Deal Costs Lower Live Nation, Ticketmaster Profits

RYAN NAKASHIMA

LOS ANGELES (AP) — Proposed merger partners Live Nation Inc. and Ticketmaster Entertainment Inc. both said Monday that their earnings were hurt by costs related to the deal, which is expected to drag into 2010 as regulators explore antitrust concerns.

The companies are awaiting a U.S. Justice Department ruling on their plan to create a concert-promoting and ticketing giant. British authorities came out against the deal last month and plan to issue a final report by Jan. 19 that could force the companies to sell divisions or make other concessions.

Live Nation said Monday that its net income fell by half to $69 million, or 78 cents per share. Better sales of concert tickets sent revenue up 14 percent to $1.81 billion.

Ticketmaster's net income increased more than a third to $13 million. Revenue rose 3 percent to $349 million.

Combined, the companies spent nearly $12 million in merger expenses in the quarter. Ticketmaster's legal fees and other deal costs cut 7 cents per share off its earnings, which came to 22 cents per share. Without the expense, its earnings would have beat analysts' average forecast of 25 cents, according to Thomson Reuters.