TKO Q1 financials reveal Raw will stay on USA until Netflix deal starts

TKO Group Holdings, Inc., the parent company of WWE and UFC, announced their financial results for first quarter of 2024 today (May 8).

Before we give you a peak at those reports*, we want to highlight one item from them that answers a questioning that’s been nagging since WWE announced its multi-billion dollar deal with Netflix back in January. Namely, where Raw will air between the end of the existing domestic rights deal with NBCUniversal and the start of the new one with Netflix — a two-plus month span from October 2024-January 2025.

Thanks to a deal WWE worked out with NBCUniversal (which takes over the rights to SmackDown this fall) Raw will be staying right where it is on USA. From TKO’s earnings report:

WWE entered into a $25 million domestic media rights agreement with NBCUniversal for Raw to remain on USA Network for the fourth quarter of 2024.

Wrestlenomics’ Brandon Thurston points out this is a nice deal for NBCUniversal, likely because WWE didn’t have a lot of suitors for 10-12 weeks of programming, even well-performing live programming like Raw.

As for TKO’s earnings, the company reported a net loss of $250 million for the quarter. Thurston points out that’s in large part because of the $335 million UFC spent to settle an antitrust lawsuit in March. $313 million in revenue was attributed to UFC, while WWE’s $316.7 million.

Here’s the overview. TKO’s full Q1 2024 earnings report can be found on their website here.

TKO Reports First Quarter 2024 Results
Updates Full Year 2024 Guidance

TKO Transaction Highlights

On September 12, 2023, Endeavor and WWE closed the transaction to combine UFC and WWE to form a new, publicly listed company, TKO Group Holdings, Inc. Reported results presented in this earnings release prior to September 12, 2023 reflect only UFC activity.

First Quarter 2024 Financial Highlights

• Revenue of $629.7 million
• Net loss of $249.5 million
• Adjusted EBITDA1 of $282.2 million

First Quarter 2024 Operational Highlights and Recent Developments
• UFC held 11 events, including five with live audiences, that consistently delivered strong viewership and attendance and set several all-time records for gross revenue at the respective arenas
• In April, UFC 300 was one of the most successful and highest-grossing events in UFC history with a gate of $16.5 million and attendance of 20,067 at T-Mobile Arena in Las Vegas
• WWE held 47 events, including two premium live events. Each WWE premium live event (Royal Rumble and Elimination Chamber) delivered all-time records for gross revenue and viewership for the respective event
• WWE entered into a long-term media rights agreement with Netflix for Raw beginning in January 2025; subsequently, WWE entered into a $25 million domestic media rights agreement with NBCUniversal for Raw to remain on USA Network for the fourth quarter of 2024
• In April, WrestleMania XL was held at Lincoln Financial Field in Philadelphia over two consecutive nights in front of a combined 145,298 fans. WrestleMania XL was the highest-grossing event in WWE history, increasing 78% as compared to the previous record set at WrestleMania 39. Prime Hydration, the exclusive “Official Hydration Drink Partner” of WWE, became the first partner to ever appear on the center of the WWE ring
• TKO reached an agreement to settle all claims asserted in both UFC antitrust lawsuits for an aggregate amount of $335 million. The settlement is payable in installments and is anticipated to be deductible for tax purposes

Full Year 2024 Guidance
• The Company increased its target for revenue to $2.610 billion to $2.685 billion
• The Company increased its target for Adjusted EBITDA to $1.185 billion to $1.205 billion
• The Company revised its target for Free Cash Flow Conversion2 to in excess of 40%

New York, NY, May 8, 2024 – TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its first quarter ended March 31, 2024.

“TKO is off to a strong start in 2024 with multiple record-setting live events, new brand partnerships, and media rights deals for WWE Raw,” said Ariel Emanuel, Executive Chair and CEO of TKO. “With our momentum in the first quarter and solid financial results, we have raised our full year 2024 guidance. We also reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. These positive developments, along with the strength in our underlying businesses, give us more conviction than ever in the combination of UFC and WWE, and in TKO’s ability to deliver sustainable long-term value for shareholders.”

* Meaningful analysis of these has always been a bit over the head of this rasslin’ blogger, and that’s even more true now that WWE’s numbers are mixed up with UFC’s. If you’re interested in more detail and insight, we strongly recommend a Wrestlenomics subscription (or at least giving Thurston a follow).