Ticketmaster Entertainment, Inc. Reports Second Quarter 2009 Financial Results

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| Source: Ticketmaster Entertainment, Inc.

WEST HOLLYWOOD, Calif., Aug. 13, 2009 (GLOBE NEWSWIRE) -- Ticketmaster Entertainment, Inc. ("Ticketmaster Entertainment" or the "Company") (Nasdaq:TKTM), the world's leading live entertainment ticketing and marketing company, today announced financial results for its second quarter ended June 30, 2009. Revenues for the second quarter were $355.1 million, 7% lower than the prior-year quarter. Ticketing revenues for the second quarter were $311.9 million, down 18% versus the prior-year quarter. Adjusted EBITDA was $56.3 million for the second quarter ended June 30, 2009 compared to $70.2 million for the second quarter ended June 30, 2008. The decline in Adjusted EBITDA was a result of ticketing volume declines, merger expenses related to the pending merger (the "Merger") with Live Nation, Inc. ("Live Nation"), public company expenses and foreign exchange volatility. Excluding the costs incurred in connection with the Merger, Adjusted EBITDA was $64.8 million, Adjusted net income attributable to Ticketmaster Entertainment, Inc. was $11.7 million and Adjusted earnings per share was $0.20. Free Cash Flow in the second quarter of 2009 was $41.5 million, compared to $5.6 million of Free Cash Flow in the second quarter of 2008.

"We are making excellent progress in executing on our vision of enhancing the entertainment experience by providing better tools, information and services to ticket buyers," said Irving Azoff, Ticketmaster Entertainment CEO. "The Ticketmaster and Front Line businesses are coming together well, and we're seeing both the artists and consumers we serve beginning to embrace innovations like paperless ticketing and all-in pricing. Of course we're moving forward on these initiatives during a tough economy and that creates its challenges, but our results show we are balancing these investments in our capabilities and services with good cost management."

Financial and Operating Metrics Summary



                                         Three Months Ended June 30,
                                        -----------------------------
                                         2009       2008     % Change
                                        --------   --------  --------
                                             (In millions, except
                                               per share data)

 Revenue                                $  355.1   $  382.4     (7%)
 Gross profit                              134.2      133.8      NM
 Adjusted EBITDA(1)                         56.3       70.2    (20%)
 Operating income                           15.0       40.2    (63%)
 Net income attributable to
  Ticketmaster Entertainment, Inc.      $    6.9   $   23.0    (70%)
 Diluted earnings per share(2)          $   0.12   $   0.41    (71%)
 Adjusted net income attributable to
  Ticketmaster Entertainment, Inc.(1)   $   11.7   $   23.0    (49%)
 Adjusted earnings per share(1)(2)      $   0.20   $   0.41    (51%)
 Free Cash Flow(1)                          41.5        5.6    641%
 Operating Metrics(3)
 Number of tickets sold                     31.7       35.7    (11%)
 Gross value of tickets sold            $1,939.8   $2,391.2    (19%)


 (1) Adjusted EBITDA, Free Cash Flow, Adjusted net income attributable
     to Ticketmaster Entertainment, Inc. and Adjusted earnings per
     share are supplemental financial measures. Please see
     reconciliations of these supplemental financial measures at the
     end of this release.

 (2) For the three months ended June 30, 2008, we computed diluted
     earnings per share using the number of shares of common stock
     outstanding immediately following the spin-off of Ticketmaster
     Entertainment from IAC/InterActiveCorp in August 2008, as if such
     shares were outstanding for the entire period.

 (3) The number and gross value of tickets sold are inclusive of
     primary and secondary tickets.

