TKO, the parent company of the MMA league and wrestling franchise, has raised its full-year guidance following the successful new deals with Paramount and ESPN for rights to UFC and WWE events. Despite a mixed third quarter with revenue down due to tough year-over-year comparisons from last year’s Summer Olympic Games in Paris, TKO saw an increase in adjusted earnings before interest, taxes, depreciation, and amortization, as well as net income thanks to gains for WWE and IMG.
Ariel Emanuel, TKO’s executive chair and CEO, expressed confidence in the company’s future, stating, “TKO delivered solid third quarter financial results, and with UFC and WWE’s sustained momentum, we are once again raising our full-year guidance. Having secured landmark multiyear media rights deals for UFC, WWE, and Zuffa Boxing, our conviction in TKO has never been stronger.”
Total revenue for the third quarter was down 27% to $1.120 billion, but net income saw a significant increase to $106.8 million from $3.4 million in Q3 2024. Free cash flow also improved to $398.9 million, driven by higher cash flows from operating activities and reduced capital expenditures.
TKO has raised its full-year revenue projection to $4.69 billion to $4.72 billion and adjusted EBITDA to $1.57 billion to $1.58 billion. Year-to-date revenue as of September 30 was $3.69 billion, with adjusted EBITDA at $1.3 billion.
The company remains focused on operational execution, including preparing for UFC’s launch with Paramount, integrating and unlocking synergies with IMG, On Location, and PBR, and maximizing shareholder value. With more developments expected, TKO is poised for continued success in the sports entertainment industry. Stay tuned for more updates.
