SFX Entertainment's tumultuous earnings was somewhat reflected in a profanity-laced conference call between company chairman and CEO Robert Sillerman and a few analysts, a call that coincided with a 20% drop in SFXE's shares, The Street reports.
About an hour after the call began at 10 a.m. on Thursday, one of the analysts alluded to some photos of Sillerman giving the finger (and grabbing his crotch) that had appeared on Instagram earlier in the week, saying, "We want to make sure you are still sane." Then, analyst Ben Green of BD Capital is recorded accusing Sillerman of accounting adjustments to brush over its "shitty deals."
"I’m not sure that we have done any shitty deals," Sillerman responded. "his is a very modest adjustment based on non-recurring transfers and investment and upgrades nothing more or less."
It was at this point that SFX's shares started to fall, decreasing up to 20% to $5.70. They rose again by Thursday afternoon 11% to $6.81.
(Instagram courtesy of SFX chief marketing officer Chris Stephenson.)
SFX reported that last year it had $170 million in revenue and a net loss of $119 million ($1.73 a share for the year). In his conference call, Sillerman said that two additional sponsorships would be announced next month, one of them "a very well-known global financial services partner." Each, he added, would generate 75 million in revenue over the next five years.
After raising $260 million when it went public late last year, SFX went on to acquire festivals like Tomorrowland, Rock in Rio, and Electric Zoo and develop partnerships with Anheuser InBev and Clear Channel.
If his response to the somewhat disappointing performance of SFX's IPO -- $11.89, down 8.54% from its $13 dollar initial offering -- is any indication, Sillerman isn't likely to get flustered by his company's fluctuating stock prices. “My job is to do the best possible job to bring this music and cultural phenomenon to as broad [an audience] as effectively as possible," Sillerman told Billboard in December. "The stock price will take care of itself.”