It's a good news/bad news situation for Live Nation, the world's largest promoter and live event producer, as today (Feb. 21) the company revealed its fourth quarter financial results. For the year, t

It's a good news/bad news situation for Live Nation, the world's largest promoter and live event producer, as today (Feb. 21) the company revealed its fourth quarter financial results.

For the calendar year 2005, the company rang up revenues of nearly $3 billion, up 4.7% year-on-year. But the company's combined operating loss for the same period was $13.2 million, compared to operating income of $59 million in 2004.

The nearly $30 million reduction in operating income was largely attributed to $11.3 million in litigation expenses and $12.2 million in costs related to severances and the re-organization of the business.

Total revenues for Live Nation in the fourth quarter of 2005 were $752.3 million, up 38.2% from Q4 2004.

But net losses for Q4 were $134.9 million, compared to $34.8 million in the fourth quarter of 2004.

The company suffered a combined operating loss in the fourth quarter of $62.8 million, an increased loss of $20.2 million in Q4 '04. The loss was blamed on reduced profits and increased losses in global music, theater and other operations totaling more than $40 million. The music losses included $4 million in litigation costs, $12.2 million in reorganization expenses, and $3.2 million in advances on music projects.

A $15.1 million corporate operating loss was attributed to severance costs following the re-organization and litigation costs.

The growth in revenue was largely attributed to an increase in its global music business of $205 million, which was partially offset by a $7.3 million decrease in its theater business.

The global music business was driven by Live Nation's participation in such mega tours as U2, Paul McCartney, the Eagles and Coldplay.

Live Nation was operating as Clear Channel Entertainment for most of Q4 before being spun off from parent Clear Channel Communications in December 2005. That spin-off helped Live Nation realize a tax benefit of $41.1 million.