Quarterly Business Highlights



 * In April, Ticketmaster and RIM's BlackBerry(r), the official
   smartphone of Ticketmaster, launched the first mobile e-commerce
   application on BlackBerry App World(tm). While providing fans with
   convenient 'on the go' access to easily browse and search through
   thousands of live entertainment events and purchase tickets
   directly from their BlackBerry(r) smartphones, it creates a new
   sales channel and point of contact with consumers.
 * In May, England's Plymouth Argyle Football Club and Queens Park
   Rangers Football signed new multi-year agreements with the Company.
 * In June, tickets went on sale for the Miley Cyrus 2009 North
   American Tour, the first arena tour to exclusively utilize
   Ticketmaster's paperless ticketing technology, where a fan's ticket
   is stored on the credit card they use to purchase their tickets and
   becomes their entry into the event. Paperless Tickets help ensure
   fans have secure and convenient access to event tickets at the
   artist's initially stated ticket sale price.
 * A multi-year global ticketing agreement was signed with Feld
   Entertainment, extending upon the companies' more than three
   decades long association. During the first year of the new
   agreement, the companies expect to ramp-up sales for more than 6.5
   million fans in more than two dozen countries for Feld
   Entertainment's top tier family and motor sports events including
   the iconic Ringling Bros. & Barnum and Bailey(r) Circus and Disney
   On Ice events. Ticketmaster will now oversee national and key
   international ticketing for Feld Entertainment's newly established
   Feld Motor Sports events, which includes marquee brands Monster
   Jam(r) and the AMA Supercross motorcycle racing series.
 * Ticketmaster powered the first sellout event at Cowboys Stadium,
   the groundbreaking new venue in Arlington, Texas.
 * Ticket Service Nederland, a Ticketmaster operating business, and
   the Netherlands' Paradiso Corporation and Melkweg Corporation
   signed a multi-year extension for all events taking place in their
   renowned music venues.

Results of Operations



                                      Three Months Ended June 30,
                                   --------------------------------
                                     2009         2008     % Change
                                   --------     --------   --------
                                      (Dollars in thousands)

 Revenue:
   Ticketing(1)                    $311,917     $382,369     (18%)
   Artist Services(1)                43,139           --       NM
                                   --------     --------
    Total Revenue                  $355,056     $382,369      (7%)
                                   ========     ========
 Adjusted EBITDA:
   Ticketing(1)                    $ 63,965     $ 84,565     (24%)
   Artist Services(1)                13,673           --       NM
   Corporate and Unallocated
    Expenses                        (21,349)     (14,397)     48%
                                   --------     --------
   Total Adjusted EBITDA           $ 56,289     $ 70,168     (20%)
                                   ========     ========

 (1) After the October 29, 2008 acquisition of a controlling interest
     in Front Line, based upon changes in the internal management
     structure and how the chief operating decision maker views the
     business, the Company began reporting two segments: Ticketing and
     Artist Services. Prior to the acquisition date, the Company's
     non-controlling investment in Front Line was accounted for using
     the equity method of accounting.

Significant Items Affecting EPS

Net income attributable to Ticketmaster Entertainment, Inc. for the three months ended June 30, 2009 was impacted by a discrete item. The Company incurred $4.8 million, net of tax, of legal and professional fees in connection with the pending Merger with Live Nation for the three months ended June 30, 2009. This discrete item negatively impacted diluted earnings per share by approximately $0.08 for the three months ended June 30, 2009.

Quarterly Results

Primary Ticketing Volume Trends by Category



 -----------------------------------------------------
                      Three Months Ended June 30, 2009
                      --------------------------------
                       Global Tickets   Ticket Mix %
                      ---------------  ---------------
                       % Change to PY  % Total Tickets
                      ---------------  ---------------
 Concerts                        (18%)             53%
 Sports                           (4%)             19%
 Arts & Theatre                    5%              17%
 Family                          (13%)              7%
 Other(1)                         (2%)              4%
                                       ---------------
    Total                        (11%)            100%
 -----------------------------------------------------
 (1) Other category includes: tickets for comedy shows;
     parking; audio and facility tours; donations;
     lectures; and seminars.

Second Quarter Results

Ticketing:

Revenue

The Company posted second quarter revenue of $311.9 million, down 18% from the prior-year quarter, due to an 11% decrease in the number of tickets sold and a 7% decrease in average revenue per ticket. Excluding the effect of changes in foreign currency exchange rates, revenues were $330.4 million, down 14% over the prior-year period. Ticketing volumes were lower across all major categories except Arts and Theatre, with the largest impact in the Concerts category due primarily to the expiration on December 31, 2008 of the principal ticketing agreement with Live Nation.

