Q3 2024 TKO Group Holdings Inc Earnings Call Transcript
Key Points
- TKO Group Holdings Inc (TKO) reported record results, expecting to reach the upper end of their full-year guidance for both revenue and adjusted EBITDA.
- The company announced a $2 billion share repurchase program and a $75 million quarterly cash dividend program, demonstrating a commitment to returning capital to shareholders.
- TKO's acquisition of Professional Bull Riders, On Location, and IMG is expected to strengthen its global position in sports rights and hospitality, aligning with its pure-play sports strategy.
- UFC and WWE live events continue to show strong demand, with UFC 306 setting records for highest grossing live event and merchandise sales.
- WWE's international expansion is evident, with 18 shows held outside the US in Q3, up from 11 in the same period last year, and setting multiple market records for ticket sales.
- TKO Group Holdings Inc (TKO) recorded a $375 million charge related to the settlement of the UFC antitrust lawsuit, impacting financial results.
- UFC segment revenue decreased by 11% due to fewer events in the quarter compared to the prior year, affecting adjusted EBITDA and margins.
- The timing of WWE's short-term domestic rights deal with USA Network will have an unfavorable impact of approximately $50 million on Q4 revenue and adjusted EBITDA.
- Higher production costs for UFC 306, due to the unique nature of the venue, resulted in reduced adjusted EBITDA and margins for the quarter.
- Corporate expenses increased due to higher personnel costs and executive compensation following the formation of TKO, impacting overall profitability.
Good afternoon and thank you for joining today's Q3 2024 TKO earnings call. My name is Regan, and I'll be your moderator today. (Operator Instructions)
I would now like to pass the conference over to our host, Seth Zaslow, Head of Investor Relations. Seth, you may now proceed.
(technical difficulty) 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 third-quarter 2024 performance.
I want to remind everyone that the information discussed will include forward-looking statements and/or projections that involve risks, uncertainties, and assumptions. Please see our filings with the Securities and
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