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TKO (TKO) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:02
Financial Data and Key Metrics Changes - The company generated revenue of $1,269 million, an increase of 4% compared to the previous year [21] - Adjusted EBITDA was $417 million, reflecting a 23% increase, with an adjusted EBITDA margin of 33%, up from 28% in the prior year [21][22] - Free cash flow for the quarter was $136 million, with a conversion rate of adjusted EBITDA at 32% [33] Business Line Data and Key Metrics Changes - UFC segment revenue increased by 15% to $360 million, with adjusted EBITDA rising 17% to $227 million, resulting in an adjusted EBITDA margin of 63% [22][26] - WWE segment revenue grew by 24% to $392 million, with adjusted EBITDA increasing by 38% to $194 million, leading to an adjusted EBITDA margin of 50% [26][28] - IMG segment revenue decreased by 13% to $476 million, with adjusted EBITDA down 10% to $74 million, maintaining an adjusted EBITDA margin of 15% [29] Market Data and Key Metrics Changes - Live Events and Hospitality revenue for UFC increased by 66% to $59 million, driven by higher site fee revenue and ticket sales [24] - WWE's Live Events and Hospitality revenue rose by 52% to $76 million, primarily due to increased ticket sales [26] - Partnerships and marketing revenue for UFC increased by 32% to $64 million, while WWE saw an 86% increase to $26 million [24][27] Company Strategy and Development Direction - The company is focused on integrating newly acquired assets IMG and PBR to drive top-line growth and cost synergies [6][13] - A partnership with the Western Australian government was secured to host five major UFC and WWE events through 2026, indicating a strategic expansion in international markets [8] - The company aims to create value for shareholders through capital return programs and organic investments, including a new boxing promotion [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of live events and partnerships, with no signs of a slowdown in consumer behavior observed [20] - The company raised its full-year guidance, targeting revenue of $4,490 million to $4,560 million and adjusted EBITDA of $1,490 million to $1,530 million, reflecting strong performance in the first quarter [37][38] - Management remains cautious about economic uncertainties but is optimistic about the brand's growth potential [75] Other Important Information - The company completed the acquisition of IMG and PBR, which is accounted for as a merger under common control, impacting financial reporting [16][18] - Corporate allocations from Endeavor for the two months prior to the acquisition amounted to $21.7 million, which will not recur under TKO ownership [31][39] - The company plans to provide more transparency regarding the performance of acquired businesses through updated KPIs [19][85] Q&A Session Summary Question: Update on UFC rights renewal and free cash flow for 2025 - Management is in discussions with various third parties regarding UFC rights, with ESPN still included in the mix [48][49] - Free cash flow conversion rate is expected to exceed 60%, excluding nonrecurring amounts [50][51] Question: Economics of the Canelo announcement and boxing promotion - The new boxing organization will average 12 fights per year, with separate media rights deals and global partnerships [60][62] Question: Outperformance in UFC and WWE - Outperformance was driven by strong live event and global partnership performance, with confidence in continued momentum [72][73] Question: Capital return program pacing - The share repurchase program will be market-driven, with a focus on being opportunistic [76][79] Question: Growth modeling for IMG segment - The company intends to provide more transparency on IMG's growth and profitability, with expectations for increased margins over time [84][85]
TKO (TKO) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:00
Financial Data and Key Metrics Changes - The company generated revenue of $1,269 million in Q1 2025, an increase of 4% compared to the previous year [21] - Adjusted EBITDA was $417 million, reflecting a 23% increase, with an adjusted EBITDA margin of 33%, up from 28% in the prior year [21] - The UFC segment reported revenue of $360 million, a 15% increase, and adjusted EBITDA of $227 million, a 17% increase, with an adjusted EBITDA margin of 63%, up from 62% [22] - The WWE segment generated revenue of $392 million, a 24% increase, and adjusted EBITDA of $194 million, a 38% increase, with an adjusted EBITDA margin of 50%, up from 44% [25] - The IMG segment reported revenue of $476 million, a decrease of 13%, and adjusted EBITDA of $74 million, a decrease of 10% [29] Business Line Data and Key Metrics Changes - UFC's Live Events and Hospitality revenue increased by 66% to $59 million, driven by higher site fee revenue and ticket sales [23] - WWE's Live Events and Hospitality revenue increased by 52% to $76 million, primarily due to increased ticket sales [25] - Partnerships and marketing revenue for UFC increased