Saturday, November 8, 2008

Live Nation shares fall on concern over outlook

NEW YORK (Reuters) – Shares in concert promoter Live Nation Inc fell more than 11 percent on Friday, a day after it posted strong quarterly earnings, as investors appeared more concerned with how it will be hurt by the economic slowdown in 2009.

Live Nation's third-quarter net profits more than tripled to $1.67 a share thanks to a strong summer concert season, a boost from the timing of tax benefits and a gain on the sale of its motor sports unit.

But shares fell $1.18 to $8.91 in afternoon trading on the New York Stock Exchange as broader fears about the impact of a 2009 consumer-led recession took hold with investors.

The Los Angeles-based company has said it would be relatively recession-resistant, as most music fans only go to one or two concerts a year and will save up for those tickets for their favorite artists.

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