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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.
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