Good afternoon. My name is Kevin, and I will be your conference facilitator today. At this time I would like to welcome everyone to the Live Nation Entertainment First Quarter 2016 Earnings Conference Call. Today conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. Before we begin, Live Nation has asked me to remind you that this afternoon's call will contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ, including statements related to the company's anticipated financial performance, business prospects, new developments and similar matters. Please refer to Live Nation's SEC filings, including the risk factors and cautionary statements included in the company's most recent filings on forms 10-K, 10-Q, and 8-K for a description of risks and uncertainties that could impact the actual results. Live Nation will also refer to some non-GAAP measures on this call. In accordance with SEC Regulation G, Live Nation has provided a full reconciliation of the most comparable GAAP measure in their earnings release. The release, reconciliations and other financial or statistical information to be discussed on this call can be found under the Investor Relations tab on, investors.livenationentertainment.com. It is now my pleasure to turn the call over to Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. Michael Rapino - President, Chief Executive Officer & Director: Thank you. Live Nation has continued growing its business in 2016, with first quarter revenue up 10% and AOI up 7% on constant-currency basis. With strong operating performance across all three divisions, our Concerts, Advertising and Ticketing business. More importantly four months into the year we have enough information from leading indicators to be confident that we are…

Thanks, Michael. Looking at our business segments, first Concerts. Live Nation Concerts revenue was up 12% on a constant currency basis, and AOI was down due to show mix, notably lower arena activity in North America. Given Q1 is traditionally our slowest quarter for concert activity, what matters most at this point of the year is our pipeline of shows and tickets sold to-date for shows this year. Our show count for the year is tracking toward a mid-single digit growth rate, with double digit growth in our core arena, amphitheater and stadium shows. This growth is particularly strong internationally this year, where we expect over 20% growth in arena and stadium shows, and given the strong show count growth, particularly in our larger venues, we expect high single-digit growth in fan attendance for the year, and based on this, we expect to deliver double-digit AOI growth in Concert segment for the year, with a particularly strong third quarter. At Artist Nation, revenue is essentially flat while AOI showed slight improvement. Similar to Concerts, the first quarter is typically our lowest activity, so what matters more is our pipeline for the rest of the year, and based on what we see now, we expect a strong Q2 and Q3 for the business, with Q2 back to profitability, and for the full year growing AOI at double-digit rates. Turning to our Sponsorship & Advertising business, revenue in constant currency grew by 13%, and AOI grew by 9% for the first quarter. Here again, over 85% of our AOI is typically in the second quarter through fourth quarters. So, it is our confirmed sales pipeline that is our key leading indicator, and the pipelines for both sponsorship and online advertising are looking strong. In sponsorship, the growth is particularly coming from North…

Thanks, Joe. And good afternoon, everyone. Our key financial highlights for the first quarter of 2016: our revenue is up 10% to $1.2 billion and AOI is up 7% to $74 million, both at constant currency. As reported, revenue is $1.2 billion and AOI is $73 million, and free cash flow is $10 million for the quarter. Our Concerts deferred revenue for tickets sold for events in the future at our owned or operated venues is one of our most important leading financial indicators. And as of the end of the first quarter, our deferred revenue was $1.2 billion, an increase of 29% over the balance in March of last year of $919 million. The majority of our revenue growth in the first quarter to $1.2 billion was driven by concerts and ticketing. Concerts had increased international activity, largely in Australia and Asia, and we also had more shows in our theaters and clubs business. Ticketing revenue growth was driven by higher resale GTV in both sports and concerts, and we also had higher primary ticket sales globally. Reported AOI for the first quarter was $73 million, up 5% over last year, largely due to the increased primary and secondary ticketing activity. Our operating loss in the first quarter was $33 million. This loss is higher than the $24 million operating loss last year, largely due to higher acquisition-related intangibles impact in 2016. And our net loss for the quarter was $45 million, an improvement from the net loss of $58 million in the first quarter of 2015, primarily due to net foreign exchange rate gains of $8 million from revaluation of foreign currency denominated assets. We currently estimate that we will record approximately $45 million of accretion of redeemable noncontrolling interest during 2016, based on our current asset base,…

