TKO Group Holdings Reports $2.8 Billion Revenue, Declines in Net Income for Fiscal Year 2024

TKO Group Holdings, Inc. reported significant financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $2.8 billion, a 67.4% increase from $1.7 billion in 2023. This growth was primarily driven by the integration of World Wrestling Entertainment (WWE) following its acquisition, which contributed $1.4 billion in revenue. The Ultimate Fighting Championship (UFC) segment also saw a revenue increase of 9%, totaling $1.4 billion, attributed to higher sponsorship and live event revenues. However, the company experienced a net income of $6.4 million, a substantial decline from $175.7 million in the previous year, largely due to increased operating expenses and legal settlements.

The company's operating expenses surged to $2.5 billion, up from $1.2 billion in 2023, reflecting a 105% increase. Direct operating costs rose by 74.9% to $899.9 million, driven by higher athlete-related costs and production expenses. Selling, general, and administrative expenses also saw a significant rise, increasing by 123.8% to $1.2 billion, which included substantial legal costs related to the UFC antitrust lawsuit. The company recorded a notable increase in depreciation and amortization expenses, primarily due to the acquisition of WWE.

Strategically, TKO Group Holdings has been active in expanding its portfolio, including the announcement of the Endeavor Asset Acquisition, which aims to acquire the Professional Bull Riders (PBR) and other related businesses. This acquisition is expected to close in the first quarter of 2025 and is part of TKO's strategy to enhance its offerings in the sports entertainment sector. The company also reported a significant increase in its employee headcount, with over 1,300 employees across 12 countries, reflecting its growth and operational expansion.

Operationally, TKO Group Holdings has seen a substantial increase in its audience engagement metrics. As of December 31, 2024, UFC boasted over 700 million fans and approximately 300 million social media followers, while WWE had a similar fan base with 380 million social media followers. The company hosted around 300 live events globally, contributing to its revenue growth and enhancing its market presence. The integration of WWE has also allowed TKO to leverage its combined fanbase for increased sponsorship and media rights opportunities.

Looking ahead, TKO Group Holdings anticipates continued growth driven by its strategic acquisitions and the expansion of its media rights agreements. The company is focused on enhancing its content distribution capabilities and increasing its international reach, particularly in markets where it has a strong fan presence. However, the company also acknowledges potential risks, including economic conditions that could impact discretionary spending on events and sponsorships, as well as the ongoing need to adapt to changing consumer preferences in the rapidly evolving sports and entertainment landscape.