The TKO merger of the UFC and WWE in 2023 continues to be a financial success, with both combat organisations posting “record financial performances”.
Within TKO’s 2024 full-year results, it brought in $2.8bn in revenue from both companies, with a net income of $6.4m and Adjusted EBITDA of $1.25bn.
The FY ‘2024 total revenue increased by 67% from FY’ 2023’s $1.675bn, largely attributed to WWE’s first full financial year under the TKO umbrella. Net income decreased slightly from $175.7m in 2023 to $169.3m due to an increase in operating costs ($385.3m), expenses ($679.6m) and depreciation and amortization ($228.2m). These rises in expense costs also are attributed to WWE’s first full financial year.
Adjusted EBITDA rose from $442.1m to $1.25bn, representing a 55% increase. This was due to an increase of $518.1m at WWE and an increase of $45.3m at UFC, partially offset by an increase of $121.3m in corporate expenses.
The combat sports conglomerate’s Q4’ 2024 revenue was $642.2m, a 5% increase from Q3’ 2024. Net income stood at $47.5m for the quarter, an increase of $63.6m from a net loss of $16.1m in the prior year. Adjusted EBITDA increased by 7% to $238m.
Speaking on TKO’s FY’ 2024 results, Ari Emanuel, CEO and Executive Chair at TKO, said: “TKO delivered record financial performance in 2024 at both UFC and WWE, reflecting the strength of our IP, the dynamic audiences we serve, and the industry-best team of people we’ve assembled.
“In the year ahead, we will be focused on securing long-term US domestic media rights agreements for UFC as well as WWE’s Premium Live Events; integrating IMG, On Location and Professional Bull Riders into our portfolio; creating even more compelling live events; and executing our robust capital return program for shareholders.”
UFC
The UFC generated a little over $1.4bn in total revenue for FY’ 2024, an increase from the $1.292bn generated in 2023. Its Q4’ 2024 revenue also increased year-over-year, from $282m in 2023, to $343.9m in 2024.
This revenue increase is in large part due to UFC’s categories rising across almost every metric. The mixed martial arts promotion drew in $879m from media rights and content, $220m from live events, $251m from sponsorships, and $55m from consumer products for FY’ 2024.
The UFC signed a litany of sponsorship agreements across multiple industries. It partnered with Riyadh Season to become the title partner of UFC 306 at the Las Vegas Sphere, while also signing lucrative deals with Venum, Entain and Corpay, to name a few.
TKO stated that UFC’s increase in media rights and content revenue was related to holding one additional numbered event – PPVs – last year compared to 2023. Sponsorship revenue grew from not just new deals, but also renewals, and live events also experiencing a higher number of ticket sales due to the addition of one more numbered event.
The combat sports entity also revealed it is almost complete with paying compensation to former UFC fighters after the 2014 ‘Le vs. Zuffa’ antitrust lawsuit gained final approval earlier in February for the $375m payout.
TKO confirmed that it has already made a $125m payment in October 2024 to fighters who believed the UFC performed “a scheme to acquire and maintain monopoly power in the market”.
Another $125m was made in escrow in this month (February) and will finalise the full payout with another $125m in the second quarter of 2025.
WWE
WWE’s first full financial year under TKO generated just under $1.4bn in revenue for 2024.
The professional wrestling company officially merged under TKO on 12 September 2023, with revenue from that date to 31 December 2023 hitting $382.8m. WWE combined revenue for FY’ 2023 pre-and-post TKO merger stood at $1.326bn.
FY’ 2024 WWE revenue also saw increases in categories across the board, although it must be noted that 2023 results only were filed from 12 September.
Media rights and content revenue grew from $249m to $865.5m in 2024, live events increased from $87.7m to $338m, sponsorship revenue grew from $18m to $83m, and consumer products from $27.6m to $111m.
2024 saw the end of WWE’s broadcast partnership with the USA Network for its weekly programme RAW in favour of a lucrative 10-year $500m annual deal with streaming platform Netflix, which began 6 January 2025.
WWE’s flagship premier live event (PLE), WrestleMania, was recorded as the biggest in the company’s history. WrestleMania 40 in Philadelphia this year became the highest-grossing WrestleMania of all time, with increases in viewership, merchandise sales and sponsorship revenue.
2025 guidance
TKO projects a FY’ 2025 revenue of $2.93bn – $3bn with Adjusted EBITDA targeted at $1.35bn – $1.39bn. The conglomerate stated that these projections indicate the ongoing successes of both its UFC and WWE brands, as well as looking to develop its newly-acquired companies of IMG, OnLocation and Professional Bull Riders.