Thank you. We will take our first question from Amy Yong with Macquarie. Please go ahead. Amy Yong - Macquarie Capital (USA), Inc.: Thank you, and congrats on another great quarter. So, two questions, first, on digital initiatives and the second question is on Ticketmaster. Can you update us on how your digital initiatives are going, particularly the one with Vice? What's been the feedback from consumers, and how big do you think this ad opportunity could be? And my second question is on some of the cost savings for Ticketmaster longer-term. I know, you're calling for stable margins this year, but perhaps if you can talk about some of the margin expansion opportunities going forward, that would be great? Thank you. Michael Rapino - President, Chief Executive Officer & Director: Hi, Amy. It's Michael. I'll take the first one, and Joe will talk to second. Digital, I assume you meant the video content we're producing? So we're going to be flying tonight – or tomorrow we're going to go and we'll be at the New Front in front of a bunch of advertisers, taking them through our portfolio of content. So the thesis is simple. We have 25,000 shows, 85 or 78 festivals that we own. There's lots of great social content happening from all of those great events. We have 900 advertisers, and over the last couple years, obviously those 900 advertisers would say to you we'd love to buy some advertising, we love to buy sponsorship, we wish you had some content, some video from these great events. So that's when we started, whether it was Yahoo! for proof-of-concept, Vice as a producing partner. We hired a great executive internally, Heather Parry, who was at MTV for years. And we're about to announce some other distributor deals,…

Amy, this is Joe. On the Ticketmaster question, I think as you know, our primary obsession is continuing to drive Ticketmaster's global market share in ticketing, which then in turn drives the top line of that business, the AOI and the cash generation. So we've talked a lot lately about how we're expanding in secondary and festival and do it yourself; all businesses that have lower scale, and therefore not yet their margin maturity of the core Ticketmaster business. So as we take cost out of that core traditional Ticketmaster business, there is some offset with the margin mix in terms of where the growth is going to come from? And we're going to continue to be obsessed at looking at every additional vertical, looking at new markets to go into, expanding our position internationally, both in the core business as well as in those different verticals. So we're going to be very focused on managing the cost structure and operating model of our traditional business as we get more and more technology out there and more self-serve with it, which will let us lower the cost of that. But I think as you look at the division overall for the next several years, again what you'll see, our focus has been is growing the topline AOI and cash flow from building the business, much more than anything else. Amy Yong - Macquarie Capital (USA), Inc.: Great. Thank you.

We'll go next to John Healy with Northcoast Research. Please go ahead.

Thank you. Michael, I wanted to ask a little bit about some of the success you had in some of the pilots last year with some of the onsite ways to reach the customer and get them to spend more, sounds like you're rolling that out to even more venues this year. Is there any color you can give us on, kind of, the numbers behind it? What sort of success you had last year? And how big this initiative in terms of rollout will be in 2016? Michael Rapino - President, Chief Executive Officer & Director: And you're talking about our on-site pilots?

Exactly. Michael Rapino - President, Chief Executive Officer & Director: Yes. Well, we always like to highlight it because quite honestly it's one of those core businesses that we do that don't really get the focus. Most people talk about the ticket sale, and what we're really always been about is the per-head spend, right. That's why we're more interested in getting you in the venue and then figuring out how to make our $15 to $20 per head, whether it's in our venue or someone else's. So we've been, year after year, growing our on-site per head business. And one of the roadblocks over the last five years was when we would be able to really get the Wi-Fi connection and at what cost that would come at. And we waited, we didn't – five years ago, we looked at it, and four years ago, and the CapEx cost to make sure our theaters, our clubs, our amphitheaters and our festivals had really great Wi-Fi, it was too cap intensive, so we knew that would come down. We're at that position now where we've been able to strike a great deal with Cisco in terms of getting our amps and our venues Wi-Fied. It's going to be a great sponsorship relationship with them, as we go deeper with Cisco. And it's going to be a positive revenue business for us, so we can have that Wi-Fi installed now at our venues, and we start to make money day one from both sponsorship and then selling on-site, advertising in the app, upgrading your seat, selling you food and beverage. So last year, we piloted it with our app, instant delivery to your seat, order from your seat, express lanes. And we had to get the pieces of plumbing in place.…

