NEW YORK, Nov. 10, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE: TKO), the board of directors, and the controlling stockholder for potential breaches of fiduciary duty. If you are a holder of TKO Group Holdings, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc. Investigation Details: TKO is controlled by Endeavor Group Holdings, I ...

NEW YORK, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE: TKO), the board of directors, and the controlling stockholder for potential breaches of fiduciary duty. If you are a holder of TKO Group Holdings, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc. Investigation Details: TKO is controlled by Endeavor Group Holdings, I ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $681 million, with net income of $58 million and adjusted EBITDA of $310 million, representing a 46% adjusted EBITDA margin [23] - Combined revenue for Q3 2024, including WWE activity from July 1 to September 11, 2023, was $685 million, with combined adjusted EBITDA of $298 million and a 44% margin [23] - Revenue decreased by 1%, while adjusted EBITDA increased by 4% and adjusted EBITDA margin increased by 2 percentage points compared to the prior year [23] - Free cash flow for the quarter was $226 million, including $11 million in capital expenditures [34] - The company ended the quarter with $2.736 billion in debt and $457 million in cash and cash equivalents [36] Business Line Performance - UFC segment generated $355 million in revenue, a decrease of 11% YoY, with adjusted EBITDA of $196 million, down 18% YoY, and an adjusted EBITDA margin of 55% [23] - Media rights and content revenue for UFC decreased by 19% to $216 million, while live events revenue decreased by 1% to $51 million, and sponsorship revenue increased by 16% to $74 million [25][26] - WWE segment generated $326 million in revenue, an increase of 14% YoY, with adjusted EBITDA of $117 million, up 72% YoY, and an adjusted EBITDA margin of 36% [29] - WWE live events revenue increased by 31% to $51 million, media rights and content revenue increased by 8% to $227 million, and sponsorship revenue increased by 54% to $22 million [30][31][32] Market Performance - UFC 306 at Sphere Las Vegas set records for highest grossing live event, highest merchandise and sponsorship sales, with 89% of ticket buyers coming from outside Nevada [12] - UFC 304 in Manchester became the highest grossing event at Co-op Live, and UFC 305 in Perth set a record for RAC Arena's highest grossing event [13] - WWE held 18 shows outside the U.S. in Q3 2024, up from 11 in the same period last year, with record-breaking ticket sales in markets like Japan and Germany [14][15] - SummerSlam in Cleveland became WWE's highest grossing non-WrestleMania event in history [16] Strategic Direction and Industry Competition - The company is executing a pure-play sports strategy, focusing on global sports rights, experiences, and hospitality, with the acquisition of PBR, On Location, and IMG [9][10] - On Location extended its partnership with the NFL through 2036, ensuring it remains the official hospitality provider for premier NFL events [11] - The company is leveraging its iconic properties like UFC and WWE to drive global fan engagement and economic benefits to host cities [12][13] - WWE's partnership with Netflix for Raw's launch in January 2025 is expected to expand WWE's global reach [17] Management Commentary on Operating Environment and Future Outlook - The company expects to achieve the upper end of its full-year guidance for revenue and adjusted EBITDA, driven by strong operating performance in live events and sponsorship [8][41] - The company is confident in the strength of its iconic properties and the momentum towards significant milestones, including the acquisition of PBR, On Location, and IMG [18] - The company is focused on driving value at UFC and WWE while planning for the integration of newly acquired assets [40] - The company reaffirmed its expectation for full-year 2024 free cash flow conversion to be in excess of 40% of adjusted EBITDA [44] Other Important Information - The company authorized a $2 billion share repurchase program and a $75 million quarterly cash dividend program [8][36][38] - The company refinanced its credit facility with a new 7-year $2.75 billion term loan and a 5-year $205 million revolver [39] - The company recorded a $40 million charge related to the Lee UFC antitrust lawsuit settlement, bringing the total expense to $375 million [20] Q&A Session Summary Question: UFC Domestic Rights Renewal and Potential Pay-Per-View Model [46] - The company is focused on maximizing value in UFC media rights renewals and is open to creative models to achieve higher pricing [53][54] - Pay-per-view remains a strong model for UFC, both domestically and internationally, with a proven track record of driving subscriptions and revenue [60][61] Question: WWE Margins and Cost Synergies [47] - WWE's strong margins in Q3 were driven by cost-saving measures, higher-margin revenue contributors, and efficient production execution [49][50] - The company expects further margin accretion as integration synergies between UFC and WWE continue to materialize [51] Question: UFC Fight Pass and Title Sponsorships [71] - UFC Fight Pass is expected to remain a proprietary asset, with plans to increase live events and original content to drive subscriber growth [73] - Title sponsorships, like the Riyadh Season deal for UFC 306, will be pursued when they align with the brand and provide authentic value [75] Question: Evolution of UFC Marquee Events and On Location's NFL Deal [77] - The company does not plan to host another event at the Sphere but will continue to innovate and create spectacles for UFC events globally [78][79] - The NFL partnership with On Location is a key driver of growth, with significant potential for operating leverage and future deals with other sports leagues [84][85] Question: WWE Sponsorship Growth with Netflix Deal [93] - The Netflix deal is expected to drive additional sponsorship growth for WWE, leveraging Netflix's global reach and innovative advertising opportunities [96][99] Question: Free Cash Flow and Talent Retention [101] - The company expects normalized free cash flow conversion to exceed 60% over time, driven by strong cash generation and low capital intensity [105] - Talent retention has been strong due to the company's focus on storytelling, star-building, and maintaining a competitive edge in the industry [107][109] Question: Endeavor Asset Sales and TKO's Focus on Sports [113] - TKO will not bid on any non-sports assets from Endeavor, maintaining its focus as a pure-play sports company [114][118] - The company is committed to integrating its core assets (UFC and WWE) and newly acquired sports properties to drive long-term value [122][123]

