Similar to Rome not being built in a day, SFX's EDM empire won't be built in a day, either. However, the company is making revenue gains against the losses incurred in taking on so many companies (and debts), and if Robert Sillerman's quote to Billboard Magazine regarding the report of the company's second quarter earnings statement that "we're on our way," means anything, it's that the burgeoning EDM conglomerate is moving with incredible pace towards being in the black, and well on its way to becoming a defining fixture of pop culture, pop music and the future of global society at-large.
Between the second quarter of 2013 (April-June) and the results reported for the second quarter of 2014, SFX's net revenue grew 199 percent to $82 million, while net loss increased $43.7 million (a growth rate of 77%). Prodigious rates of increase in both revenue and loss are quite commonplace in situations like what SFX is attempting to accomplish, insofar as when companies come under SFX's control, SFX will experience a loss in assuming that company's debt and/or preparing the company to be a revenue generator for the company, or moreover an attractive asset for corporate sponsorship/engagement. The second quarter is an intriguing one to examine as well, because so much of SFX's business at-present is festival-based, which means that the most significant revenue generators for these properties will not occur until the third and fourth quarters of the year (July-March) worldwide. Most telling in this statement is the statistic that attendance at festivals currently existing under the SFX banner grew 33 percent over the past twelve months, with gross revenue and earnings growing 39 percent.
Insofar as a long-tail story to watch, SFX's strategic purchases of 2013 and 2014 to-date are performing quite well in the marketplace, meaning that, barring any unusual global market downturns, SFX may indeed succeed in its intended streamlining and marketing of electronic music culture.
