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In the first full quarter to incorporate WWE earnings since its formation, TKO Group Holdings reported revenue of $614 million and adjusted EBITDA of $223.2 million, laying a roadmap for growth in 2024 and beyond as the company seeks to capitalize on its media rights renewals, as well as live events and sponsorship growth.
TKO was formed last September when Endeavor spun out the UFC and merged it with the WWE. Its first earnings report was in November, with the caveat that it only included numbers from the WWE beginning September 12, 2023.
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UFC reported Q4 revenue of $282.2 million, up from $271.1 million a year earlier, while the WWE reported revenue of $331.2 million. The majority of revenues for each brand came from media rights, followed by live events.
The company also released guidance for 2024, telling investors that it is targeting revenue of $2.575 billion to $2.650 billion; adjusted EBITDA of $1.150 billion to $1.170 billion; and free cash flow conversion in excess of 50 percent, doubling down on the company’s strategic rationale as a cash-generating machine.
“TKO is off to a strong start following record financial performance in 2023 at both UFC and WWE,” said Ari Emanuel, CEO of TKO, in a statement. “We secured Anheuser-Busch as the official beer partner of UFC, delivered a transformative deal to bring WWE’s Raw to Netflix beginning in 2025, and expanded our international footprint in important growth markets. We have more conviction than ever in the combination of these businesses and TKO’s ability to drive topline growth and margin expansion, generate meaningful free cash flow, and deliver sustainable long-term value for shareholders.”
The earnings report also comes after a consequential few months for the company, as Emanuel noted, including a nine-figure beer sponsorship deal with the UFC; a $5 billion, 10-year deal with Netflix for WWE Raw; the departure of executive chairman Vince McMahon following a high-profile sex trafficking lawsuit; and the addition of Dwayne “The Rock” Johnson to its board of directors.
TKO revealed in ita annual report that Emanuel was named executive chairman of the company following McMahon’s exit, with Steve Koonin becoming its lead independent director.
On the earnings call, TKO president and COO Mark Shapiro said that the company did not have indication that McMahon would make further moves in terms of selling any of his remaining stake in the company.
“He’ll do whatever he’s going to do, and we’re all on the sideline,” Shapiro said when asked if the company would consider buying back shares from McMahon. “We’ll have a look, we’ll see. We have no idea on timing. We’re not having any discussion with him. He’s given us no point of view on his motive or his plans to sell or not sell, or if he does, how much. So, we’re going to wait around and find out just like you.”
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