Core Insights - TKO Group Holdings reported a revenue of $681.2 million for the quarter ended September 2024, reflecting a year-over-year increase of 51.7% [1] - The earnings per share (EPS) for the quarter was $0.53, slightly up from $0.52 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $673.42 million by 1.16%, while the EPS fell short of the consensus estimate of $0.56 by 5.36% [1] Financial Performance Metrics - TKO Group hosted 7 UFC Fight Nights, matching the average estimate of 7 by analysts [3] - The company held 3 UFC Numbered events, consistent with the average estimate [3] - Total UFC events were 10, aligning with the three-analyst average estimate [3] - WWE events held internationally totaled 11, surpassing the average estimate of 6 [3] - WWE's net revenue reached $326.30 million, exceeding the average estimate of $307.22 million [3] - UFC's net revenue was $354.90 million, slightly below the average estimate of $356.16 million [3] - WWE Consumer Products generated $26.10 million, above the average estimate of $24.61 million [3] - UFC Consumer Products reported $13.20 million, slightly below the average estimate of $13.80 million [3] - WWE Media Rights & Content revenue was $227.40 million, exceeding the average estimate of $221.97 million [3] - WWE Live Events generated $51.10 million, surpassing the average estimate of $45.65 million [3] - WWE Sponsorship revenue reached $21.70 million, above the average estimate of $17.33 million [3] - UFC Live Events revenue was $51.40 million, below the average estimate of $61.52 million [3] Stock Performance - TKO Group's shares have declined by 6.4% over the past month, while the Zacks S&P 500 composite increased by 0.7% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]

TKO Group Holdings (TKO) came out with quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.36%. A quarter ago, it was expected that this producer of professional wrestling events and television shows would post earnings of $0.82 per share when it actually produced earnings of $0.72, delivering a sur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-41797 TKO GROUP HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 92-356903 ...

NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE: TKO), the board of directors, and the controlling stockholder for potential breaches of fiduciary duty. If you are a holder of TKO Group Holdings, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc. Investigation Details: TKO is controlled by Endeavor Group Holdings, I ...

NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE: TKO), the board of directors, and the controlling stockholder for potential breaches of fiduciary duty. If you are a holder of TKO Group Holdings, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc. Investigation Details: TKO is controlled by Endeavor Group Holdings, I ...

Core Viewpoint - Bleichmar Fonti & Auld LLP is investigating TKO Group Holdings, Inc. for potential breaches of fiduciary duty related to a recent acquisition deal with its controlling stockholder, Endeavor Group Holdings, Inc. [1][4] Group 1: Company Control and Transactions - Endeavor Group Holdings controls TKO Group Holdings with a 53.6% voting power, allowing it to influence corporate actions and engage in conflicted transactions [2] - TKO announced an agreement to acquire Professional Bull Riders, On Location, and IMG businesses from Endeavor for $3.25 billion in company stock, increasing Endeavor's ownership stake in TKO to approximately 59% [3] - The acquisition was approved by Endeavor without a minority vote, leaving minority shareholders without a say in the transaction [3] Group 2: Market Reaction and Legal Implications - Following the acquisition announcement, TKO's stock price fell by over 5%, indicating market concerns about the deal, which may have led to overpayment for Endeavor's businesses [4] - Bleichmar Fonti & Auld LLP believes that minority shareholders may have valid claims for breach of fiduciary duty against TKO's board of directors and/or Endeavor due to the nature of the acquisition [4]

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating TKO Group Holdings, Inc. (NYSE: TKO) ("TKO" or the "Company"), its Board of Directors, and their controlling stockholder, for potential breaches of fiduciary duty.PLEASE CLICK HERE TO PROVIDE YOUR CONTACT INFORMATION  TKO is controlled by Endeavor Group Holdings, Inc. ("Endeavor"), through its ownership of 53.6% o ...