Raphael Stevens

Live Nation reported earnings and revenue that blew away Wall Street’s expectations.
The Ticketmaster parent benefited from high prices and pent-up demand.
The blowout results coincided with blockbuster tours from Taylor Swift and Beyoncé.

(L) Taylor Swift performs onstage during her The Eras Tour at Paycor Stadium in Cincinnati, Ohio, on June 30, 2023. (R) Beyoncé performs onstage during her Renaissance World Tour at the Johan Cruyff Arena in Amsterdam, Netherlands, on June 17, 2023.
Getty Images

Ticketmaster parent company Live Nation Entertainment delivered its strongest quarter ever, on pace for a record 2023 on the backs of concert darlings Taylor Swift and Beyoncé.
Higher ticket prices and pent-up demand for live shows helped boost revenue up 32% to $8.2 billion in the third quarter, significantly higher than the $6.99 billion expected, according to LSEG, formerly known as Refinitiv.

Shares of the company jumped more than 3% after the closing bell Thursday.
The majority of its revenue, about $6.97 billion, came from the company’s concerts business, which consists of merchandise sales and production of live music events, followed by $833 million from ticketing.
Here are the results:

Earnings per share: $1.78 vs. $1.27 per share expected, according to LSEG
Revenue: $8.15 billion vs. $6.99 billion expected, according to LSEG 

For the period ending Sept. 30, Live Nation posted earnings of $483.5 million, or $1.78 a share, up from $361.4 million, or $1.39 a share, a year earlier.
Live Nation sold a record 140 million tickets so far in 2023, up 17% from the same period last year and more than the 121 million tickets the company sold in all of 2022.

Many of those tickets were for overlapping tours from Swift and Beyoncé. The powerhouse singers have generated billions in revenue for the concert industry as well as billions for the domestic economy in the past year.
Not to mention, both are taking turns at the movie box office. Swift’s The Eras Tour concert film broke records in the space during its theatrical release in October, generating more than $200 million globally. Beyoncé is up next with the release of her Renaissance Tour documentary in December.
This year also saw tours from the likes of Harry Styles, Billy Joel and Stevie Nicks, Journey, Bruce Springsteen and the E Street Band, Paramore, The Jonas Brothers, Carrie Underwood, SZA, Red Hot Chili Peppers, Reba McEntire, Lizzo, Blink-182 and Blackpink.
Fans are spending more once they are at these concerts, too. Live Nation said per-fan profitability jumped double digits, outpacing cost inflation.
Live Nation expects 55 million fans will have ventured to its venues by the end of 2023, up double digits from 49 million fans in 2022.
There will be more for them to see in 2024. Live Nation reported Thursday that about half the expected show count for next year is booked for large venues, up double digits from the year prior. While Beyoncé has wrapped up her Renaissance World Tour, Swift is set to begin the international leg of her The Eras Tour in late November.
Also on the docket for 2024 is Coldplay, Metallica, Pink, Bruno Mars, Aerosmith, Foo Fighters and Ed Sheeran. The Rolling Stones are expected to go on tour, too.
Around 17 million net new client tickets were added so far in 2023, with half coming from international markets, the company said.Don’t miss these stories from CNBC PRO: More

Eli Lilly said supply of its blockbuster diabetes drug Mounjaro has recently improved in the U.S. after widespread shortages. 
However, the pharmaceutical giant noted that it is still working to increase production capacity for the treatment and other drugs.
Demand for the treatment is soaring, largely due to its off-label ability to cause weight loss.

A pharmacist displays boxes of Ozempic, a semaglutide injection drug used for treating type 2 diabetes made by Novo Nordisk, at Rock Canyon Pharmacy in Provo, Utah, on March 29, 2023.
George Frey | Reuters

Eli Lilly on Thursday said supply of its blockbuster diabetes drug Mounjaro has improved in the U.S. after months of widespread shortages. 
However, the pharmaceutical giant noted that it is still working to increase production capacity for the treatment and other drugs amid increased demand.

The remarks suggest that Eli Lilly’s initial efforts to expand manufacturing capacity for Mounjaro are starting to pay off. Demand for the treatment is soaring, largely due to its off-label ability to cause significant weight loss. U.S. regulators could potentially approve the drug for weight loss this year, which could push up demand even more.
During an earnings call Thursday, Eli Lilly executives said the company experienced tight supply for Mounjaro throughout most of the third quarter. Mounjaro raked in $1.4 billion in sales for the quarter, helping the company beat expectations on both the top and bottom lines. 
But U.S. product shipments of Mounjaro have recently increased, and inventory levels at U.S. drug wholesalers have improved, according to Eli Lilly Chief Financial Officer Anat Ashkenazi. 
She noted that all doses of Mounjaro are now listed as available on the U.S. Food and Drug Administration’s shortage database. Meanwhile, Mounjaro supply remains tight internationally, Ashkenazi added. 
Eli Lilly is on track to achieve its goal of doubling production capacity for drugs such as Mounjaro and its other diabetes treatment Trulicity, Ashkenazi said. Both drugs work by mimicking hormones produced in the gut called incretins to suppress a person’s appetite and regulate blood sugar. 