Thank you for that. I wanted to ask a big picture question to you and the team. If I think about the phase of each of your businesses right now, you guys have spent a lot of time and a lot of money kind of recalibrating them, and kind of getting them on a new path, and they're all doing really well right now. So if I think about kind of the next three years – if I think about technology, if I think about content, and if I think about, even the things like the Roc Nation sports deal that you guys have been doing, how do you – what – how would you prioritize the business units in terms of capital spend and investment right now? Michael Rapino - President, Chief Executive Officer & Director: Well, I think, if you look at where we're going to spend our dollars, I mean, one of the realities is – most of our growth has still been organic. So, I forget the latest percentage we said out loud, Joe.

But it's, yeah, I mean, 90%-plus of our AOI this year is organic. And the vast, vast majority of our growth, year-on-year, is organic. Michael Rapino - President, Chief Executive Officer & Director: Organic. So, just to state, the business and the execution is why the cash flow and AOI has been growing, not the bolt-on acquisitions over the last three years. So we continue to think we got lots of room to execute better, and continue to have record years for the next years to come. In terms of, then capital allocation of resources – fundamentally, number one, is to continue to make sure we consolidate and scale our global concert business. Because the number one competitive advantage we have in the world is, we have 73 million customers walking in our door, and we're providing 1,500 artists an year, an incredible platform to get on the road and tour. That is the part that is very hard to replicate. And we're going to make sure that that continues to grow, because we think there's lots of great global opportunities. So that's why you see us do most of our M&A there, on a global basis, because we still think those are really accretive opportunities. When you buy a Gov Ball, who's been on Eventbrite ticketing, you over – now, you make it a Ticketmaster opportunity. You add sponsors, because they were under-serviced – and overnight, you've got a very accretive business. So you'll continue to see us making sure that we build our global business. That is our competitive advantage. From that, that feeds our higher-margin ticketing business, helps us either renew clients, find new clients or proof of concept, lets us sell to other clients who see what we're doing with our business. We don't need to…

Got you. Thank you, guys.

We'll go next to Jason Bazinet with Citi. Please go ahead.

Yeah. I just had one question. You said your priority was to consolidate and scale the Global business and I was just wondering if you could take a second and share with us anything that you see evolving or developing on the competitive front in terms of other players out in the marketplace trying to mimic what you're trying to build? Michael Rapino - President, Chief Executive Officer & Director: Yeah. Thank you. Listen, I think one of the smartest things we've done for 10 years is have a very small to-do list and a big don't-do list. I think the reason we can sit here 10 years later with 70 million customers going to our shows and be a clear global leader is because we stayed to our knitting. We started in the same time, 10 years ago, with our competitors. We were all the same size. Some of them decided to – I don't know – go after NFL teams and et cetera. We stayed core to our business and that's why 10 years later we are the best in the world at what we do. We've attracted the best talent and we're going to keep making sure that we don't leave any opportunity to lose our position. I think the competitive set is probably more obviously in the ticketing space. You'll always see somebody with a new app or somebody's desire to try to replicate the TM model. Again, we think the combination of having Live Nation's content feeding Ticketmaster, Ticketmaster's incredible global position and scale around its commerce, and really, the reality of our real focus over the last three years to get the best talent in the world reengaged at Ticketmaster. When we took over Ticketmaster, we couldn't hire somebody from Amazon or Apple. We couldn't hire the best-in-class. Today, we can hire the best-in-class every day of the week, who understand now Ticketmaster is a revived new spirit with a great mission. Great technology people want great missions. We have a great mission at Ticketmaster: to evolve and become even better at helping the customer find a ticket and get to the show. And I think that's the place that's the most competitive. We see it when we're re-signing (31:49) clients. And we see it on the consumer front. So, I think if we continue to invest in great products and always continue to never lose sight of our core business, which is the more concerts we have, the more we can control and leverage our ecosystem, we're confident we can continue to grow all three businesses.

