TKO Group Holdings — the mixed firm with UFC and WWE — posted one other robust quarter to shut out 2024 together with an ideal yr general regardless of agreeing to pay $375 million to settle one of many two antitrust lawsuits filed in opposition to the UFC.
In a monetary disclosure revealed on Wednesday, TKO reported income of $642.2 million for the fourth quarter of 2024 and general income of $2.804 billion for the yr. Web earnings for the fourth quarter was $47.5 million with a internet earnings of $6.4 million for the yr.
The fourth quarter outcomes elevated 5 % yr over yr with the bulk owed to continued development at UFC with a further $61.1 million of income to $343.8 million, which helped offset a lower of $32.9 million at WWE. The lower at WWE was primarily as a result of timing of the transition of the corporate’s flagship present Monday Evening Uncooked going from USA Community to Netflix.
These numbers are anticipated to dramatically shift shifting ahead after WWE inked an enormous 10-year, $5 billion cope with Netflix that kicked off in January.
For the complete yr, income at TKO elevated 67 % to $2.804 billion, which was mirrored by a rise of $1.015 billion at WWE and a rise of $114 million at UFC.
The web earnings for the yr was $6.4 million, which is a lower of $169.3 million from the earlier yr. The lower was largely affected by the $375 million paid to settle the UFC antitrust lawsuit.
Within the monetary disclosure, TKO famous that the corporate made an preliminary $125 million cost together with a second $125 million cost in direction of that settlement made in February. The third and remaining cost of $125 million is anticipated to be made within the second quarter of 2025.
With 2024 achieved, TKO is poised for an enormous yr in 2025 with a pair of very profitable broadcast offers arising for the corporate.
At UFC, the promotion’s cope with ESPN involves an finish in 2025 with the corporate at present in an unique negotiating window with the Disney-owned community about probably extending the deal. The unique window closes in April, which then opens up the bidding for different potential suitors with rumors swirling that quite a few networks and streaming companies might become involved with the UFC reportedly searching for greater than $1 billion per yr as a part of a brand new broadcast deal.
Whereas in all probability not fairly as sizable, the WWE additionally has an necessary yr forward with the rights to the corporate’s premium dwell occasions — playing cards like WrestleMania and the Royal Rumble — arising for bidding with the present deal at present at Peacock.
TKO revealed focused income for 2025 at $2.930 billion to $3 billion.
“TKO delivered report monetary efficiency in 2024 at each UFC and WWE, reflecting the energy of our [intellectual property], the dynamic audiences we serve, and the industry-best workforce of individuals we’ve assembled,” TKO CEO and government chairman Ari Emanuel mentioned in a press launch.
“Within the yr forward, we might be centered on securing long-term U.S. home media rights agreements for UFC in addition to WWE’s Premium Stay Occasions; integrating IMG, On Location, and Skilled Bull Riders into our portfolio; creating much more compelling dwell occasions; and executing our sturdy capital return program for shareholders.”
TKO inventory has continued to develop with buying and selling up 2.26 % on Wednesday with shares at $159.55 at present
