One year after the merger of the UFC and WWE in Q3 2023, the duo’s parent company, TKO Group Holdings, continues to reap dividends.
The sports and entertainment firm reported a 52% increase in revenue year-over-year from $358.1m to $681.2m, driven largely by an increase in WWE revenue from $274.7m to $326.3m.
WWE proved to be the major standout asset for TKO in Q3, with UFC revenue dropping from $3975m to $354.9m. Overall, TKO Group adjusted EBITDA stood at $310m, a year-over-year increase of 29% from $239.7m.
Ariel Emanuel, Executive Chair and CEO of TKO, said: “TKO’s solid third quarter results reflect continued strength across UFC and WWE, particularly in live events and brand partnerships.
“In light of this continued momentum, we now expect to deliver at the upper end of our full-year 2024 guidance range for both revenue and Adjusted EBITDA.”
Regarding group assets as noted above, UFC had a tricky quarter this year with revenue down 11%, whilst the MMA promotion’s EBITDA dropped 18% to $195.6 (Q3 2023: $238.3m).
TKO attributed this to a decrease in media rights and content revenue due to UFC holding one less of its ‘numbered events’ and two fewer Fight Night events compared to last year.
The UFC’s key revenue generator this year seems to have been sponsorship, with new sponsors gained this year – such as Saudi Arabia’s Riyadh Season sponsoring UFC 306 at the Sphere in Las Vegas.
A similar trend was observed in TKO’s Q2 financial results published earlier in the year. For Q3, the group also noted that live events revenue ‘was essentially flat’ due to increases in ticket sales being offset by three fewer events compared to Q3 2023.
Turning to WWE, as stated above the professional wrestling event generated growth in comparison to the UFC, though its revenue was still less than its MMA counterpart. Total WWE revenue stood at $287.3m, up 14% from $248.3m the year prior. TKO attributed this to an increase in media rights and content revenue, live events and sponsorship income,
Looking ahead, the company expects to close the year with revenue of between $2.6bn and $2.7bn, and EBITDA of between $1.22bn to $1.24bn.
Observers can expect the strengthening of links between WWE and UFC to continue under TKO’s ownership, with the duo’s respective sponsorship teams merged earlier in the year.
“Just over a year since UFC and WWE came together to form TKO, our conviction in this business is as strong as ever,” Emanuel concluded.
