TKO GROUP HOLDINGS INC

Latest Results (18.12.2024):

Revenue Growth

In the third quarter of 2024, TKO Group Holdings, Inc. reported a significant increase in revenue, reaching $681.2 million. This marks a 52% growth compared to the previous year, driven primarily by a substantial rise in WWE's revenue, which increased by $274.7 million to $326.3 million. However, this was partially offset by a decrease in UFC's revenue by $42.6 million to $354.9 million.

Net Income Increase

TKO Group Holdings, Inc. achieved a net income of $57.7 million in the third quarter of 2024, reflecting an increase of $35.7 million from the same period in the previous year. This growth in net income was primarily due to the increase in revenue, although it was partially offset by higher operating expenses, including direct operating costs, selling, general and administrative expenses, and depreciation and amortization.

Adjusted EBITDA Performance

For the third quarter of 2024, TKO Group Holdings, Inc. reported an adjusted EBITDA of $310.0 million, representing a 29% increase from the prior year. This improvement was largely attributed to a $153.3 million increase in WWE's adjusted EBITDA, despite a $42.7 million decrease in UFC's adjusted EBITDA and a $40.3 million rise in corporate expenses.

Cash Flow and Debt

TKO Group Holdings, Inc. generated $236.6 million in cash flows from operating activities during the third quarter of 2024, marking an increase of $169.6 million from the previous year. The company's free cash flow also rose to $225.6 million, up by $162.0 million. As of September 30, 2024, TKO held cash and cash equivalents totaling $457.4 million, with gross debt amounting to $2.736 billion.

Full Year 2024 Guidance

TKO Group Holdings, Inc. has revised its full-year 2024 guidance, now expecting to achieve revenue at the upper end of the range between $2.670 billion and $2.745 billion. The company also anticipates adjusted EBITDA to reach the upper end of the range between $1.220 billion and $1.240 billion, while reaffirming its target for free cash flow conversion to exceed 40%.