(Reuters) - Ticketmaster parent Live Nation Entertainment (NYSE:LYV) beat market estimates for third-quarter revenue on Thursday benefiting from high ticket prices and surging concert demand.
Shares of the company rose 3.5% in extended trading.
Heavy demand for music concerts from popular figures like Taylor Swift and Beyonce has driven up the prices of tickets, benefiting concert promoters.
The announcement of long-awaited tours from musical artists like Bad Bunny and U2 shows signs of a healthy outlook for the company.
The company's revenue rose 32% to $8.15 billion in the quarter ended Sept. 30, compared with analysts' estimates of $6.99 billion, according to LSEG data.
Total estimated events rose 7.6% year-over-year to 12,090 while total estimated fans stood at 52.3 million compared with 37.1 million the previous quarter.
Total estimated tickets sold were 155.4 million compared with 150.1 million in the previous quarter.
The company's concert business, which consists of merchandise sales and the production of live music events, brought in revenue of $6.97 billion – making up the bulk of its overall revenue, followed by $832.6 million from ticketing.
Along with the surging demand, the company faces regulatory challenges.
Live Nation was reportedly subject to a probe by the U.S. Justice Department investigating whether the company uses anticompetitive agreements with venues and artists amid broader concerns of high fees and the company's control of the concert ticket market.
The company reported a profit per share of $1.78 for the July to September period, compared with $1.39 per share a year ago.