US sports giant Endeavor has reported an overall revenue of $1.34 billion for the third quarter (Q3) of 2023, a rise of 10% from 2022.
The increase was powered by the brand’s owned sports properties segment, which includes its 51% stake in TKO Group, the parent company of wrestling promotion World Wrestling Entertainment and mixed martial arts promotion Ultimate Fighting Championship (UFC).
The owned sports properties division, which also owns the Professional Bull Riders league, generated $470.7 million for Endeavor, a rise of 19.3%.
The TKO Group alone contributed $449.1 million of revenue toward this, with the group having posted its own Q3 results on November 8.
However, the increased revenue could not stop Endeavor’s net loss for the period increasing to $116 million.
The TKO Group merger was closed in Q3 2023, meaning the costs surrounding the merger will have affected its overall net income, which saw a slump down to $22 million on the previous year’s UFC Q3 performance.
The group attributed the fall in year-on-year net income to higher operating expenses, as well as the costs of restructuring, professional fees, and bonuses surrounding the merger.
The costs of the TKO Group merger, namely restructuring, professional fees, and bonuses, have also had an adverse effect.
Meanwhile, Endeavor’s sports data and technology division also grew largely, increasing its revenue to $124.8 million, a 167.2% increase. On the other hand, the company’s events, experiences, and rights segment was down $27.1 million (6.9% on the previous year).
The one segment of the company that remained consistent in its year-on-year performance was the representation segment, which was down by $2.7 million to $385.6 million for the quarter, a fall of 0.7%.
The realignment of objectives in the wake of the TKO merger has led TKO Group majority owner, private equity firm Silver Lake, to consider taking Endeavor private, a prospect that may be more realistic in the wake of the widening net loss in Q3.
Endeavor’s chief executive Ari Emanuel said, when announcing that review: “Given the continued dislocation between Endeavor's public market value and the intrinsic value of Endeavor's underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders.”
