TKO has increased its full-year revenue and adjusted earnings targets for the second time this year. The company raised its full-year revenue target from $5.790 billion to $5.830 billion and its adjusted EBITDA target from $2.295 billion to $2.315 billion.
The parent company reported total revenue of $1.36 billion for the third quarter, representing a 21% increase. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) spiked 54% to $555.7 million. This growth was powered by an increase of $119.7 million at UFC and a gain of $9.4 million at WWE. The adjusted EBITDA margin expanded to 41%, up from 32% a year ago.
UFC saw double-digit gains across all key measures during the quarter. Revenue for the league climbed 60% year-over-year to $519.2 million. This growth was attributed to a $132.3 million increase in media rights, production and content revenue. Additionally, live events and hospitality revenue spiked by $36 million, while partnerships and marketing revenue increased by $20.5 million and consumer products licensing and other revenue saw a $5.2 million boost.
WWE experienced a tougher quarter, which was partly due to the fact that there were three more events on the wrestling league’s main roster in the comparable year-ago quarter.
The IMG division, which includes the On Location premium events business, also had a strong quarter due to an influx of big-ticket events surrounding the World Cup.
Mark Shapiro, president and COO of TKO, stated, “Our third quarter performance reflects the secular tail winds powering live events and experiences around the world, and TKO’s assets sit front and center of that premium ecosystem.” Shapiro added, “As we close out what we’ve called our year of execution, our decision to raise full-year guidance for the second time this year is the clearest expression of our conviction across the entire portfolio. Our business is durable and our fundamentals are solid, with the vast majority of our existing revenues locked in for the next five to seven years. Macro trends are firmly in our favor, every facet of sports consumption is pointing north, and we see substantial runway ahead.”






