UFC and WWE parent TKO Group Holdings beat Wall Street expectations in its third quarter earnings, released Wednesday afternoon.
TKO reported revenue of $681.2 million for the period ended Sept. 30, beating analyst consensus expectations by more than $17 million—even as it fell short of the combined $736.4 million revenue of UFC and WWE in the comparable period last year, due to a shift in the timing of UFC events, according to a TKO release. The business also beat expectations on net income, posting $57.7 million in the third quarter, and on another measure of profitability, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), with $310 million.
“We now expect to deliver at the upper end of our full-year 2024 guidance range for both revenue and adjusted EBITDA,” said TKO executive chair and CEO Ari Emanuel, in a press release. In August, TKO told investors it anticipates 2024 revenue to be between $2.67 billion and $2.745 billion and adjusted EBITDA between $1.22 billion and $1.24 billion.
Headlined by UFC 306 at the Sphere in Las Vegas, UFC’s quarter produced $354.9 million sales, down from $397.5 million last year because of three fewer events in the quarter than last year (over the full year, the number of UFC events will be about the same as 2023.) The $20 million production cost at the Sphere also raised UFC’s expenses somewhat, but produced the highest grossing event for both the venue and UFC.
WWE revenue jumped about 14% in the quarter compared to what the organization made last year (it was independent for much of the 2023 quarter, joining TKO on Sept. 12 of that year.) Sponsorship revenue was a highlight for the wrestling circuit, reflecting the emphasis of TKO management on boosting that area. Ticket revenue and media rights income from the shift to USA Network for Smackdown and to the CW for NXT also powered WWE. The group generated $326.3 million overall.
In addition to performance in the third quarter, TKO noted that the business will have an active 2025 as it is expected to absorb hospitality company On Location, media rights firm IMG and the Professional Bull Riders circuit in a $3.25 billion deal with Endeavor Group, which controls the majority of TKO stock. TKO will also begin a $2 billion stock buyback program in 2025 as well as pay its first dividend to shareholders in March next year.
