TKO reported third-quarter results powered in part by UFC’s sellout streak, with UFC revenue rising 60% year over year to $519.2 million.
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UFC’s third-quarter performance contributed to a strong overall quarter for TKO, with TKO reporting total revenue of $1.36 billion, up 21%, and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) rising 54% to $555.7 million.
For UFC specifically, revenue climbed 60% year over year to $519.2 million, driven by a $132.3 million increase in media rights, production and content revenue. The quarter also included a $36 million spike in live events and hospitality revenue, a $20.5 million increase in partnerships and marketing revenue, and a $5.2 million boost in consumer products licensing and other revenue.
TKO attributed the results to favourable conditions for live events and experiences. Mark Shapiro, president and COO of TKO, said, “Our third quarter performance reflects the secular tail winds powering live events and experiences around the world, and TKO's assets sit front and center of that premium ecosystem.”
Shapiro added that TKO raised its full-year guidance for the second time this year, saying the move reflects the company’s confidence across its portfolio. He said, “As we close out what we've called our year of execution, our decision to raise full-year guidance for the second time this year is the clearest expression of our conviction across the entire portfolio.”
TKO said adjusted EBITDA margin expanded to 41%, up from 32% a year ago. It also reported an increase of $119.7 million at UFC and a gain of $9.4 million at WWE as contributors to the quarter’s adjusted EBITDA improvement.
Based on these trends, TKO increased its full-year targets for revenue and adjusted earnings, raising revenue guidance from $5.790 billion to $5.830 billion and adjusted EBITDA guidance from $2.295 billion to $2.315 billion.
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