TKO Delivers Record-Breaking Quarter as Acquisition Hype Builds
In a major milestone, TKO, the joint venture between UFC and WWE, has reported record-breaking third quarter results. This achievement marks another significant step forward for the company in its mission to revolutionize the way fans consume and engage with live sports.
During the Q3 2024 conference call, Ari Emanuel, Executive Chair and Chief Executive Officer of TKO, expressed unwavering confidence in the business's strategy and performance. As he noted, the company has successfully executed on its plan while realizing greater integration and synergy opportunities than initially expected. This momentum is reflected in TKO's revised full-year guidance, which now sits at the upper end of its initial range for both revenue and adjusted EBITDA.
The acquisition of industry-leading sports assets, including Professional Bull Riders (PBR), On Location, and IMG, has been met with immense excitement within the company. This strategic move is designed to further solidify TKO's position in the global sports marketplace. Notably, On Location's partnership extension with the NFL through 2036 underscores its status as the official hospitality provider for premier events such as the Super Bowl.
A pivotal example of TKO's growth and success lies in its record-breaking UFC 306 event at Sphere Las Vegas. The sold-out occasion set multiple records, including the highest grossing live event for UFC, as well as achieving the highest event merchandise and sponsorship sales. A staggering 89% of ticket buyers hailed from outside Nevada, highlighting the company's ability to attract fans globally.
Internationally, TKO events have shown remarkable success, with notable achievements in Manchester, Perth, and Paris. The UFC 304 event at Co-op Live drew the largest attendance for a UFC event in the U.K., while setting the record for RAC Arena's highest grossing event in Perth. Additionally, the September Fight Night in Paris became Accor Arena's highest grossing event to date.
WWE live events have also outperformed, with 42 individual market records set during the third quarter. This trend suggests that TKO's strategies around ticket pricing and event routing are yielding positive results.
The company's commitment to creating long-term value for shareholders has been demonstrated through its authorization of a capital return program featuring a $2 billion share repurchase program and a quarterly cash dividend program of $75 million.