Ashkenazi pointed to the company’s new facility in North Carolina, which is now “online” to provide additional drug assembly capacity. Eli Lilly has also invested more than $3 billion to build two new manufacturing sites in its home state of Indiana.
But Eli Lilly CEO David Ricks said during the earnings call that the company is still “aggressively planning” further production buildup for Mounjaro and other drugs.
He noted that the company has been inking third-party manufacturing agreements with a “diverse portfolio” of contractors, with Eli Lilly “buying up as much capacity as available” in their systems. 
“This is really all-hands-on-deck,” Ricks said. “It’s a problem we work on every day. So we’re not at all happy with the capacity.”
Eli Lilly’s main rival in the weight loss drug space, Novo Nordisk, is still navigating its own supply constraints of diabetes drug Ozempic and obesity treatment Wegovy.
Ozempic and Wegovy sparked the weight loss industry gold rush last year, pushing Eli Lilly and other companies such as Pfizer to ramp up their investments in the space. 
Initial studies have suggested that Eli Lilly’s Mounjaro may be even more effective at reducing weight than Wegovy and Ozempic.Don’t miss these stories from CNBC PRO: More

Media stocks popped Thursday as Roku’s 30% rally lifted the entire sector.
Roku reported strong trends in content distribution and advertising as well as uptake of its Roku-branded TVs.
Strong usership for Roku means more points of access for subscribers to Paramount+, Max, Netflix, Peacock and other streaming services.

A Roku remote in an arranged photograph in Hastings-on-Hudson, New York, on May 2, 2021.
Bloomberg |Getty Images

Media stocks popped Thursday as Roku’s 30% rally lifted the entire sector.
Wall Street celebrated the streaming device company’s third-quarter report Wednesday, in which Roku reported strong trends in content distribution and advertising as well as uptake of its Roku-branded TVs.

Paramount and Warner Bros. Discovery both closed up about 10% Thursday. Disney shares closed up nearly 3% following news of the media giant’s agreement to buy Comcast’s remaining stake in Hulu.
Netflix and Comcast both rose more than 1% Thursday.
Roku, known for its plug-in streaming device players, provides users access to all the major streaming services. The company’s active accounts for the third quarter beat analysts’ estimates, coming in at 75.8 million, compared to the 75.33 million Wall Street expected, according to StreetAccount.
Strong usership for Roku means more points of access for subscribers to Paramount+, Max, Netflix, Peacock and other streaming services.
The positive results follow something of a change of pace for the streaming industry after a period of uncertain subscriber growth.

Netflix reported a surprise jump in subscribers in its third-quarter earnings report last month, driven largely by its ad-supported subscription tier. The company said Wednesday that its ad-supported tier has amassed 15 million subscribers, tripling its previously announced total of five million in May.
Paramount reports its quarterly earnings report after the market close Thursday. Warner Bros. Discovery and Disney each report next week.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.Don’t miss these stories from CNBC PRO: More

The National Association of Realtors announced its CEO, Bob Goldberg, will quit at the end of the month.
Goldberg had previously said he would retire at the end of 2024.
The announcement comes on the heels of a federal jury finding the association liable for artificially inflating home sales commissions.

A “For Sale” sign outside a house in Edmonton, Alberta, in Canada on Oct. 22, 2023.
Nurphoto | Nurphoto | Getty Images

The National Association of Realtors announced Thursday that CEO Bob Goldberg will resign earlier than expected, as the group contends with the fallout from a federal lawsuit and a harassment scandal.
The leadership transition comes days after a federal jury found the association — and some residential brokerages, including units of Warren Buffett’s Berkshire Hathaway — liable for conspiring to artificially inflate commissions from home sales. The NAR was ordered to pay $1.78 billion in damages.

