Breakdown: Pandora's Ticketly Acquisition in Numbers
Ticketly cost Pandora $450 million -- in the first 3 quarters of 2015 it generated $52.8 million and lost $13.9 million.
Pandora announced on Friday the completion of its Ticketfly acquisition and in an SEC filing provided insight into the ticketing company's financial performance. In a deal worth $450 million Pandora got a mid-sized ticketing company that brings in roughly 1/15th of its revenue.
In 2014, Ticketfly had revenue of $55.0 million, an operating loss of $8.9 million and a net loss of $9.5 million. In the first three quarters of 2015, it had revenue of $52.8 million, a $12.3 million operating loss and a $13.9 million net loss. (Fourth quarter and full-year figures are not yet available.)
The companies' combined revenue would have been $692.9 million in 2014 and $880.6 million through September 30, 2015. With Ticketfly's more modest losses, the combined company would have had net losses of $50.2 million in 2014 and $164.2 million in the first three quarters of 2015.
Pandora's entry into ticketing is meant to crate a more seamless link between a song and a ticket purchase. The company now allows artists to create audio messages that can be include in their fans' streams. These messages provide an opportunity for calls to action like encouraging listeners to click on a link to purchase a ticket to an upcoming concert in their area. Pandora says its early tests with the Rolling Stones and electronic duo Odesza proved successful.
But Pandora could help Ticketfly in other ways. Venues and promoters want tools to effectively promote shows and sell tickets. If artist messages work as planned, Pandora will drive fans to concerts at no expense to artist, promoter or venue. If that's the case, the fact Pandora owns Ticketfly seems likely to attract new clients and improve retention of existing clients. If that's the case, the resulting incremental gains will make Ticketfly more valuable, contribute more to Pandora's financials.
The filing provides additional information about the Ticketfly acquisitions The deal was completed on October 31 for a purchase price of $342.3 million that consisted of $191.5 million in cash and roughly 11.2 million shares of Pandora's stock. In addition, Pandora paid off Ticketfly's outstanding debt.
There are also disclosures and acquisitions Ticketfly had made in recent years. For its expansion into Canada it acquired Prime Box Office for $325,000 and M.R.G. Ventures for $350,000. And to provide mobile services Ticketfly bought WillCall for $500,000.