Ari Emanuel-controlled sports conglomerate TKO Group Holdings rode the strong performance of its twin financial engines, the UFC and WWE, in the second quarter to beat analysts’ consensus expectations.
Total revenue climbed 10% over the prior April-to-June period, reaching $1.3 billion, ahead of the Street outlook for $1.27 billion. Diluted earnings per share came in at $1.17, up from 72 cents in the year-earlier quarter and better than the $1.09 target established by analysts.
Revenue at the WWE shot up $99.4 million to $556.2 million, while UFC’s went up more modestly, gaining $21.5 million to $415.9 million. The major highlight for the WWE was Wrestlemania last April, which set a number of records, including for global tune-in. Netflix, a new media partner now streaming weekly Monday Night Raw bouts, also now has select international rights for events like Wrestlemania.
Results for the prior-year period were reported on a pro-forma basis given the acquisition last February of the Professional Bull Riders, event hospitality firm On Location and management company IMG by TKO. Those assets had been part of Endeavor Group Holdings, a sister entity taken private several months ago by Silver Lake.
The earnings news came on the same day TKO announced a significant rights deal, selling ESPN its slate of 10 annual “premium live events,” a roster that includes Wrestlemania and SummerSlam. The agreement netted TKO $1.6 billion, a steep increase from the $900 million it got from NBCUniversal’s Peacock for the same properties in 2020.
A similar set of rights, to the UFC’s pay-per-view schedule, will be up for grabs at the end of the year. Disney and ESPN currently control the rights.
Along with the financials, TKO said it was increasing its guidance for 2025, upping the revenue target to $4.63 billion to $4.69 billion and adjusted EBITDA to between $1.54 billion and $1.56 billion.
“Our live content and experiences are proving a key differentiator for organizations and brands looking to capture audience, and our strategy is tailor-made for today’s experience economy and the white-hot sports event marketplace,” Emanuel, the company’s CEO, said in TKO’s earnings release.
The Streaming Wars is intentionally ad-free
We don’t run display ads. Not because we can’t, but because we don’t believe in them.
They interrupt the reading experience. They cheapen the work. And they burn advertisers’ money on impressions nobody actually wants.
So we chose a different model.
We say the things people in this industry are already thinking but don’t say out loud. We connect the dots beyond the headline and focus on explaining why things matter to the people working in this business.
If you believe industry coverage can exist without clutter and interruption, you can support it here → SUPPORT TSW.
Support is optional. But it directly funds research and continued coverage — and helps prove this model can work.
Support TSW →