Domestic revenues were $220.8 million, down 16% compared to the prior-year quarter, as a result of an 11% decrease in the number of tickets sold and a 4% decrease in average revenue per ticket compared to the prior-year quarter. The Concerts category had the largest volume decline due to the expiration of the principal ticketing agreement with Live Nation and fewer events versus the prior-year quarter. Excluding the impact of Live Nation, domestic revenues grew 1% versus the prior-year quarter, primarily driven by sales of new musicals. Strength in the Arts & Theatre category was offset by a decline in the Family category due to lower sales in children's theater and circus events. Sports volumes were flat versus the prior-year quarter as softness in baseball was offset by increased sales of other professional sports categories and wrestling.

International revenues were $91.1 million, down 25% compared to the prior-year quarter. An 11% decrease in the number of tickets sold and a 13% decrease in average revenue per ticket were due largely to the cancellation of fifty Michael Jackson shows scheduled in the United Kingdom as well as continued volatility of foreign exchange rates. Excluding the effect of changes in foreign exchange rates, international revenues were $109.6 million, down 9% over the prior-year quarter. Declines in the United Kingdom, Canada, the Netherlands and China were partially offset by improved performance in Spain. Excluding the Michael Jackson concert cancellations, and the impact of changes in foreign exchange rates, international revenues were $116.1 million, a 4% decrease from the prior-year quarter, driven primarily by a decline in the Family category.

Adjusted EBITDA

Adjusted EBITDA was $64.0 million, down 24% from the prior-year quarter. Excluding the effect of changes in foreign exchange rates, Adjusted EBITDA was $67.4 million, down 20%, due primarily to a 3.9 million ticket volume shortfall attributable to the expiration of the principal ticketing agreement with Live Nation. The decline in ticketing volume accounted for approximately $10 million of lower profitability. Excluding the impact of Live Nation and changes in foreign exchange rates, Adjusted EBITDA declined 7% versus the same prior-year period.

Artist Services:

On October 29, 2008, the Company acquired additional equity interests in Front Line, giving Ticketmaster Entertainment a controlling interest in Front Line. The Company has consolidated the results of Front Line since the acquisition date and has entered into the artist services business by virtue of the acquisition. Prior to the acquisition date, Ticketmaster Entertainment accounted for its investment in Front Line under the equity method of accounting. The artist services business focuses on artist management, merchandising, VIP ticketing and related artist marketing services activities.

Revenue

Front Line's second quarter revenue of $43.1 million was up 19% from Front Line's unconsolidated stand-alone revenue of $36.2 million in the prior-year quarter due to the performance of its non-artist management services.

Adjusted EBITDA

Front Line contributed $13.7 million to Adjusted EBITDA in the second quarter of 2009 compared to the unconsolidated stand-alone Adjusted EBITDA of $13.9 million in the prior-year quarter. Adjusted EBITDA remained flat from the prior-year quarter due primarily to revenue growth in lower margin non-artist management services compared to the prior-year quarter.

Corporate and Unallocated Expenses

Corporate and Unallocated Expenses primarily include compensation and other employee costs (including stock-based compensation), outside services, and professional and legal fees. Corporate and Unallocated Expenses increased $7.0 million, or 48%, over the prior-year quarter due to legal and professional fees associated with the pending Merger with Live Nation and professional services related to operating as a publicly traded company.

Amortization of Intangibles and Depreciation Expense

Intangible amortization for three months ended June 30, 2009 increased $9.3 million from 2008 primarily due to the acceleration of amortization expense of $5.1 million related to certain international ticketing agreement intangible assets and incremental amortization expense from the impact of acquisitions not included in the prior-year period. Depreciation for the three months ended June 30, 2009 increased $2.3 million from the prior-year quarter primarily due to the incremental depreciation associated with the impact of acquisitions not included in the prior-year period.