by 32% to $64 million, while WWE's partnerships and marketing revenue surged by 86% to $26 million [23][27] Market Data and Key Metrics Changes - UFC set new records for live events, including the highest grossing Fight Night in company history in London and the highest grossing indoor arena event in Australia [6] - WWE's WrestleMania 41 became the most successful event ever, breaking records in gate, premium hospitality, viewership, sponsorship, merchandise, and social engagement [10] - WWE's international footprint on Netflix expanded, with significant engagement increases in markets like Mexico, the UK, Australia, and Brazil [9] Company Strategy and Development Direction - The company is focused on integrating newly acquired assets IMG, On Location, and PBR to drive top-line growth and cost synergies [5] - A strategic partnership with Meta aims to enhance UFC content through innovative experiences [7] - The company is committed to a robust capital return program while maintaining a strong balance sheet and exploring new opportunities in boxing [36] Management's Comments on Operating Environment and Future Outlook - Management noted no signs of a slowdown in consumer behavior, with strong performance expected to continue across live events and partnerships [20] - The company raised its full-year guidance, targeting revenue of $4,490 million to $4,560 million and adjusted EBITDA of $1,490 million to $1,530 million [38] - Management expressed cautious optimism regarding the UFC media rights negotiations, emphasizing a flexible approach to maximize long-term brand growth [65] Other Important Information - The company generated $136 million of free cash flow in Q1 2025, with a free cash flow conversion rate of 32% [32] - The company ended the quarter with $2,776 million in debt and $471 million in cash and cash equivalents [35] - The company plans to commence a $2,000 million share repurchase program in the second or third quarter of 2025, subject to market conditions [35] Q&A Session Summary Question: Update on UFC rights renewal and free cash flow for 2025 - Management is in discussions with various third parties regarding UFC rights, with ESPN still included in the mix [48] - Free cash flow conversion rate is expected to be over 60%, excluding nonrecurring amounts [50] Question: Economics of the Canelo announcement and boxing strategy - The new boxing organization plans to host an average of 12 fights per year, with separate media rights deals and global partnerships [58] Question: Outperformance in UFC and WWE - Outperformance in Q1 was driven by strong live event and global partnership performance, with confidence in continued momentum [72] Question: Capital returns and share repurchase program - The share repurchase program will be market-driven and opportunistic, with a focus on maintaining cash reserves [78] Question: Growth modeling for the IMG segment - The company intends to provide more transparency and KPIs for the IMG segment, anticipating growth in both revenue and margins [84]
Taseko Reports First Quarter 2025 Earnings
Globenewswire· 2025-05-01 21:43
Core Viewpoint - Taseko Mines Limited reported a net loss of $29 million in Q1 2025, with revenues of $139 million from copper and molybdenum sales, while construction at Florence Copper is progressing on schedule towards first copper production expected in Q4 2025 [2][5][34]. Financial Performance - Adjusted EBITDA for Q1 2025 was $34 million, with earnings from mining operations before depletion and amortization at $39 million [2][7]. - The company recorded a net loss of $29 million ($0.09 loss per share) and an adjusted net loss of $7 million ($0.02 loss per share) [2][7]. - Revenues decreased to $139 million from $146.9 million in the previous year, primarily due to lower copper production [7][9]. Production and Operations - Gibraltar Mine produced 20 million pounds of copper and 336 thousand pounds of molybdenum in Q1 2025, with total operating costs (C1) at US$2.26 per pound of copper produced [3][20]. - Mill throughput averaged 87,800 tons per day, exceeding design capacity, but copper production was impacted by lower metallurgical recoveries from oxidized ore [3][5]. - The average copper grade was 0.19% with a recovery rate of 68% [3][15]. Project Development - Construction at Florence Copper is 78% complete, with critical aspects on schedule, and first copper cathode production expected in Q4 2025 [4][28]. - The company has completed 80 out of 90 planned production wells, with ongoing work on surface infrastructure and electrowinning areas [4][29]. Future Outlook - Annual copper production for 2025 is expected to be approximately 10 million pounds lower than previous guidance due to delays in accessing higher-grade ore [5][21]. - Significant increases in copper grades and recoveries are anticipated in the second half of 2025 and into 2026 [5][21]. - The company has secured copper collar contracts to ensure a minimum copper price of US$4.00 per pound for 81 million pounds of copper for the remainder of 2025 [12][27].
