TKO Group Holdings beat Wall Street expectations in its first quarter earnings report, with the WWE‘s new media rights deal with Netflix, strong live event performance at UFC and WWE, and significant growth in partnerships at both brands helping the company set itself up for what it hopes will be a strong 2025.
The company reported revenues of $1.3 billion, with net income of $166 million and adjusted EBITDA of $417 million, all substantial improvements from a year ago. The company also raised its full year 2025 guidance to revenue of between $3.005 billion to $3.075 billion, from $2.930 billion to $3.000 billion, and adjusted EBITDA to $1.390 billion to $1.430 billion, from $1.350 billion to $1.390 billion, excluding the IMG businesses.
It was also a notable quarter in that TKO completed its acquisition of IMG, PBR and On Location, which it acquired from its controlling shareholder Endeavor. With the deal closed, TKO created a new IMG reporting segment that includes IMG and On Location, with PBR results folded into “corporate and other.”
UFC had revenue of $360 million, with substantial boosts in both live events and partnerships, while WWE revenue surged to $392 million, thanks to boosts in media rights, partnerships and live events. IMG revenue was $476 million in the quarter.
The company is in the midst of negotiating U.S. rights for UFC, targeting a substantial fee increase, and will begin discussions around the WWE “premium live events” like Wrestlemania in the coming months.
“TKO is off to a good start in 2025 with both UFC and WWE delivering solid financial results,” said TKO CEO and executive chair Ari Emanuel. “Given the strength and momentum of these businesses and no material change to our overall business outlook, we are raising our guidance. At the same time, we are updating guidance to reflect the addition of IMG, On Location, and PBR. Our conviction in our portfolio of assets is strong and we are now focused on integration, driving synergies, the domestic media rights deal for UFC, and our capital return programs.”
