Endeavor Group Holdings Reports 29.5% Revenue Increase to $7.11 Billion for Fiscal Year 2024

Endeavor Group Holdings, Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2024, reaching $7.11 billion, a 29.5% rise from $5.49 billion in 2023. This growth was primarily driven by the acquisition of World Wrestling Entertainment (WWE) in September 2023, which contributed approximately $1.02 billion to the revenue increase. The Owned Sports Properties segment saw a notable 64.4% increase, largely due to higher media rights fees and sponsorships from both the UFC and WWE. The Events, Experiences & Rights segment also experienced a 16.4% revenue increase, attributed to major events such as the Paris Olympics and the Super Bowl, despite a decline in revenue from the Academy, which was sold in June 2023.

In terms of profitability, Endeavor reported a net loss of $1.21 billion for 2024, compared to a net income of $557.5 million in 2023. The loss was influenced by substantial expenses, including a $375 million settlement related to a class-action lawsuit against UFC and increased operational costs associated with the integration of WWE. Direct operating costs surged by 49.1% to $3.30 billion, while selling, general, and administrative expenses rose by 29.4% to $3.35 billion. The company also recorded impairment charges of $75.7 million, primarily related to goodwill and intangibles in the Events, Experiences & Rights segment.

Strategically, Endeavor is undergoing significant changes, including the planned merger with affiliates of Silver Lake, which is expected to close by the end of the first quarter of 2025. Under the terms of the merger agreement, shareholders will receive $27.50 per share in cash, and the company is required to pay quarterly dividends of $0.06 per share until the merger closes. Additionally, Endeavor has initiated the sale of certain assets, including the Professional Bull Riders (PBR) and On Location, for a total consideration of $3.25 billion, further indicating a strategic shift in its portfolio.

Operationally, Endeavor's workforce has expanded to approximately 10,000 employees across 40 countries, with a focus on enhancing talent development and inclusion initiatives. The company has also reported strong engagement metrics, with UFC and WWE each boasting over 700 million fans globally and significant social media followings. The integration of WWE and UFC into TKO Group Holdings is expected to enhance operational efficiencies and market reach, although the company acknowledges potential challenges in merging the distinct cultures and systems of the two organizations.

Looking ahead, Endeavor's management expressed optimism about future growth, contingent on the successful completion of the merger and the integration of its various business segments. However, the company also highlighted risks associated with market conditions, regulatory changes, and the ongoing need to adapt to evolving consumer preferences in the entertainment and sports industries. The financial outlook remains cautious, with substantial debt obligations and the need for effective cash management to support ongoing operations and strategic initiatives.