Live Nation Pacing Well Ahead of Prepandemic Levels; Minimal Inflation Impact on 2023 Presales

Live Nation remains on track to return or even beat its prepandemic levels as the firm posted its highest attendance quarter ever. Festival attendance was very strong in the quarter, up 40% versus the same quarter in 2019. Management is very positive on growth continuing in 2023, disclosing that tickets sales paced double-digits ahead of 2022. While the inflation will likely dampen demand from the marginal concertgoer, there are still a number of artists that delayed or canceled tours in 2020 or 2021 that fans are looking forward to attending. The recent verified fan presale for the 2023 Taylor Swift tour exemplifies this pent-up demand. We are maintaining our narrow moat and our fair value estimate of $105.