Ticketmaster has faced intense criticism over its dynamic pricing policies, but third-quarter results published by parent company Live Nation Entertainment Inc (NYSE:LYV) show that its potentially anti-competitive business practices are not necessarily translating into higher profits.
Ticketmaster reported a 17% year-on-year revenue slump in the third quarter, with adjusted operating income falling 33% to $235.7 million.
The UK competition regulator launched an investigation into Ticketmaster following the botched sale of tickets to the upcoming Oasis reunion, in which Ticketmaster’s implementation of surge pricing sparked condemnation and rage from fans.
That investigation is ongoing and Live Nation avoided any mention of the matter in its results.
Gross transaction value at Ticketmaster came to $12.7 billion compared to $13.5 billion in last year’s third quarter.
Live Nation’s core business of organising and promoting events fared better in the third quarter.
Although revenues of $6.58 billion were down 6% year on year, substantially better margins meant that adjusted operating income jumped 39% to $474.1 million.
The results were met positively by the market, with Live Nation shares adding 6.5% in pre-market trades.