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TKO is poised for a growth spurt this year now that the parent company of UFC and WWE has completed is acquisition of IMG, Professional Bull Riders and the high-end event hospitality firm On Location.
TKO’s first quarter results, unveiled Thursday, reflect underlying strength at UFC and WWE in ticket sales, media rights, advertising and sponsorship dollars. With IMG, PBR and On Location operations folded in, TKO saw revenue and earnings before interest, taxes, depreciation and amortizaiton on a consolidated basis for the entirety of the quarter, even though TKO only took possession of the assets on Feb. 28.
The UFC and WWE operations spurred TKO to raise its full-year guidance for revenue and EBITDA targets for the year, and that’s without factoring in the boost from IMG, PBR and On Location.
Excluding the IMG assets, TKO has increased its 2025 target for revenue in the range of $3.005 billion to $3.075 billion, from $2.930 billion to $3.000 billion, and adjusted EBITDA to $1.390 billion to $1.430 billion, from $1.350 billion to $1.390 billion.
With the IMG businesses folded in for the rest of the year, TKO is now targeting revenue of $4.490 billion to $4.560 billion and adjusted EBITDA of $1.490 billion to $1.530 billion.
“TKO is off to a good start in 2025 with both UFC and WWE delivering solid financial results,” said Ariel
Emanuel, executive chair and CEO of TKO, who is also CEO of Endeavor, TKO’s majority owner. “Given the strength and momentum of these businesses and no material change to our overall business outlook, we are raising our guidance. At the same time, we are updating guidance to reflect the addition of IMG, On Location, and PBR. Our conviction in our portfolio of assets is strong and we are now focused on integration, driving synergies, the domestic media rights deal for UFC, and our capital return programs.”
For the quarter, total revenue was up 4%, or $46.4 million, to $1.269 billion, fueled by a $74.8 million year-over-year improvement at WWE and a $46.7 million boost for UFC. Adjusted EBITDA climbed 23%, or $78.5 million, to $417.4 million.
Emanuel and TKO leaders are sure to be pressed by Wall Street analysts on the state of media rights negotiations for UFC, which has a big contract with ESPN expiring at year’s end. WWE is soon to be in the market for a deal to cover the live special events that it delivers that are not covered by its mammoth pact with Netflix for “Raw” and “Smackdown” and other recurring shows.
(Pictured: WWE star Cody Rhodes)
More to come
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