UPDATE 2-Live Nation first-quarter loss widens

* Q1 shr loss $1.29 vs analyst view $0.82 loss

* Q1 revenue down 6 pct to $499.3 mln

* Deferred revenue up 24 pct to $696 mln

* To sell 3 mln $30 summer show tickets to beat economy

* Sees low double digit adj op income growth in 09 (Adds outlook, CEO, analyst, bylines)

By Yinka Adegoke

NEW YORK, May 7 (Reuters) - Live Nation Inc (LYV.N), the world's largest concert promoter, posted a wider loss than expected on Thursday as its revenue was hurt by foreign currency exchange movements.

The Los Angeles-based company, which is the in the midst of a controversial merger with Ticketmaster Entertainment Inc (TKTM.O), posted a net loss of $103.2 million, or $1.29 a share from continuing operations compared with a loss of $70.8 million, or 92 cents a year ago.

Revenue fell by 6 percent to $499.3 million, hurt by $49 million in forex changes and a decline in U.S. ticket sales. The company said on a constant currency basis its revenue grew by 3 percent.

Analysts had expected Live Nation to post a loss of 82 cents on revenue of $567.7 million.

The company estimated low double-digit growth in adjusted operating income for full-year 2009.

"The numbers this quarter were pretty light," said David Kestenbaum, analyst at Morgan Joseph. "And the outlook wasn't that impressive."

Live Nation said deferred revenue for the first quarter, which includes sales of tickets for the key summer season concerts, grew 24 percent to $696 million.

"Despite challenging economic times, fans are buying concert tickets at a healthy pace," Live Nation President and Chief Executive Michael Rapino said in a statement.

Since signs of the U.S. recession emerged last year Live Nation has argued that music fans will still pay to see their favorite bands live as it is usually a once in a lifetime opportunity.

The company has taken measures in North America to help concerts sell out as the recession hurts consumers.

"To stimulate sales in North America amphitheaters we're executing multiple promotions to drive value and provide low cost tickets for fans in the tough economy," said Rapino. He said the company plans to sell over 3 million lawn tickets priced under $30 for summer shows.

Rapino said the company had a very strong start to its second quarter in April and that concert ticket sales are pacing in line with 2008 despite a weak first quarter.

"We will deliver a fairly strong year in a year when most entertainment companies aren't growing at all," said Rapino.

Live Nation is pursuing a merger with Ticketmaster Entertainment Inc (TKTM.O), the world's leading ticketing company.

The plan has come under attack from consumer groups and politicians concerned that a combined 'Live Nation Entertainment' will have too much power in the live entertainment business. The merger is being investigated by the U.S. Justice Department.

Rapino told analysts on a conference call that he still expects to close the merger with Ticketmaster in the third or fourth quarter.

Opinion has been on whether DOJ will approve the combination.

Evren Ergin, analyst at Barclays Capital, said in a client note that the DOJ should be able to build a reasonable case against the merger as it would lead to the elimination of Live Nation as a potential competitor.

But he said a negative DOJ decision might not be final.

"If the DOJ decides to challenge the merger and the companies contest the decision, we think the companies might ultimately prevail as the DOJ would not have a fail-proof case on its merits," said Ergin. (Reporting by Yinka Adegoke; Editing Bernard Orr, Richard Chang)