TKO Group (TKO) Morgan Stanley Technology, Media & Telecom Conference summary

Financial performance and capital allocation

• Achieved record revenue and adjusted EBITDA in 2024, with a strong balance sheet and $1.8 billion net debt.

• Free cash flow conversion normalized at 60% after adjusting for one-time items.

• Initiated a $2 billion share buyback over 3-4 years and a $75 million quarterly dividend starting March 31.

• Capital return is a priority, with comfort to increase net debt to $3 billion if needed.

• Focused on being a pure-play sports company, with disciplined and selective acquisition strategy.

Strategic acquisitions and integration

• Closed acquisition of Endeavor assets (IMG, On Location, PBR), enhancing media rights, live events, and sponsorship capabilities.

• Integration savings from UFC and WWE merger reached $100 million, with more expected from new assets.

• Endeavor assets are industry leaders and complement core business, powering growth in live events and global sponsorships.

• 85%-90% of adjusted EBITDA will continue to come from UFC and WWE.

Media rights and streaming

• Signed a transformative 10-year, $5.2 billion deal for WWE Raw on Netflix, driving 13% viewership growth year-to-date.

• NXT's move to CW resulted in a 22% year-to-date increase in viewership.

• Upcoming UFC domestic rights renewal is a major focus, balancing reach, engagement, and revenue.

• Open to various distribution models, including pay-per-view, streaming, and proprietary platforms.