Key Takeaways
- TKO Group reported better-than-expected first-quarter revenue but profit fell short.
- The WWE and UFC parent also closed its acquisition of some properties from Endeavor Group Holdings in the quarter.
- TKO Group lifted its revenue and adjusted EBITDA outlook for the full year, excluding the impact of the new businesses.
TKO Group Holdings (TKO) posted a mixed earnings report after the bell Thursday, as revenue came in well above estimates but profit fell short.
The owner of World Wrestling Entertainment and Ultimate Fighting Championship generated $1.27 billion in revenue, above Visible Alpha estimates of $899.6 million. However, TKO reported earnings per share of $0.69 when analysts were expecting $0.77.
“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,” CEO Ariel Emanuel said.
TKO Lifts Full-Year Revenue, Adjusted EBITDA Outlook
TKO closed its acquisition of several properties from Endeavor Group Holdings during the quarter, including IMG, On Location, and Professional Bull Riders. The growing sports conglomerate was also one of the four companies added to the S&P 500 in the quarter.
Excluding the impact of the new businesses, TKO lifted its full-year revenue forecast to a range of $3.005 billion to $3.075 billion, up from the prior $2.930 billion to $3.000 billion. It also lifted its 2025 adjusted EBITDA forecast to $1.390 billion to $1.430 billion from $1.350 billion to $1.390 billion.
Shares initially rose Friday morning but turned lower and recently were down nearly 6%. They have gained about 12% since the start of the year.
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