Interest Income

Interest income for the three months ended June 30, 2009 decreased $2.7 million from 2008 primarily due to the extinguishment of intercompany receivables from IAC upon the consummation of the spin-off and lower average interest rates.

Interest Expense

Interest expense for the three months ended June 30, 2009 increased $6.5 million from the prior-year period. The increase was primarily due to interest expense and amortization of debt issuance costs of $15.0 million for the three months ended June 30, 2009 related to our Senior Notes and our senior secured credit facilities, partially offset by an $8.3 million cumulative interest charge from IAC in the second quarter of 2008.

Income Taxes

For the three months ended June 30, 2009 and 2008, the Company recorded tax provisions of $1.5 million and $10.9 million, respectively, which represent an effective tax rate of 33% for both periods. The 2009 tax rate is lower than the federal statutory rate of 35% due principally to foreign income taxed at lower rates including the effects of our international restructuring completed in January 2009, foreign tax credits related to foreign dividends, deductible payments made in connection with a Front Line dividend, and net adjustments related to the reconciliation of provision accruals to tax returns, partially offset by losses in foreign jurisdictions for which no tax benefit can be recognized. The tax rate is lower for the three months ended June 30, 2008 than the federal statutory rate of 35% due principally to foreign income taxed at lower rates and foreign tax credits related to foreign dividends, partially offset by losses in foreign jurisdictions for which no tax benefit can be recognized and state and local income taxes.

Balance Sheet and Free Cash Flow

The June 30, 2009 balance sheet reflects $616.1 million of cash and cash equivalents, including $373.5 million in funds collected on behalf of our clients. As of June 30, 2009, total long term debt was $865.0 million, consisting of $300.0 million of 10.75% Senior Notes due in 2016, a $100.0 million Term Loan A with a maturity in 2013 and a $350.0 million Term Loan B with a maturity in 2014. Ticketmaster Entertainment also maintains a $200.0 million secured revolving credit facility with a maturity in 2013, of which $115.0 million was drawn down as of June 30, 2009. As of June 30, 2009, the Company was in compliance with all maintenance-based financial covenants.

Free Cash Flow in the second quarter of 2009 was $41.5 million, compared to $5.6 million of Free Cash Flow in the second quarter of 2008. The increase in Free Cash Flow was driven by favorable changes in working capital, which included the timing of settlements for accrued liabilities, accounts payable and accounts receivable and lower income tax payments. These increases in Free Cash Flow were partially offset by increased debt interest payments in 2009 which were not made in 2008, and a decline in operating results.

Ticketmaster Entertainment's management will host a conference call today at 1:30 PT (4:30 ET) to discuss the Company's financial results. A live webcast of the call will be accessible on the Investor Relations section of Ticketmaster Entertainment's website at http://investors.ticketmaster.com

About Ticketmaster Entertainment, Inc.

Ticketmaster Entertainment consists of Ticketmaster and Front Line. As the world's leading live entertainment ticketing and marketing company, Ticketmaster connects the world to live entertainment. Ticketmaster operates in 20 global markets, providing ticket sales, ticket resale services, marketing and distribution through www.ticketmaster.com, one of the largest e-commerce sites on the Internet; approximately 7,100 retail outlets; and 17 worldwide call centers. Established in 1976, Ticketmaster serves more than 10,000 clients worldwide across multiple event categories, providing exclusive ticketing services for leading arenas, stadiums, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. In 2008, the Company sold more than 141 million tickets valued at over $8.9 billion on behalf of its clients. Ticketmaster Entertainment acquired a controlling interest in Front Line in October 2008. Founded by Irving Azoff and Howard Kaufman in 2004, Front Line is the world's leading artist management company. Ticketmaster Entertainment, Inc. is headquartered in West Hollywood, California (Nasdaq:TKTM).

