⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Endeavor shares dip 2% on earnings miss

EditorRachael Rajan
Published 28/02/2024, 14:14
© Reuters.
EDR
-

BEVERLY HILLS, Calif. - Endeavor Group Holdings, Inc. (NYSE: EDR), a global sports and entertainment company, reported a fourth-quarter earnings miss, with adjusted EPS of -$0.03, falling short of the analyst consensus estimate of $0.22.

Despite meeting revenue expectations with $1.58 billion, which aligns with the consensus estimate, the company's stock experienced a decline of 2.2% following the announcement.

Endeavor's fourth quarter was marked by significant achievements, including the closure of the WWE acquisition and the launch of TKO Group Holdings, Inc. However, the company also reported a net loss of $29.3 million for the quarter, compared to the prior year's quarter.

The Owned Sports Properties segment saw a substantial revenue increase of 113% YoY, largely due to the WWE acquisition and growth at UFC. Conversely, the Events, Experiences & Rights segment experienced an 8% decrease in quarterly revenue YoY, primarily impacted by the sale of IMG Academy.

Ariel Emanuel, CEO of Endeavor, commented on the year's performance, stating, "2023 was a transformational year for Endeavor as we strengthened our positions in sports and entertainment through many of our industry-leading assets. Endeavor’s work with TKO to secure innovative media rights deals and landmark partnership agreements is proving our thesis, and we continue to benefit from demand for premium content and live experiences."

The company's full-year 2023 revenue reached $5.960 billion, with net income at $557.5 million and adjusted EBITDA at $1.216 billion. The Sports Data & Technology segment also saw a notable annual increase, with revenue up 80% YoY, driven by the acquisition of OpenBet and growth in IMG ARENA’s betting data and streaming portfolio.

Endeavor's balance sheet at the end of the year showed $1.167 billion in cash and cash equivalents, with a slight reduction in total debt from $5.046 billion to $5.028 billion compared to the previous quarter.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.