TKO Smashes Expectations Again with Landmark Media Deals Boosting 2025 Outlook

TKO Group Holdings reported strong third-quarter earnings this week. The parent company of UFC and WWE once again raised its full-year financial guidance. This marks another bullish step for the combat sports and entertainment giant.

The performance was fueled by a powerful quarter from WWE and landmark new media rights agreements. According to Reuters, the company’s latest deals have solidified a path for sustained growth.

Financial Performance and Segment Breakdown

TKO’s net income and adjusted EBITDA saw significant growth. The company’s confidence is clear from its raised 2025 targets. Revenue is now projected between $4.69 and $4.72 billion.

Adjusted EBITDA guidance was lifted to $1.57-1.58 billion. This follows multiple upward revisions throughout the year. The board also increased the company’s dividend.

UFC revenue for the quarter was $325.2 million. Adjusted EBITDA for the segment reached $165.6 million. The dip compared to last year is attributed to one fewer major event.

WWE revenue hit $402.1 million with $207.8 million in adjusted EBITDA. Growth was driven by higher media rights fees and live event sales. The segment’s new ESPN deal contributed to the strong results.

Strategic Moves and Boxing Focus Define Next Phase

Executive leadership pointed to recent deals as transformative. A new $7.7 billion UFC agreement with Paramount starts next year. WWE also secured a $325 million annual pact with ESPN.

Company executives highlighted boxing as a major new growth engine. Their Zuffa Boxing venture also partnered with Paramount. The plan is to stage two to four major fights annually.

President Mark Shapiro said the company is “on the hunt” for acquisitions. He noted the bar for new deals remains very high. Current focus is on executing the new media rights launches.

The goal is deeper integration between TKO’s portfolio of assets. This includes synergies with IMG, On Location, and Professional Bull Riders. Operational execution is now the top priority.

The latest TKO earnings report underscores a company firing on all cylinders. With its media future secured, the focus shifts to maximizing its powerhouse brands. The combat sports landscape is now firmly under TKO’s control.

Info at your fingertips

Q1: Why did TKO raise its financial guidance again?

TKO raised its outlook due to stronger-than-expected performance, particularly from WWE. Landmark new media rights deals for UFC and WWE also provide greater long-term revenue certainty. This increased confidence led to higher 2025 targets for both revenue and profit.

Q2: What is TKO’s strategy for boxing?

TKO is launching its Zuffa Boxing venture with a media deal already secured with Paramount. The company aims to promote between two and four major “mega fights” per year. Executives view boxing as a significant new growth opportunity alongside UFC and WWE.

Q3: How did UFC perform compared to last year?

UFC revenue saw a slight decline to $325.2 million for the quarter. This was primarily due to hosting one fewer numbered event. The comparison was also tough against last year’s record-breaking event at the Sphere in Las Vegas.

Q4: What drove WWE’s strong quarterly growth?

WWE growth came from higher media rights fees and increased live event site fees. The first event under its new ESPN partnership, Wrestlepalooza, also contributed. The segment’s adjusted EBITDA nearly matched UFC’s on higher revenue.

Q5: Is TKO planning more acquisitions?

Company executives stated they are actively looking for acquisition opportunities. However, they emphasized that the bar for any new deal is set very high. Current focus is on integrating existing assets like IMG and executing new media rights launches.