TKO Group Holdings, parent of the WWE and UFC, said “strength and momentum” at both subsidiaries powered first-quarter financial results.Revenue handily exceeded Wall Street forecasts, reaching $1.27 billion, while earnings per share hit 69 cents, also ahead of estimates. The profit figure compared with a loss of $1.26 per diluted share in the year-ago quarter.The company also raised its full-year guidance for revenue and adjusted EBITDA. Excluding the impact of recently acquired businesses IMG, On Location and PBR, the company increased its targets for revenue to $3.005 billion to $3.075 billion, from $2.93 billion to $3 billion. It boosted adjusted EBITDA targets to $1.39 billion to $1.43 billion, from $1.35 billion to $1.39 billion.“TKO is off to a good start in 2025 with both UFC and WWE delivering solid financial results,” TKO CEO Ari Emanuel said. “Given the strength and momentum of these businesses and no material change to our overall business outlook, we are raising our guidance. At the same time, we are updating guidance to reflect the addition of IMG, On Location, and PBR. Our conviction in our portfolio of assets is strong and we are now focused on integration, driving synergies, the domestic media rights deal for UFC, and our capital return programs.”One major operational highlights during the quarter was the debut of WWE Monday Night Raw on Netflix, which locked up rights to the longtime cable TV mainstay last year in a $5B, 10-year deal. The WWE is nearing a negotiating window with streaming partner NBCUniversal, which should produce a step-up in rights fees. TKO also expects to benefit from an upturn when Disney’s pay-per-view rights to the UFC soon reach the end of their current term.Along with the Netflix deal, an upswing in live event and hospitality revenue also benefited the quarterly numbers. WrestleMania, the annual WWE tentpole whose most recent edition set attendance, viewing and merchandise sales records, was held in April after the end of the quarter.Shares in TKO have risen 72% over the past year, though they have moved sideways over the past couple of months. In after-hours trading, they inched up 1% on the earnings news. TKO parent Endeavor Group Holdings (which now owns 60% of TKO) was taken private in March by longtime investor Silver Lake and also changed its name to WME Group, in order to reflect its new focus on the representation business. Former Endeavor subsidiaries IMG, On Location and PBR, have shifted to TKO, which is rooted in sports.Emanuel has passed the leadership baton at WME to Mark Shapiro, who will run the company as president and managing partner in conjunction with Christian Muirhead and Richard Weitz. Emanuel is now executive chairman of WME, but remains at the helm of TKO as CEO.
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