A run of sold-out UFC events helped drive strong third-quarter results for TKO, the league’s parent company. UFC revenue rose 60% year over year to $519.2 million, with gains across media rights, production and content, live events and hospitality, partnerships and marketing, and consumer products licensing and other revenue.
Media rights, production and content revenue increased by $132.3 million. Live events and hospitality added $36 million, partnerships and marketing rose by $20.5 million, and consumer products licensing and other revenue contributed a further $5.2 million.
Across TKO, revenue reached $1.36 billion, up 21% from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 54% to $555.7 million. The company attributed $119.7 million of the increase to UFC and $9.4 million to WWE. TKO’s adjusted EBITDA margin expanded to 41%, compared with 32% in the year-ago quarter.
WWE had a more challenging quarter, partly because its main roster held three more events in the comparable period a year earlier. TKO also reported a strong quarter for IMG’s On Location premium events business, supported by major events around the World Cup.
TKO raised its full-year revenue forecast to between $5.790 billion and $5.830 billion, from a previous range of $5.790 billion, and increased its adjusted EBITDA target to between $2.295 billion and $2.315 billion. President and COO Mark Shapiro said the company’s third-quarter performance reflected demand for live events and experiences, and pointed to the strength of its portfolio and long-term revenue commitments.
Sources: Variety.