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NEW YORK & RIYADH - A new boxing promotion is set to emerge from a multi-year partnership between TKO Group Holdings, Inc. (NYSE: TKO), a global sports and entertainment leader, and Sela, a prominent entertainment conglomerate. The collaboration aims to create a prime platform for boxing talent development and deliver top-tier events.
The partnership, announced today, involves TKO serving as the managing partner, bringing operational expertise to the table, with Dana White and Nick Khan providing executive leadership. Sela, known for organizing high-profile boxing matches and sponsoring Newcastle United Football Club, will work alongside TKO to enhance the sport’s global presence. TKO’s strong financial foundation, with liquid assets exceeding short-term obligations and a moderate debt level, provides stability for this venture. InvestingPro subscribers can access 12 additional key insights about TKO’s financial health and growth prospects.
This initiative promises to offer a structured system for nurturing new talent, including athlete combines and academies, as well as access to the UFC Performance Institute’s facilities for all boxers. TKO’s production and promotional capabilities are expected to enhance in-arena experiences and broadcasts for a global audience. The company’s robust revenue growth of 67% in the last twelve months and strong gross profit margin of 68% demonstrate its operational efficiency in managing such large-scale ventures.
Dr. Rakan Alharthy of Sela highlighted the partnership’s potential to redefine the fan experience and establish a sustainable future for boxing. Additional details regarding fighter signings, schedules, and venues will be disclosed in the forthcoming months.
TKO, a NYSE-listed entity, owns several prominent sports properties, including UFC, WWE, and PBR, reaching millions of fans worldwide through live events and partnerships. Sela has been influential in sports marketing and event delivery, contributing to Saudi Arabia’s entertainment landscape with projects like Riyadh Winter Wonderland and the Jeddah Superdome.
This announcement is based on a press release statement and contains forward-looking statements, which are subject to various risks and uncertainties. These statements do not guarantee future performance and should be considered with caution.
In other recent news, TKO Group Holdings Inc. reported strong fourth-quarter earnings for 2024, surpassing analysts’ expectations with an earnings per share (EPS) of $0.28, significantly higher than the forecasted $0.17. The company’s revenue reached $642.2 million, exceeding projections of $603.41 million, marking a 7% year-over-year increase. Following these results, TD Cowen reaffirmed its Buy rating on TKO Group, raising the stock’s price target from $145 to $200, citing strong underlying trends and the ongoing renewal of UFC media rights as positive factors. Similarly, Guggenheim increased its price target for TKO Group to $175, maintaining a Buy rating, despite mixed revenue and EBITDA figures compared to their estimates.
Meanwhile, Seaport Global Securities upgraded TKO Group’s stock rating from Neutral to Buy, setting a price target of $164. The analyst highlighted the company’s recent corporate restructuring and acquisition of sports assets from its parent company, EDR, as key developments. However, Benchmark analysts maintained a Hold rating on TKO Group, pointing to a challenging outlook for 2025, including escalating costs and uncertainties around UFC media rights renewals. Despite these challenges, TKO’s strategic initiatives, such as transitioning WWE Raw to Netflix and SmackDown to USA Network, have contributed positively to its performance. The company achieved over $100 million in net savings from the integration of UFC and WWE, highlighting the potential for continued growth in the live sports entertainment sector.
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