The jury’s verdict also has the possibility to upend practices by real estate agents to boost commissions as home prices continue to rise. The trade group plans to appeal and seek reduced damages.
The association did not mention the lawsuit in Goldberg’s decision to step down.
The NAR’s leadership also came under fire in August, when its president, Kenny Parcell, resigned two days after The New York Times published a story detailing sexual harassment claims from women with whom he worked.
Starting Nov. 30, Goldberg will be replaced by Nykia Wright, who’s serving as interim CEO while the association searches for a permanent replacement.
In June, Goldberg said he planned to retire at the end of 2024. He has spent three decades at NAR. Goldberg will continue to serve as an executive consultant through the transition, the association added.

In a release Thursday, he said he decided last month to retire earlier than planned.
“I am grateful for the privilege of leading NAR and confident that the association will continue delivering incredible value to its members for generations to come,” he said.Don’t miss these stories from CNBC PRO: More

Novo Nordisk said 80% of U.S. patients with insurance coverage who take its highly popular weight loss treatment Wegovy are paying less than $25 a month for the drug.
The remarks suggest that many insured Americans don’t have to shoulder the full cost of a monthly package of Wegovy, which has a list price of around $1,350.
Doug Langa, Novo Nordisk’s vice president for North America, said on a third-quarter earnings call that most major health plans and pharmacy benefit managers are covering Wegovy. 

Wegovy, an injectable prescription weight loss medicine that has helped people with obesity.
Michael Siluk | UCG | Getty Images

Novo Nordisk on Thursday said 80% of U.S. patients with insurance coverage who take its highly popular weight loss treatment Wegovy are paying less than $25 a month for the drug. 
The remarks suggest that many insured Americans don’t have to shoulder the full cost of a monthly package of Wegovy, which has a list price of around $1,350. It also comes as many U.S. health insurers balk at the extreme cost of Wegovy and other obesity drugs while dropping them from their plans, even as demand for those treatments soar nationwide and outpace supply. 

But Doug Langa, Novo Nordisk’s vice president for North America, said on a third-quarter earnings call Thursday that most major health plans and pharmacy benefit managers are covering Wegovy. 
Langa acknowledged that some employers are opting out of coverage but noted that the company overall is seeing more insurers opt in to cover the weekly injection.
He estimated that about 50 million Americans with obesity could be eligible for Wegovy coverage under their health plans.
“Directionally, we’re heading in the right direction and our focus will be continuing on securing employer coverage as well as stronger access for Americans overall,” Langa said during the call. 
However, the $25 out-of-pocket cost will likely add up over time. Most patients have to take Wegovy for several months to see — and sustain — significant weight loss. 

Wegovy, for example, leads to 15% weight loss after 68 weeks, according to clinical trials on the drug.
The longer treatment duration is also one reason why some health insurers are hesitant to cover Wegovy and similar weight loss drugs, which typically work by mimicking a hormone produced in the gut to suppress a person’s appetite.
At roughly $1,000 per month on average for medications that are typically taken for months or even a year, the drugs are straining insurers’ budgets.
But Novo Nordisk is hoping that new data demonstrating the heart health benefits of Wegovy will put more pressure on insurers to cover the medication and similar weight loss treatments. 
A recent late-stage trial found that Wegovy reduced the risk of cardiovascular events such as heart attack and stroke by 20%. The results suggest that Wegovy and similar obesity and diabetes medications like those in development by Eli Lilly and others could have long-lasting health benefits beyond shedding unwanted pounds.
Novo Nordisk Chief Financial Officer Karsten Munk Knudsen told CNBC on Thursday that Wegovy could receive expanded approval from the U.S. Food and Drug Administration as a treatment for reducing the risk of cardiovascular disease within six months.
More than 2 in 5 adults have obesity, according to the National Institutes of Health.
About 1 in 11 adults have severe obesity.

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Fox Sports drove higher consumption for Fox Corporation, CEO Lachlan Murdoch said.
But sports programming drove costs higher for the company, driving profit lower.
Sports fuel high ratings but they’re costly for media companies.

A Fox Sports television camera during a game between the Utah Utes and the USC Trojans at the Los Angeles Memorial Coliseum in Los Angeles on Oct. 21, 2023.
Brian Rothmuller | Icon Sportswire | Getty Images

Fox Sports drove higher consumption overall for Fox Corporation last quarter, CEO Lachlan Murdoch said Thursday during the company’s quarterly earnings call.
Consumption data showed viewing of all Fox brands was up 2% during the fiscal year first quarter, the company reported.

