Name: Endeavor Group Holdings, Inc. Q3 2024 Earnings Call
Start: 2024-11-07T08:07:29.000Z

Executive Summary

Q3 2024 revenue was $2.032B (+66.7% YoY; +16.1% QoQ), driven by WWE in Owned Sports Properties and Paris 2024 Olympics hospitality at On Location, while Representation grew on WME music and talent strength .
Adjusted EBITDA was $277.6M with a 13.7% margin (down from 21.7% in Q2), pressured by negative EBITDA in Events, Experiences & Rights from Olympics-related costs; diluted EPS was -$0.86 vs -$0.70 in Q2 .
Strategic actions advanced: definitive agreement for TKO to acquire PBR, On Location and IMG in a $3.25B all‑equity transaction (close expected H1 2025); On Location extended its NFL hospitality partnership through 2036; Endeavor began a review/potential sale of Miami Open, Madrid Open, and Frieze .
No earnings call was held due to the pending Silver Lake take‑private; the merger agreement requires a $0.06 quarterly dividend prior to close (expected by end of Q1 2025) .

What Went Well and What Went Wrong

Owned Sports Properties revenue rose 53% YoY to $735.2M, with WWE contributing ~$275M; segment Adjusted EBITDA increased 33% YoY to $315.5M .
Representation revenue grew 11% YoY to $429.2M; Adjusted EBITDA up 30% YoY to $124.9M, reflecting strong live music demand and recovery post WGA/SAG‑AFTRA strikes .
Management highlighted momentum and client/partner delivery: “our owned sports and representation segments delivered solid results driven by continued consumer demand for live events and content” — Ariel Emanuel, CEO .

Events, Experiences & Rights posted -$68.0M Adjusted EBITDA (down $97.8M YoY) despite $899.8M revenue, as Olympics hospitality carried high costs in the quarter .
Fewer UFC events relative to prior year tempered Owned Sports Properties growth, partially offset by WWE and PBR contributions .
Consolidated net loss widened to $420.4M, impacted by losses in discontinued operations, higher tax provision, and interest expense; interest expense was $108.1M in Q3 .

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Billions)	$1.220	$1.850	$1.751	$2.032
Net (Loss) Income ($USD Millions)	$(116.0)	$(303.5)	$(253.8)	$(420.4)
Diluted EPS ($USD)	$(0.25)	$(0.46)	$(0.70)	$(0.86)
Adjusted EBITDA ($USD Millions)	$286.1	$374.1	$380.7	$277.6
Adjusted EBITDA Margin (%)	23.5%	20.2%	21.7%	13.7%
Net (Loss) Margin (%)	(9.5%)	(16.4%)	(14.5%)	(20.7%)

Segment revenue and Adjusted EBITDA:

Segment	Q3 2023 Revenue ($MM)	Q2 2024 Revenue ($MM)	Q3 2024 Revenue ($MM)	Q3 2023 Adj. EBITDA ($MM)	Q2 2024 Adj. EBITDA ($MM)	Q3 2024 Adj. EBITDA ($MM)
Owned Sports Properties	$479.7	$894.1	$735.2	$237.4	$422.8	$315.5
Events, Experiences & Rights	$367.1	$472.2	$899.8	$29.8	$(68.7)	$(68.0)
Representation	$385.6	$411.4	$429.2	$96.3	$107.4	$124.9
Eliminations	$(12.9)	$(26.4)	$(32.4)	—	—	—

Balance sheet KPIs:

KPI	Q2 2024 (6/30)	Q3 2024 (9/30)
Cash and Equivalents ($USD Billions)	$0.698	$1.004
Total Debt ($USD Billions)	$5.073	$5.228
Deferred Revenue ($USD Millions)	$860.2	$509.8
Current Liabilities ($USD Billions)	$5.509	$5.271

Non‑GAAP adjustment highlights (Q3):

