TKO Group, the publicly listed combined ownership company of mixed martial arts promotion UFC and professional wrestling promotion WWE, has achieved a 4% increase in revenue for the first quarter (Q1) of 2025.
The company’s financial results for the period ending March 31 showed revenue climbed to $1.27 billion, up $46.4 million from the prior year, while Adjusted EBITDA was up $78.5 million (23%) to $417.4 million.
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TKO’s net income for the quarter was $165.5 million, an increase of $400 million from a net loss of $234.5 million in 2024.
The group said the profit primarily reflected a growth in revenue and a decrease in operating expenses.
The decrease in operating expenses was attributed to a drop in selling, general, and administrative expenses of $305 million, a fall in direct operating costs of $38 million, and a decrease in depreciation and amortization of $21.6 million.
The reduction in selling, general, and administrative expenses was primarily related to the previous year’s reporting period including the $335 million settlement that UFC paid a host of former fighters that launched two antitrust lawsuits against the company.
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By GlobalDataSettling out of court allowed TKO to avoid a trial for the lawsuits that sought up to $1.6 billion in damages.
Individually between the two sports properties, UFC's Q1 revenue ($359.7 million) was outpaced by WWE’s ($391.5 million).
UFC revenue grew by $46.7 million (15%) year-on-year compared to Q1 2024, driven by a $23.3 million increase in live events and hospitality revenue, a $15.7 million rise in partnerships and marketing income, and a $9.6 million increase in media rights, production, and content revenue.
The rise in live events and hospitality revenue was due to higher site fee revenues, primarily related to an event held in Saudi Arabia, as well as higher ticket sales, related to an increase in both price and attendance, compared to the prior year period.
Meanwhile, WWE’s revenue was up by $74.8 million (24%) from $316.7 million last year. This was due to an increase in media rights, production, and content ($30.5 million) income, live events and hospitality ($26.1 million), partnerships and marketing ($11.8 million), and consumer products licensing and other revenue ($6.4 million).
The increase in WWE’s media rights revenue was bolstered by the lucrative new global deal with streaming giant Netflix.
In February, TKO completed the acquisition of a trio of high-profile sports and entertainment assets from its parent company Endeavor.
Through a $3.25 billion all-equity purchase, the major sports and entertainment agency IMG, the events and hospitality firm On Location, and the bull riding touring competition Professional Bull Riders (PBR) were taken under the TKO Group umbrella.
In its Q1 financial results, TKO also presented figures for its acquired businesses, with IMG’s revenue falling 13%, or $73.4 million, to $476.3 million.
This was attributed to a $64.6 million decrease in live events and hospitality, and a $16.2 million fall in media rights, production, and content revenue, partially offset by a $9.3 million increase in partnerships and marketing income.
The decrease in live events and hospitality revenue was put down to a fall in turnover at On Location due to “less favorable locations and venues” related to the Super Bowl and collegiate Bowl Games compared to the prior year period.
The drop in media rights, production, and content income was due to a decrease in revenue at IMG related to no longer having rights to English soccer’s FA Cup knockout competition in the current year.
TKO’s revenue from its corporate and other segment, which reflects operations not allocated to the UFC, WWE, or IMG and includes PBR, increased 4%, or $2.2 million, to $54.4 million.
Revenue related to PBR saw a $3.4 million increase in live events and hospitality revenue, and a $1.2 million rise in partnerships and marketing income, partially offset by a $2.9 million decrease in media rights, production, and content revenue.
Based on its Q1 results, TKO has raised its full year guidance for 2025 (excluding the acquired businesses) and is now targeting revenue of between $3.005 billion and $3.075 billion and Adjusted EBITDA of $1.390 billion to $1.430 billion.
With IMG, On Location, and PBR included, the company is targeting full year 2025 revenue of $4.490 billion to $4.560 billion and Adjusted EBITDA of $1.490 billion to $1.530 billion.
Ariel Emanuel, executive chair and CEO of TKO, said: “TKO is off to a good start in 2025 with both UFC and WWE delivering solid financial results. 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.”
In 2024, the first full year that TKO controlled WWE after its completed merger with UFC in September 2023, the company’s revenue shot up by 67% to $2.8 billion.
TKO will soon also be entering the boxing space after recently announcing a multi-year partnership with Saudi Arabian events company Sela and high-profile boxing figurehead Turki Alalshikh to launch a new boxing promotion.
The as-yet-unnamed promotion, which will debut later in 2025, will feature an in-house roster of fighters with a focus on developing the sport's upcoming talents.
