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- **Media Rights Wins**: $7.7B UFC-Paramount deal and ESPN-WWE partnership lock in high-margin, escalatable revenue.
- **Financial Strength**: Q3 2025 revenue $1.12B, EBITDA $360M; raised 2025 guidance to $4.7B revenue and $1.58B EBITDA.
- **Boxing Breakthrough**: Canelo vs. Crawford generated $47M gate, 41M viewers; Zuffa JV to launch 2026 with Paramount media rights.
- **Global Growth**: 2026 to include three Saudi Arabia WWE events, expanded site fees, and >$450M partnership revenue.

**【CEO Summary Section】**
- **Landmark Media Rights Deals**: Secured a 7-year, $7.7B UFC deal with Paramount and a 5-year WWE premium live events partnership with ESPN, driving recurring revenue and global reach.
- **Financial Milestones**: Announced a $1B stock buyback, doubled quarterly dividend, and raised full-year 2025 guidance to $4.69B-$4.72B in revenue and $1.57B-$1.58B in adjusted EBITDA.
- **Live Events Success**: UFC 319 set a Chicago record, and WWE’s Summerslam sold over 100K tickets at MetLife Stadium. Zuffa Boxing’s Canelo vs. Crawford fight generated $47M in gate revenue and 41M global viewers.
- **Strategic Initiatives**: Expanded site fee negotiations globally, with 2026 featuring three Saudi Arabia WWE events and new boxing media rights with Paramount.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Revenue $1.12B, adjusted EBITDA $360M (32% margin). UFC revenue $325M (-8%), WWE $402M (+23%), IMG $337M (-59%).
- **Free Cash Flow**: Generated $399M, with 111% conversion of adjusted EBITDA. Raised 2025 free cash flow target to >60% of adjusted EBITDA.
- **2026 Outlook**: Media rights deals with Paramount and ESPN to add high-margin, escalatable revenue. Boxing JV (Zuffa) to contribute management fees and media rights commissions.

**【Q&A Key Highlights】**
- **Media Rights Strategy**: Paramount’s base-tier subscription model for UFC expands reach, while ESPN’s promotional ecosystem boosts WWE’s footprint. International rights negotiations prioritize brand, reach, and revenue.
- **Boxing Growth**: Canelo vs. Crawford event showcased super fight potential, with 2-4 such events/year. Zuffa Boxing JV to launch in 2026 with Paramount media rights.
- **Site Fees Momentum**: 2026 to include three Saudi Arabia WWE events, plus new site fee opportunities in the U.S. and globally, targeting multi-million dollar deals.
- **Partnership Expansion**: New sponsors like Wingstop and Maybelline highlight >$450M in 2025 partnership revenue, with long-term goal of $1B by 2030.

TKO Group Holdings, Inc. (TKO) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue of $1.308 billion (+10%) driven by UFC and WWE, with EBITDA up 75% to $526 million.
- **Strategic Deals**: $1.625 billion ESPN PLE deal with annual escalators, retaining rights to monetize 6 NXT PLEs annually.
- **Margin Expansion**: UFC and WWE EBITDA margins at 59%, up from 55% in 2024, supported by site fees and partnerships.
- **Boxing Expansion**: Zuffa Boxing JV to generate $10 million/year in fees, with 2-3 super fights/year targeting $10 million per event.
- **Free Cash Flow**: $375 million in Q2, targeting >60% conversion for 2025, supporting $2 billion share buyback program.

**【Management Opening Remarks】**
- Seth Zaslow outlined the call structure, emphasizing forward-looking statements and non-GAAP financial measures. He highlighted the importance of live events, partnerships, and the ESPN media rights deal for WWE's premium live events (PLEs). The company reaffirmed its commitment to a balanced capital return strategy, including a $2 billion share repurchase program expected to commence in Q3 2025.

