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TKO Group Holdings 8-K Report, Financial Results (Nov 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 6, 2024
Period End
November 6, 2024
Security
TKO
In the record · 2023–202610-K310-Q98-K42

TKO filed 3 annual reports (10-K), 9 quarterly reports (10-Q) and 42 current reports (8-K) between 2023 and 2026.

  1. Leadership change8-K · Jan ’24Jan ’24
  2. Change in control8-K · Mar ’25Mar ’25
  3. Material agreement8-K · Mar ’26Mar ’26

01—Abstract

Summary

Summary of the 8-K filed November 6, 2024. Cited figures are marked; the original filing is the authoritative source.

TKO Group Holdings, Inc. reported third quarter 2024 results on November 6, 2024, with revenue of $681.2 milliona, up 52% (or $232.1 million) from the prior year period, driven by WWE, which contributed $326.3 million of revenue versus $51.6 million in the 2023 period that included only post-combination activity.

Net income was $57.7 millionb and Adjusted EBITDA was $310.0 million, up 29%. Results were mixed by segment: UFC revenue fell 11% to $354.9 million and UFC Adjusted EBITDA fell 18% to $195.6 million, while WWE Adjusted EBITDA reached $175.3 million. Operating cash flow was $236.6 million and Free Cash Flow was $225.6 million, with cash of $457.4 million and gross debt of $2.736 billion as of September 30, 2024.

Management revised full-year 2024 guidance to the upper end of its ranges of $2.670 billion to $2.745 billionc for revenue and $1.220 billion to $1.240 billion for Adjusted EBITDA, and reaffirmed a Free Cash Flow Conversion target above 40%. The filing also describes a planned $2.0 billion share repurchase program, a quarterly dividend program totaling $75.0 million per quarter, a definitive agreement to acquire Professional Bull Riders, On Location and IMG from Endeavor in an all-equity transaction valued at $3.25 billion, and a credit facility refinancing seeking a new seven-year $2.75 billion term loan and a five-year $205 million revolver. The filing also discloses a $375.0 million settlement of the UFC antitrust lawsuit, payable in three equal installments, with $125.0 million paid into escrow in October 2024 and $250.0 million expected in 2025.

Litigation costs were $44.6 milliond in the third quarter. The filing furnishes historical financial information for UFC and WWE on a combined basis for periods before the September 12, 2023 business combination.

02—Key points

Key Highlights

  1. Q3 2024 revenue of $681.2 million, up $232.1 million (52%) year over year, mainly from WWE's $326.3 million contribution.
  2. Q3 2024 net income of $57.7 million, versus $22.0 million in the prior year period; Adjusted EBITDA of $310.0 million, up 29%.
  3. UFC revenue declined 11% to $354.9 million and UFC Adjusted EBITDA declined 18% to $195.6 million, due to one fewer numbered event and two fewer Fight Night events.
  4. WWE Adjusted EBITDA was $175.3 million, with an Adjusted EBITDA margin of 54% for the period from July 1 to September 30, 2024.
  5. Full-year 2024 revenue and Adjusted EBITDA guidance was revised to the upper end of the $2.670 billion to $2.745 billion and $1.220 billion to $1.240 billion ranges, respectively.
  6. Announced a $2.0 billion Class A share repurchase program, a $75.0 million quarterly dividend program, and a $3.25 billion all-equity acquisition of PBR, On Location and IMG from Endeavor.
  7. Settled the UFC antitrust lawsuit for $375.0 million; $125.0 million was paid into escrow in October 2024 and $250.0 million is expected in 2025.

03—Questions

Frequently Asked Questions

  1. How did TKO perform in the third quarter of 2024?

    TKO reported revenue of $681.2 million, up 52% from the prior year period, net income of $57.7 million, and Adjusted EBITDA of $310.0 million, up 29%. Operating cash flow was $236.6 million and Free Cash Flow was $225.6 million.

  2. What changed in full-year 2024 guidance?

    TKO revised its full-year 2024 revenue target to the upper end of $2.670 billion to $2.745 billion and its Adjusted EBITDA target to the upper end of $1.220 billion to $1.240 billion. It reaffirmed a Free Cash Flow Conversion target in excess of 40%.

  3. Why did UFC results decline in the quarter?

    UFC revenue fell $42.6 million to $354.9 million, mainly because of a $50.4 million decrease in media rights and content revenue tied to one fewer numbered event and two fewer Fight Night events. UFC Adjusted EBITDA fell $42.7 million to $195.6 million.

  4. What capital return and acquisition plans did TKO announce?

    The board authorized a share repurchase program of up to $2.0 billion of Class A common stock, expected to commence in the first half of 2025 and be completed in about three to four years. It also authorized quarterly dividends of $75.0 million, beginning March 31, 2025. TKO also agreed to acquire PBR, On Location and IMG from Endeavor in an all-equity transaction valued at $3.25 billion, expected to close in the first half of 2025.

  5. What is the status of the UFC antitrust settlement and the credit facility refinancing?

    The $375.0 million UFC antitrust settlement received preliminary court approval on October 22, 2024 and remains subject to final approval. It is payable in three equal installments, with $125.0 million paid into escrow in October 2024. TKO also announced a refinancing seeking a new seven-year $2.75 billion term loan and a five-year $205 million revolver, expected to close in the fourth quarter of 2024.

04—Continue

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