“FOX Sports was a big driver of that consumption, especially with its broadcast of the Women’s World Cup, where the U.S. versus the Netherlands on Fox with the most watched Women’s World Cup game match ever on U.S. English language television,” Murdoch said.
But as the media giant doubled down on sports programming, it certainly paid the price.
Sports programming costs drove expenses higher, weighing on profit and offsetting revenue growth in the company’s TV segment. The company posted a net income of $415 million in its earnings report, down 33% from the $613 million a year earlier. Fox cited the Women’s World Cup and the renewal of National Football League rights as major costs.
Sports programming is a consistent ratings beast for TV networks. A whopping 113 million viewers tuned into Fox to watch the Super Bowl earlier this year, the third highest of all time. But it comes with a massive price tag, especially as linear networks and streaming services have begun battling it out for programming rights.
Last year, YouTube won the rights to NFL Sunday Ticket after the online streaming giant handed over $2 billion a year. DirecTV had previously paid $1.5 billion annually for the rights.

Ad revenue and the cable bundle

Fox’s ad-supported streaming service Tubi, which the company acquired in 2020, posted favorable results. Fox said Tubi surpassed 70 million monthly active users in September, up from the 64 million monthly active users Tubi announced in February.
Fox said it’s not looking to bring live sports to Tubi. The streamer will remain focused on entertainment content, Murdoch said during the earnings call.
Overall ad revenue slid 2% during the quarter compared to a year ago, when the company benefited from political ads in the lead up to midterm elections at the time, the company reported.
The growth of Tubi and viewership of the Women’s World Cup helped offset the softened advertising market last quarter, Wolfe Research analyst Peter Supino said in a Thursday note.
Fox is also standing firmly by the cable bundle, where its conservative-leaning Fox News channel continues to thrive, even as an increasing number of subscribers cut the cord.
“The cable bundle remains our largest and most important revenue stream,” Murdoch said during the earnings call. “We believe that it will remain our largest for years to come.”
Analysts at Morgan Stanley are on board with the devotion to the bundle.
“Fox is relatively insulated but not immune from the continued weakness we are seeing in general entertainment linear TV,” said analysts at Morgan Stanley in a Thursday note.Don’t miss these stories from CNBC PRO: More

A lot has changed for the EV market since Covid, Nissan CEO Makoto Uchida said.
“The market has been fragmented, and customers’ acceptance speed is also different,” he told CNBC.
Nissan’s global scale will give it an advantage as it works to lower the costs of EV components, Uchida added.

Nissan Motor Co. CEO Makoto Uchida speaks next to the Nissan Hyper Force electric vehicle during the Japan Mobility Show at Tokyo Big Sight in Tokyo, Japan on October 25, 2023.
Tomohiro Ohsumi | Getty Images

Nissan Motor’s CEO says that when it comes to electric vehicles, the world has changed a lot since Covid – and now, people in different parts of the world want very different things from their battery-powered cars.
That presents a series of challenges to established automakers like Nissan, which have followed global strategies for decades.

Speaking to CNBC’s Martin Soong, Nissan CEO Makoto Uchida said that while more and more customers are stepping up to buy EVs, the pace of adoption varies greatly by market, as do the wants and needs of buyers.
“The world’s pace [of EV adoption] has been changed. The market has been fragmented, and customers’ acceptance speed is also different,” Uchida said. “That means we, as an automotive company, need to be transforming ourselves from the ways of the past.”
Uchida said that differences in government incentives, in costs, in levels of regional competition, and in customer adoption rates have all combined to make the U.S., Europe, Japan and China sharply different markets for electric vehicles.
“So what’s important is how much we can start to localize in each respective market,” Uchida said.
Nissan’s global scale will give it an advantage as it works to lower the costs of EV components like motors and batteries that can be shared among many different types of vehicles, Uchida said.

But many of those new Nissan EVs will no longer be global models. Uchida said that while Nissan has always had regional models to an extent, he believes future Nissan EVs for regions like the U.S. or China must be developed in those regions. That will help ensure that they are aligned with what local customers and regulations are demanding, and that they can be priced appropriately for each market’s expectations, he said.
For instance, EV customers in China are very sensitive to pricing – but they also want the latest technology, which they’ve come to expect from the fierce competition between the many domestic Chinese EV makers. For Nissan, the challenge in China is to compete both with the company’s longtime global rivals like Toyota and Volkswagen while it works to keep pace with homegrown Chinese EV startups like Nio, XPeng, and Li Auto – all while keeping costs as low as possible.
Uchida notes that Nissan’s history in China, and its established customer base, gives it an advantage that some newer entrants might lack — but it will still need to adapt to the extremely fast pace of the country’s EV market, where new models seem to be launched weekly.
“I see the great potential, I still have a lot of customers, all we have to do is accept how the market is moving, how much we can adjust ourselves toward the market,” he said.
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