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11 November 2015

Tomorrowworld Parent Company Reports $4 Million in Lost Revenue Due to Event Cancellations

SFX Entertainment, the parent company of numerous electronic dance music (EDM) brands and festivals including Tomorrowworld, released its third quarter financial results for three-month period beginning 1 July and ending 30 September.

"Despite continued strong gains in total attendance, the third quarter of 2015 was challenging for SFX in several respects, including the impact of foreign exchange and the cancellation of several festival days to weather,” said Robert F.X. Sillerman, Chairman and CEO of SFX.

The company reports revenue for the third quarter was adversely impacted by approximately $4.0 million of lost revenue due to the cancellation and/or partial cancellation of several events during the quarter, which is expected to be partially replaced by insurance recoveries during later periods, as well as a reduction in the volume of digital music downloads.

As has been widely reported in multiple media outlets, the third edition of Tomorrowworld was marred by bad weather that turned Bouckaert's Farm, in Chattahoochee Hills, Georgia, into a mud pit. The third day of Tomorrowworld was cancelled to all except those who camped onsite. SFX is offering refunds to individuals who were affected by the cancellation.

Overall, SFX Entertainment reports revenues of $133 million in the third quarter of 2015. That is approximately $10 million lower than revenue reported at the same time last year.

The company did not end the third quarter in the black, posting a $54 million loss; making the total loss for the nine months ended 30 September 2015, $144 million.

SFX currently has cash and cash equivalents of $59.8 million, inclusive of $3.6 million of cash proceeds held on behalf of third party ticketing clients.

The company is currently exploring a sale of all or some of its assets.