TKO Earnings Prediction
The chart below shows how TKO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TKO sees a -0.96% change in stock price 10 days leading up to the earnings, and a -2.23% change 10 days following the report. On the earnings day itself, the stock moves by +2.38%. This data can give you a slight idea of what to expect for the next quarter's release.
TKO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
642.20M
4.59%
-5.74%
Gross Margin
50.84%
4.42%
-7.90%
Operating Margin
22.83%
23.94%
-18.78%
Net Margin
7.40%
382.44%
-12.63%
EPS
0.06
137.50%
-78.57%
No Data Available
TKO Earnings Analysis
TKO Group Holdings Inc Corporation (TKO.N) Earnings Conference Call
Positive
Milestone Year for TKO: The fourth quarter capped off a milestone year for TKO, showcasing the strength and demand of their premium IP.
Record Financial Performance: In 2024, TKO delivered record financial performance, with revenue of $2.804 billion and adjusted EBITDA of $1.251 billion, exceeding guidance.
Integration Efficiency Gains: The integration of UFC and WWE drove greater efficiency and exceeded net savings guidance of $100 million.
Partnership Expansion Success: Secured partnerships, including moving Raw to Netflix, expanding reach to 300 million subscribers, and consistently landing in Netflix's weekly Top 10.
Record-Breaking Live Events: UFC and WWE both had record-breaking years for live events, with UFC setting 10 all-time highest grossing event records and WWE achieving record revenue at 10 premium live events.
Sponsorship Revenue Surge: UFC's sponsorship revenue grew 28% for the full year, marking the seventh consecutive record-breaking year, with new partnerships including IBM and Monster Energy.
Sponsorship Revenue Surge: WWE set an all-time high in sponsorship revenue, growing 20% year-over-year, driven by premium live events and new long-term brand partnerships.
Free Cash Flow Performance: Free cash flow for 2024 was $509 million, with a conversion rate of 41%, in line with guidance.
Share Repurchase and Dividend: The company announced a $2 billion share repurchase program and a $75 million quarterly cash dividend, with the first dividend payment scheduled for March 31.
2025 Revenue and EBITDA Targets: For 2025, TKO targets revenue of $2.93 billion to $3.0 billion and adjusted EBITDA of $1.35 billion to $1.39 billion, driven by new media rights fees and site fees from major events.
Negative
Segment Revenue Decline: WWE segment revenue decreased by 10% in Q4 2024, reflecting a short-term domestic rights deal that negatively impacted revenue and adjusted EBITDA by approximately $50 million compared to Q4 2023.
EBITDA Margin Decline: WWE's adjusted EBITDA margin fell to 38%, down from 43% in the prior year period, indicating a decline in profitability despite revenue growth in live events.
Media Rights Revenue Decline: Media rights and content revenue for WWE decreased by 26% to $156 million, primarily due to the short-term deal for Raw and a decrease in third-party original programming.
Free Cash Flow Impact: Free cash flow for the fourth quarter was negatively impacted by the first installment payment under the UFC antitrust case settlement and $32 million of debt transaction costs, indicating financial strain.
Debt Concerns and Risks: The company ended the year with $2.78 billion in debt, which raises concerns about financial leverage and potential risks associated with high debt levels.
Revenue Impact from Event Timing: The guidance for 2025 includes an unfavorable impact of approximately $55 million in revenue due to the timing of the Royal Rumble event being hosted outside North America, which could affect overall growth projections.
Profitability Concerns Ahead: The expectation of fewer Apex events in 2025, which typically have higher margins, suggests a potential decline in profitability despite increased revenue from international events.
TKO FAQs
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TKO Earning Call Sentiment
TKO Group Holdings, Inc. (TKO) Q4 2024 Earnings Call Transcript
TKO.N
-0.49%Positive
The earnings call reveals strong financial performance with record revenue, increased EBITDA, and a robust capital return program. Despite some challenges like WWE revenue decline and integration risks, optimistic guidance and new partnerships, such as with Netflix, signal positive growth. The Q&A section confirms strategic focus and potential new opportunities in boxing and international markets. Overall, financial metrics and strategic moves outweigh potential risks, suggesting a positive stock price movement.
