Revenue and Income - Revenue for the three months ended September 30, 2023, was $449.058 million, a 32% increase from $340.699 million in the same period of 2022[22] - Net income for the three months ended September 30, 2023, was $22.020 million, down from $129.673 million in the same period of 2022, representing a decline of 83%[22] - The company reported a total revenue of $1.061 billion for the nine months ended September 30, 2023, compared to $868.376 million for the same period in 2022, marking a 22.2% increase[22] - Net income for the nine months ended September 30, 2023, was $191.824 million, a decrease of 40.2% compared to $320.540 million in the same period of 2022[37] - The company reported a comprehensive income of $66,377 thousand for the three months ended September 30, 2023[31] Operating Expenses - Operating income for the three months ended September 30, 2023, was $93.837 million, compared to $169.636 million in the same period of 2022, reflecting a decrease of 44.6%[22] - Total operating expenses for the three months ended September 30, 2023, were $355.221 million, an increase of 107.5% from $171.063 million in the same period of 2022[22] - Selling, general and administrative expenses for the three months ended September 30, 2023, were $193.211 million, compared to $56.497 million in the same period of 2022, reflecting a significant increase of 242%[22] - Interest expense for the three months ended September 30, 2023, was $(60.636) million, compared to $(35.319) million in the same period of 2022, an increase of 71.5%[22] Assets and Liabilities - Total assets increased to $12,736,453 thousand as of September 30, 2023, compared to $3,580,730 thousand as of December 31, 2022, reflecting a growth of 255%[29] - Total liabilities stood at $3,764,903 thousand, compared to $3,001,906 thousand, indicating an increase of 25%[29] - Stockholders' equity reached $8,960,439 thousand, a substantial rise from $568,916 thousand, reflecting a growth of 1,475%[29] - Total current liabilities increased to $399,454 thousand from $230,179 thousand, reflecting a growth of 73%[29] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $247.655 million, down 34.2% from $376.781 million in the prior year[37] - The company reported a net cash increase of $8.018 million in cash and cash equivalents, compared to a decrease of $456.102 million in the same period last year[37] - Cash acquired from WWE during the investing activities amounted to $381.153 million, while the payment of deferred consideration to former WWE shareholders was $321.006 million[37] Acquisition and Goodwill - TKO completed the acquisition of WWE on September 12, 2023, with a fair value of consideration transferred amounting to $8,432.1 million[70] - The acquisition of WWE was recorded at a net value of $8.111 billion, reflecting the significant scale of the transaction[37] - Goodwill increased significantly to $7,644,053 thousand from $2,602,639 thousand, marking a growth of 194%[29] - The preliminary allocation of purchase price includes goodwill of $5,041,414 thousand, primarily attributable to expected synergies from the acquisition[79] Segment Performance - UFC segment revenue for the nine months ended September 30, 2023, reached $1,009,435 thousand, up 16% from $868,376 thousand in 2022[86] - WWE segment revenue for the three months ended September 30, 2023, was $51,538 thousand, with no revenue reported in the same period of 2022[86] - The UFC segment generated revenue of $397.5 million for the three months ended September 30, 2023, up 16.6% from $340.7 million in the prior year[193] Equity and Shares - The company issued 83,162,215 shares of Class A common stock and 89,616,891 shares of Class B common stock as of September 30, 2023[31] - The company authorized a total of 5,000,000,000 shares of Class A common stock and 5,000,000,000 shares of Class B common stock as part of its amended certificate of incorporation[141] Tax and Incentives - The provision for income taxes for the three months ended September 30, 2023, was $11.2 million based on pretax income of $32.5 million, resulting in an effective tax rate of 34.5%[167] - The company recorded content production incentives of $13.1 million related to qualifying content production activities during the three and nine months ended September 30, 2023[177] Future Outlook - The company anticipates continued growth in media rights and content, live events, sponsorship, and consumer products licensing as part of its strategic outlook[203]
TKO (TKO) - 2023 Q3 - Quarterly Report