TKO Group Holdings Exceeds Wall Street Expectations

TKO Group Holdings has surpassed Wall Street’s expectations in its first quarter earnings report, driven by the WWE’s new media rights deal with Netflix, robust live event performances at UFC and WWE, and significant growth in partnerships across both brands. This strong performance positions the company for what it anticipates will be a successful 2025.

Impressive Financial Results

The company reported revenues of $1.3 billion, with a net income of $166 million and adjusted EBITDA of $417 million, marking substantial improvements compared to the previous year. TKO has also raised its full-year 2025 guidance, projecting revenues between $3.005 billion and $3.075 billion, up from $2.930 billion to $3.000 billion. Adjusted EBITDA guidance has been increased to $1.390 billion to $1.430 billion, from $1.350 billion to $1.390 billion, excluding the IMG businesses.

Strategic Acquisitions and New Reporting Segments

This quarter was particularly significant as TKO completed its acquisition of IMG, PBR, and On Location from its controlling shareholder, Endeavor. With this deal finalized, TKO has established a new IMG reporting segment that encompasses IMG and On Location, while PBR results have been integrated into “corporate and other.”

Strong Performance Across Brands

The UFC generated revenues of $360 million, benefiting from significant increases in both live events and partnerships. Meanwhile, WWE revenue soared to $392 million, fueled by enhancements in media rights, partnerships, and live events. IMG revenue for the quarter stood at $476 million.

Negotiating Future Media Rights

The company is currently in negotiations for U.S. rights for UFC, aiming for a substantial fee increase. Discussions regarding WWE’s “premium live events,” including WrestleMania, are set to commence in the coming months.

CEO’s Vision for Growth

“TKO is off to a strong start in 2025, with both UFC and WWE delivering impressive financial results,” stated TKO CEO and Executive Chair Ari Emanuel. “Given the strength and momentum of these businesses, along with no significant changes to our overall business outlook, we are raising our guidance. We are also updating our projections to reflect the addition of IMG, On Location, and PBR. Our confidence in our portfolio of assets remains robust, and we are now focused on integration, driving synergies, securing the domestic media rights deal for UFC, and enhancing our capital return programs.”

Persons

Ari Emanuel

Company Names

TKO Group Holdings, WWE, Netflix, UFC, IMG, Endeavor, PBR, On Location

Titles

Wrestlemania

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