TKO Group Holdings Records $249.5 Million Net Loss in Q1 2024 Due to UFC Antitrust Settlement

TKO Group Holdings reported a net loss of $249.5 million in Q1 2024 due to a $335 million settlement of antitrust lawsuits against UFC, but expects to recover quickly, citing strong revenues from UFC and WWE, new partnerships, and media rights deals.

TKO Group Holdings took a hit in Q1 2024. The reason? They had to settle a couple of antitrust lawsuits against UFC. But don’t worry, they’re not sweating it. They’re expecting to bounce back pretty fast for the rest of the year.

They filed some paperwork with the Securities and Exchange Commission on Wednesday. It wasn’t great news. TKO reported a net loss of $249.5 million for the quarter. Ouch. And the main culprit? A whopping $335 million settlement to end those antitrust lawsuits.

But wait, there’s a catch. The settlement still needs the green light from the courts. If it goes through, TKO’s looking at a $335 million payout to settle both lawsuits. They’re planning to split it into three payments for the plaintiffs in the case. Two payments in 2024, totaling $200 million. Then, they’ll cough up another $135 million in 2025.

Despite this financial hiccup, TKO’s not doing too bad. They even managed to impress Wall Street with their revenue and growth for the quarter. UFC’s revenue went up by two percent year over year. They raked in $313 million in Q1 2024, compared to $306.7 million in 2023.

TKO’s CEO, Ari Emanuel, is pretty upbeat about it all. In a press release, he said, “TKO is off to a strong start in 2024. We’ve had record-setting live events, new brand partnerships, and media rights deals for WWE Raw.” He’s confident about the future too. “We’ve raised our full year 2024 guidance. We’re more convinced than ever in the combination of UFC and WWE, and in TKO’s ability to deliver sustainable long-term value for shareholders.”

UFC’s revenue boost was mainly driven by sponsorships and live events. But there was a dip in revenue from media rights. Why? They held one less event this quarter compared to the same time in 2023.

Over at WWE, things are looking up. Their revenue was up six percent to $316.7 million for the quarter. They’ve also struck a deal with NBCUniversal. Their flagship show, Monday Night Raw, will stay on the USA Network for the rest of 2024 for $25 million. But here’s the kicker: the show’s moving to Netflix in 2025.

Netflix shelled out a cool $5 billion for a 10-year deal to secure the rights to Raw starting in 2025. Not too shabby, eh?

TKO’s also pretty chuffed about UFC’s success. They held more live events in Q1, and UFC 300 was a big hit. They’re calling it “one of the most successful and highest-grossing events in UFC history.”


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