This news release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements relating to the Company's anticipated financial performance, business prospects, new developments and similar matters, and/or statements that use words such as "anticipates," "estimates," "expects," "intends," "plans," "believes" and similar expressions. As such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that may cause actual performance or results to differ materially from those in the forward-looking statements, including those risks and uncertainties related to the Company's pending merger with Live Nation; the Company's ability to operate effectively as a public company following its recent spin-off from IAC; changes in economic conditions generally or in the live entertainment industry; the ability of the Company to retain existing clients and obtain new clients; Ticketmaster's ability to maintain Ticketmaster's brand recognition and attract and retain customers in a cost-effective manner; integration of historical and future acquisitions, including the Front Line acquisition; the Company's ability to expand successfully in international markets; changing customer requirements and industry standards; regulatory changes; and the other risks detailed from time to time in the Company's SEC reports, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company assumes no obligation to update these forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.



                   TICKETMASTER ENTERTAINMENT, INC.

                 CONSOLIDATED STATEMENTS OF OPERATIONS

                              (Unaudited)


                              Three Months Ended   Six Months Ended
                                   June 30,             June 30,
                              ------------------  ------------------
                                2009      2008      2009      2008
                              --------  --------  --------  --------
                              (In thousands, except per share data)

 Revenue                      $354,427  $378,945  $727,242  $723,762
 Interest on funds held for
  clients                          629     3,424     1,630     7,588
                              --------  --------  --------  --------
   Total revenue               355,056   382,369   728,872   731,350
 Cost of sales (exclusive of
  depreciation shown
  separately below)            220,807   248,549   453,367   469,571
                              --------  --------  --------  --------
 Gross profit                  134,249   133,820   275,505   261,779
 Selling and marketing
  expense                       19,590    24,636    43,885    44,029
 General and administrative
  expense                       64,701    45,644   128,904    87,497
 Amortization of intangibles    20,857    11,535    35,915    20,403
 Depreciation                   14,079    11,828    26,479    22,883
                              --------  --------  --------  --------
   Operating income             15,022    40,177    40,322    86,967
 Other expense, net:
  Interest income                  727     3,463     1,368     6,753
  Interest expense             (15,419)   (8,901)  (33,575)   (9,636)
  Equity in income of
   unconsolidated affiliates       545    (1,468)    1,888      (802)
  Other income (expense)         3,730      (287)    3,539       657
                              --------  --------  --------  --------
 Total other expense, net      (10,417)   (7,193)  (26,780)   (3,028)
                              --------  --------  --------  --------
 Earnings before income
  taxes and noncontrolling
  interests                      4,605    32,984    13,542    83,939
 Income tax provision           (1,520)  (10,854)   (5,721)  (29,675)
                              --------  --------  --------  --------
 Net income                      3,085    22,130     7,821    54,264
 Plus: Loss attributable to
  noncontrolling interests,
  net                            3,792       882     6,305     1,455
                              --------  --------  --------  --------
 Net income attributable to
  Ticketmaster Entertainment,
  Inc                         $  6,877  $ 23,012  $ 14,126  $ 55,719
                              ========  ========  ========  ========
 Net earnings per share
  available to common
  stockholders:
 Basic                        $   0.12  $   0.41  $   0.25  $   0.99
 Diluted                      $   0.12  $   0.41  $   0.24  $   0.99
 Weighted average number of
  shares of common and
  common equivalent stock
  outstanding:
 Basic                          57,339    56,171    57,330    56,171
 Diluted                        59,464    56,171    59,341    56,171




                    TICKETMASTER ENTERTAINMENT, INC.

