TKO Group (TKO) Q2 2024 earnings summary

Executive summary

• Record Q2 2024 revenue and profitability driven by strong live event performance, new brand partnerships, and global expansion of UFC and WWE events.

• Raised full-year 2024 guidance for both revenue and Adjusted EBITDA, reflecting continued momentum.

• Integration of UFC and WWE live events and sponsorship teams is delivering synergies and operational efficiencies.

• Significant legal and restructuring charges impacted results, including a $335 million UFC antitrust settlement.

• The company operates two main segments: UFC and WWE, with corporate functions supporting both.

Financial highlights

• Q2 2024 revenue reached $851.2 million, a record for the company, up 179% year-over-year.

• Net income was $150.7 million; Adjusted EBITDA was $420.9 million with a 49% margin.

• Free cash flow for Q2 was $218.6 million; cash and equivalents at quarter end were $277.5 million; gross debt was $2.744 billion.

• Repurchased 1.9 million shares for $165 million in Q2; 3.2 million shares for $265 million since the merger.

• Q2 2024 EPS was $0.73 (basic) and $0.72 (diluted); H1 2024 EPS was $(0.55) due to the settlement charge.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.67–$2.745 billion; Adjusted EBITDA to $1.22–$1.24 billion.

• Free cash flow conversion target reaffirmed at over 40% of Adjusted EBITDA for the year.

• Q2 expected to be the highest revenue and EBITDA quarter of the year due to event timing.

• Management expects current liquidity, cash flow, and credit facilities to be sufficient for at least the next 12 months.

• Plans to refinance credit facilities before 2026 maturity; expects to secure favorable terms.