Analysts Estimate TKO Group Holdings (TKO) to Report a Decline in Earnings: What to Look Out for
ZACKS· 2025-05-01 15:08
Core Viewpoint - TKO Group Holdings is expected to report a year-over-year decline in earnings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.48 per share, reflecting a significant year-over-year decrease of 77.6%, while revenues are projected to reach $1.11 billion, an increase of 76.5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.56% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -52.41%, suggesting that analysts have lowered their expectations for TKO Group's earnings [11]. Historical Performance - In the last reported quarter, TKO Group exceeded the expected earnings of $0.23 per share by delivering $0.35, resulting in a surprise of +52.17%. Over the past four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - Despite the potential for an earnings beat, TKO Group does not currently appear to be a strong candidate for exceeding earnings expectations, and investors should consider other factors before making investment decisions [16].
UFC® AND HPNOTIQ ANNOUNCE MULTIYEAR MARKETING PARTNERSHIP
Prnewswire· 2025-05-01 12:00
Core Insights - UFC and Hpnotiq have entered a multiyear marketing partnership to enhance brand visibility at UFC events [1][2] - Hpnotiq will be an Official Partner of UFC, activating its brand at all Fight Nights in the United States [2][4] - The partnership aims to create engaging experiences for fans, leveraging UFC's extensive reach and promotional assets [3][5] Brand Activation and Visibility - Hpnotiq will receive prominent brand placement inside the Octagon at UFC Fight Nights, reaching over 700 million fans in 170 countries and approximately 950 million households [4] - The collaboration will include original content distributed via UFC's digital and social channels, targeting over 300 million users worldwide [5] Event Launch - The partnership will debut at UFC Fight Night: Sandhagen vs. Figueiredo on May 3, 2025, in Des Moines, Iowa, featuring key bantamweight and middleweight bouts [6] Company Background - UFC is a leading mixed martial arts organization with a global fan base and extensive media reach, producing over 40 live events annually [7] - Hpnotiq is a popular liqueur known for its unique blend of fruit juices, vodka, and cognac, and is marketed by Heaven Hill Brands [8]
Taseko to Release First Quarter 2025 Results
Globenewswire· 2025-04-30 21:18
Core Viewpoint - Taseko Mines Limited is set to release its first quarter 2025 financial results on May 1, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and live webcast on May 2, 2025, at 11:00 a.m. Eastern Time [2] - The conference call will include opening remarks by management followed by a question-and-answer session for analysts and investors [2] Group 2: Participation Details - Participants must pre-register to join the conference call, with registration available at a specified link [4] - An email with dial-in details and a unique access code will be sent to registered participants [4] - A live webcast will be available and archived for playback until June 2, 2025 [4]
TKO Group Holdings: Remain Bullish Despite Share Price Weakness
Seeking Alpha· 2025-04-11 09:50
Core Viewpoint - The article emphasizes the importance of fundamental analysis in identifying undervalued companies with long-term growth potential, advocating for a value investing approach that focuses on purchasing quality companies at a discount to their intrinsic value and holding them for compounding returns [1]. Group 1 - The investment strategy combines value investing principles with a focus on long-term growth [1]. - The approach involves buying quality companies at a discount to their intrinsic value [1]. - The goal is to allow companies to compound their earnings and shareholder returns over time [1].
UFC Announces NetBet as Official Sportsbook and Betting Partner in Europe
GlobeNewswire News Room· 2025-03-18 12:00
LONDON, March 18, 2025 (GLOBE NEWSWIRE) -- UFC, the world’s premier mixed martial arts organisation, has announced a new marketing partnership with NetBet, a leading online gambling platform, as the Official Sportsbook and Betting Partner across UK, Ireland, Greece, Italy and Romania. Beginning with UFC FIGHT NIGHT: EDWARDS vs. BRADY on Saturday, March 22nd live from The O2 in London, NetBet will have a presence in the world-famous Octagon®, on UFC’s international broadcast feed, and across digital and soci ...
TKO Group: S&P 500 Inclusion, Q4, Dividend, Boxing, And Other Ongoing Catalysts
Seeking Alpha· 2025-03-11 13:00
Investment advisor, research analyst, and economics educator from Southern California. I have an obsession with portfolio management, income investing, and alternatives. "History does not repeat, but it does instruct." — Timothy Snyder, On TyrannyAnalyst’s Disclosure: I/we have a beneficial long position in the shares of TKO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from See ...
3 Reasons Growth Investors Will Love TKO Group (TKO)
ZACKS· 2025-02-28 18:50
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...