsorship & Advertising		Other & Eliminations		Corporate		Consolidated
	(in thousands)
Three Months Ended June 30, 2025
Revenue	$	5,946,377	$	742,696	$	340,561	$	(22,993)	$	—	$	7,006,641
% of Consolidated Revenue	84.9%		10.6%		4.9%		(0.4)%
Other Segment Items	$	5,587,695	$	452,603	$	112,973	$	(16,285)	$	71,232	$	6,208,218






AOI	$	358,682	$	290,093	$	227,588	$	(6,708)	$	(71,232)	$	798,423
Intersegment revenue	$	17,257	$	5,983	$	(247)	$	(22,993)	$	—	$	—

Three Months Ended June 30, 2024
Revenue	$	4,987,039	$	730,677	$	312,234	$	(6,534)	$	—	$	6,023,416
% of Consolidated Revenue	82.8%		12.1%		5.2%		(0.1)%
Other Segment Items	$	4,716,345	$	438,144	$	89,612	$	1,637	$	61,447	$	5,307,185






AOI	$	270,694	$	292,533	$	222,622	$	(8,171)	$	(61,447)	$	716,231
Intersegment revenue	$	2,278	$	4,124	$	132	$	(6,534)	$	—	$	—

Six Months Ended June 30, 2025
Revenue	$	8,430,453	$	1,437,368	$	556,627	$	(35,690)	$	—	$	10,388,758
% of Consolidated Revenue	81.1%		13.8%		5.4%		(0.3)%







Other Segment Items	$	8,065,200	$	894,216	$	193,075	$	(23,092)	$	119,885	$	9,249,284
AOI	$	365,253	$	543,152	$	363,552	$	(12,598)	$	(119,885)	$	1,139,474
Intersegment revenue	$	25,464	$	10,226	$	—	$	(35,690)	$	—	$	—

Six Months Ended June 30, 2024
Revenue	$	7,866,414	$	1,453,855	$	523,511	$	(20,835)	$	—	$	9,822,945
% of Consolidated Revenue	80.1%		14.8%		5.3%		(0.2)%
Other Segment Items	$	7,597,531	$	877,207	$	170,914	$	(5,455)	$	104,010	$	8,744,207






AOI	$	268,883	$	576,648	$	352,597	$	(15,380)	$	(104,010)	$	1,078,738
Intersegment revenue	$	12,403	$	8,257	$	175	$	(20,835)	$	—	$	—

The following table sets forth the reconciliation of consolidated AOI to operating income for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in thousands)
AOI	$	798,423	$	716,231	$	1,139,474	$	1,078,738
Acquisition expenses	79,133		(30,035)		108,890		522
Amortization of non-recoupable ticketing contract advances	20,721		21,161		45,443		45,241
Depreciation and amortization	159,025		137,729		308,480		270,323
Gain on sale of operating assets	(856)		(779)		(3,058)		(1,430)
Astroworld estimated loss contingencies	(7,800)		94,000		(7,800)		279,915
Stock-based compensation expense	61,547		28,336		86,097		59,738
Operating income	$	486,653	$	465,819	$	601,422	$	424,429

Contract Advances

At June 30, 2025 and December 31, 2024, we had ticketing contract advances of $159.7 million and $158.1 million, respectively, recorded in prepaid expenses and $140.8 million and $128.9 million, respectively, recorded in long-term advances on the consolidated balance sheets.

Sponsorship Agreements

At June 30, 2025, we had contracted sponsorship agreements with terms greater than one year that had approximately $1.5 billion of revenue related to future benefits to be provided by us. We expect to recognize, based on current projections, approximately 26%, 35%, 21% and 18% of this revenue in the remainder of 2025, 2026, 2027 and thereafter, respectively.

Deferred Revenue

The majority of our deferred revenue is typically classified as current and is shown as a separate line item on the consolidated balance sheets. Deferred revenue that is not expected to be recognized within the next twelve months is classified as long-term and reflected in other long-term liabilities on the consolidated balance sheets.

The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in thousands)
Concerts	$	1,532,258	$	1,195,678	$	2,214,108	$	1,852,828
Ticketing	74,744		60,513		140,663		115,323
Sponsorship & Advertising	19,405		40,188		75,655		86,674

	$	1,626,407	$	1,296,379	$	2,430,426	$	2,054,825

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Paragraph 12
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Live Nation Entertainment, Inc. 10-Q