Great. Maybe if I can just ask one follow-up, if someone like Stubhub in the secondary ticket market sort of went backwards and tried to acquire someone in the primary ticket market to replicate the model that you have, would you characterize that as a meaningful challenge? Or given the primary ticketing assets that are out there, sort of not that meaningful? Michael Rapino - President, Chief Executive Officer & Director: Well, every action has a reaction. We assumed when we went from primary to adding secondary on our seat map that everybody scurried at Stubhub headquarters, and it's taken them this long to go, oh, crap, we better add primary to our seat map. So we predicted that was coming. I think I've said out loud many times that we welcome secondary and primary merging together. We think we're the beneficiary of that over time. So, we like the idea over time that there is one place to buy a ticket to the Beyoncé show versus historically, there was a primary provider, who wasn't working with all of the same tools of secondary. So we think secondary – we think Stubhub has always been our main competitor in the U.S. It's not around the world. We like to remind everyone we have a global business in Ticketmaster. We're really growing strong throughout Europe. We're number one in secondary in most of the markets in Europe where Stubhub was late to the market, so we made sure that we didn't sit tight over in Europe, that we launched and are the leader now in most of the markets that we participate in. So, we're very confident that globally there is some regional players but we're the only global platform. And we assumed secondary providers will try to add some primary. And I think that does one great thing for us, the more we can convince – so think of what our biggest challenge to growth is, convincing primary to add secondary to the equation. So, letting the primary provider, when you meet with them, convincing them that it's okay to put primary and secondary at one offering for the fan, and I think every time that the market goes towards that, we win, because our client, the team, the artist, the more they get comfortable with seeing primary and secondary together, our market share grows.

Understood. Thank you.

We'll go next to David Joyce with Evercore ISI. Please go ahead.

Thank you. I have just a couple of things. You mentioned that you've got 37 countries in which you have promotional activity. How many of those do you have ticketing at this point?

We have ticketing in 22 countries. It's not 100% overlapped, but it's probably 20 out of the 22 we have ticketing in, we do concerts in. So it's about 40 overall countries, and ticketing about half of them.

Okay. And you mentioned some new strategic sponsors that came in recently. Could you talk about how broad your activities are with them, anything interesting to drive the business model going forward? Are they multi-national in nature? What kind of duration do those have?

Yeah. No, they tend to be multi-year and multi-millions of dollars global deals. We haven't announced all of them yet, which is why we haven't given you the exact details, but they tend to be new categories for us. A lot in the technology space we're finding is looking for ways to reach that millennial audience, and is finding our platform attractive for that. In our sponsorship group, one of the things that we've been doing over the past year is really ramping up category specialists. So, whereas traditionally, you had some core categories of your beer and consumer goods, obviously, financial services, automotive, we've hired a number of experts that understand in greater detail the business models of different segments, which lets us then go in on a more informed basis into the CMOs office at those companies, engage them on how the Live Nation platform of 63 million fans can deliver them some real value. And several of those have been coming to fruition here over the past few months.

And you had also mentioned, about 25% of your ticketing now is done on mobile. Could you talk about your outlook for the evolution of going to new paperless ticketing throughout the industry?

Yeah. I mean I think our view is that the ticket is an ideal product to be on your phone. And it's really a matter of the adoption curve, which is impossible to exactly predict, but it is an eminently logical thing to be purchased on the phone, found on the phone, transferred to your friends, sold, used to get in. So, there is a number of things that we don't control on the consumer adoption curve, but we've been working hard with venues to make sure that they've got the ability to read those tickets when you show up with them. Obviously, there is a lot of things around, just people's use of the phones, and battery life and so on, but absolutely expect that to continue to grow, as how the millennial wants to interact to get there and manage their information.

How should we think about the kind of investment that would be required on that? How would you share that with the venues? What efficiencies do you get out of going paperless?