                      CONSOLIDATED BALANCE SHEETS


                                              June 30,
                                                2009     December 31,
                                             (Unaudited)     2008
                                             -----------  -----------
                                              (In thousands, except
                                                  per share data)
                   ASSETS
 Cash and cash equivalents                   $   616,072  $   464,618
 Marketable securities                                --        1,495
 Accounts receivable, client accounts             75,070       70,121
 Accounts receivable, trade, net of
  allowance of $6,061 and $3,662,
  respectively                                    45,839       46,459
 Deferred income taxes                            14,167       14,038
 Contract advances                                49,471       44,927
 Prepaid expenses and other current assets        39,991       37,758
                                             -----------  -----------
   Total current assets                          840,610      679,416
 Property and equipment, net                     110,414      111,291
 Goodwill                                        469,053      455,751
 Intangible assets, net                          318,295      330,061
 Long-term investments                            16,652       17,487
 Other non-current assets                        111,621      112,561
                                             -----------  -----------
 TOTAL ASSETS                                $ 1,866,645  $ 1,706,567
                                             ===========  ===========
  LIABILITIES, TEMPORARY EQUITY AND EQUITY
 LIABILITIES:
 Accounts payable, client accounts           $   448,581  $   324,164
 Accounts payable, trade                          31,640       29,251
 Accrued compensation and benefits                42,473       39,683
 Deferred revenue                                 33,960       33,244
 Income taxes payable                              6,978        7,522
 Other accrued expenses and current
  liabilities                                     87,385       82,435
                                             -----------  -----------
    Total current liabilities                    651,017      516,299
 Long term debt                                  865,000      865,000
 Income taxes payable                              4,316        1,680
 Other long-term liabilities                      16,851       10,286
 Deferred income taxes                            56,653       67,300

 Commitments and contingencies

 TEMPORARY EQUITY:
 Series A convertible redeemable preferred
  stock, $0.01 par value, 25,000 shares
  authorized, 1,750 non-vested shares
  issued and outstanding at June 30, 2009
  and December 31, 2008                           13,009        9,888
 Redeemable noncontrolling interests                 765        1,293
 EQUITY:
 Ticketmaster Entertainment, Inc.
  stockholders' equity:
 Common stock, $0.01 par value, 300,000
  shares authorized; 57,357 shares issued
  and outstanding at June 30, 2009 and
  57,213 shares issued and outstanding at
  December 31, 2008                                  574          572
 Additional paid-in capital                    1,242,679    1,236,130
 Accumulated deficit                          (1,044,632)  (1,058,758)
 Accumulated other comprehensive income
  (loss)                                             327      (11,374)
                                             -----------  -----------
    Total Ticketmaster Entertainment, Inc.
     stockholders' equity                        198,948      166,570
                                             -----------  -----------
 Noncontrolling interests                         60,086       68,251
                                             -----------  -----------
 Total equity                                    259,034      234,821
                                             -----------  -----------
 TOTAL LIABILITIES, TEMPORARY EQUITY
  AND EQUITY                                 $ 1,866,645  $ 1,706,567
                                             ===========  ===========




                    TICKETMASTER ENTERTAINMENT, INC.

                 CONSOLIDATED STATEMENTS OF CASH FLOWS

                              (Unaudited)


                                                   Six Months Ended
                                                        June 30,
                                                 --------------------
                                                   2009       2008
                                                 ---------  ---------
                                                     (In thousands)

