TKO records revenue of $449.1m in third quarter courtesy of UFC and WWE
TKO Group Holdings, the business under the umbrella of Endeavor and owner of both the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), has disclosed its Q3 2023 financial results.
This marks its first quarterly earnings report since its formation in mid-September. The revenue figures presented encompass the brief period in which WWE has been part of the TKO Group, with TKO reporting that the wrestling promotion itself generated US$287.3 million in the broader third quarter, which includes the period from July to mid-September, right before the completion of the transaction.
When examining the entire quarter, including the period before the Endeavor acquisition, WWE’s revenue experienced a six percent decline due to decreased licensing, media rights, and content earnings, while live events revenue increased.
In contrast, the UFC’s growth in revenue was primarily attributed to increased media rights and content fees, along with a boost from live events and sponsorship deals.
“Since launching TKO on 12th September, our teams at WWE, UFC, and Endeavor have been focused on integration and executing our strategy,” Ariel Emanuel, CEO of TKO Group, commented.
“This includes identifying cost synergies at the high end of the range we guided, bringing events to new international markets including Saudi Arabia and Australia, delivering media rights increases for WWE, and closing the largest global partnership deal ever for UFC with AB InBev.
“We remain bullish about TKO’s ability to accelerate growth and unlock long-term value for shareholders.”
With WWE recently securing a new broadcast deal for its SmackDown program with NBCUniversal, valued at reportedly over US$1.4 billion, the company’s next focus will be to secure rights agreements for its flagship show, Raw. This financial report demonstrates the changing landscape of sports and entertainment, with major acquisitions and strategic moves shaping the industry’s future.