So, I think in most of our ticketing venue deals right now, we're very much involved in the access control point, because we need to provide something that gets the person a ticket. I think that what it does, it ultimately just creates a much better fan experience. It increases conversion because the search and purchase process are easier, and it increases the certainty because there is no longer fake tickets when it's a digital right that is being transferred around. So I think it can move to a much more fan-friendly system, and better for the venues, better for content as well.

All right. Thank you.

We'll go next to Doug Arthur with Huber Research. Please go ahead.

Thanks. Two questions on ticketing. First on, we've kind of beaten this around a little bit, but on the cost side, the 11% growth in direct operating costs in the quarter, is that primarily driven by royalties in the resale market, or international expansion or both? Then I've got a follow-up with Ticketmaster.

Yeah. It's going to be made up of all of the above. It's going to be made up in the royalty rates, both North America and internationally, mixed with our secondary business and just general higher operating costs as we continue to build the global teams.

Okay. And then, Michael, you talked about landing another 150 venues in the quarter to Ticketmaster. How much of the new Ticketmaster platform is contributing to that? And what are the benefits that venues are seeing from the new platform?

Sorry. This is Joe. Just to make sure we have the facts right, the 150 year-on-year, so since Q1 of last year the 150 additional clients, which are a combination of on the traditional Ticketmaster system as well as, again, as we've been focused on the specialty vertical, so things like our festival vertical has been very effective building, adding new customers as well. You want to talk about the TM one? Michael Rapino - President, Chief Executive Officer & Director: Doug, we've talked just philosophically, I mean, again when we took Ticketmaster over, it had been losing customers. Renewal rate was down to 70%. Its EBITDA had declined 20% a year for the five years before that. So now you sit here with Ticketmaster, where its EBITDA has grown. We've had a record ticket selling month. And our renewal rates are over 100%. So, I believe that if you ask our clients, the number one reason that they'll tell you that the business – why they've renewed, why they've signed up, why they have a new appreciation for Ticketmaster is that, over the last few years we, for the first time in 20 years, were the management team that was serious about investing and upgrading the tools that would help them sell more tickets. So for a venue, you know we've shown you in the past the green screen they had, but today they have an iPad with an app that lets them price their own tickets, publish their own shows, instant ticket sale delivery. I mean there's multiple ways it's been enhanced and elevated. So absolutely; I would not be sitting here years later with a green screen telling you just because we have a few concerts at Live Nation we were able to fix the business. But the new platform, all the new tools we've been developing and modulely (41:58) delivering to our client over the last year, I think is the fundamental reason that the business is now excelling. And a lot of that development also gets shipped internationally, and the reason we're able to scale faster there and grow our business is, we are going to be, again, able to use the learning and some product development from America on our international expansion, which again, never happened in the old TM. They were very separate – 14 separate platforms that shared no product development.

Got it. Thanks.

We'll go next to Ben Mogil with Stifel. Please go ahead. Benjamin Mogil - Stifel, Nicolaus & Co., Inc.: Hi. Good afternoon. Thank you for taking my question. So first one I think probably either for Michael or for Joe. We've certainly, I guess, some of the music labels have been talking about doing more in the sponsorship area, more 360 deals. Universal has talked some about Honda Stage (42:55). They've talked about that vis-à-vis Vevo as well. From a competitive perspective, how are you viewing them within the dynamic, it's a big pie obviously, but curious how you are viewing the labels within that dynamic right now? Michael Rapino - President, Chief Executive Officer & Director: Yeah. I mean we're not really in their business. I know they have a few sales guys trying to sell some IP. But at the core are, again, going back to our priority, our focus, the reason we have 900 sponsors, if we surveyed them tomorrow, 899 of them would tell you, because we have incredible on-site customer reach. We are the 70 million customers, we're bigger than the NFL, NBA. So most of our advertising always has been driven by, we have an incredible ability to reach on a Thursday night, in seat seven, a customer specific. When you added on Ticketmaster and we've started to get really rich in data about that customer, our business started to grow. When we then added on digital platform, an ability to say to a sponsor, we can deliver you on-site, and we can amplify that connection digitally, our business grew. So our core business, the customers, the brands that are looking to partner with us, that's a competitive proposition that we have. There has always been Vevo and MTV and many other digital video play auctions for brands, and some of them continue to do well, and the pie is big. But we see huge opportunity and we're the only one with 70 million or end-level of scale on site and added 66 million monthly digital customers. Nobody has that one-two punch to deliver to an advertiser. So we think there will be many playing on smaller scale on-site. There will be many playing on digital, even with bigger footprints, but the brands that want on-site meets on-line, we're the best opportunity for that. Benjamin Mogil - Stifel, Nicolaus & Co., Inc.: Okay. That's very fair. Thank you, Michael. And then probably a Kathy question. Thank you very much for the commentary on ticketing in terms of margins and what to expect for this year and what the non-recoups look like. On that sort of roughly $80 million, $82 million of non-recoups that you'll do here in the amortization line, how much of that is actually cash?

