As a die-hard sports and entertainment enthusiast with a knack for spotting promising investment opportunities, I can confidently say that TKO Group Holdings is a powerhouse to watch in 2025! With its impressive earnings reports and strategic moves, this conglomerate is poised to dominate the global sports landscape.
As significant transactions loom in early 2025, TKO Group Holdings consistently experienced growth in their third-quarter profits compared to the previous year.
The company managed by Endeavor, holding UFC and WWE among its assets, announced earnings of $681.2 million in revenue, a net income of $57.7 million, and an adjusted EBITDA of $310 million – figures that represent significant increases compared to the previous year. Based on these numbers, Endeavor has shared with investors its expectation to achieve revenues within the upper limit of the projected range ($2.670 billion to $2.745 billion) for the current year, and a predicted adjusted EBITDA between $1.220 billion and $1.240 billion as well.
At UFC, earnings decreased by 11% to approximately $354.9 million during the quarter, primarily because fewer events took place compared to previous periods. However, this decline was partially compensated by a rise in sponsorship income. It’s worth mentioning that UFC hosted its inaugural (and potentially last) event at The Sphere in Las Vegas, with UFC president Dana White disclosing to THR that the company invested more than $20 million into this particular event. The Adjusted EBITDA stood at $195.6 million.
At World Wrestling Entertainment (WWE), earnings reached an impressive $326.3 million, marking a 14% rise. This growth can be attributed to higher media rights and sponsorship income, which even included advertising within the ring for the first time ever. The Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at $175.3 million.
TKO’s robust third-quarter performance underscores the consistent growth experienced by UFC and WWE, notably in live events and business collaborations. Given this sustained progress, we are optimistic about achieving our financial targets for the full year 2024, aiming to surpass the higher end of the projected range for both revenue and Adjusted EBITDA,” TKO CEO Ari Emanuel stated in a release.
He also mentioned that two weeks ago we approved a substantial dividend plan and entered into a deal to acquire top-tier sports properties. These moves will boost our image, provide us with more influence, fortify our presence in the sports industry, and quicken profits for shareholders. It’s been over a year since UFC and WWE merged to create TKO, and our belief in this venture remains as strong today as it was then.
2025 is set to see two significant catalysts for TKO’s expansion: Firstly, the worldwide partnership with Netflix for WWE will commence, potentially increasing media rights income. Secondly, the company aims to finalize its $2.5 billion agreement to acquire IMG, On Location, and Professional Bull Riders from its holding company. Notably, On Location recently extended its hospitality contract with the NFL until 2036.
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2024-11-07 00:24