BEVERLY HILLS, Calif.: Endeavor Group Holdings, Inc., a global sports and entertainment company, Tuesday released its financial results for the quarterly period and fiscal year ended December 31, 2023.
Endeavor’s fourth-quarter results reflected the company’s growth in sports through the acquisition of WWE last September, but its bottom line was hit by nearly $30 million in legal and restructuring costs and $47 million in write-offs from its Events, Experiences and Rights division, Variety reports.
On Wednesday, Endeavor reported full-year revenue of $5.96 billion, up from $5.26 billion in 2022, and adjusted earnings before interest, taxes, depreciation and amortization of $1.21 billion. Net income came in at $557.5 million. For Q4, Endeavor, which now incorporates UFC and WWE through the company’s majority interest in the newly formed TKO Group Holdings, delivered revenue of $1.58 billion and adjusted EBITDA of $292.8 million, up from $239.6 million in Q4 2022. Endeavor’s year-end quarter finished with a net loss of $29.3 million.
The Q4 numbers revealed that Endeavor paid out $20 million for an antitrust settlement; TKO, in its 10-K filing Tuesday, disclosed that the $20 million payment was to settle a 2022 lawsuit filed against WWE by MLW Media alleging that WWE interfered with MLW’s contractual relationship with certain media platforms and engaged in other anticompetitive and unfair business practices. In addition, Endeavor took a $47 million write-off in its Events, Experiences and Rights division that houses its On Location hospitality business and OpenBet sports wagering unit. Endeavor also recorded $9 million in corporate restructuring costs for the quarter and $40 million for the year.
The 2023 actor and writer strikes that stretched from May to November took a toll on Endeavor’s Representation segment, home to WME and IMG as well as the 160over90 branding agency. Adjusted EBITDA for the segment was $103.4 million for the quarter, down 16.5% from Q4 2022. For the year, adjusted EBITDA totaled $391.1 million, down 17%.
Full Year 2023 Consolidated Financial Results
Revenue: $5.960 billion
Net income: $557.5 million
Adjusted EBITDA: $1.216 billion
Q4 2023 Consolidated Financial Results
Revenue: $1.583 billion
Net loss: $29.3 million
Adjusted EBITDA: $292.8 million
“2023 was a transformational year for Endeavor as we strengthened our positions in sports and entertainment through many of our industry-leading assets,” said Ariel Emanuel, CEO, Endeavor. “Endeavor’s work with TKO to secure innovative media rights deals and landmark partnership agreements is proving our thesis, and we continue to benefit from demand for premium content and live experiences. We remain focused on maximizing shareholder value through quarterly dividend payments and our evaluation of strategic alternatives.”
Segment Operating Results
Owned Sports Properties segment revenue was $642.8 million for the quarter, up $341.3 million, or 113%, compared to the prior-year quarter, and was $1.82 billion for the year, up $483.5 million, or 36%, compared to the prior year. For the year, the increase in revenue was primarily attributed to the acquisition of WWE in September 2023, which contributed $383 million, and increases at UFC from higher media rights fees, including one additional PPV event; higher live event revenue, including five more events with live audiences during the year; and an increase from partnerships. The revenue increase was also attributable to greater demand for PBR event tickets and the second season of the PBR Teams series. These increases were partially offset by the sale of Diamond Baseball Holdings in September 2022. The segment’s Adjusted EBITDA was $224.7 million for the quarter, up $82.3 million, or 58%, compared to the prior-year quarter, and was $827.0 million for the year, up $178.9 million, or 28%, compared to the prior year.
Events, Experiences & Rights segment revenue was $414.5 million for the quarter, down $35.0 million, or 8%, compared to the prior-year quarter, and was $2.17 billion for the year, down $18.9 million, or 1%, compared to the prior year. For the year, segment revenue was primarily impacted by the sale of IMG Academy in June 2023, partially offset by the inclusion of Barrett-Jackson for the full year, as well as increases from growth in ticket sales and partnerships from new and existing events including the Madrid Open and Miami Open tennis tournaments. Media production revenue also increased primarily due to new contracts, including with Major League Soccer, as well as the timing of biennial and quadrennial events that occurred in 2023. The segment’s Adjusted EBITDA was $13.7 million for the quarter, down $17.0 million, or 55%, compared to the prior-year quarter, and was $228.1 million for the year, down $66.7 million, or 23%, compared to the prior year.
Representation segment revenue was $427.4 million for the quarter, up $18.9 million, or 5%, compared to the prior-year quarter, and was $1.54 billion for the year, up $32.3 million, or 2% compared to the prior year. For the year, the impact on segment revenue by the WGA and SAG-AFTRA strikes was more than offset by growth in WME’s music, sports, and fashion divisions, as well as increases at 160over90, licensing, and nonscripted content production deliveries. The segment’s Adjusted EBITDA was $103.4 million for the quarter, down $20.5 million, or 16.5%, compared to the prior-year quarter, and was $391.1 million for the year, down $78.6 million, or 17%, compared to the prior year.
Sports Data & Technology segment revenue was $113.6 million for the quarter, up $5.2 million, or 5%, compared to the prior-year quarter, and was $469.8 million for the year, up $209.3 million, or 80%, compared to the prior year. For the year, growth was driven by the inclusion of OpenBet, which we acquired in September 2022, as well as growth in IMG ARENA’s betting data and streaming portfolio. The segment’s Adjusted EBITDA was $20.5 million for the quarter, down $1.1 million, or 5%, compared to the prior-year quarter, and was $62.7 million, up $14.9 million, or 31%, compared to the prior year.
2023 Highlights
$5.960 billion in full year 2023 revenue
Closed acquisition of WWE and launched TKO Group Holdings, Inc.
Sold IMG Academy at an enterprise value of $1.25 billion
Implemented capital return program inclusive of share repurchases and ongoing quarterly cash dividend
Commenced formal review to evaluate strategic alternatives
