StubHub, a popular ticket seller, has reported earnings of $350 million in EBITDA for the year ending in March, exceeding expectations as the company gears up for a potential initial public offering (IPO) in the United States. The company, which operates ticket resale platforms StubHub and Viagogo, also generated $1.4 billion in revenue during the same period, along with $505 million in unlevered free cash flow.
In preparation for the planned IPO, StubHub is in early talks with potential investors and is collaborating with Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. for the listing process. While the IPO could potentially take place as early as July, final decisions have not been made, and details of the offering are subject to change.
The ticketing industry is currently facing challenges, particularly with the US Department of Justice pursuing a lawsuit against Live Nation Entertainment Inc. in an attempt to compel the sale of its ticketing arm, Ticketmaster. This legal action could potentially create new opportunities for independent platforms like StubHub and Viagogo to thrive in the market.
StubHub had previously considered a direct listing in 2022 with a potential valuation exceeding $13 billion. Although the company had filed confidentially with the US Securities and Exchange Commission at that time, the plans did not materialize. In comparison, rival ticketing platform Vivid Seats Inc., which went public through a merger in 2021, has experienced a decline of approximately 60% in its share price since its listing.
With operations in over 90 countries, StubHub and Viagogo have established themselves as key players in the ticket resale market. The companies were founded by Eric Baker, who initially co-founded StubHub before its acquisition by eBay Inc. in 2007. Baker later went on to establish Viagogo in Europe, eventually acquiring StubHub for $4.05 billion in 2019.
The evolving landscape of the ticketing industry presents both challenges and opportunities for companies like StubHub and Viagogo. As they navigate the complexities of the market and prepare for a potential IPO, the future of these ticket resale platforms remains dynamic and full of possibilities.