How Taylor Swift’s tour helped a Brazilian company almost double its profits in the 2nd quarter

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Earnings from event producer Time For Fun (T4F) jumped 93.2% compared to the same period in 2022. Taylor Swift at a ‘The Eras Tour’ concert in Glendale, Arizona, on March 17, 2023 AP Photo /Ashley Landis Taylor Swift’s “The Eras Tour” gained prominence in the economic news by impacting the United States economy and even being cited by the country’s Central Bank, the Federal Reserve. Now, there is a record that the event was decisive for the financial results of a Brazilian company. Time For Fun (T4F), the producer responsible for the singer’s shows in Brazil, reported in its balance sheet for the second quarter of 2023 that its profits jumped 93.2% compared to the same period in 2022. One of the main reasons is precisely the Taylor’s tour, which arrives this Friday (17) in Brazil. Tickets for Taylor’s shows in Brazil went on sale on June 22 of this year. The six confirmed performances in the country will take place this week and next, three in Rio de Janeiro and three in São Paulo — all sold out. See the dates: November 17, 18 and 19 – Rio de Janeiro – Nilton Santos Stadium November 24, 25 and 26 – São Paulo – Allianz Parque With the Taylor effect, the net profit reported by the company in its income statement jumped from R$8.339 million registered in the second quarter of 2022 to R$16.117 million between April and June of this year. In the report, the company cited the “temporary effect” of the North American singer’s shows on the quarterly balance — a situation that, according to T4F, would be normalized in the third quarter results. In fact, in the third quarter statements, T4F reported net profit of R$3.7 million. It turns out that in the same period of 2022, the company had a loss of R$8.8 million, resulting in an improvement of 142% between the quarters. Among the highlights of the quarter, T4F highlights the debut of the musical Rei Leão and, of course, the sales results of “The Eras Tour”. Box office operations The company’s net revenue from ticket operations, food, beverages and venues (infrastructure to receive large groups of people and brand activations) increased from R$28.4 million in the second quarter of 2022 to R$39.8 million between April and June 2023. “This increase is mainly due to the convenience fee on tickets sold for the Taylor Swift | The Eras Tour, which sold out quickly,” the company said in its balance sheet. The company also reported that food and beverage sales at events held during the period also included this line. Cash on hand The company also reported that its cash on hand fell from R$178.5 million in the first three months of this year to R$132.7 million in the second quarter, a decline of 25.66%. Among other reasons, the drop is justified, according to T4F, by the consumption of R$ 76.6 million in resources, “mainly due to the payment of the singer Taylor Swift’s fee this quarter, while receivables from sales [dos shows]” will come into cash “from the third quarter onwards”. To form the cash result, the company also cited investment, exchange variation and financing flows, highlighting the contracting of short-term loans “mainly to finance the concerts of singer Taylor Swift.” “Our Gross Cash ended the quarter with R$ 172.5 million and without debt, after having fully prepaid our debentures and the short-term lines acquired in the second quarter”, says the company in the results of the third quarter. Back to profit, the accumulated nine months of the year, the company has a result 426% better than in 2022. There are 33.9 million in net profit in the year, versus R$ 6.5 million in 2022. Valuation on the stock exchange Finally, the company also cited the impact of the artist’s tour on the variation in T4F’s shares on the Ibovespa, the main index of B3, the Brazilian stock exchange. The closing price of the shares increased 23.4% on June 30 of 2023 compared to the price of December 29, 2022. Compared to March 31, 2023, the increase recorded at the end of the second quarter was 74%. “Its appreciation was mainly due to the market’s positive reaction to the announcement of Taylor Swift’s concerts in Brazil and the beginning of the succession process for the company’s CEO. The growth of the share after these announcements was 85.5%, starting from R$1 .59 on May 24th,” the company said. T4F also highlighted in its results the holding of the second edition of the Turá festival, in São Paulo, and the expansion of the brand to Porto Alegre, with sales opening in June.

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