Endeavor’s Final Earnings Report as a Public Company

 

In what is anticipated to be Endeavor’s last earnings report as a public entity, the parent company of WME and TKO Group Holdings announced a revenue of nearly $1.6 billion, a net loss of $237 million, and an adjusted EBITDA of $277 million.

Complex Transactions Underway

 

Endeavor is currently navigating a series of intricate transactions. The company is divesting its IMG, On Location, and PBR segments to its sports subsidiary, TKO. Additionally, it has reached an agreement to sell its OpenBet and IMG Arena businesses through a management buyout. Endeavor is also marketing prestigious events like the Miami Open and Madrid Open tennis tournaments, along with the Frieze art festival. Furthermore, there’s a deal in place for Silver Lake to take the remaining WME representation business private.

Anticipated Closures

 

The company announced on Thursday that it expects both the TKO deal and the Silver Lake take-private transaction to finalize by the end of Q1.

Strong Performance in Representation Business

 

Meanwhile, Endeavor’s representation business shone brightly, with revenue reaching $501.6 million in Q4, reflecting a 17 percent year-over-year increase. For 2024, this segment generated $1.69 billion, marking a 9 percent rise from the previous year. Adjusted EBITDA stood at $108.2 million in Q4 and $405.7 million for the entire year, both showing mid-single-digit growth.

Growth Drivers

 

“The growth was primarily fueled by advancements at WME across talent, music, and sports, along with an uptick in our nonscripted business—largely due to an acquisition in 2024—though this was partially offset by declines in our marketing, licensing, and fashion sectors,” the company detailed in its earnings report.

Revenue Breakdown

 

The owned sports properties segment, predominantly TKO, reported revenue of $670.4 million in Q4, while the events, experiences, and rights segment generated $411.9 million.

CEO’s Outlook

 

“We concluded 2024 with sustained momentum, reflecting robust demand for premium content and live events,” stated Endeavor CEO Ari Emanuel. “In the coming months, our focus will be on finalizing the sale of IMG, On Location, and PBR to TKO, completing our take-private transaction with Silver Lake, and positioning Endeavor for long-term success in representation.”

A New Chapter Ahead

 

Assuming the Silver Lake deal proceeds as planned, 2025 will usher in a significantly streamlined and focused Endeavor, returning to private ownership after four years on the NYSE.

Persons

Ari Emanuel

Company Names

Endeavor, WME, TKO Group Holdings, IMG, On Location, PBR, Silver Lake, OpenBet, IMG Arena

Titles

Miami Open, Madrid Open, Frieze

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