TKO Group (TKO) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, the first full year as a public company, driven by the integration of UFC and WWE, following their September 2023 merger, and exceeding $100 million in net synergies.

• Secured transformative media rights deals, including moving WWE Raw to Netflix, SmackDown to USA Network, and NXT to CW, resulting in significant audience growth.

• Both UFC and WWE set all-time highs in live event ticket sales, attendance, and gate revenues, with UFC delivering 10 record-breaking events and WWE setting over 40 market records in Q4.

• Sponsorship revenue reached new highs, with UFC up 28% and WWE up 20% year-over-year, driven by new partnerships and innovative placements.

• Focus areas for 2025 include securing long-term U.S. media rights, integrating new acquisitions (IMG, On Location, PBR), and executing a robust capital return program.

Financial highlights

• 2024 revenue was $2.804 billion (up 67% YoY) and adjusted EBITDA was $1.251 billion (up 55%), both exceeding revised guidance; adjusted EBITDA margin was 45%.

• Q4 2024 revenue was $642.2 million (up 5% YoY), adjusted EBITDA $238.1 million (up 7%), and adjusted EBITDA margin 37%.

• UFC Q4 revenue grew 22% to $344 million, adjusted EBITDA up 25% to $178 million, with a 52% margin.

• WWE Q4 revenue declined 10% to $298 million, adjusted EBITDA down 19% to $114 million, margin at 38%, mainly due to timing of media rights deals.

• Free cash flow for 2024 was $509 million, with a 41% conversion rate of adjusted EBITDA.

Outlook and guidance

• 2025 revenue guidance: $2.93–$3.0 billion; adjusted EBITDA: $1.35–$1.39 billion.

• Guidance reflects full-year impact of the Netflix Raw deal, a shift in Saudi PLE timing (reducing 2025 revenue by $55 million), and growth in site fees.

• Excluding non-recurring items, targeted free cash flow conversion rate for 2025 is over 60%.

• 2025 outlook does not include contributions from IMG, On Location, or PBR; updated guidance to be provided after acquisition closes.