Live Nation Entertainment, Inc. (NYSE:LYV) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 05:00 pm ET
Good day, everyone. My name is Erica and I will be your conference operator on today's call. At this time, I would like to welcome everyone to Live Nation Entertainment's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
Before we begin, Live Nation has asked me to remind you that this afternoon's call will contain certain forward-looking statements that are subject to risk and uncertainties that could cause actual results to differ, including statements related to the Company's anticipated financial performance, business prospects, new developments and similar matters. Please refer to Live Nation's SEC filings including the risk factors and cautionary statements included in the Company's most recent filings on Form 10-K, 10-Q and 8-K for a description of risk and uncertainties that could impact the actual result.
Live Nation will also refer to some non-GAAP measures on this call. In accordance with the SEC Regulation G, Live Nation has provided a full reconciliation to the most comparable GAAP measures in their earnings release. The release reconciliation and other financial or statistical information to be discussed on this call can be found under the Financial Information section on Live Nation's website at investors.livenationentertainment.com.
It is now my pleasure to turn the conference over to Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. Please go ahead, sir.
Good afternoon, and thank you for joining us. Over the past three months, our top priority has been strengthening our financial position to ensure that we have the liquidity and flexibility to get through an extended period with no live events. Our expectation that live events will return at scale is the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows. Importantly, we remain confident that fans will return to live events when it is safe to do so.
Our strongest indicator of demand is that fans are holding on to their tickets, even when given the option of a refund. Through the end of the second quarter, 86% of concert fans are keeping their tickets for rescheduled shows, demonstrating the continued desire to attend concerts in the future despite the current uncertainty.
Our expectations for a robust outdoor summer season in 2021 are also reinforced by the two-thirds of fans keeping their tickets for canceled festivals so they can go to next year's show along with the strong early ticket sales for the festivals in the U.K. next summer, for example, Download and the Isle of Wight are pacing well ahead of last year.
Between the tickets held by fans for the rescheduled shows and these festival onsales, we have already sold 19 million tickets to more than 4,000 concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year. At the same time surveys continue to show that concerts remain fans' highest priority social event when it is safe to gather with almost 90% of fans globally planning on attending concerts again.