**【CEO Commentary】**
- **UFC Performance**: 11 total events, including 8 with live audiences, driving $416 million in revenue and $245 million in adjusted EBITDA. Partnerships and marketing revenue increased 39% to $86 million, driven by new deals with Monster Energy and Meta. The Wingstop partnership expanded to include WWE PLEs.
- **WWE Growth**: $556 million in revenue, up 22%, with $330 million in adjusted EBITDA. Live events revenue rose 29% due to higher ticket prices and site fees. Partnerships revenue surged 136% to $58 million, fueled by WrestleMania 41's record 28 sponsors. Media rights revenue increased 7% on Netflix's SmackDown expansion.
- **IMG & PBR Integration**: IMG's adjusted EBITDA improved to $29 million (from -$120 million), driven by new production deals. PBR's 2025 events saw record attendance, with expanded media coverage on FOX Nation and CW.
- **Strategic Initiatives**: Renewed focus on site fees (e.g., Qatar's Visit Fighter Night) and cross-property partnerships. The ESPN PLE deal secures $1.625 billion over 5 years, with annual escalators and retained rights to monetize NXT PLEs and original content.

**【CFO Financial Commentary】**
- **Q2 2025 Results**: Consolidated revenue of $1.308 billion (+10%), adjusted EBITDA of $526 million (+75%), and margin of 40%. Free cash flow of $375 million (71% conversion) offset $125 million in antitrust payments. Debt stood at $2.769 billion, with $535 million in cash.
- **Segment Breakdown**: 
  - **UFC**: $416 million revenue (+5%), $245 million EBITDA (+6%). Direct costs decreased due to event mix, while SG&A rose 12%.
  - **WWE**: $556 million revenue (+22%), $330 million EBITDA (+31%). Media rights and partnerships drove 59% margin, up from 55%.
  - **IMG**: $307 million revenue (-4%), $29 million EBITDA (vs. -$120 million). Cost reductions offset rights loss.
- **Guidance Update**: Full-year revenue raised to $4.63-$4.69 billion (+$135M midpoint), EBITDA to $1.54-$1.56 billion (+$40M). Free cash flow target >60% remains unchanged.

**【Q&A Highlights】**
- **ESPN Deal Impact**: The 5-year PLE agreement with annual escalators provides $325 million AAV, with retained rights to monetize 6 NXT PLEs annually. ESPN's D2C platform and linear reach enhance halo effects for partnerships and live events.
- **UFC Renewal Progress**: In final stages of negotiations, balancing monetization with reach. Cross-promotion opportunities with ESPN+ and boxing initiatives could drive incremental revenue.
- **Boxing JV Update**: Zuffa Boxing JV launched with $10 million management fee. 2-3 super fights/year (e.g., Canelo-Crawford) generate $10 million per event in fees. Media rights negotiations underway for 2026 launch.
- **Financial Discipline**: 2025 synergy savings of $15 million (run rate $25M) on track for $40M by 2026. Capital allocation prioritizes growth, dividends, and share buybacks while maintaining investment-grade balance sheet.

TKO Group Holdings, Inc. (TKO) Q2 2025 Earnings Call Transcript

- **Q1 Beat Expectations**: Revenue $1.269B (+4%), EBITDA $417M (+23%), driven by UFC (+15%) and WWE (+24%).
- **Record Events**: UFC Fight Night London ($25M+), WWE WrestleMania 41 (124K attendees, $100M+ revenue).
- **Strategic Wins**: Meta AI partnership, Monster Energy 9-figure renewal, TKO takeover in Kansas City (1.2M fans).
- **Free Cash Flow**: $136M (32% EBITDA), with 2025 guidance for >60% conversion (excluding $300M nonrecurring costs).
- **Growth Drivers**: Boxing JV, IMG cost savings ($40M+), and global site fee expansion (e.g., Western Australia multi-year deal).


**【CEO Opening Remarks】**
- Q1 2025 revenue and profitability exceeded internal expectations, driven by strong performance at UFC and WWE.
- Acquired IMG, On Location, and PBR businesses are being integrated to unlock synergies, with initial cost savings of $40M+ identified.
- UFC live events set new records (e.g., Fight Night London grossed $25M+), while WWE's WrestleMania 41 broke all-time records with 124,000 attendees and $100M+ in revenue.
- Meta partnership to leverage AI for fighter rankings and immersive experiences; Monster Energy renewed 9-figure sponsorship deal.
- TKO takeover in Kansas City showcased unified live event strategy, with 1.2M fans across 40 events.

