Live Nation Says Fans Are Keeping Tickets for Missed Shows

(Bloomberg) -- Music fans aren't ready to give up on concerts.

The vast majority of customers who bought tickets for shows from No. 1 promoter Live Nation Entertainment Inc. -- about 86% -- are holding onto their tickets in hopes that events canceled because of Covid-19 will be rescheduled, rather than taking refunds.

The live-music industry has been shuttered for several months due to the coronavirus, putting thousands of people out of work and depriving artists, promoters and ticket sellers of their primary source of funds. Live Nation on Wednesday reported second-quarter revenue slumped 98%, with refunds exceeding sales at its ticketing division. The pandemic has forced the company to furlough staff and boost its borrowing capability.

The lack of refunds is a sign of pent-up demand, the company said, supporting its own research that indicates most music fans are eager to see live shows again. Live Nation has said it plans to resume large-scale concerts in the summer of 2021, and the company's leadership has insisted that fans will be eager to go to events as soon as it safe to do so.

Some fans have already shown a desire to see live music, either in streams on the internet or at drive-ins. One drive-in show unaffiliated with Live Nation, featuring performances by the Chainsmokers and the chief executive officer of Goldman Sachs Group Inc., prompted an investigation after footage of a mosh pit circulated on the internet, showing fans failing to practice social distancing.

Live Nation shares fell 3.2% to $46.13 in premarket trading Thursday. The stock was down 33% this year through Wednesday.

©2020 Bloomberg L.P.