News TKO Holdings Inc. posts 2024 financials

[Hymen Crusher]

Dana Al-Wahid would love that

I would love to know Dana has to answer to the boss. Turki isn't letting him run the show

 

[wwkirk]

TKO Reports Fourth Quarter and Full Year 2024 Results

TKO Transaction On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity. Fourth Quarter 2024...

investor.tkogrp.com

Gross revenue: 2.8 billion
Net profit: 6.4 million (0.002%)

So is the narrative of "zomg record profits" officially dead? Also note that TKO Holdings includes UFC, WWE, and Professional Bull Riding.

Whoa! Talk about excessive operating expenses!
But there just has to be another, confidential report with much different numbers.

 

[CasualBot]

6 mill on 2 bill

 

[flektarn]

Net Income was $6.4 million, a decrease of $169.3 million from $175.7 million in the prior year period. The decrease reflected the increase in revenue offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in direct operating costs of $385.3 million, an increase in selling, general and administrative expenses of $679.6 million, and an increase in depreciation and amortization of $228.2 million. The increase in operating expenses primarily reflected the inclusion of twelve months of WWE activity in reported results in 2024 as well as settlement charges of $375.0 million related to the UFC antitrust lawsuit. (See “Legal Matters” for further details.)

Key point in bold.

 

[flektarn]

Don't know the details since I'm not a financial guy but this is not the norm, for whatever reason the WWE numbers are being counted as expenses, I guess its the cost of the shares to befome owner or some shit like that.

From what I understand, this is right. They acquired WWE, but for some reason they have to record the WWE assets as a "cost" and gradually amortize them even though they're not a real operating cost and it wasn't an actual operating expense. Their real profitability is still in the hundreds of millions.

 

[BigTruck]

This seems like more of a tribute to their accountants. But wouldn't cutting the entire women's roster surely boost the bottom line?

But women don't get paid nearly as much as men.....

 

[Dr. Rose]

TKO Reports Fourth Quarter and Full Year 2024 Results

TKO Transaction On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity. Fourth Quarter 2024...

investor.tkogrp.com

Gross revenue: 2.8 billion
Net profit: 6.4 million (0.002%)

So is the narrative of "zomg record profits" officially dead? Also note that TKO Holdings includes UFC, WWE, and Professional Bull Riding.

they make the most off of powerslap.

 

[Oeshon]

TKO Reports Fourth Quarter and Full Year 2024 Results

TKO Transaction On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity. Fourth Quarter 2024...

investor.tkogrp.com

Gross revenue: 2.8 billion
Net profit: 6.4 million (0.002%)

So is the narrative of "zomg record profits" officially dead? Also note that TKO Holdings includes UFC, WWE, and Professional Bull Riding.

That's some kind of margin right there, jesus.

 

[Doctor Grudge]

They bought WWE late in 2023, so that would have ate into 2024's profitability.

 

[Deleted member 609094]

This seems like more of a tribute to their accountants. But wouldn't cutting the entire women's roster surely boost the bottom line?

Not only would they save on bout payouts, but the laydeez get 50% more Venum clothing than the dudes.

 

[haj02]

TKO Reports Fourth Quarter and Full Year 2024 Results

TKO Transaction On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity. Fourth Quarter 2024...

investor.tkogrp.com

Gross revenue: 2.8 billion
Net profit: 6.4 million (0.002%)

So is the narrative of "zomg record profits" officially dead? Also note that TKO Holdings includes UFC, WWE, and Professional Bull Riding.

I'd guess there is likely some very clever accounting and huge shareholder payouts that make it look like they are much less profitable than they are but I have no evidence or proof of this.

 

[Cooliox]

Tax is for the middle class, not for the rich

 

[randomg1t]

So is the narrative of "zomg record profits" officially dead? Also note that TKO Holdings includes UFC, WWE, and Professional Bull Riding.

if you think the UFC isn't making more than 0.002% profit, you're not qualified to be having this conversation.

 

[Thick_Strong_Tight]

Im not sure if it's the case, but some companies pay tons of dividends to shareholders.. it could be that too

btw, Can someone explain to a layman what EBITDA really is?

Adjusted EBITDA of $1.251 billion

The profitability measure employed by the Company in assessing operating performance, including that of its segments, is Adjusted EBITDA. The Company defines Adjusted EBITDA as net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization.

Sure. So basically when you see earnings or "profit" this number in accounting comes after deducting all applicable interest, taxes, depreciation, amortization. In practice the EBITDA number adds these back to give what some people prefer as a more accurate picture of "true earnings". The reason for this is the variability of these expenses.

-In TKO/Endeavour's case, if they have a very large debt load, the interest could be eating up a lot of the profit but that's more a function of management utilizing a lot of debt, if they were to pay it off the interest expense wouldn't be there and potential investors/buyers want to see it without that figure for a better picture.

-Taxes can vary by region/country and even by year etc, so again stripping this out makes the comparison easier versus say a european company where taxes might be very different, so they add it back to neutralize it making an easier comparo.

-Depreciation and Amortization expenses (when they buy a new building, new octagon, etc they don't expense it all in one year, they spread it out over multiple years), this number is somewhat arbitrary and gets manipulated to lower taxes, so adding it back makes things cleaner to visualize the profitability of the company.

In summary some investors prefer to use EBITDA because it strips out a lot of bullshit that gets manipulated or might only be a one time expense, it's seen as an easier quick-view of profitability.

 

[surgeyou1]

They are counting the 400 million dollar lawsuit they just paid out as an expense

 

[Only Here for Attachments]

if you think the UFC isn't making more than 0.002% profit, you're not qualified to be having this conversation.

Just going by the official report from the publicly traded company, bub!

 

[Whitestallion]

That could also mean they paid their executive a lot. Looks like it's gonna be a white Christmas in Vegas for Dana White and his family

As they should, and a company that makes "profits" isn't a company that is paying well.

 

[Pepy]

UFC is dying