SFX Entertainment, the live event company behind some of the world’s leading electronic dance music festivals, has reported a very weak fourth quarter with a loss of $131 million, and shares dropping 8% to $4.30.
SFX’s events include TomorrowWorld, Electric Zoo, Stereosonic and the Voodoo Experience. They also own Beatport, a popular music distribution outlet.
So what went wrong? According to Billboard.com’s author Glen Peoples, “pro forma revenues declined 7.6% to $95.9 million from $103.9 million and the Stereosonic festival in Australia received some of the blame.” Also, SFX CFO Richard Rosenstein stated that “tickets sales did not meet expectations.”
“You see that we’re anticipating a very sizable increase in attendance at the best goals we already have inside in the many slow-down festivals for the Summer Set and therefore we are quite comfortable with the number that we’ve given.” – SFX CEO, Robert F. Sillerman.
Despite this poor fourth quarter performance SFX Entertainment looks forward to a positive future. The company is expected to exceed $500 million in revenue this year, 2015, with $60 million to $70 million in earnings before interest, taxes amortization and depreciation.
Connect with SFX Entertainment:
http://sfxii.com/
https://www.facebook.com/SFX-Entertainment-Inc
https://twitter.com/sfxii
[Photo Credit: Glassdoor.com]
[Sources: Billboard // SeekingAlpha]
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