TKO is forecasting a strong year ahead for WWE and UFC as the company disclosed fourth quarter and full-year 2024 earnings that reflect a rising tide for both sports franchises but also the cost of the $375 million legal settlement reached last fall with former UFC fighters.
For the quarter, TKO delivered total revenue of $642.2 million and adjusted earnings before taxes, interest, depreciation and amortization of $238.1 million. For the full year, 2024 revenue came in at $2.804 billion and adjusted EBITDA of $1.251 billion. But net income for the full year sank to $6.4 million, down from $175.7 million in 2023, as the full cost of the settlement was taken as a 2024 charge.
TKO is forecasting top and bottom-line growth with its first investor guidance for 2025. Revenue for the full-year is expected to come in at $2.930 billion to $3 billion. Adjusted EBITDA is pegged at $1.350 billion to $1.390 billion. Those forecasts don’t include the impact of assets that TKO is in the process of acquiring from its parent company, Endeavor. Professional Bull Riders, IMG and event hospitality service On Location will come under the TKO umbrella as Endeavor transitions back to being privately held.
WWE and UFC, which were brought together into TKO in a merger completed in September 2023, logged big years for live event revenue. Ticket sales and sponsorship deals reached new heights for both brands. In January, WWE began a new 10-year TV rights deal with Netflix that is expected to boost its coffers significantly. TKO shares have enjoyed a bounce on the strength of the Netflix deal taking affect last month. The stock is up 12% for the year to date, closing Wednesday at $159.80.
The transition of WWE’s flagship weekly program “Raw” away from NBCUniversal took a toll on WWE’s media rights revenue for the fourth quarter. Total WWE revenue hit $298.3 million, down $55.9 million from the year-ago quarter. The loss was partially offset by a $10.8 million increase in live events revenue, a $7.4 million increase in sponsorship revenue and a $4.8 million increase in consumer products revenue.
UFC, meanwhile, saw a year-over-year gain of 22% in total revenue for the quarter to $343.9 million, fueled by a $29.9 million increase in media rights and content revenue, an $18.8 million increase in sponsorship revenue, and a $12.3 million increase in live events revenue. This year, it’s UFC’s turn to pursue what is sure to be a massive new TV rights pact for 2026 and beyond.
“TKO delivered record financial performance in 2024 at both UFC and WWE, reflecting the strength ofour IP, the dynamic audiences we serve, and the industry-best team of people we’ve assembled,” saidAriel Emanuel, executive chair and CEO of TKO. “In the year ahead, we will be focused on securinglong-term U.S. domestic media rights agreements for UFC as well as WWE’s Premium Live Events;integrating IMG, On Location and Professional Bull Riders into our portfolio; creating even morecompelling live events; and executing our robust capital return program for shareholders.”
More to come
