Ari Emanuel’s TKO Group beat some Wall Street estimates today with third quarter revenue for the WWE and UFC parent surging 52% to $681.2 million. That said, the Street was not all that happy with the numbers, bidding the shares down more than 4% in after hours trade.The sales reflect a jump of $274.7 million at WWE to $326.3 million, partly offset by a $42.6-million dip at UFC — to $354.9 million.Profit rose by $35.7 million to $57.7 million vs $22 million in the year-earlier September quarter.Free cash flow, a key metric for Wall Street, rose to about $226 million, from $63.6 million.These are the latest set media of earnings after an election pause. Execs will discuss the numbers on a 5 pm et call.Dissecting revenue, a dip in media rights and content revenue — related to holding one less numbered event and two fewer Fight Night events — was offset by higher sponsorship revenue from new sponsors and an increase in fees from renewals vs the year ago, including the first ever title partner sale made in connection with UFC 306.WWE costs fell primarily due to a cuts following the formation of TKO a year ago when World Wrestling Entertainment, former owned and run by Vince McMahon, merged with UFC under TKO.“TKO’s solid third quarter results reflect continued strength across UFC and WWE, particularly in live events and brand partnerships,” Emanuel said in a statement.After the strong quarter, the company now expects to deliver at the upper end of its full-year 2024 guidance range for revenue and adjusted EBITDA.“Just over a year since UFC and WWE came together to form TKO, our conviction in this business is as strong as ever,” he said.TKO is controlled by Emanuel’s Endeavor, which is in the process of going private.The group recently announced a significant strategic acquisition of sports assets from Endeavor valued at $3.25 billion, including Professional Bull Riders, On Location and IMG. The transaction is anticipated to close in the first half of next year pending regulatory approvals.
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