SFX has recently had a tough go of it financially. The dance music giant's stock price has fallen from its initial IPO of $13.00 to where it currently sits at $4.43. Things are starting to look a little better after the company spent the end of 2014 and beginning of 2015 tightening its belt, halting major acquisitions and reshuffling staff. Today, the company reported its 2015 quarter one financial results. Revenue for the first three months, ending on March 31, grew 56.6 percent to $52.2. million, with live revenue accounting for 77 percent of total revenue at $40.2 million. This was done despite expected losses from the start-up costs incurred by Rock In Rio Las Vegas, which adds up to approximately $4 or $5 million.
Its net loss improves somewhat from $56 million to $41.5 million. It is difficult to compare year-to-year financial statements for a company that is changing as rapidly as SFX, but the numbers do give an indication of how the firm is performing. Also, the winter is not the high season for events, so that offers hope for an even better performance in Q2 and Q3.
"The progress SFX continues to make with our operating initiatives, including the successful re-launch of Beatport as the leading mobile and streaming app for EDM fans around the world, reinforces my belief that value is being created in the business," said Robert F.X. Sillerman, Chairman and CEO of SFX in a statement.
Sillerman is still looking to take the company private with a massive stock buy-back. In an earnings call, Sillerman discussed the offer of $4.75 per share of approximately 62.6 percent of the outstanding stock he does not already own. This would be higher than the current value of the company's stock.
A group of three board members are still reviewing Sillerman's buy-back plan, which he is "quite optimistic" about an agreement on price, though CEO is open to new offers according to Billboard.
