Endeavor swung to a big profit in the second quarter thanks to the sale of its IMG Academy business, which will help fuel a stock buyback program and a cash dividend payments at the end of the current quarter.
The parent company of WME, IMG, UFC and other media and sports assets delivered revenue of $1.43 billion in the quarter, up about 8% from the year-ago quarter. Adjusted earnings before interest taxes, depreciation and amortization of $304.9 million, up slightly from the year-ago mark ($306.4 million). Net income swelled to $666.5 million, from $36.3 million a year ago.
Endeavor is in the process of closing its $21 billion transaction to combine UFC and wrestling giant WWE into a single sports entity that will trade as a separate stock under the ticker symbol TKO. Endeavor will maintain a 51% interest in the combined company and therefore consolidate its earnings.
Endeavor CEO Ari Emanuel is likely to face questioning from analysts later today on the status and planning for the UFC and WWE union. He’ll also be grilled on how Hollywood’s summer of strikes and shuttered productions are hitting Endeavor’s bottom line in the current quarter and beyond.
In Q1, Endeavor guided investors for it to deliver full-year revenue for 2023 of between $5.665 billion and $5.815 billion, and adjusted EBITDA of $1.220 billion to $1.275 billion.
“We delivered solid results this quarter at Endeavor and are closing in on the launch of TKO Group Holdings,” said Emanuel of the company’s Q2 performance. “Our share repurchase plan and dividend payment initiatives will begin in the third quarter, and we remain focused on maintaining prudent capital allocation and delivering long-term sustainable growth for the company.”
More to come
(Pictured: UFC fighter Aljamain Sterling of Jamaica celebrates his victory at UFC 288 in May)
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