Live Nation Entertainment Inc (LYV)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 744,309 | 902,473 | 913,116 | 829,709 | 894,544 | 880,606 | 723,352 | 610,739 | 505,447 | 482,366 | 136,353 | -332,194 | -611,267 | -874,504 | -1,527,154 | -1,958,746 | -1,856,665 | -1,543,116 | -762,502 | 22,135 |
| Revenue (ttm) | US$ in thousands | 23,155,630 | 23,312,980 | 23,813,910 | 23,421,210 | 22,749,070 | 21,200,870 | 19,202,390 | 18,005,840 | 16,681,260 | 15,093,690 | 11,638,870 | 7,780,646 | 6,268,445 | 3,802,658 | 1,287,956 | 786,094 | 1,861,175 | 4,513,242 | 8,102,904 | 11,185,830 |
| Pretax margin | 3.21% | 3.87% | 3.83% | 3.54% | 3.93% | 4.15% | 3.77% | 3.39% | 3.03% | 3.20% | 1.17% | -4.27% | -9.75% | -23.00% | -118.57% | -249.17% | -99.76% | -34.19% | -9.41% | 0.20% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $744,309K ÷ $23,155,630K
= 3.21%
The pretax margin of Live Nation Entertainment Inc has shown significant fluctuations over the past few years. At the end of March 2020, the pretax margin was a modest 0.20%. However, by June 2020, it had deteriorated to -9.41%, indicating a decrease in profitability. The trend continued to worsen as the pretax margin plummeted to -34.19% by September 2020 and reached a low of -99.76% by December 2020.
The company's financial performance improved slightly in the following quarters but remained deeply negative, with pretax margins of -249.17% in March 2021 and -118.57% in June 2021. From September 2021 to March 2022, there was a progressive recovery in the pretax margin, moving from -23.00% to -4.27%.
The positive turnaround began in June 2022, with the pretax margin turning positive at 1.17%. This positive momentum continued to strengthen in the subsequent quarters, reaching 3.87% by September 2024. However, the pretax margin slightly dipped to 3.21% by the end of December 2024.
Overall, Live Nation Entertainment Inc experienced a challenging period with deep negative pretax margins before turning around and achieving positive margins in more recent periods. The company's efforts to improve profitability have shown some success, but it remains essential for management to sustain and build on this positive trend to ensure long-term financial health.
Peer comparison
Dec 31, 2024