So, obviously, the cash is paid for contract through generally three years to five years. And at this point with that history cash is basically equivalent to expense. Benjamin Mogil - Stifel, Nicolaus & Co., Inc.: Okay. And so, basically we've seen flat to the last year, so the year-over-year cash outflow and your cash flow from ops is basically pretty nil. Is that a reasonable way to look at it? Michael Rapino - President, Chief Executive Officer & Director: Yeah. It's essentially steady-state by this point in the history. Benjamin Mogil - Stifel, Nicolaus & Co., Inc.: Okay. That's great. Thank you very much.

We'll go next to Brandon Ross with BTIG. Please go ahead.

Hi guys. Thanks for taking the question. Just wanted to follow up on the investments you guys have done in your ticketing technology. I was wondering if you could talk about where the technology in your established international ticketing business stands relative to domestic? And assuming it's behind, what kind of investment you need to make from here in that established international business to catch it up to the domestic business? And wanted to confirm that you guys have completed the re-platforming and major upgrades in the domestic ticketing business? Thanks.

Yeah. I'll start with the second and work backwards. So, on one level, yes, we've completed the re-platforming. We've completed the work that we set out to do in 2011. As we've talked on other calls in the process what we learned about Ticketmaster is, it's a true technology company and it's a company that is going to be very much driven by the products that it creates for its venue clients, which, as Michael talked, are critical to our being the best ticketing platform to sell tickets for them and it's critical for fans they seem to drive that conversion rate, to drive the discovery to continue to sell the tickets. So we see, going forward, if we looked at our Ticketmaster system as a technology business so we'll continue to invest in those production. Now, as you note, we started with North America. A lot of that technology both at the website level as well as at the app for fan-facing and then also venue-facing has already been brought over to the U.K., Ireland and Australia, which use the same core underlying system that we've historically called the host system. Continental Europe is largely on a different system. That system already has a great deal more flexibility than what the historical host system had, but it is something that over the next couple of years we'll be looking to migrate a lot of the functionality. Again because we've built this in such a modular fashion, there's not a big bang, turn off one system, turn off the other. It's a matter of replacing components over time. We don't see a substantial shift from our current run rate of CapEx at Ticketmaster or CapEx as a percentage of our revenue to substantially deviate. And we think we can get it done within those spend levels.

And how long do you think it's going to take to get to a real peak margin at Ticketmaster?

Well I think I talked about that earlier, which is the focus over the next few years is on driving the market share and the revenue and the AOI growth. So separate out what's the exactness of one piece of Ticketmaster, the operating model and how we're driving down our cost structure, which we are doing, with the fact that as we build other verticals those are inherently lower scale, often have different fee structures, and maybe lower margin yet faster growing. As we go into new international markets, with whatever system we deploy we're likely to start in those new markets at a lower scale, which is going to have some higher fixed cost associated with it. So our number one objective is to drive the cash side of the business because we absolutely believe that what matters most to our shareholders at the end of the day is the cash we generate. And we will take higher growth with more cash over shrinking to maximize the margin.

Got it. Thank you.

And that concludes our question-and-answer session. At this time I'd like to turn the conference back over to your presenters for any additional and/or closing comments. Michael Rapino - President, Chief Executive Officer & Director: Thank you, everybody. We'll talk to you in Q2.