Endeavor Group (EDR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 34% year-over-year to $1.75 billion, driven by the WWE acquisition and growth in UFC and PBR.

• Net loss attributable to Endeavor was $214.5 million for Q2 2024, compared to net income of $403.2 million in Q2 2023, primarily due to impairment and legal settlement charges.

• Adjusted EBITDA for Q2 2024 was $380.7 million (21.7% margin), up from $288.2 million year-over-year.

• The company entered into a Merger Agreement with Silver Lake to be taken private at $27.50 per share, expected to close by Q1 2025.

• The Sports Data & Technology segment was classified as discontinued operations and is being marketed for sale.

Financial highlights

• Q2 2024 revenue: $1.75 billion, up from $1.31 billion in Q2 2023; six-month revenue: $3.51 billion, up from $2.80 billion.

• Q2 2024 net loss: $253.8 million; six-month net loss: $557.2 million, both impacted by $335 million UFC legal settlement and $141.7 million SD&T goodwill impairment.

• Adjusted EBITDA for Q2 2024: $380.7 million (21.7% margin); six months: $761.3 million (21.7% margin).

• Q2 2024 EPS: $(0.70) diluted, compared to $1.35 in Q2 2023.

• Cash and cash equivalents at June 30, 2024: $697.7 million; net debt: $5.1 billion.

Outlook and guidance

• Merger with Silver Lake expected to close by end of Q1 2025, with quarterly $0.06 per share dividends until closing.

• SD&T segment sale process underway; assets and liabilities classified as held for sale.

• Company expects to refinance or repay $2.2 billion term loan maturing May 2025 as part of the merger or through other means.