WWE Revenue Dip Amid ‘Raw’ Shift To Netflix Squeezes Endeavor-Run TKO’s Q4 Results, But Numbers Still Top Wall Street Forecasts

TKO Group Holdings delivered fourth-quarter results that topped Wall Street expectations despite a revenue dip at WWE related to flagship program Raw.

The Monday night mainstay wrapped its decades-long run on cable TV last December on USA Network and opened a new era in January, kicking off a $5 billion rights deal with Netflix. Revenue at WWE declined 10% from the year earlier period to $298.3 million, with the company blaming timing for the drop in proceeds from rights and programming.

UFC was a cleaner and more upbeat story in the quarter, with revenue up 22% to $343.9 million and adjusted EBITDA rising 25% to $178.4 million.

Total company revenue ticked up 5% over the year ago period to reach $642.2 million, while the company swung from a loss in the 2023 period to earnings of 28 cents a share on a diluted basis.

The quarter marked the first like-to-like comparison of financial periods after the September 2023 close of the merger of UFC and WWE created TKO. Endeavor controls the company, while also operating Endeavor Group Holdings, which is publicly traded for now but soon to go private.

The earnings release noted the announcement last September of a settlement for $375 million with UFC fighters, who had filed a class-action lawsuit alleging they had been underpaid. After a judge approved the settlement earlier this month, the company will pay it in three equal installments, with the first $125 million having been recorded last October. The final two installments will come in the first and second quarters of 2025.

CEO Ari Emanuel said the quarterly results reflect “the strength of our IP, the dynamic audiences we serve, and the industry-best team of people we’ve assembled.” In 2025, he added, “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.”

Separate from the earnings Wednesday, the company announced a weekend event in Kansas City that will feature WWE, UFC and the PBR in a single event for the first time.