AS IT CRUISES TOWARD TAKE-PRIVATE DEAL, LACK OF CERTAIN EVENTS HITS ENDEAVOR IN Q1
As it cruises toward its $13 billion deal to go private with Silver Lake, Endeavor reported first-quarter earnings Thursday.
The company reported total revenue of $1.85 billion, and a net loss of $303.5 million, with adjusted EBITDA of $374.1 million. Total revenue was way up compared to last year, thanks to sports entertainment powerhouse WWE now being controlled by the company.
While the company's owned sports division (consisting primarily of TKO Group Holdings) reported a strong quarter of $685.4 million, its other divisions reported slight declines compared to last year, owing to fewer events being held in the first quarter of 2024 than the prior year.
In Endeavor's representation segment, which includes the WME talent agency, revenue was $345.5 million, down 1.4 percent. The company says that WME's music, comedy, talent and sports divisions were all up, but that "certain fashion projects" that took place in the first quarter of 2023 did not happen in the quarter this year, leading to the decline.
In its events, experiences and rights division, revenue was $744.9 million, down 7 percent, due to the sale of IMG Academy, as well as the timing of media rights held in 2023 that were not held in 2024. On Location and the Miami Open saw their revenue improve in the quarter.
The company's sports data and technology segment had revenue of $90.7 million, down 10.1 percent, due to the loss of certain data rights at IMG Arena offset somewhat by OpenBet.
"This quarter, Endeavor benefited from brisk demand for our sports and entertainment content, live events, and premium experiences," said CEO Ari Emanuel in a statement. "We remain focused on maintaining our momentum through the year while working toward the close of our take-private transaction with Silver Lake."
With the take-private still pending, the company will not host an earnings call.