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UFC’s Event Sellout Spree Powers TKO Q3 Earnings
TKO reported higher third-quarter revenue and adjusted earnings, driven chiefly by UFC’s run of sellout events. The results led the sports and entertainment company to raise its full-year forecasts for the second time this year.
TKO’s revenue rose 21% to $1.36 billion, while adjusted EBITDA increased 54% to $555.7 million and its margin grew to 41%, from 32% a year earlier. UFC revenue climbed 60% to $519.2 million, supported by growth in media rights, live events and partnerships; WWE had a tougher comparison because it held three fewer main-roster events than in the same quarter last year. TKO now expects full-year revenue of $5.79 billion to $5.83 billion and adjusted EBITDA of $2.295 billion to $2.315 billion.
In short
- Sellout UFC events helped lift TKO’s third-quarter results.
- TKO revenue rose 21% to $1.36 billion.
- The company raised its full-year forecasts for a second time.
Explained simply
TKO Group Holdings is the company behind UFC mixed martial arts and WWE professional wrestling. It earns money from television and streaming rights, live events, sponsorships and other commercial deals.
UFC’s events draw audiences in venues and through broadcasters, while WWE has its own schedule of wrestling shows. The two businesses have different event calendars, so comparisons between quarters can be affected by how many events each held.
TKO’s results matter to investors because they show how its sports and entertainment businesses are performing and help indicate what the company expects for the year. Revenue is money brought in; adjusted earnings are a measure of operating performance that excludes some costs.