Endeavor Sees Mixed Q3 With Assets In Flux As It’s Set To Go Private

Endeavor had a mixed third quarter driven by sports, representation and with a big revenue boost from the Summer Olympics in Paris.

The company, whose major investor Silver Lake is preparing to take it private next year, saw a $420 million net loss — widened from negative $120 million the year before — on $2.03 billion in revenue, up from $1.2 billion.

Sports properties saw sales of $735 million for the three months ended in September, up 53% on the acquisition of WWE in September of 2023, which contributed $275 million.

UFC sales were softer due to fewer events. PBR, or Professional Bull Riding, saw increases in media rights and ticket sales after adding two teams.

WWE and UFC are held under TKO Group, which is also in the process of buying PBR from Endeavor for $3.25 billion.

Sports earnings of rose 33% to $315 million.

Events, Experiences & Rights saw sales surge 145% to nearly $900 million on the Paris 2024 Olympics and Paralympic Games, for which On Location served as exclusive hospitality provider. The segment swung to a loss of $68 million.

Representation revenue rose 11% to $429 million on growth in WME’s talent and music divisions, partially offset by a dip in non-scripted content. Profit rose about 30% to $124.9 million.

The Sports Data & Technology business, OpenBet and IMG Arena, are up for sale and considered a discontinued operation.

Endeavor is also looking at selling other parts of its IMG portfolio, including but not limited to the Miami Open and Madrid Open tennis tournaments and art platform Frieze.

In response to a question on a TKO earnings call Wednesday, COO Mark Shapiro said those businesses would not be sold to TKO. He indicated that it’s not impossible Ari Emanuel, CEO of Endeavor and TKO, might be personally interested in some of those assets.

Endeavor has stopped holding Wall Street earnings calls since it announced plans to go private.

“As we work toward the close of our take-private transaction with Silver Lake, we remain focused on delivering for our clients, partners, and shareholders, maintaining momentum throughout our business, and completing the sale of PBR, On Location and IMG to TKO,” Emanuel said in a statement.