How big is the electronic dance music market? EDM Promoter SFX Entertainment posted big 3rd quarter numbers. As a result of some very successful festivals, SFX is riding high and enjoying a near doubling of revenue.
The company generated a 194.5% increase to $143.5 million that resulted in Q3 2014 net income of $2.8 Million.
30 of the 82 festivals that SFX produced in 2014 were held in the 3rd quarter. Most notable being TomorrowWorld that saw a substantial increase of attendance to more than 150,000 people.
“It’s clearly set the stage for major growth of this brand” in the U.S. and elsewhere, said Rich Rosenstein, chief financial and administrative officer.
“The third quarter of 2014 was one of growth and transformation for SFX and I am excited by the tremendous progress made by our entire team. During the third quarter, we extended our success in launching our most popular festivals in new geographies, rolled out highly customized programs for global flagship brands, expanded and introduced new multi-year marketing partnerships, re-launched our Beatport portal and further developed our online assets to better engage and delight our fans.
With streamlined operations that are laser focused on providing the best possible experience for fans worldwide, the cash flow generated in the third quarter allowed SFX to invest an additional $11 million toward future initiatives, an investment that was expensed through our income statement. Upcoming quarters will see the benefit of these investments for all stakeholders.” – Robert F.X. Sillerman, chairman and CEO of SFX.
Obviously the EDM craze has some serious legs. I’m certainly looking forward to the SFX event, Life in Color being held down here in South Florida next month.