 Cash flows from operating activities:
 Net income                                      $   7,821  $  54,264
 Adjustments to reconcile net income to net
  cash provided by operating activities:
   Amortization of intangibles                      35,915     20,403
   Depreciation                                     26,479     22,883
   Amortization of debt issuance costs               2,229         --
   Provision for doubtful accounts                   1,970      3,882
   Stock-based compensation expense                 12,602     11,393
   Deferred income taxes                           (10,807)    (2,703)
   Equity in income of unconsolidated
    affiliates, net of dividends                     2,069      4,290
   Excess tax benefits from stock-based awards          --        (53)
 Changes in current assets and liabilities,
  excluding acquisition effects:
   Accounts receivable                                (165)    (5,282)
   Prepaid expenses and other current assets        (3,963)   (12,020)
   Accounts payable and other current
    liabilities                                      2,883    (31,242)
   Income taxes payable                              2,277     (5,389)
   Deferred revenue                                    287      5,652
   Funds collected on behalf of clients, net       104,174     42,530
 Other, net                                            (78)       106
                                                 ---------  ---------
 Net cash provided by operating activities         183,693    108,714
                                                 ---------  ---------
 Cash flows from investing activities:
   Transfers to IAC                                     --   (141,914)
   Cash paid for acquisitions, net of cash
    acquired                                       (24,636)  (393,545)
   Purchases of property and equipment             (23,804)   (23,240)
   Purchase of marketable securities                    --     (4,176)
   Proceeds from sales and maturities of
    marketable securities                            1,497         --
   Cash paid for long-term investments                (134)      (257)
                                                 ---------  ---------
 Net cash used in investing activities             (47,077)  (563,132)
                                                 ---------  ---------
 Cash flows from financing activities:
   Capital contributions from IAC                       --    393,545
   Principal payments on long-term obligations      (1,140)      (929)
   Distributions to noncontrolling interests        (5,725)        --
   Excess tax benefits from equity awards               --         53
   Other, net                                         (355)        --
                                                 ---------  ---------
 Net cash (used in) provided by financing
  activities                                        (7,220)   392,669
                                                 ---------  ---------
 Effect of exchange rate changes on cash and
  cash equivalents                                  22,058     14,127
                                                 ---------  ---------
 Net increase (decrease) in cash and cash
  equivalents                                      151,454    (47,622)
 Cash and cash equivalents at beginning
  of period                                        464,618    568,417
                                                 ---------  ---------
 Cash and cash equivalents at end of period      $ 616,072  $ 520,795
                                                 =========  =========

RECONCILIATION OF SUPPLEMENTAL MEASURE TO GAAP MEASURES

The following table reconciles Adjusted EBITDA to Net income attributable to Ticketmaster Entertainment, Inc. (in thousands):


                                                Three Months Ended
                                                     June 30,
                                               --------------------
                                                 2009        2008
                                               --------    --------
 Adjusted EBITDA                               $ 56,289    $ 70,168
 Non-cash compensation expense                   (6,331)     (6,628)
 Amortization of intangibles                    (20,857)    (11,535)
 Depreciation expense                           (14,079)    (11,828)
                                               --------    --------
   Operating income                              15,022      40,177
 Other expense, net                             (10,417)     (7,193)
                                               --------    --------
 Earnings before income taxes and
  noncontrolling interests                        4,605      32,984
 Income tax provision                            (1,520)    (10,854)
                                               --------    --------
 Net income                                       3,085      22,130
   Plus: Loss attributable to noncontrolling
    interests, net                                3,792         882
                                               --------    --------
 Net income attributable to Ticketmaster
  Entertainment, Inc.                          $  6,877    $ 23,012
                                               ========    ========

Non-cash compensation expense in the table above is included in the following line items in the accompanying consolidated statements of operations for the three months ended June 30, 2009 and 2008 (in thousands):


                                                Three Months Ended
                                                     June 30,
                                               --------------------
                                                 2009        2008
                                               --------    --------
 Non-cash compensation expense included in:
 Cost of sales                                 $    108    $    303
 Selling and marketing expense                      117         330
 General and administrative expense               6,106       5,995
                                               --------    --------
   Non-cash compensation expense               $  6,331    $  6,628
                                               ========    ========

The following table reconciles Free Cash Flow to net cash provided by operating activities (in thousands):


                                                Three Months Ended
                                                     June 30,
                                               --------------------
                                                 2009        2008
                                               --------    --------
 Free Cash Flow                                $ 41,486    $  5,554
 Funds collected on behalf of clients, net      (43,821)     23,572
 Capital expenditures                            12,891      13,753
                                               --------    --------
   Net cash provided by operating activities   $ 10,556    $ 42,879
                                               ========    ========

The following table reconciles Adjusted net income attributable to Ticketmaster Entertainment, Inc. to Net income attributable to Ticketmaster Entertainment, Inc. and presents Adjusted earnings per share (in thousands except for per share amounts):


                                                Three Months Ended
                                                     June 30,
                                               --------------------
                                                 2009        2008
                                               --------    --------
 Net income attributable to Ticketmaster
  Entertainment, Inc.                          $  6,877    $ 23,012
 Professional and legal fees in connection
  with Live Nation merger, net of tax             4,800          --
                                               --------    --------
 Adjusted net income attributable to
  Ticketmaster Entertainment, Inc.             $ 11,677    $ 23,012
                                               ========    ========
 Adjusted earnings per share                   $   0.20    $   0.41

