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Merger-linked costs cut ticketers' profits

By RYAN NAKASHIMA Associated Press
Published: 11/10/2009 2:26 AM
Last Modified: 11/10/2009 8:54 AM

LOS ANGELES — The proposed merger partners Live Nation Inc. and Ticketmaster Entertainment Inc. both said Monday that their earnings were hurt by costs related to the deal, which is expected to drag into 2010 as regulators explore antitrust concerns.

The companies are awaiting a U.S. Justice Department ruling on their plan to create a concert-promoting and ticketing giant. British authorities came out against the deal last month, and they plan to issue a final report by Jan. 19 that could force the companies to sell divisions or make other concessions.

Live Nation said Monday that its net income fell by half to $69 million, or 78 cents per share. Better sales of concert tickets sent revenue up 14 percent to $1.81 billion.

Ticketmaster's net income increased more than a third to $13 million. Revenue rose 3 percent to $349 million.

Combined, the companies spent nearly $12 million in merger expenses in the quarter. Ticketmaster's legal fees and other deal costs cut 7 cents per share off its earnings, which came to 22 cents per share. Without the expense, the West Hollywood company's earnings would have beat analysts' average forecast of 25 cents, Thomson Reuters reported.

Live Nation, of Los Angeles, would have earned 87 cents per share without merger costs, more than analysts' average forecast for earnings of 80 cents per share, on $1.62 billion in revenue.

Ticketmaster CEO Irving Azoff said he was optimistic about the regulatory review, although the deal is not expected

to close until the first quarter of 2010.

Azoff told analysts on a conference call that regulators are "doing a very thorough job — they gave us more questions today. It's not a process that has defined dates and deadlines."

Live Nation CEO Michael Rapino, who will head the new company, said that despite any concessions the companies might have to make, the deal would make sense.

The companies have set a Jan. 8 shareholders meeting to vote on the plan. By RYAN NAKASHIMA Associated Press

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