Revenue and Growth - Revenue for Q1 2024 reached $629.7 million, a significant increase from $306.7 million in Q1 2023, representing a growth of 105.5%[22] - Total revenue for the three months ended March 31, 2024, was $629.7 million, a significant increase from $306.7 million in the same period of 2023[59] - The UFC segment generated total revenue of $312.99 million, while the WWE segment contributed $316.72 million in the same period[59] - WWE contributed revenue of $316.7 million, driven by $221.1 million from media rights and content, $50.2 million from live events, and $31.6 million from consumer products licensing[170] - UFC revenue increased by $6.3 million, or 2%, driven by higher sponsorship revenue and live event revenue[170] Expenses and Losses - Total operating expenses for Q1 2024 were $840.1 million, compared to $160.7 million in Q1 2023, indicating an increase of 423.5%[22] - The net loss attributable to TKO Group Holdings, Inc. for Q1 2024 was $103.8 million, while there was no loss reported for the same period in 2023[22] - The company experienced a comprehensive loss attributable to TKO Group Holdings, Inc. of $105.6 million for Q1 2024[26] - For the three months ended March 31, 2024, TKO Group Holdings reported a net loss of $249.5 million, compared to a net income of $87.95 million for the same period in 2023[31] - Selling, general and administrative expenses increased by $475.6 million, or 845%, to $531.9 million for the three months ended March 31, 2024 compared to the same period in 2023[173] Cash and Liquidity - Cash and cash equivalents as of March 31, 2024, were $245.8 million, up from $235.8 million as of December 31, 2023[20] - The company reported net cash provided by operating activities of $59.3 million for the three months ended March 31, 2024, down from $69.7 million in the same period of 2023[205] - The Company expects its liquidity sources to be sufficient to meet working capital requirements and long-term debt service commitments for at least the next 12 months[208] - Cash used in investing activities increased significantly from $4.6 million in Q1 2023 to $36.2 million in Q1 2024, primarily for property and equipment[206] Assets and Liabilities - Total assets increased to $12.7 billion as of March 31, 2024, compared to $12.7 billion as of December 31, 2023[20] - Total liabilities rose to $4.1 billion as of March 31, 2024, compared to $3.8 billion as of December 31, 2023[20] - TKO Group Holdings' total stockholders' equity as of March 31, 2024, was $8.62 billion, down from $8.84 billion at the end of 2023[28] Capital Expenditures and Investments - The company incurred $31.48 million in capital expenditures during the three months ended March 31, 2024, compared to $4.58 million in the same period last year[31] - The fair value of the consideration transferred in the reverse acquisition of WWE was $8,432.1 million, including $8,061.8 million in TKO Class A common stock[54] Adjusted EBITDA and Operational Performance - Adjusted EBITDA for the three months ended March 31, 2024, was $282.16 million, up from $172.61 million in the same period of 2023, reflecting a 63.5% increase[138] - The company reported a total Adjusted EBITDA of $282.2 million for Q1 2024, compared to $172.6 million in Q1 2023, indicating a strong operational performance[190] Debt and Financing - Total debt as of March 31, 2024, is $2,730,682 thousand, slightly down from $2,736,315 thousand as of December 31, 2023[83] - The First Lien Term Loan has an outstanding balance of $2,721,016 thousand as of March 31, 2024, with an interest rate of 8.34%[84][86] - The Company amended the Credit Agreement in May 2024, extending the Revolving Credit Facility's maturity by twelve months to October 29, 2025[198] Legal and Compliance - The effective tax rate for the three months ended March 31, 2024, was 9.3%, compared to 3.9% for the same period in 2023, influenced by a legal settlement related to UFC antitrust lawsuits[115] - The company recorded a legal settlement charge of $335.0 million related to UFC antitrust lawsuits during the three months ended March 31, 2024[138] Segment Performance - The company operates two reportable segments: UFC and WWE, following the acquisition of WWE effective September 12, 2023[131] - UFC segment revenue reached $313.0 million, up from $306.7 million in Q1 2023, with an Adjusted EBITDA of $195.1 million, reflecting a margin of 62%[180] - WWE segment generated $316.7 million in revenue for Q1 2024, with an Adjusted EBITDA of $140.2 million and a margin of 44%[182]
TKO (TKO) - 2024 Q1 - Quarterly Report