 Diluted weighted average shares outstanding     59,464      56,171
                                               ========    ========

TICKETMASTER ENTERTAINMENT'S PRINCIPLES OF FINANCIAL REPORTING

Ticketmaster Entertainment reports Adjusted EBITDA as a supplemental measure to generally accepted accounting principles ("GAAP"). This measure is one of the primary metrics by which Ticketmaster Entertainment evaluates the performance of its businesses, on which its internal budgets are based and by which management is compensated. Ticketmaster Entertainment believes that investors should have access to the same set of tools that it uses in analyzing its results. This supplemental measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Ticketmaster Entertainment provides and encourages investors to examine the reconciling adjustments between the GAAP measure and supplemental measure which are discussed below.

Definitions of Ticketmaster Entertainment's Supplemental Measures

Adjusted Earnings before Interest, Income Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as operating income excluding, if applicable: (1) depreciation expense (2) non-cash compensation expense (3) amortization and impairment of intangibles, (4) goodwill impairment, (5) pro forma adjustments for significant acquisitions, fair value adjustments to contingent consideration and compensation expense associated with significant acquisitions or the Merger with Live Nation, and (6) one-time items. Ticketmaster Entertainment believes this measure is useful to investors because it represents the operating results from Ticketmaster Entertainment businesses excluding the effects of any other non-cash expenses. The Adjusted EBITDA metric was named Adjusted Operating Income in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2008. Adjusted EBITDA has certain limitations in that it does not take into account the impact to Ticketmaster Entertainment's statement of operations of certain expenses, including acquisition-related accounting. Ticketmaster Entertainment endeavors to compensate for the limitations of the supplemental measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the supplemental measure.

Free Cash Flow is defined as net cash provided by operating activities less funds collected on behalf of clients, net, and less capital expenditures. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account cash movements that are nonoperational. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. For example, it does not take into account stock repurchases. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.

Adjusted net income attributable to Ticketmaster Entertainment, Inc. and Adjusted earnings per share represent Net income attributable to Ticketmaster Entertainment, Inc. and diluted earnings per share, excluding the impact of discrete items impacting the comparability of quarterly financial results.

Pro Forma Results

Ticketmaster Entertainment will only present revenue or Adjusted EBITDA on a pro forma basis if a particular transaction is significant within the meaning of Rule 11-01 of Regulation S-X or if it views a transaction as so significant in nature that disclosure of pro forma financial information would be material to investors. For the periods presented in this report, there are no transactions that Ticketmaster Entertainment has included on a pro forma basis.

One-Time Items

Adjusted EBITDA is presented before one-time items, if applicable. These items are truly one-time in nature and non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. For the periods presented in this report, there are no one-time items.

Non-Cash Expenses That Are Excluded From Ticketmaster Entertainment's Supplemental Measures

Non-cash compensation expense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of restricted stock, restricted stock units and stock options. These expenses are not paid in cash, and Ticketmaster Entertainment will include the related shares in its future calculations of fully diluted shares outstanding. Upon vesting of restricted stock and restricted stock units and the exercise of certain stock options, the awards will be settled, at Ticketmaster Entertainment's discretion, on a net basis, with Ticketmaster Entertainment remitting the required tax withholding amount from its current funds.

Amortization of intangibles is a non-cash expense relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as purchase and distribution agreements, are valued and amortized over their estimated lives. While it is likely that Ticketmaster Entertainment will have significant intangible amortization expense as it continues to acquire companies, Ticketmaster Entertainment believes that since intangibles represent costs incurred by the acquired company to build value prior to acquisition, they were part of transaction costs.

Ticketmaster Entertainment, Inc.
Media
Hannah Kampf
  +1-310-360-2434
  
Investor Relations
Christina Um
  +1-310-360-2354