Cancellations, Slow Sales for Events on New Year’s Push SFX Down 19%

Shareholders of SFX Entertainment Inc. got an early hangover Thursday as the stock fell 19% amid concern about canceled promotions and slower ticket sales at New Year’s Eve events.

SFX tumbled $6.44 to $27.50 on the New York Stock Exchange.

Goldman Sachs analyst Richard Greenfield cut his cash-flow estimates for SFX--the largest producer of live music, theater and sporting events--this year by $5 million to $245 million because of slower ticket sales related to fear about the year 2000 computer bug.

“New Year’s Eve 2000 has turned out to be somewhat disappointing to the entertainment, travel and lodging industries, creating slightly disappointing results for SFX from that one night,” the company said.

But New York-based SFX, whose shares are down 25% this year, said investors are overreacting. The company expects strong fourth-quarter and 2000 earnings.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Cold Ticket

Shares of SFX Entertainment have fallen nearly 50% from their July peak. Weekly closes on the new York Stock Exchange since March 5, and latest:

*

Thursday: $27.50

*

Source: Bloomberg News