TKO Group Holdings shares fall as revenue guidance disappoints

Published 26/02/2025, 22:40
TKO Group Holdings shares fall as revenue guidance disappoints

NEW YORK - TKO Group Holdings, Inc. (NYSE:TKO) reported fourth-quarter earnings that beat analyst expectations, but shares tumbled 5.4% as the company’s full-year revenue guidance came in below estimates.

The parent company of UFC and WWE posted adjusted earnings per share of $0.28, surpassing the analyst consensus of $0.17. Revenue for the quarter rose 5% YoY to $642.2 million, also topping expectations of $603.41 million.

However, TKO’s outlook for 2025 fell short of Wall Street projections. The company forecast full-year revenue between $2.93 billion and $3 billion, below the $3.285 billion analysts were anticipating. TKO also guided for adjusted EBITDA of $1.35 billion to $1.39 billion.

"TKO delivered record financial performance in 2024 at both UFC and WWE, reflecting the strength of our IP, the dynamic audiences we serve, and the industry-best team of people we’ve assembled," said Ariel Emanuel, Executive Chair and CEO of TKO.

For the fourth quarter, UFC revenue jumped 22% to $343.9 million, driven by increases in media rights, sponsorship, and live events. WWE revenue declined 10% to $298.3 million, primarily due to the timing of its Raw program transition.

TKO’s full-year 2024 revenue increased 67% to $2.8 billion, largely reflecting the inclusion of 12 months of WWE results. Net income fell to $6.4 million from $175.7 million in 2023, impacted by higher operating expenses and UFC lawsuit settlement charges.

The company said it will focus on securing long-term U.S. media rights for UFC and WWE events in 2025, as well as integrating newly acquired assets like IMG and Professional Bull Riders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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