Q4 2023 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$24.44Last close (Feb 27, 2024)
Post-Earnings Price$24.00Open (Feb 28, 2024)
Price Change
$-0.44(-1.80%)
- Strong Financial Growth in Owned Sports Properties Segment: The Owned Sports Property segment generated revenue of $1.82 billion, up 36%, and adjusted EBITDA of $827 million, up 28% for the full year. This growth was driven by the acquisition of WWE, which contributed $383 million in revenue from September 12 to December 31, 2023 , as well as growth at UFC, which delivered record financial performance.
- Successful Integration and Synergies from TKO: The acquisition of WWE and the launch of TKO Holdings have been transformational, with TKO off to a strong start. WWE secured a new deal with Netflix to bring "Raw" live programming 52 weeks a year beginning in 2025, resulting in an increase of more than 1.4x in average annual value (AAV), exceeding expectations and demonstrating TKO's ability to capitalize on the evolving media landscape ,.
- Expansion and Strong Performance in Events and Partnerships: EDR's events, such as the Miami Open and Madrid Open, achieved record attendance in 2023, with the Miami Open welcoming 386,000 fans and the Madrid Open reaching 325,000 attendees. The Professional Bull Riders (PBR) events drew 1.25 million fans, set more than 50 revenue records, and expanded its Teams League with two new teams sold for $22.5 million each ,. This indicates strong demand and growth potential in live events and partnerships.
- Decline in Adjusted EBITDA in the Representation Segment: The Representation segment experienced a decrease in adjusted EBITDA by 17% for both the quarter and the full year. This decline was attributed to the Writers Guild of America (WGA) and SAG-AFTRA strikes, adverse impacts on revenue mix, and increased costs due to higher agent headcount, particularly in growth areas like sports and music.
- Competitive Pressures in the Sports Data and Technology Segment: In the Sports Data and Technology segment, adjusted EBITDA decreased by 5% in the quarter due to higher rights costs at IMG Arena. Additionally, the market for betting data and streaming rights "remains competitive," which may pressure margins and growth prospects in this segment.
- Uncertainty Related to Strategic Alternatives Review: Endeavor is undergoing a review of strategic alternatives, and the outcome is still uncertain. This uncertainty could potentially impact future operations and investor confidence until more information is provided.