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TKO, the company that WWE and UFC merged to form, has reported their earnings for the third quarter of 2024, which ended on September 30.
WWE and UFC officially merged in September 2023 after WWE and Endeavor closed their transaction agreement.
In the official earnings release, TKO reported a revenue of $681.2 million for the third quarter of 2024, as well as a net income of $57.7 million and an adjusted EBITDA of $310.0 million.
The report notes that TKO “revised its target for revenue to the upper end of the range of $2.670 billion to $2.745 billion” and “revised its target for Adjusted EBITDA to the upper end of the range of $1.220 billion to $1.240 billion.”
TKO CEO and Executive Chair Ari Emanuel commented on the report by saying, “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.
“Additionally, 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.”
More Details
The earnings report stated that TKO’s revenue ” increased 52%, or $232.1 million, to $681.2 million. The increase reflected the increase of $274.7 million of revenue at WWE, to $326.3 million, partially offset by a decrease of $42.6 million at UFC, to $354.9 million.”
Additionally, the net income of $57.7 million was “an increase of $35.7 million from $22.0 million in the prior year period.” An increase in operating expenses was cited as a factor as well.
The report also states that “Cash flows generated by operating activities were $236.6 million, an increase of $169.6 million from $67.0 million, primarily due to higher net income and the timing of working capital.”
WWE’s Financials
TKO states that WWE’s revenue was “$326.3 million for the period from July 1, 2024 through September 30, 2024.” This marks an increase of 14%, or $39.0 million (287.3 million from July 1, 2023 through September 30, 2023).
The report states that this increase was “primarily driven by an increase in media rights and content, live events, and sponsorship revenue.” An increase in ticket sales revenue was cited as a factor as well, as was the increase in media rights and content revenue with WWE’s media rights fees.
TKO states that WWE’s Adjusted EBITDA for the quarter was $175.3 million, which is an increase of of 72%, or $73.3 million ($102.0 million from July 1, 2023 through September 30, 2023).
