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SFX Entertainment Reports Net Loss Of $63.6 Million

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SFX Entertainment Reports Net Loss Of $63.6 Million

SFX Entertainment reported a net loss of $63.6 million in the first quarter of 2014, according the Wall Street Journal. SFX's revenue totaled $33.3 million and direct costs for totaled $22.8 million. This is through January 1, 2014 to March 31st, 2014.

The Summarized Statement of Operations of SFX Entertainment, Inc. (unaudited, $ in thousands) breaks down as follows:

Three months ended March 31,
2014 2013
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Revenue $ 33,326 $ 10,153
Direct costs 22,824 7,601
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Gross Profit 10,502 2,552

Selling, general and administrative expenses 36,616 14,246
Depreciation and amortization 14,661 3,081
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Operating loss (40,775) (14,775)

Interest expense (6,599) (3,911)
Other expense (18,831) (942)
Equity in loss of non-consolidated affiliates (582) -
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Loss before income taxes (66,787) (19,628)
Income tax benefit (expense) 3,281 (572)
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Consolidated net loss (63,506) (20,200)
Less: Net loss attributable to non-controlling interest 65 (878)

Net loss attributable to the Company $ (63,571) $ (19,322)
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It is not all bad news for the Robert Sillerman led company, as the WSJ writes "attendance rose over 100% to approximately 175,000, as the Company held 9 festivals versus 4 in the comparable year-ago period. Attendance at events other than festivals declined 28% to approximately 260,000, reflecting the Company's strategy to focus on larger events and to host a fewer number of smaller events."

This information, which was revealed in an investor conference call earlier this morning, also included some explanations of SFX's broadening marketing partnerships.

"While we work to revolutionize EMC-focused live events, we are equally focused on advancing our role as a marketing solutions channel for our talent and artist pool and our brand partners" Sillerman said on the call. "Establishing creative and groundbreaking marketing and content partnerships that reach and resonate with millennials is fundamental to our strategy to bring the EMC community together with the world's leading brands in a manner that drives unrivalled experiences and outcomes for both."

These marketing partnerships involving what Sillerman described as "world class brands", included Anheuser Busch-InBev, Syco Entertainment, T-Mobile and Clear Channel.

Sillerman went on to say "The unique collaboration between T Mobile, Syco and SFX will bring to life Ultimate DJ, an exciting new television program concept." This American Idol like EDM show is being produced by Simon Cowel.

For the full report, please visit the Wall Street Journal

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