TKO raised its full-year outlook given the momentum generated by its huge new deals with Paramount and ESPN for rights to UFC and WWE events.
The parent company of the MMA league and wrestling franchise had a mixed third quarter, with revenue down due to tough year-over-year earnings from last year’s Summer Olympics in Paris. The UFC will also hold one less pay-per-view event compared to last year’s slot, and will no longer be held at the Sphere in Las Vegas. At the same time, adjusted earnings before interest, taxes, depreciation and amortization improved as costs fell significantly, and net income increased due to gains from WWE and IMG.
“TKO delivered solid third quarter results, and with continued momentum in the UFC and WWE, we are once again raising our full-year outlook,” said Ariel Emanuel, TKO Executive Chairman and CEO. “Our confidence in TKO has never been stronger as we secure groundbreaking multi-year media rights deals with UFC, WWE and Zuffa Boxing. We remain focused on execution, including preparing to launch UFC with Paramount, further integration and synergies with IMG, On Location and PBR, and maximizing shareholder value.”
Total revenue fell 27% to $1.12 billion. Net income reached $106.8 million, a significant increase from $3.4 million in Q3 2024. Free cash flow increased by $151 million to $247.9 million to a healthy $398.9 million due to higher cash flow generated by operating activities and lower capital expenditures.
For the third consecutive quarter, TKO raised its full-year sales and adjusted EBITDA targets. Revenue is expected to be between $4.69 billion and $4.72 billion, with adjusted EBITDA raised to $1.58 billion from $1.57 billion. Year-to-date, ending September 30, TKO had total revenues of $3.69 billion and adjusted EBITDA of $1.3 billion.
Further in the future
