TKO Q3 revenue up 52%
November 8, 2024
TKO Group, owner of WWE and UFC, has reported Q3 revenue of $681.2 million (€632.2m) – an increase of 52 per cent on the same quarter last year.
The company revised its FY target for revenue to the upper end of the range of $2.670 billion to $2.745 billion.
Ariel Emanuel, Executive Chair and CEO of TKO, commented: “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 authorisation of a robust capital return programme 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 per cent, 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.
WWE revenue was $51.6 million for the period from September 12th 2023 through September 30th 2023. Including WWE activity for the period from July 1st 2023 through September 11th 2023, WWE combined revenue was $287.3 million for the period from July 1st 2023 through September 30th 2023. The increase of 14 per cent, or $39 million, was primarily driven by an increase in media rights and content, live events, and sponsorship revenue. The increase in media rights and content revenue was primarily related to the contractual escalation of media rights fees as well as the timing of WWE’s weekly flagship programming, which resulted in an additional event in the current year period. The increase in live events revenue was primarily related to an increase in ticket sales revenue. The increase in sponsorship revenue was primarily related to new sponsors and an increase in fees from renewals compared to the prior year period.
UFC revenue decreased 11 per cent, or $42.6 million, to $354.9 million primarily driven by a $50.4 million decrease in media rights and content revenue partially offset by a $10.2 million increase in sponsorship revenue. The decrease in media rights and content revenue was primarily related to holding one less numbered event and two fewer Fight Night events in the current year period as compared to the prior year period. The increase in sponsorship revenue was primarily related to new sponsors and an increase in fees from renewals compared to the prior year period, including the first ever title partner sale made in connection with UFC 306. Live events revenue was essentially flat as an increase in ticket sales related to the mix of event venues and territories was offset by three fewer events as compared to the prior year period.