LN-Gaiety Holdings has reported an 8.3% year-on-year increase in revenues in 2018 to £215.8 million.
LN-Gaiety is the joint venture between Live Nation and Denis Desmond that is behind the promotions and venues business in the UK and Ireland.
Gross profit at the JV increased by 29.9% year-on-year to £59.8m. But operating profit decreased by 66.5% to £1.8m. According to the strategic report, this was the due to an exceptional cost of £12.5m resulting from goodwill impairment.
The consolidated loss after tax for the year ending December 31, 2018 was £4.6m.
The number of shows in 2018 decreased by 4.7% to 3,993. However, admissions were up 3.2% to 5,512,283.
In its strategic report, the company said: “Depending on the final terms of Brexit, we could face new regulatory costs and challenges and greater volatility in the pound sterling and the euro which may have an impact on our business and operations.”
The results also revealed that 70% of OnBlackheath festival was acquired for £1. Goodwill of £71,831 was capitalised as a result of the deal.
Camp Bestival was acquired as a result of the deal for Safe Festivals last year. As well as a payment of £83,759, LN-Gaiety acquired inter-company debt of almost £1m.