Close (AMZN) to Potentially Challenge Live Nation Entertainment (LYV) Ticketing Business over Long Term – BTIG

February 22, 2017 10:14 AM EST
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BTIG analyst Brandon Ross summarizes the potential for Inc. (NASDAQ: AMZN) to jump into the ticketing business and become a force capable of challenging ticketing leader, Live Nation Entertainment Inc. (NYSE: LYV), ahead of the LYV February 23rd earnings call. Noting 1) Amazon has the aptitude to become an industry player, if it can gain access to US tickets market. 2) Amazon can target casual shoppers from its large user base, bundling tickets with other products. 3) Availability of the US market to Amazon considering exclusive venue agreements with TicketMaster (owned by Live Nation). Ross completes his analysis by suggesting Amazon does not present a near-time risk to Live Nation Entertainment, but could pose a long-term threat to Ticketmaster’s profitability. Amazon has already delivered a proof of concept model in the UK, the question is can it crack the US market?

Ross comments, “We are updating our estimates ahead of Live Nation’s Q4 earnings report tomorrow after the close. Our Q4 estimates are above consensus. However, we are taking a more cautious view of 2017… we see high single digit AOI growth for the company next year, we believe it could be tempered by tough comps in the promotion business, which may limit upside growth in amphitheater contribution and limit growth in Ticketing. We are also conscious of fx headwinds.”

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