Legal settlement $40.0M; M&A/earn‑out costs $33.8M; restructuring/severance/impairment $5.4M; FX and investment gains included in “Other” .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/EBITDA	FY/Q4	Not provided	Not provided	Maintained: none given
Dividend per share	Each quarter prior to close	$0.06	$0.06	Maintained per merger agreement
Take‑private timing	Close window	End of Q1 2025	End of Q1 2025	Maintained
TKO asset transaction	Close window	H1 2025	H1 2025	Maintained
On Location – NFL partnership	Term	Through 2036	Through 2036	Extended (announced)

Note: No earnings call was held this quarter due to the pending take‑private .

Topic	Previous Mentions (Q1 2024)	Previous Mentions (Q2 2024)	Current Period (Q3 2024)	Trend
Portfolio reshaping/divestitures	Highlighted strategic alternatives; Silver Lake agreement announced	Began actively marketing OpenBet and IMG ARENA; classified as held for sale (discontinued ops)	TKO all‑equity deal for PBR, On Location, IMG; review/potential sale of Miami/Madrid Open & Frieze	Accelerating portfolio realignment
Live events demand	Strong demand across sports/events (Miami Open, Barrett‑Jackson; TKO & PBR)	Marquee events (WrestleMania 40, UFC 300/303) drove Owned Sports	Solid demand; Olympics hospitality lifted EER revenue	Sustained strength with event timing effects
Sports Data & Technology	Segment revenue $90.7M; EBITDA -$9.5M	Held for sale; presented as discontinued operations	Discontinued operations losses weighed on consolidated results	Exit progressing; earnings drag persists
WWE/UFC cadence	Fewer numbered UFC events YoY; WWE contributed materially post-sept. ’23	Additional numbered UFC event boosted media/site fees; WWE large contributor	Fewer UFC events YoY; WWE contributed ~$275M	Event mix variability

“During the quarter, our owned sports and representation segments delivered solid results driven by continued consumer demand for live events and content.” — Ariel Emanuel, CEO .
“As we work toward the close of our take‑private transaction with Silver Lake, we remain focused on delivering for our clients, partners, and shareholders, maintaining momentum throughout our business, and completing the sale of PBR, On Location and IMG to TKO.” — Ariel Emanuel .
“Frieze and the Miami and Madrid Opens have each grown significantly… We are proud of this progress and confident that these unique assets are well‑positioned for success in the future.” — Mark Shapiro, President & COO (asset sale review announcement) .
On Location extended NFL partnership through 2036; international rights expanded for NFL International Games .

No Q&A; Endeavor did not host an earnings conference call this quarter due to the pending take‑private .

S&P Global consensus estimates for EDR’s Q3 2024 EPS and revenue were unavailable due to mapping constraints; benchmarking to Street estimates was not possible this quarter. Values retrieved from S&P Global.*

Q3 top‑line outperformed sequentially and YoY ($2.03B), but margins compressed sharply as Olympics hospitality costs drove negative EBITDA in EER; watch event mix normalization in Q4 .
Owned Sports Properties remains a core earnings driver (WWE/UFC), with WWE’s ~$275M contribution in Q3; UFC cadence can swing quarterly performance .
Representation momentum is intact, supported by live music tours and talent activity; sustained recovery post labor strikes should aid consistency .
Discontinued operations (OpenBet/IMG ARENA) continue to weigh on reported net income; divestiture path advanced via management buyout agreement framework .
Strategic portfolio actions (TKO asset transaction; event asset reviews) and On Location’s NFL extension increase long‑term strategic optionality and potential structurally higher monetization across premium events .
Near‑term trading catalysts: Progress milestones on the Silver Lake take‑private (close targeted by end Q1 2025), TKO transaction approvals/timeline (H1 2025), and additional asset sale disclosures .
Liquidity improved (cash $1.00B), but leverage ticked up ($5.23B debt); focus on debt trajectory post divestitures and cash generation across core segments .