Aurora Live Entertainment

Case Prompt

• The CEO of Aurora Live Entertainment, a company that operates premium live performance venues across Europe, has approached us because despite increasing attendance, the company’s profit margins have been declining over the past 5 years.
• The CEO wants you to help identify what may be causing the decline and what steps the company might take to turn around the trend.
• What would you recommend the CEO consider to help ensure sustainable profitability for the company going forward?
  

Case Background

The interviewee may ask the following questions; provide the following information only if requested:

• The company produces its own live musical performances and maintains an in-house production team and cast.
• It also recruits professional performers from international unions and talent agencies for certain high-profile productions.
• During the summer, the venues also host family-oriented shows, which have very low production costs.
• The overall goal is to return to the profit margins the company had in 2020 (12%).
• The flagship venue has 850 seats.
• The live entertainment industry has experienced increasing demand, especially among younger audiences.
• Attendance across the industry has grown roughly 2% annually over the past five years.
• There are no comparable premium entertainment venues in the immediate region.
• The CEO’s goal is not to maximize profit, but to ensure sufficient operating reserves for future investments and venue maintenance.