Posted on 2/27/125 by Colin Vassallo
TKO Group Holdings, Inc. 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 EBITDA 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 Flow 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.
The full earnings results can be read at TKOGRP.COM.