TKO Group Holdings, Inc. has released its financial results for both the fourth quarter and full year of 2024. For the entire year, TKO, which includes WWE and UFC, reported revenue of $2.804 billion, with a net income of $6.4 million.
In the fourth quarter alone, the company generated $642.2 million in revenue and a net income of $47.5 million. WWE contributed $1.398 billion in revenue for the year, while UFC slightly outpaced it with $1.406 billion.
TKO officially became a company on September 12, 2023, when WWE and UFC merged under one brand. Because of this, the financial numbers before that date only include UFC.
In the last quarter of 2024, TKOs revenue increased by 5% compared to the previous year, reaching $642.2 million. UFCs revenue grew by $61.1 million, bringing it to $343.9 million. However, WWEs revenue dropped by $32.9 million to $298.3 million, mainly due to the move of its flagship show, Raw.
The companys net income for the quarter increased by $63.6 million, going from a $16.1 million loss the year before to a profit of $47.5 million. This improvement was due to higher revenue and lower expenses, including a $19 million drop in depreciation and a $11.5 million reduction in administrative costs. However, operating costs went up by $19.7 million.
The companys adjusted EBITDA (a measure of profit before some expenses) for the quarter rose by 7%, reaching $238.1 million. UFC helped by increasing profits by $35.5 million, and corporate costs went down by $6.1 million. However, WWEs profits dropped by $26.7 million due to Raws transition.
The companys cash flow from operations was $56.8 million, which was $163.9 million less than the year before, mainly because of a $125 million payment related to UFCs antitrust lawsuit. Free cash flow (money left after expenses) also fell by $148.2 million to $36.5 million. By the end of 2024, TKO had $525.6 million in cash, while its total debt stood at $2.78 billion.
For the full year, TKOs revenue grew by 67%, increasing by $1.129 billion to reach $2.804 billion. WWE made up $1.398 billion of that total, while UFC brought in $1.406 billion. However, net income for the year dropped by $169.3 million to just $6.4 million, mainly due to higher expenses. Costs went up in several areas, including a $385.3 million increase in operating expenses, a $679.6 million rise in administrative costs, and a $228.2 million jump in depreciation. The UFC antitrust lawsuit also cost the company $375 million in settlements.
Despite higher costs, adjusted EBITDA for the year increased by 55%, reaching $1.251 billion. WWE contributed the most to this growth, adding $518.1 million, while UFC added $45.3 million.
However, corporate expenses also went up by $121.3 million. Cash flow from operations improved to $583.4 million, which was $115 million more than the year before, mainly due to better timing of payments. Free cash flow also grew to $508.5 million, despite higher spending on infrastructure.
For 2025, TKO has set big financial goals. The company expects revenue between $2.93 billion and $3 billion, with an adjusted EBITDA target of $1.35 billion to $1.39 billion. CEO Ariel Emanuel said the company had a strong 2024 and highlighted UFC and WWEs success. Key priorities for 2025 include finalizing U.S. media rights deals for both UFC and WWE events, integrating new businesses like IMG and Professional Bull Riders, improving live event experiences, and continuing stock buybacks for investors.
TKOs high revenue shows that WWE and UFC are strong global entertainment brands. However, the big drop in net income raises concerns about how the company manages its money and plans for the future. Therefore, well have to see how 2025 turns out for TKO in the end.
Do you think TKOs revenue will continue to grow in 2025, or will legal expenses and media rights transitions create more financial challenges?