**【CFO Financial Review】**
- Q1 2025 revenue: $1.269B (+4% YoY), Adjusted EBITDA: $417M (+23% YoY), margin: 33%.
- UFC: Revenue $360M (+15%), EBITDA $227M (+17%), margin 63%.
- WWE: Revenue $392M (+24%), EBITDA $194M (+38%), margin 50%.
- IMG: Revenue $476M (-13%), EBITDA $74M (-10%), margin 15%.
- Free cash flow: $136M (32% EBITDA conversion), impacted by $175M in nonrecurring payments.
- Full year 2025 guidance: Revenue $4.49B-$4.56B, EBITDA $1.49B-$1.53B, excluding $300M nonrecurring costs.

**【Q&A Key Takeaways】**
- **UFC Media Rights**: Discussions with ESPN and others ongoing; no update on split rights vs single partner. ESPN remains key partner.
- **Boxing Strategy**: JV with Saudi Arabia to launch 12+ annual events, plus 1-4 super fights/year (e.g., Canelo-Crawford). TKO will handle production and media rights.
- **Capital Returns**: $2B share buyback program to start Q2/Q3; dividend payments to continue. Free cash flow conversion >60% excluding nonrecurring costs.
- **IMG Integration**: $15M+ cost savings in 2025, with majority realized by 2026. On Location hospitality revenue surged 75% at WrestleMania.
- **Risks**: Economic uncertainty could impact partnerships and premium experiences; no direct tariff impact on core businesses.


TKO (TKO)-8 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $2.8B revenue, 45% EBITDA margin, with UFC +22% Q4 and WWE live events up 13%.
- **Strategic Partnerships**: Netflix Raw deal, Saudi boxing league, and $375M sponsorship target for 2025.
- **2025 Growth Drivers**: Media rights step-up, WrestleMania site fees, and 60%+ free cash flow conversion (excluding one-time costs).
- **Capital Return**: $2B share buyback and $0.38 quarterly dividend starting Q2.
- **Key Risks**: Media rights renewal uncertainty, international event margin dilution, and Ali Act regulatory risk for boxing.


**【CEO Summary Section】**
- TKO delivered record financial performance in 2024, with integration of UFC and WWE driving $100M+ net savings and exceeding cost synergy targets.
- Media partnerships expanded reach: Raw on Netflix reached 300M subscribers, SmackDown on USA Network saw 100% Q4 viewership growth, and NXT on CW up 12% YTD.
- Live Events set records: UFC had 10 all-time highest grossing events, including 5 in top 10; WWE achieved 40+ ticket sales records, with Bad Blood in Atlanta as largest U.S. arena event in history.
- Sponsorship growth: UFC +28% YOY, WWE +20%, fueled by premium live events and brand partnerships (e.g., IBM, Monster Energy renewal as UFC's largest deal).
- 2025 priorities: renew domestic media rights, integrate IMG/On Location/PBR acquisitions, and return capital via $2B share buyback and $0.38 quarterly dividend.

**【CFO Financial Commentary】**
- 2024 Full Year: Revenue $2.8B, Adjusted EBITDA $1.25B, margin 45%. UFC segment +22% Q4 revenue to $344M, WWE segment down 10% to $298M due to short-term Raw deal.
- 2025 Outlook: Revenue $2.93B-$3.0B, Adjusted EBITDA $1.35B-$1.39B. Key drivers: Netflix Raw deal step-up, WrestleMania site fees, international UFC events, and cost synergies.
- Free Cash Flow: 2024 $509M (41% conversion). 2025 targets ~60% excluding $300M non-recurring costs (litigation payments, acquisition fees).
- Capital Structure: $2.78B debt, $526M cash. Refinanced credit facility to reduce annual interest by $20M.

