UFC drives Endeavor’s Q1 2022 net income to US$517.7m

  • EBITDA increases 58% YoY to US$314.4m
  • Full year 2022 revenue guidance raised to between US$5.24bn and US$5.48bn
  • Professional Bull Riders breaks ten all-time gross sales event records

Global sports and entertainment conglomerate Endeavor Group Holdings saw its revenue hit US$1.47 billion for the three months ended 31st March 2022, a year-over-year (YoY) increase of 37 per cent.

The company, which owns the Ultimate Fighting Championship (UFC) and Professional Bull Riders (PBR), as well as the IMG and WME agencies, posted a net income of US$517.7 million for Q1. This was up from the US$2.4 million net income in the same period last year when financial results were impacted by Covid-19.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 58 per cent YoY to US$314.4 million.

Other highlights for Endeavor during Q1 included all UFC pay-per-view (PPV) events selling out, while PBR broke ten all-time gross sales event records, including seven sold-out shows.

Per segment, owned sports properties revenue was US$296.7 million for the quarter, up five per cent YoY. Increases were primarily driven by greater sponsorship, licensing, commercial PPV and event-related revenue for the UFC, as well as a greater number of PBR events with full attendance. Adjusted EBITDA was US$148.7 million, up two per cent YoY.

The events, experiences and rights segment revenue was up 53 per cent YoY to US$825.8 million. This was mainly thanks to the return of more full-capacity live events in the quarter, including Super Bowl LVI, the Miami Open and the National Collegiate Athletic Association (NCAA) Final Four. US$38 million in revenue also arrived from the acquisition of the Next College Student Athlete (NCSA) recruiting platform, which closed in Q2 2021. Adjusted EBITDA leapt 239 per cent YoY to US$132.5 million.

Revenue for the representation segment climbed 44 per cent YoY to US$357.3 million. Increased brand spending, as well as higher commissions and the recovery of live entertainment, were credited for the uptick. Adjusted EBITDA was $101.7 million, up 65 per cent YoY.

At the close of Q1, Endeavor’s cash and cash equivalents totalled US$2.03 billion, compared to US$1.56 billion at 31st December 2021. Total debt stood at US$5.70 billion, having been US$5.71 billion at the close of 2021.

For the 2022 financial year, Endeavor expects revenue to be between US$5.24 billion and $5.48 billion. Adjusted EBITDA is projected to be between US$1.1 billion and US$1.15 billion. The guidance for both has been raised.

“Our growth in the first quarter was driven by our ability to respond to the high demand for premium content and live events,” said Ariel Emanuel, chief executive of Endeavor.

“We feel great about where we sit relative to the secular tailwinds across all of our businesses, and we’ve raised our guidance for the fourth quarter in a row to reflect our positive outlook for the balance of the year.”

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