TKO Group, the publicly listed combined ownership company of mixed martial arts promotion UFC and professional wrestling promotion WWE, has reported record revenue of $851.2 million for the second quarter (Q2) of 2024.
This record quarterly figure has led the group, owned by Endeavor, to raise its guidance for 2024, with TKO now targeting annual revenue of between $2.67 billion and $2.74 billion.
Its targeted adjusted EBITDA (earnings before interest, taxation, depreciation, and amortization) is now between $1.22 billion and $1.24 billion.
Net income during Q2 was $150.7 million, TKO disclosed in its earnings report, issued yesterday (August 8).
For WWE, revenue was up 11% year-on-year, coming to $456.8 million, while at the Ultimate Fighting Championship, it was up 29% at $394.4 million.
At the UFC, there were significant revenue increases across media rights, live events, and sponsorship, with live events income in particular more than doubling year-on-year, from $32.4 million to $69.1 million.
Late May saw TKO merge the live events teams of the UFC and WWE into one division.
Adjusted EBITDA for UFC and WWE came to $231.9 million and $251.3 million, respectively.
Ari Emanuel, TKO’s executive chair and chief executive, said: “TKO generated strong financial results in the quarter, highlighted by record quarterly revenue and adjusted EBITDA. In light of this continued momentum, we are raising our full-year 2024 guidance for the second quarter in a row.
“The strength in our underlying business continues to give us great conviction in TKO’s ability to deliver sustainable long-term value for shareholders.”
The company was established on October 12 last year, meaning that it has yet to complete a full calendar year of operations with which to compare its latest results.
Elsewhere in its quarterly financial report, TKO also said it is “evaluating all options” regarding a US judge denying a settlement between UFC and a group of former fighters in a class action antitrust lawsuit.
UFC agreed the initial settlement with the opposing parties, worth around $335 million, back in March to resolve two lawsuits brought against its previous owner and operator Zuffa by a collection of former fighters.
TKO has said: “The company is evaluating all of its options, including, without limitation, an appeal, and has also initiated discussions with plaintiffs’ counsel, who have expressed a willingness to engage in separate settlement discussions for the … cases.”
TKO was originally established last September, through a UFC/WWE merger.
