iHeartMedia 2002 Annual Report Download - page 49

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Live Entertainment
(In thousands)
We entered the live entertainment business with our acquisition of SFX in August 2000. Therefore, the increase in reported revenue and
divisional operating expenses of $1.5 billion and $1.4 billion, respectively, in 2001 as compared to 2000 is related to the SFX acquisition and
less significant acquisitions as well as other reasons discussed below in our pro forma presentation.
On a pro forma basis, revenue increased $84.4 million, or 4% during the year ended December 31, 2001 as compared to the prior year due to
a change in the mix of live music events during 2001 as compared to 2000. Although the number of live events decreased over the prior period,
during 2001, we changed the mix of live music events to include approximately 48% more stadium and arena events as compared to the prior
year. Stadium and arenas are generally larger venues that allow for more ticket sales related to the increased seating capacity.
On a pro forma basis, divisional operating expenses increased $124.8 million, or 6% due to the increased cost associated with promoting the
additional stadium and arena events in 2001, increased artist payments associated with the higher revenue, as well as additional costs relating to
the reorganization of the division during the quarter ended December 31, 2001.
44
Years Ended December 31,
%Chan
g
e
2001 2000 2001 v. 2000
A
sRe
p
orted Basis:
Revenue $2,477,640 $ 952,025 **
Divisional Operating Expenses 2,327,109 878,553 **
EBITDA as Adjusted * $ 150,531 $ 73,472 **
* See page 30 for cautionary disclosure
** Not Meaningful
Pro Forma Basis:
Revenue $2,496,044 $2,411,594 4%
Divisional Operating Expenses 2,342,834 2,218,021 6%
Reconciliation of Re
p
orted Basis to Pro Forma Basis
Reported Revenue $2,477,640 $952,025
Acquisitions
—
1,459,569
Divestitures
—
—
Foreign Exchange adjustments 18,404 —
Pro Forma Revenue $2,496,044 $2,411,594
Reported Divisional Operating Expenses $2,327,109 $ 878,553
Acquisitions
—
1,339,468
Divestitures
—
—
Foreign Exchange adjustments 15,725 —
Pro Forma Divisional Operating Expenses $2,342,834 $2,218,021