TKO Group, the publicly listed combined ownership company of mixed martial arts promotion UFC and professional wrestling promotion WWE, secured revenue of $681.2 million in the third financial quarter.
The group – which late last month was unveiled as purchasing a trio of high-profile sports and entertainment assets from its parent company, Endeavor – saw revenues stay essentially level year-on-year from $684.8 million during Q3, 2023. Earnings across the three months up to September 30, 2024, were unveiled yesterday (November 6).
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UFC (Ultimate Fighting Championship) generated $354.9 million in income during the three months up to September 30 (down from $397.5 million the prior year in which three more events were held than the Q3 2024 total), while during the same period the World Wrestling Entertainment (WWE) promotion brought in $326.3 million.
The WWE revenues are recorded as having only been $51.6 million during the third quarter of 2023, due to the merger between UFC and WWE going through on September 12 last year, and the given total only incorporating revenue between that date and September 30, 2023. Across the whole Q3, 2023, however, WWE revenue was $287.3 million.
Therefore, this means that a significant revenue increase year-on-year has been recorded, but the actual revenue level is essentially the same.
EBITDA (earnings before interest, taxation, depreciation, and amortization), meanwhile, came to $310 million, up from $239.7 million the prior year.
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By GlobalDataNet income, meanwhile, came to $57.7 million, an increase of $35.7 million year-on-year.
The UFC revenue in Q3 saw a significant drop in media rights and content income year-on-year, from $266.7 million to $216.3 million. This was partially but not fully offset by an increase in sponsorship revenue, which rose from $63.8 million to $74 million.
The media rights and content drop-off was primarily due to UFC hosting three fewer events in total across July, August, and September, than in Q3 last year – one less numbered event and two fewer Fight Nights.
WWE, meanwhile, recorded a 14% revenue rise year-on-year – from the full-quarter total in Q3 2023 – with rises in income from the media rights and content, live events, and sponsorship sectors.
Ariel Emanuel, TKO’s executive chair and chief executive, has said: “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.
“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. Just over a year since UFC and WWE came together to form TKO, our conviction in this business is as strong as ever.”
TKO has also raised its full-year 2024 guidance figures. It now expects full-year revenue “at the upper end” of a range between $2.67 billion and $2.74 billion, and adjusted EBITDA of between $1.22 billion and $1.24 billion.
The group's Q2 results, made public in August, included total revenue of $851.2 million.
TKO’s $3.25 billion all-equity purchase of the trio of Endeavour assets mentioned above sees the major sports and entertainment agency IMG, the events and hospitality firm On Location, and the bull riding touring competition Professional Bull Riders (PBR) taken under the TKO Group umbrella.
While the leadership of PBR and On Location will remain unchanged, IMG president of media Adam Kelly will now step in as president of the IMG business segment as a whole.
This move, which will close in the first half of 2025, expands TKO’s operations outside of just competition operation and into the broader sports business landscape, whilst simultaneously helping pare down Endeavor’s own operations before it is set to privatize in the first quarter of 2025.
