TKO issued the following:
TKO Reports Fourth Quarter and Full Year 2024 Results
On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity.
Fourth Quarter 2024 Financial Highlights
Revenue of $642.2 million
Net income of $47.5 million
Adjusted EBITDA1 of $238.1 million
Full Year 2024 Financial HighlightsRevenue of $2.804 billion
Net income of $6.4 million
Adjusted EBITDA of $1.251 billion
Full Year 2025 Guidance2The Company is targeting revenue of $2.930 billion to $3.000 billion
The Company is targeting Adjusted EBITDA of $1.350 billion to $1.390 billion
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its fourth quarter and full year ended December 31, 2024.“TKO delivered record financial performance in 2024 at both UFC and WWE, reflecting the strength of our IP, the dynamic audiences we serve, and the industry-best team of people we’ve assembled,” said Ariel Emanuel, Executive Chair and CEO of TKO. “In the year ahead, we will be focused on securing long-term U.S. domestic media rights agreements for UFC as well as WWE’s Premium Live Events; integrating IMG, On Location and Professional Bull Riders into our portfolio; creating even more compelling live events; and executing our robust capital return program for shareholders.”
Consolidated Results
Fourth Quarter 2024
Revenue increased 5%, or $28.2 million, to $642.2 million. The increase reflected an increase of $61.1 million at UFC, to $343.9 million, partially offset by a decrease of $32.9 million at WWE, to $298.3 million. The decrease at WWE was primarily related to the previously disclosed timing of the transition of WWE’s weekly flagship program, Raw.
Net Income was $47.5 million, an increase of $63.6 million from a net loss of $16.1 million in the prior year period. The increase reflected the increase in revenue and a decrease in operating expenses. The decrease in operating expenses reflected a decrease in selling, general and administrative expenses of $11.5 million and a decrease in depreciation and amortization of $19.0 million, partially offset by an increase in direct operating costs of $19.7 million.
Adjusted EBITDA1 increased 7%, or $14.9 million, to $238.1 million, due to an increase of $35.5 million at UFC and a decrease of $6.1 million in corporate expenses, partially offset by a decrease of $26.7 million at WWE. The decrease at WWE was primarily related to the previously disclosed timing of the transition of WWE’s weekly flagship program, Raw.
Cash flows generated by operating activities were $56.8 million, a decrease of $163.9 million from $220.7 million, primarily due to the timing of working capital, including a $125.0 million payment related to the UFC antitrust lawsuit. (See “Legal Matters” for further details.)
Free Cash Flow3 was $36.5 million, a decrease of $148.2 million from $184.7 million, due to the decrease in cash flows generated by operating activities, partially offset by a decrease in capital expenditures.
Cash and cash equivalents were $525.6 million as of December 31, 2024. Gross debt was $2.780 billion as of December 31, 2024.
Full Year 2024
Revenue increased 67%, or $1.129 billion, to $2.804 billion. The increase reflected the increase of $1.015 billion of revenue at WWE, to $1.398 billion, and an increase of $114.0 million at UFC, to $1.406 billion. The increase at WWE primarily reflected the inclusion of twelve months of activity in reported results in 2024.
Net Income was $6.4 million, a decrease of $169.3 million from $175.7 million in the prior year period. The decrease reflected the increase in revenue offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in direct operating costs of $385.3 million, an increase in selling, general and administrative expenses of $679.6 million, and an increase in depreciation and amortization of $228.2 million. The increase in operating expenses primarily reflected the inclusion of twelve months of WWE activity in reported results in 2024 as well as settlement charges of $375.0 million related to the UFC antitrust lawsuit. (See “Legal Matters” for further details.)
Adjusted EBITDA increased 55%, or $442.1 million, to $1.251 billion, due to an increase of $518.1 million at WWE and an increase of $45.3 million at UFC, partially offset by an increase of $121.3 million in corporate expenses. The increase at WWE primarily reflected the inclusion of twelve months of activity in reported results in 2024.
Cash flows generated by operating activities were $583.4 million, an increase of $115.0 million from $468.4 million, primarily due to the timing of working capital.
Free Cash Flow was $508.5 million, an increase of $88.7 million from $419.8 million, due to the increase in cash flows generated by operating activities, partially offset by an increase in capital expenditures.
