Endeavor Shrugs Off Strike Hit In Q2 To Beat Wall Street Expectations, Announces More Specific Date Range For Close Of WWE-UFC Merger
Endeavor Group Holdings conceded its representation business took a hit from the WGA strike in the second quarter, but the company reported overall results ahead of Wall Street expectations.
All four divisions of the company showed positive momentum in the quarter, as total revenue climbed 9% to $1.436 billion and earnings per share came in at $1.29 on a diluted basis.
Wall Street analysts’ consensus had called for revenue of $1.41 billion and earnings of 30 cents a share.
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The company said its pending deal to take control of the WWE and merge it into a new, stand-alone entity called TKO Group Holdings is expected to close in mid- to late-September. (Previous guidance was for a deal close sometime in the second half of the year.)
Representation segment revenue increased 6.5% from the year-ago period to hit $381.1 million. The company said the impact of the WGA strike was offset by growth in its nonscripted content production and fashion businesses and new projects and increased spend from 160over90’s corporate clients. Adjusted EBITDA fell 4%.
The Owned Sports Properties; Events, Experiences & Rights; and Sports, Data & Technology divisions also saw increases in revenue.
Total debt ended the quarter on June 30 at $5.11 billion, down from $5.151 billion in the 2022 frame. The earnings release pointed to forthcoming share buybacks and the launch of a dividend payment to shareholders. The projected $300 million in buybacks began earlier this quarter after the company sold the IMG Academy to a division of private equity firm EQT in a $1.25 billion all-cash deal.
“We remain focused on maintaining prudent capital allocation and delivering long term sustainable growth for the company,” CEO Ari Emanuel said in the release.
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