Words: Mimi aka #TheWrestlingChic In wrestling, you always have to think long-term. That's the energy behind TKO Group Holdings’ latest fourth-quarter earnings report. WWE took a revenue hit after WWE Raw made its big move from cable television to Netflix, but don’t get it twisted; this ain’t a loss. Despite a 10% dip in WWE revenue, bringing it down to $298.3 million, TKO still beat Wall Street’s expectations. This is just the setup for a heavy hitter money move, with Raw now locked into a game-changing, $5 billion streaming deal that’s set to redefine sports entertainment.
Meanwhile, while WWE’s adjusting, UFC is thriving. The MMA powerhouse flexed hard with a 22% revenue jump to $343.9 million, alongside a 25% boost in adjusted EBITDA. That’s the kind of financial cardio that keeps Endeavor’s execs smiling. Even with WWE’s temporary dip, TKO’s total revenue still climbed 5% to $642.2 million; not bad for a company navigating major shifts and dealing with a $375 million UFC fighter settlement.
EBITDA?
For the non-financiers out there, you might be asking, what’s EBITDA? Let me put it in a way that may make sense:
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization; it’s basically a raw measure of how much cash a company’s making before all the extra costs come into play. Think of it like a wrestler’s in-ring performance before all the outside factors (contracts, travel expenses, and Uncle Sam) take their cut. Let’s say WWE’s hottest superstar just headlined WrestleMania pulling in $10 million from ticket sales, merch and boosting PLE streaming numbers. If you only look at their final payout after taxes and expenses, it might seem like they made way less. EBITDA is like looking at that superstar’s true box office draw, before all the financial deductions muddy the true picture. And for WWE/TKO? A high EBITDA means their money machine is running strong before those financial distractions even come into play.
What’s Next for the WWE/TKO Storyline?
This quarter marks the first true quarter-to-quarter comparison since WWE and UFC officially formed Voltron under the TKO banner in September 2023. Endeavor still runs the show, but with its own stock set to go private soon, the real question is: What’s next? The answer? New media rights deals for UFC and WWE’s Premium Live Events. These negotiations will set the stage for how high this empire can climb.
CEO Ari Emanuel is keeping the energy bullish, hyping up TKO’s IP dominance and expansion game plan. That includes absorbing recent acquisitions like IMG, On Location, and Professional Bull Riders (PBR) while doubling down on delivering top-tier live events and keeping shareholders happy with a capital return.
But it’s not just boardroom plays. TKO is about to make history this weekend in Kansas City, rolling out
a first-of-its-kind crossover event featuring WWE, UFC and PBR all in one night.
A wrestling, MMA and bull riding fusion? Does this sound like the kind of spectacle that will set the tone for TKO’s next phase?
WWE might’ve taken a dip this quarter, but this ain’t an L, it might be more of a transition. If Raw’s Netflix era pops off the way TKO and fans are expecting, that 10% drop might be nothing more than a setup for a bigger win down the road.
AGAIN... only time will tell.
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