TKO Group issued the following today:
Second Quarter 2024 Financial Highlights
Revenue of $851.2 million, a quarterly record
* Net income of $150.7 million
* Adjusted EBITDA 1 of $420.9 million, a quarterly record
* Full Year 2024 Guidance
* The Company increased its target for revenue to $2.670 billion to $2.745 billion
* The Company increased its target for Adjusted EBITDA to $1.220 billion to $1.240 billion
* The Company reaffirmed its target for Free Cash Flow Conversion 2 in excess of 40%
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its second quarter ended June 30, 2024.
“TKO generated strong financial results in the quarter, highlighted by record quarterly revenue and Adjusted EBITDA,” said Ariel Emanuel, Executive Chair and CEO of TKO. “In light of this continued momentum, we are raising our full year 2024 guidance for the second quarter in a row. The strength in our underlying business continues to give us great conviction in TKO’s ability to deliver sustainable long-term value for shareholders.”
Second Quarter Consolidated Results
Revenue increased 179%, or $546.0 million, to $851.2 million. The increase reflected an increase of $89.2 million at UFC, to $394.4 million, and the contribution of $456.8 million of revenue at WWE.
Net Income was $150.7 million, an increase of $68.9 million from $81.8 million in the prior year period. The increase reflected the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in direct operating costs of $177.0 million, an increase in selling, general and administrative expenses of $169.1 million, and an increase in depreciation and amortization of $88.8 million.
Adjusted EBITDA 1 increased 142%, or $247.3 million, to $420.9 million, due to an increase of $43.7 million at UFC and the contribution of $251.3 million of Adjusted EBITDA at WWE, partially offset by an increase of $47.7 million in corporate expenses.
Cash flows generated by operating activities were $230.7 million, an increase of $119.7 million from $111.0 million, primarily due to higher net income and the timing of working capital.
Free Cash Flow 2 was $218.6 million, an increase of $112.2 million from $106.4 million, due to the increase in cash flows generated by operating activities partially offset by an increase in capital expenditures, which was primarily related to WWE’s new headquarter facility.
Cash and cash equivalents were $277.5 million as of June 30, 2024. Gross debt was $2.744 billion as of June 30, 2024.
