WWE Revenue Soars In TKO Q3 Financial Report

TKO has released WWE’s third-quarter financial report.

The TKO Group made up of WWE and UFC has announced revenue of $681.2 million for the third quarter of 2024. The report also touted a net income of $57.7 million.

WWE revenue was listed at $326.3 million, while UFC revenue amounted to $354.9 million.

You can find a section of the press release from the TKO Group below.

TKO Transaction Highlights

On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity.

Third Quarter 2024 Financial Highlights

Revenue of $681.2 million
Net income of $57.7 million
Adjusted EBITDA 1 of $310.0 million
Full Year 2024 Guidance

The Company revised its target for revenue to the upper end of the range of $2.670 billion to $2.745 billion
The Company revised its target for Adjusted EBITDA to the upper end of the range of $1.220 billion to $1.240 billion
The Company reaffirmed its target for Free Cash Flow Conversion 2 in excess of 40%
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its third quarter ended September 30, 2024.

Ariel Emanuel, Executive Chair and CEO of TKO, said: “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.”

Third Quarter Consolidated Results

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.

Net Income was $57.7 million, an increase of $35.7 million from $22.0 million in the prior year period. The increase reflected the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in direct operating costs of $76.8 million, an increase in selling, general and administrative expenses of $46.4 million, and an increase in depreciation and amortization of $66.4 million.

Adjusted EBITDA 1 increased 29%, or $70.3 million, to $310.0 million, due to an increase of $153.3 million of Adjusted EBITDA at WWE, partially offset by a decrease of $42.7 million at UFC and an increase of $40.3 million in corporate expenses.

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.

Free Cash Flow 2 was $225.6 million, an increase of $162.0 million from $63.6 million, due to the increase in cash flows generated by operating activities partially offset by an increase in capital expenditures.

Cash and cash equivalents were $457.4 million as of September 30, 2024. Gross debt was $2.736 billion as of September 30, 2024.

Vince McMahon Meets With WWE Boss

Despite the allegations surrounding the disgraced former WWE boss, TKO President Mark Shapiro has revealed he recently met with Vince McMahon. Shapiro said that while McMahon was a “total pro,” he remains “out of the business entirely.”

When asked if McMahon was supportive of WWE’s new direction, Shapiro said he couldn’t have been more positive, but reiterated that he wasn’t looking for his opinion.

Vince McMahon resigned from the TKO Board of Directors back in January following the filing of a lawsuit by Janel Grant alleging sexual abuse and sex trafficking. McMahon continues to deny any wrongdoing.