Endeavor Group (EDR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 66.6% year-over-year to $2.03 billion, driven by WWE, the Paris Olympics, and growth in talent and music agency businesses.

• Net loss was $420.4 million for Q3 2024, impacted by SD&T write-downs, goodwill impairment, and a $375 million UFC legal settlement.

• The company entered a Merger Agreement to be acquired by Silver Lake for $27.50 per share, expected to close by Q1 2025.

• The SD&T segment is classified as discontinued operations and is being actively marketed for sale.

• Progressing toward sale of PBR, On Location, and IMG to TKO, expected to close in H1 2025.

Financial highlights

• Q3 2024 revenue: $2.03 billion, up from $1.22 billion in Q3 2023; nine-month revenue: $5.54 billion, up from $4.02 billion.

• Net loss attributable to Endeavor was $264.7 million for Q3 2024 and $616.5 million for the nine months.

• Adjusted EBITDA for Q3 2024 was $277.6 million (13.7% margin), down from $286.1 million (23.5% margin) in Q3 2023.

• Cash and cash equivalents at September 30, 2024: $1.00 billion; total debt: $5.23 billion.

• Direct operating costs increased 154.6% year-over-year to $1.10 billion in Q3 2024, mainly due to the Olympics and WWE.

Outlook and guidance

• The Merger with Silver Lake is expected to close by the end of Q1 2025, after which the company will no longer be publicly traded.

• TKO OpCo will acquire PBR, On Location, and certain IMG businesses for $3.25 billion, with closing expected in H1 2025.

• The company is reviewing and potentially selling additional event assets, including the Miami Open, Madrid Open, and Frieze.