TKO Group Holdings exceeded Wall Street’s revenue expectations in its first quarter 2024 earnings report released on Wednesday, despite facing a substantial loss due to a $335 million UFC fighter pay settlement during the quarter.
Additionally, the company secured a new distribution deal with WWE, although it’s relatively modest: Raw, slated to move to Netflix in January 2025, will continue airing on USA Network until the end of this year. TKO is set to receive $25 million for the program during this three-month window.
The Endeavor-controlled company, which holds ownership of both the UFC and WWE, reported revenue of $629.7 million, experiencing a net loss of $249.5 million and adjusted EBITDA of $282.2 million. Furthermore, TKO raised its full-year 2024 revenue guidance to up to $2.685 billion, with adjusted EBITDA expected to reach up to $1.205 billion.
The loss was primarily driven by the $335 million UFC settlement in March, while revenue saw a boost from TKO’s live events business, including UFC 297, 298, and 299, as well as WWE’s Royal Rumble.
TKO CEO Ari Emanuel commented, “TKO is off to a strong start in 2024 with multiple record-setting live events, new brand partnerships, and media rights deals for WWE Raw.” He also expressed confidence in the company’s ability to deliver long-term value for shareholders.
WWE contributed $316.7 million in revenue and $140.2 million in adjusted EBITDA, while the UFC brought in $313 million in revenue and $195.1 million in adjusted EBITDA.
During the earnings call, M&A discussions were prominent, with executives expressing interest in potential opportunities. MotoGP, a motorcycle racing league, was considered by the company but ultimately sold to Formula1 owner Liberty.
“There’s no genre in the content universe hotter than sports,” said TKO president Mark Shapiro, emphasizing the company’s focus on disciplined and creative deals with significant long-term growth opportunities, akin to those seen in the UFC and WWE.
