TKO Group (TKO) Goldman Sachs Technology Communacopia and Technology Conference summary

Anniversary and integration highlights

• Celebrating one year since the merger, with conviction in the complementary nature of the combined assets and strong financial performance, including record earnings and cash flow generation in 2023 and the first half of this year.

• Achieved and surpassed $100 million in annualized net cost synergies, with further integration and efficiency opportunities ahead.

• Successful team integration has led to major media deals, including Netflix for Raw, NXT to CW, and SmackDown returning to NBC, leveraging best-in-class talent and market intelligence.

• Key executives in global partnerships and live events are under long-term contracts, driving high-margin revenue streams and operational stability.

Sports media rights market and strategy

• The sports media rights market is at an all-time high, driven by both traditional linear and streaming platforms seeking premium content, with demand outstripping supply.

• Recent record-setting deals, such as the NBA and NFL, highlight the value of live sports for subscriber acquisition and retention.

• UFC and WWE are positioned as year-round, flexible, and highly engaging properties, making them attractive to media partners.

• Upcoming UFC domestic media rights negotiations with ESPN/Disney are exclusive from January to April, with strong intent to renew but openness to other bidders if needed.

• Flexibility in pay-per-view and premium live event (PLE) models allows for various partnership structures, with a focus on revenue growth, margin expansion, and brand development.

Sponsorships, partnerships, and live events

• Sponsorship revenue has grown significantly, with UFC and WWE now approaching $300 million combined, driven by creative inventory expansion and global reach.

• Both properties are still early in their commercial development compared to legacy sports leagues, offering substantial future growth potential.

• Integration efforts continue, with leadership actively involved in sales and inventory creation, ensuring alignment with storytelling and competition.

• Live event ticket sales are strong, with WWE events underpriced and selling out quickly, prompting dynamic pricing and event mix optimization.

• Site fees from cities and countries hosting events are a growing revenue stream, with recent deals in Las Vegas, Minneapolis, Saudi Arabia, and Abu Dhabi.