TKO Group Holdings, Inc. Q4 FY2024 earnings call

• Year in Review: 2024 was a milestone year with record financial performance, integration of UFC and WWE driving efficiency, and strong media rights and live events. - Q4 Highlights: UFC and WWE had record-breaking Q4 live events, UFC closed with back-to-back record-setting events, WWE set multiple market records. WWE's Raw moved to Netflix and SmackDown to USA Network drove audience growth. - Future Focus: 2025 focus on domestic rights renewals, returning capital to shareholders via dividends and share repurchases, and acquiring IMG, On Location, and PBR to expand the global sports portfolio.

UFC Segment: In the fourth quarter, UFC generated revenue of $344 million, with adjusted EBITDA of $178 million. Revenue was driven by media rights and content ($198 million, +18%), live events ($65 million, +24%), and sponsorship ($67 million, +39%). For the full year 2024, UFC contributed to TKO's record revenue of $2.804 billion and adjusted EBITDA of $1.251 billion, with an adjusted EBITDA margin of 45%. WWE Segment: In the fourth quarter, WWE had revenue of $298 million and adjusted EBITDA of $114 million. Revenue was impacted by the short-term Raw rights deal, but live events revenue increased 13% to $93 million and sponsorship revenue grew 48% to $23 million. For the full year 2024, WWE contributed to TKO's total revenue of $2.804 billion and adjusted EBITDA of $1.251 billion, with an adjusted EBITDA margin of 45%.

• 2025 revenue target: $2.93 billion to $3.0 billion, adjusted EBITDA target: $1.35 billion to $1.39 billion. - Impact of Saudi PLE timing shift, with $55 million revenue impact from 2025 to 2026. - Site fee momentum and event mix changes expected to drive growth. - Acquisition of IMG, On Location, and PBR to close in Q1, with 2025 outlook to be updated post-close.

• Macroeconomic uncertainty affecting live event demand. - Timing of content deliveries and revenue recognition. - Unfavorable impact of antitrust lawsuit settlement and debt transaction costs on free cash flow.

Q: What's your outlook on UFC domestic deals with Disney?

A: Currently in exclusive negotiating window with Disney, focusing on long-term best for business, balancing reach, engagement, and monetization.

Q: Thoughts on boxing plans and Ali Act repeal?

A: Boxing has great opportunity, close to deal with Saudis for boxing league, acting as producer/promoter with fee and earn-in equity.

Q: Outlook for live event revenue in 2025?

A: Expect meaningful growth on like-for-like basis, driven by site fees, major events like WrestleMania and Summer Slam, and international expansion.

Q: Buying of TKO shares by EDR?

A: TKO earnings call, not commenting on Endeavor related matters.

Q: Implied margins in 2025 guidance?

A: No undue expense pressures, guide implies healthy margins with some upside from efficiency opportunities.

Q: Monetizing Netflix engagement?

A: Laser-focused on KPIs, strong viewership from live events should drive better media rights deals, with appetite for more WWE content on Netflix.