TKO Group Holdings, a standout in its first year as a public company, showcased robust revenue growth and solid profitability. Anticipating accelerated expansion in 2025, the company has exciting big deals in the pipeline.
Strong Q4 earnings were reported by TKO, with a topline revenue of $642.2 million, a net income of $47.5 million, and adjusted EBITDA of $238.1 million. Notably, UFC’s substantial growth offset a decline in WWE’s revenue, attributed to the transition of WWE Raw from USA Network to Netflix. TKO foresees continuous revenue growth for WWE with new deals in place, leading to promising future prospects.
Looking ahead to 2025, TKO projects revenue between $2.93-$3 billion and adjusted EBITDA ranging from $1.35-$1.39 billion. The company’s pending acquisition of Endeavor businesses, including IMG, On Location, and Professional Bull Riders in a $3.25 billion stock deal, is slated to close in the near future, further enhancing TKO’s portfolio.
Beyond the Endeavor deal, TKO is actively engaged in rights negotiations with ESPN for UFC, potentially paving the way for new market opportunities. Discussions for WWE premium live events such as Wrestlemania and the Royal Rumble are also on the horizon, indicating a dynamic year ahead in dealmaking.
Formed in 2023 through the merger of UFC and WWE under Endeavor, TKO’s success in 2024 has been attributed to its robust IP, engaged audiences, and a talented team. CEO Ariel Emanuel emphasized the focus on securing long-term media rights for UFC and WWE events, integrating new acquisitions, enhancing live events, and prioritizing shareholder returns in the upcoming year.
With a clear vision for growth and innovation, TKO Group Holdings is poised for a remarkable 2025, solidifying its position as a key player in the entertainment industry.