Specialist
Former President at Live Nation Entertainment Inc and former SVP at Live Nation Entertainment
Agenda
- Near-term outlook for Live Nation (NYSE: LYV) in light of coronavirus pandemic headwinds
- Live events, ticketing and talent management business outlook, considering event cancellations/postponements
- Live Nation's operating levers and potential cost trims given tour cancellations
- Potential rebound scenarios and challenges in event rescheduling
Questions
1.
What trends have you been following in the live events industry? How have these trends impacted Live Nation in light of the coronavirus?
2.
How big an opportunity is the Live from Home series as we consider the current situation?
3.
How should we think about think virtual events are as an offering over the next 12-18 months?
4.
How would you split revenues that are completely lost in 2020 vs deferred toward H2 2020 or even 2021?
5.
What trends would you point out in Live Nation’s key regions, including coronavirus hotspots?
6.
Are there any key takeaways or surprises from Live Nation’s latest earnings release and call? Is there anything you might question about management’s characterisation and handling of its position?
7.
What are your views on how Live Nation is handling ticket refunds? How should we think about that potential liability for it and peers? How will cash move for cancelled events?
8.
What is the best approach to quantifying funding or balance sheet needs? You estimated Live Nation has about USD 400-500m in true cash flow. How much time does that “buy” them?
9.
What do you think the return to normalcy for public events will be like? Will it be half-filled stadiums? What might be the caps on that? What might happen to the food and beverage portion?
10.
Any other views on how should we think about future ticket pricing? What will be the new norm?
11.
What are your estimates of Live Nation’s fixed vs variable costs?
12.
What might be the cadence of Live Nation’s CAPEX decisions?
13.
Live Nation has stated its cash burn is around USD 150m per month. Is there anything that could drive that higher? What could throw the cost and cash management programme off-target?
14.
Live Nation has said that less than 10% of fans are taking a refund for scheduled or postponed shows. Could that really be the cap or might it go higher depending on whether lockdowns last longer?
15.
What are potential rebound scenarios for each of Live Nation’s business segments?
16.
How might a potential recession exacerbate a recovery or lack thereof for the industry?
17.
Back in 2018 there was some press on a potential merger between SiriusXM and Live Nation. How might the current environment change that conversation?
18.
How might insurance play a role in cancelled or postponed events? Is Live Nation likely to be paid out for the costs incurred? Can it help as a consideration Live Nation’s cash situation for the remainder of the year?
19.
What challenges might Live Nation face ahead of a ramp-up on rescheduled events?
20.
How should we think about the furloughed talent risk?
21.
Is there anything we should understand about the contract terms in scenarios where concerts may need to be pushed to 2021 or further?
22.
Do you have any thoughts on other potential industry consolidation scenarios coming out of the pandemic? Who might be likely targets? Are there any obvious strategic acquirers for Live Nation?
23.
What metrics will you be tracking to assess the outlook Live Nation and the industry?
24.
How might the industry come out on the other end of the pandemic? What will be the same, and what will be significantly different? Are there any major risks?
25.
What is an appropriate way to approach Live Nation’s valuation? Has it earned its current valuation?
