Q2 2024 TKO Group Holdings Inc Earnings Call Transcript
Key Points
- TKO Group Holdings Inc (TKO) reported record revenue of $851 million and adjusted EBITDA of $421 million for Q2 2024, marking significant growth.
- The company raised its full-year 2024 guidance for revenue and adjusted EBITDA due to strong operating performance.
- UFC and WWE live events achieved record ticket revenue and viewership, highlighting strong demand for premium sports content.
- TKO successfully integrated UFC and WWE's live events groups, driving synergies and exceeding $100 million in annualized net savings.
- New brand partnerships, including a significant sponsorship deal with Riyadh Season, are expected to drive top-line revenue and audience growth.
- The UFC antitrust lawsuits remain unresolved, with the court denying preliminary approval of the settlement agreement.
- Deloitte will no longer serve as TKO's auditor due to SEC technical independence rules, necessitating a transition to KPMG.
- The third quarter of 2024 is expected to see fewer UFC events compared to the prior year, potentially impacting media rights and content revenue.
- Production costs for the upcoming UFC 306 event at the Sphere are higher than anticipated, posing a headwind to EBITDA.
- Free cash flow conversion guidance remains unchanged despite the raised revenue and EBITDA outlook, due to uncertainties around the antitrust settlement.
Hello, everyone, and welcome to the Q2 2024 TKO earnings call. My name is Charlie, and I'll be coordinating the call today. (Operator Instructions)
I will now hand over to our host, Seth Zaslow, Head of Investor Relations, to begin. Seth, please go ahead.
Good morning, and welcome to TKO's second-quarter 2024 earnings call. A short while ago, we issued a press release, which you can view on our Investor Relations website. A recording of this call will also be available via our website for at least 30 days. After prepared remarks from Ari Emanuel, TKO's Executive Chair and Chief Executive Officer; and Andrew Schleimer, TKO's Chief Financial Officer, we'll open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A.
The purpose of this call is to provide you with the information regarding our second-quarter 2024 performance. I want to remind everyone that the information discussed will include
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