Leading live entertainment company Live Nation Entertainment (NYSE:LYV) has witnessed significant improvement in its event pipeline and global client base due to substantial pent-up demand for live shows. However, the stock’s price has declined 15.5% over the past month. And given the gloomy picture for the live music industry due to a swift resurgence in COVID-19 cases, will the company be able to recover its financial health anytime soon? Read on.Global Live entertainment company Live Nation Entertainment, Inc. (LYV) promotes live music events and produces, markets, and manages live concerts for artists via global concerts. The Beverly Hills, Calif.-based company operates through three segments: Concerts, Ticketing, and Sponsorship & Advertising.
Pent-up demand for live music events, coupled with the reopening of outdoor activities, has improved the company’s concert pipeline for 2022 by double digits versus 2019. But its shares have declined 15.5% over the past month and 5% over the past three months. Although investors are optimistic about the company's prospects because of its increasing sponsorship commitments and growing branding partners, LYV does not expect to host any major tours before 2022.
And since it could take a few years for the live entertainment and music industry to recover fully from its pandemic-induced downturn, the stock’s near-term growth prospects look bleak. In addition, LYV’s growing debt burden and falling revenues could pose a significant risk to the stock.