**【Q&A Highlights】**
- **UFC Media Rights Renewal**: In exclusive talks with Disney/ESPN, window until April. Content urgency and year-round calendar give TKO leverage; aim to balance reach & monetization.
- **Boxing Expansion**: Near-term deal with Saudi Arabia for boxing league, $10M+ fee with earn-in equity. Tyson vs. Jake Paul on Netflix (65M U.S. streams) validates demand.
- **Sponsorship Growth**: 2025 target $375M, driven by On Location integration, dynamic ad placements, and PLE sponsorships (e.g., Survivor Series +100% YOY).
- **Netflix Collaboration**: Raw on Netflix weekly Top 10 globally; exploring ancillary programming like behind-the-scenes docs. 2025 will see full year of media rights step-up.
- **Margins & Costs**: 2025 site fees offset lower-margin international UFC events. 2024 savings from $100M+ cost synergies will support 150-200bps margin expansion.


TKO (TKO)-26 Feb 25-2024 Q4 Earnings call transcript

TKO (TKO)-6 Nov 24-2024 Q3 Earnings call transcript

TKO (TKO)-8 Aug 24-2024 Q2 Earnings call transcript

TKO (TKO)-8 May 24-2024 Q1 Earnings call transcript

- **Record Revenue Growth**: 2023 combined revenue $2.619B (+8%), with UFC up 13% and WWE up 3%.
- **$5.2B Netflix Deal**: 10-year partnership for Raw, SmackDown, and live events, commencing 2025. Global reach with 260M subscribers.
- **Live Event Dominance**: UFC sold out 20 events, WWE broke attendance records at Fastlane and Survivor Series.
- **2024 Guidance**: $2.575-2.65B revenue, $1.15-1.17B EBITDA, free cash flow >50% of EBITDA.
- **Cost Synergies**: Target $50-100M annual savings, with 2024 co-located events reducing costs.

**【CEO Summary Section】**
- **Revenue Growth**: Full year 2023 combined revenue of $2.619 billion, up 8% YoY. UFC segment revenue increased 13% to $1.292 billion, driven by media rights, live events, and sponsorships. WWE segment revenue grew 3% to $1.326 billion.
- **Strategic Deals**: $5.2 billion 10-year Netflix deal for Raw, SmackDown, and premium live events, commencing Jan 2025. Renewed media rights with ESPN, Comcast, and CW, increasing AAV by 1.4x.
- **Live Events Success**: UFC sold out 20 events, including record-breaking fights in Abu Dhabi and New York. WWE broke attendance records at Fastlane and Survivor Series, with Royal Rumble 2024 setting a new gate record.
- **International Expansion**: New partnerships in Middle East, Australia, and India. First meaningful site fee for WWE in Australia, and 5-year venue deal with Honda Center in Anaheim.

**【CFO Financial Commentary】**
- **Financial Highlights**: Full year 2023 adjusted EBITDA of $1.092 billion (42% margin). UFC EBITDA of $756 million (58% margin), WWE EBITDA of $533 million (40% margin). Free cash flow of $420 million, with 2024 target of $1.15-1.17 billion adjusted EBITDA.
- **2024 Guidance**: Revenue $2.575-2.65 billion, excluding Q4 Raw media rights ($75 million impact). Expect $50-100 million in cost synergies, with 2024 free cash flow conversion >50% of EBITDA.
- **Cost Optimization**: $50 million in 2023 savings, targeting upper end of $50-100 million annual run rate. Capital expenditures of $49 million in 2023, $50 million expected in 2024 for HQ and Mexico City facilities.

**【Q&A Highlights】**
- **Netflix Deal Impact**: Global reach with 260 million subscribers, first look rights for new content. LATAM, UK, and Canada prioritized markets. WWE Network to sunset as content migrates to Netflix.
- **Cost Synergies**: Co-locating UFC and WWE events (e.g., Anaheim) reduces venue costs and T&E. 2024 calendar includes 5 UFC live events vs. 6 in 2023.
- **Sponsorship Growth**: UFC sponsorship up 18% to $196 million, WWE up 11% to $69 million. New partners like Anheuser-Busch and Slim Jim driving high-margin revenue.
- **Litigation Update**: Class action lawsuit against UFC expected to trial soon; company confident in legal and factual position.

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