IAC’s latest results included the following
Revenue growth was driven by an 11% increase in worldwide ticket sales and 2% higher average revenue per ticket. Domestic revenue increased 5% primarily due to higher average revenue per ticket and increased ticket volume. International revenue grew 36%, or 28% excluding the effects of foreign exchange, due primarily to increased revenue in the United Kingdom and Australia. Profit growth was adversely impacted by higher operating expenses associated with technology improvements and the continued build out of worldwide infrastructure and higher overall royalty rates. Operating income was negatively impacted by an increase in amortization of non-cash compensation of $1.9 million.
As with most businesses, you can improve your results with
– better margins
– industry price increase
– more sales volume
or combinations thereof. I suspect the 2% growth in revenue per ticket has come from higher ticket prices rather than improved margins, but sales volumes are definitely the driving force as more people participate in the live entertainment space.