TKO Group Holdings bested Wall Street analyst expectations for the fourth quarter and full-year 2024, reporting revenue and income figures that showed strong growth in the first full calendar year of the marriage of UFC and WWE.
On Wednesday, TKO, formed in September 2023, reported full-year sales of $2.8 billion, a figure that beat both consensus analyst estimates of $2.77 billion as well as management’s guidance after the third quarter of $2.67 billion to $2.75 billion, according to data compiled by S&P Global Market Intelligence. The business posted net income of $6.4 million for the year, well ahead of consensus projections of about $2 million, according to S&P. Both UFC and WWE posted record sales, according to a TKO press release issued after the close of trading Wednesday.
The business was helped by a robust fourth quarter that also beat expectations, with both divisions highlighted by events that set fresh records. UFC 309 at Madison Square Garden produced the second-highest gross in the arena’s history of $16.7 million, according to a report in Newsday. UFC has seven of MSG’s top 10 grosses, despite New York being the last state to legalize mixed martial arts. Similarly, WWE set 40 individual market records for paid attendance and ticket sales at its events in the quarter. Overall, TKO reported $642.2 million of sales and net income of $47.5 million for the three-month period ended December.
TKO said it projects 2025 revenue for the UFC and WWE businesses to reach a total of $2.93 billion to $3 billion. In all likelihood the company will exceed that, given it is in the midst of acquiring events and hospitality business On Location, sports marketing business IMG and bull riding league PBR from Endeavor Group. That transaction is expected to close by the middle of this year.
In then-confidential projections made about a year ago by the Endeavor management team, it projected a more than $1.4 billion in combined 2025 revenue for On Location, IMG and PBR. Wall Street analysts estimate TKO will produce revenue of $3.285 billion and net income nearing $402 million for 2025, figures that probably include some allowances for the Endeavor businesses being acquired.
Already, TKO is preparing for the expansion of the business. Earlier Wednesday, the company announced its first “TKO Takeover” featuring three nights of events with UFC, WWE and PBR to occur in Kansas City in April.
“In the year ahead, we will be focused on securing long-term U.S. domestic media rights agreements for UFC as well as WWE’s premium live events,” CEO and executive chair Ari Emanuel said in the press release. UFC’s current media deal with ESPN expires at the end of 2025.
