EDM Promoters SFX Entertainment Posts Big Net Losses but Big Expansion with Second Quarter Report

You can look at the second quarter financial report for SFX Entertainment in two ways: A) The company is certainly bringing in a lot more money than it did at this point during 2013 or B) The company sure has lost a lot more money than it did at this point last year. Both are true and both are signs of a company that's growing in size, but it's up to potential investors to judge whether this quarter's numbers reflect a company that will eventually jump into the black or stay mired in the red.

Bad news first: SFX's net loss was $43.7 million, nearly $20 million more that its net loss last year. The total adds up to about $0.50 lost per share. The Good news: Total revenue was much higher, although it was obviously not enough to offset the losses encountered due to the company's expansion. SFX brought in $82 million compared to $27 million last year.

The Expansion undergone might not seem that great for someone looking just at the numbers: SFX ran 17 festivals so far this year versus 14 last year. Sure, that's only three more, but the festivals run by SFX have brought in 33 percent more attendees than last year's. That's a mark that outstrips the rate at which the company has added events (around 20 percent), suggesting that SFX is aiming for bigger markets now. You don't need math to see that however. The announcement that the company's Tomorrowland arm will stretch to Brazil while bringing Rock in Rio to Las Vegas suggests things are looking up. That doesn't mean 2015 will necessarily bring profits, but given a few years could mean big earnings.

Robert "FX" Sillerman is as confident as ever (although wary isn't a look he wears often).

"We are now well-positioned to grow all aspects of our business," he said in a statement. "The EMC Revolution is just beginning. With an absolute dictum to keep our fans first, the next few periods should see significant impact from our investments in our core business, successful partnerships, and additional events."