Endeavor, the international entertainment agency giant, has posted losses of $16.7 million for the fourth quarter ending December 31, 2021.
This represents an improved performance year-on-year, with the agency posting losses of $56.5 million for the same period at the end of 2020.
Go deeper with GlobalData
The group’s revenue was also significantly up year-on-year, jumping from $960.9 million to $1.5 billion for Q4 2021 – ahead of analysts’ expectations of $1.36 billion.
The representation division of Endeavor – which includes talent and sports agencies IMG and WME – recorded a 161% year-on-year increase in its Q4 revenues, which now stand at $717.9 million.
Endeavor also owns the Ultimate Fighting Championship (UFC) mixed martial arts promotion – which recorded the best financial results in its 28-year history.
Consequently, Endeavor’s EBITDA (earnings before interest, taxation, depreciation, and amortization) came in at $229.5 million for Q4, up significantly from a total of $172.6 million from 2020.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn terms of full-year performance, the agency secured revenues of $5.1 billion in 2021, another uptick from 2020 when full income only amounted to $3.5 billion.
However, the net loss for 2021 came to $467.5 million.
Endeavor’s other two segments – owned sports properties, and events, experiences, and rights – also saw their revenues increase, by 3% and 23% respectively for the quarter.
Those segments recorded revenues for the entire 2021 year of $1.1 billion and $2 billion.
These impressive results sent Endeavor’s share price soaring by 7% in after-market trading – they then closed the regular trading session at $27.87, a rise of 4%.
Offering guidance for 2022’s expected financials, the company has said that it forecasts total revenue of between $5.2 billion and $5.45 billion, and adjusted EBITDA of between $1.07 billion and $1.12 billion.
Endeavor went public through an IPO in April last year.
Ariel Emanuel, Endeavor’s chief executive, said: “In our first year as a public company, we saw significant outperformance across our portfolio as the world began to emerge from the pandemic, with increased attendance at live events and continued heightened demand for premium content.
“Given the unique position we occupy in the content landscape, we remain confident about our ability to continue leveraging trends, unlocking growth, and delivering long-term value.”
These results add to Endeavor’s strong Q3 financials, in which the company generated $1.4 billion (up from $864.5 million for the equivalent period the year before).
In December, the agency giant launched Diamond Baseball Holdings, a subsidiary that is now responsible for the nine Minor League Baseball clubs from the US that the agency bought at the same time.
DBH will now be in charge of operating the following MiLB clubs, all of which fall into the Professional Development League category and are affiliated to franchises from the top-tier Major League Baseball: the Iowa Cubs, Memphis Redbirds, Scranton/Wilkes Barre RailRiders, Hudson Valley Renegades and San Jose Giants.
