TKO Group Holdings’ 2024 Third Quarter Earnings Call Highlights: NXT Viewership, Move to Netflix, More

Seth Zaslow opened the session with a welcome address before pre-recorded remarks from CEO Ari Emanuel were played. Emanuel highlighted the company’s strong position, affirming their confidence in meeting year-end financial guidance.

He detailed their cash dividend program and acquisitions, including IMG, On Location, and PBR, noting that these deals strategically enhance their portfolio. Emanuel announced that On Location has extended its partnership with the NFL until 2036. He also praised WWE’s successful ventures, such as their record-breaking event in Japan, the German PLE, and SummerSlam achieving the highest grossing non-WrestleMania event in history.

Emanuel pointed out a 12% increase in NXT viewership since its move to The CW. He also emphasized the strengthening relationship between WWE and NBC/USA Network with SmackDown and Saturday Night’s Main Event, along with the upcoming debut of Raw on Netflix set for January 6.

The company also reviewed the resolution of the UFC fighters’ lawsuit and recapped key financial data from the day’s report. The short-term Raw deal with USA Network contributed to a $50 million quarterly loss due to timing issues.

The floor was opened for questions. Emanuel stated that TKO continues to integrate WWE and UFC, focusing on strategies that align the brands alongside PBR for multi-event weekends, allowing sponsorships to be bundled. This approach aims to maximize the value of each brand while maintaining their distinct identities. They are also leveraging UFC’s strong broadcast performance to drive subscriptions and advertising. Emanuel emphasized that WWE remains a cornerstone for cable and broadcast networks, and they are open to exploring new partnerships to maintain this status.

When questioned about the distribution differences between WWE and UFC, executives explained that UFC’s pay-per-view model remains the optimal choice for domestic markets, with ESPN handling U.S. distribution. They described international sales as robust and highlighted their adaptability across different business models, positioning UFC as an attractive asset for future media partnerships.

Dana White’s recent comments about potential boxing ventures were addressed. The leadership described boxing as fragmented but acknowledged White and Nick Khan’s expertise in the sport. They stated that any move into boxing would require a partner willing to finance operations, as TKO would not independently fund such an expansion.

The company hinted at expanding UFC Fight Pass with more live events and original content.

Regarding WWE’s growing sponsorships as the Netflix deal approaches, executives described the collaboration as “remarkable.” Netflix’s innovative approach brought Minute Maid on board as a WWE sponsor. Nick Khan highlighted the platform’s 650 million global viewers, predicting significant growth after the January launch due to this extensive reach.

When asked about cost synergies between WWE and UFC, TKO leaders affirmed that they are on track to surpass their $100 million savings target, with detailed full-year results expected in February 2025. Mark Shapiro added that talent retention remains strong, as both WWE and UFC are regarded as top-tier destinations.

Finally, TKO clarified that they are not considering purchasing any assets Endeavor might sell, though Ari Emanuel could potentially be a private bidder.

With that, the call concluded.