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The owner of UFC and WWE says it is targeting the upper end of its previously provided guidance.
By Alex Weprin
Media & Business Writer
With a pair of major deals on the horizon in early 2025, TKO Group Holdings continued to see year-over-year growth in its third-quarter earnings.
The Endeavor-controlled company, which owns UFC and the WWE, reported revenues of $681.2 million, net income of $57.7 million, and adjusted EBITDA of $310 million, all up substantially from the year prior. With the results in hand, Endeavor told the Street that it expects to hit “the upper end of the range of $2.670 billion to $2.745 billion” for revenues, and $1.220 billion to $1.240 billion in adjusted EBITDA for the year.
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At UFC, revenue fell 11 percent to $354.9 million due to fewer events being held in the quarter, offset by an increase in sponsorship revenue. Notably, UFC held its first (and possibly only) event at the Sphere in Las Vegas, with UFC chief Dana White telling THR that the company had poured more than $20 million into the event. Adjusted EBITDA was $195.6 million.
At WWE, revenue was $326.3 million, up 14 percent thanks to increases in media rights and sponsorship revenue, including the first ever sponsors in-ring. Adjusted EBITDA was $175.3 million.
“TKO’s solid third quarter results reflect continued strength across UFC and WWE, particularly in live events and brand partnerships. In light of this continued momentum, we now expect to deliver at the upper end of our full-year 2024 guidance range for both revenue and Adjusted EBITDA,” TKO CEO Ari Emanuel said in a statement.
“Additionally, two weeks ago we announced the authorization of a robust capital return program and an agreement to acquire industry-leading sports assets that will power our profile, give us greater scale, strengthen our position in the sports marketplace, and accelerate returns for shareholders,” he added. “Just over a year since UFC and WWE came together to form TKO, our conviction in this business is as strong as ever.”
Early 2025 will bring with it two major growth drivers for TKO: The company’s global deal with Netflix for the WWE will kick in, boosting media rights revenue, while it seeks to complete its $3.25 billion all-equity deal to acquire IMG, On Location and Professional Bull Riders from its parent company. On Location on Tuesday announced that it had extended its hospitality deal with the NFL through 2036.
And on the company’s earnings call, TKO president and COO Mark Shapiro suggested that the company could expand into boxing.
“Boxing at its best is confused and fragmented, a t its worst, it’s broken, and we think the sport presents an interesting growth opportunity for us,” Shapiro said. “Dana White and Nick Khan have deep expertise and longstanding relationships in what they call the sweet science, otherwise known as boxing. And if we were to get involved in boxing, we would expect to do so in an organic way, not an M&A way.
“And if we launch the vertical at any time, we kind of see it as doing it with a partner who would fund it and pay us to operate,” Shapiro added. “So nothing to announce today, but this is one area we’re going to continue to explore… We don’t necessarily need to add anything to our model, but boxing is ripe for a fix.”
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