Friday, August 8, 2025

Top 5 This Week

Related Posts

TKO Raises Full-Year Financial Guidance After PBR, On Location and IMG Acquisitions

TKO has raised its full-year revenue and earnings guidance on the heels of its acquisition of Professional Bull Riders, On Location and IMG. Revenue and earnings for the core WWE and UFC properties were up for the second quarter and TKO leaders were touting the boost to come from WWE’s new five-year pact with ESPN for “WrestleMania” and other premium events.

“TKO generated strong financial results in the quarter, led by record performance at both UFC and WWE,” said Ariel Emanuel, executive chair and CEO of TKO. “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. Given the continued momentum across our portfolio and our overall business outlook, we are raising our guidance for the full year.”

Popular on Variety

TKO raised its full-year guidance for revenue to between $4.630 billion and $4.690 billion, up from $4.490 billion to $4.560 billion. The target for adjusted earnings before interest taxes, depreciation and amortization has been increased from $1.540 billion to $1.560 billion, up from $1.490 billion to $1.530 billion.

For the quarter, TKO delivered revenue of $1.308 billion — up 10% from the year-ago quarter — and net income of $273.1 million. Adjusted EBITDA came in at $526.5 million, fueled by gains in sponsorship and ticket sales for UFC and WWE.

During a call with analysts, TKO executives emphasized that they are leveraging the strong demand for UFC and WWE, generating greater opportunities for both.

“We have an best in class global partnerships division that is on the cusp of hitting $300 million of UFC deals alone. The idea of tying some of these partnership deals, where we have in-arena sponsorship, we have in telecast, broadcast integration, and now going out and actually selling ad inventory,” said Mark Shapiro, president of TKO. “We’ve done some of that with our UFC pay-per-view, but for the most part, that’s not our business. To now open that door with these WWE [events on ESPN] and have the opportunity to sell ad inventory to UFC deals — that’s a game changer for us, and that’s also something that’s important to us in any UFC deal going forward.”

UFC is also in the market for a massive new domestic rights deal for its key MMA events as of next year. TKO is “in the home stretch” of these talks, Shapiro said but he would not speculate on the timing of an announcement. At present UFC is aligned with ESPN.

In Q2, UFC saw a revenue boost of 5% year-over-year, rising to $415.9 million thanks largely to a $24.1 million increase in partnerships and marketing revenue. Adjusted EBITDA increased 6% to $244.8 million.

For WWE, revenue increased 22% to $556.2 million, fueled by a $41.6 million increase in live events and hospitality revenue, a $33.6 million gain in partnerships and marketing revenue and an $18.2 million increase in media rights, production and content revenue. Adjusted EBITDA spiked 31% to $329.8 million.

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Popular Articles