Live Nation: revenues up 8%, but 2012 net loss nearly doubled
Despite this, Live Nation's 2012 net loss nearly doubled to $163 million from $83 million in 2011 - due to a one-time charge from Irving Azoff's December 31st departure from the company.
A closer analysis of the document shows that revenue in the concerts division grew 10.4% to $3.87 billion, but brought in only $31.4 million in adjusted operating income. Ticketmaster revenue grew 4.1% to $1.37 billion, while adjusted operating income grew 5.6% to $294.6 million, or 64.2% of the company's total adjusted operating income. The Sponsorships & Advertising division grew revenue 7.4% to $247.9 million and raised its adjusted operating income 6.4% to $175.6 million.
Artist Nation, on the other hand, shows an operating loss in both the fourth quarter and the full year: the division generated $400 million in revenue but had two unusual items in the fourth quarter. There was a $5.5 million charge related to the departure of former executive chairman Irving Azoff on December 31; then Live Nation took a one-time charge of $62.7 million related to "certain client/vendor relationship intangibles" based on expectations of future cash flows of the division.
As Billboard explains, "put another way, Artist Nation is less valuable without Azoff so Live Nation wrote down its book value".