Coronavirus has hit the entertainment industry hard this week with Live Nation’s stock price plummeting by 10.83% yesterday (Monday), dropping its public market cap value by $1.2bn in a single day.
Despite the entertainment giant’s president and chief executive Michael Rapino attempting to downplay the impact of coronavirus on business operations last week, Live Nation’s stock value plummeted as more events were cancelled and refund requests rolled in.
At the end of yesterday’s trading window, Live Nation’s per-price share had plunged to $47.26, for a total loss of approximately 11%.
Paris-headquartered Vivendi, the owner of See Tickets and Universal Music Group, saw its share price fall by 7.22% yesterday, down to €21.20 at market close. This alone sunk Vivendi’s public market cap by approximately $2.3bn in a single day.
Tencent Music Entertainment, China’s biggest digital music company, saw its share price fall by just 2.32%, down to $11.79 at market close. Its public market cap value fell by an estimated $460m to $19.28bn in a single day.
MyTicket owner Deutsche Entertainment AG (DEAG) yesterday said it will execute all events as planned despite cancellation recommendations from Germany’s health minister. It also reassured investors that it has insurance cover for coronavirus-related cancellations – including those where local authorities force the closure of its shows.
However, the Berlin-headquartered company’s share price fell 15.76% yesterday to €4.01, showing evidence of coronavirus-related damage.
Germany’s health minister Jens Spahn said gatherings of more than 1,000 participants should be scrapped due to the increasing number of cases of coronavirus in the country. The number of people that have contracted Covid-19, the disease causes by coronavirus, in Germany had risen to almost 850 as of Sunday.
DEAG said in a statement: “DEAG is committed to its customers and their health but also to their enthusiasm for the respective events. DEAG sees the final decision on the implementation of events with the responsible authorities and at the same time respects the decision of every visitor to take part in major events.”