Endeavor (EDR) 8 Nov 232023 Q3 Earnings call transcript

Hello. Welcome to the Endeavor Third Quarter 2023 Results Call. My name is Lauren, and I will be coordinating your call today. [Operator Instructions]I will now hand you over to your host, James Marsh, Head of Investor Relations, to begin. Please go ahead.

to Quarter welcome Earnings and morning, Endeavour's XXXX Third Call. Good a while Investor which ago, short press Relations we investor.endeavorco.com. our A on issued release, view you site, can that call be of XX will recording at least this available A via site for days. also from hear Ariel CEO, before will Jason who joins Emmanuel; Mark and COO, you Shapiro, CFO, us Lublin, Endeavour's Today, and President for Q&A. quarter call is the our third with to information you this XXXX provide of purpose The performance. regarding Endeavour's results Commentary September WWE's results related of WWE's the to from XX. through reflect financial for XX in period and the performance context business September the I projections discussed Commission, including do the want and described to remind and risks, section XX-Qs involve our Risk include everyone assumptions and/or with that of statements the and well filings as information in Securities forward-looking Exchange uncertainties XX-K. as will that Factors our risks incorrect, prove expressed statements If any ever from our implied results uncertainties and by these or those differ such forward-looking materially or materialize assumptions or projections. may

date and events, except only required. publicly new future as or Forward-looking to no information in light were them we they of as statements update obligation undertake of speak the made, legally

be found over posted Ariel With the press website. between and in in investors commentary operating our on turn use our in Our also financial for our GAAP results non-GAAP non-GAAP which in in accordance believe or Reconciliations as not I'll from will isolation it IR GAAP. financial can provide This tool prepared issued additional for evaluating for include we that, ongoing our with measure trends. information results an considered information Emmanuel. well and CEO, today measures, metrics release should today to be substitute a financial non-GAAP as to as reported

James, Thanks, good morning, everyone. and

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of our of you be good walking in our quarter. segments. Ari, I'll around comparisons third XXXX. All what financial each seeing third Thanks, for the results quarter I'll morning, to through and by we're the provide start some color you then will operating everyone.

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our I'll of you Now each segments. through walk

of Sports revenue XX.X%. own or in million $XXX.X the Our $XX.X Property up generated million quarter, segment

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to prior in comparative events XX a the events a included $XX drove related sold the As million posted year quarter also PBR attendance of Diamond quarter, in revenue Holdings, Baseball which XXXX. in increase XXXX. which Series we in XX% September reminder, over

was and well media from in certain or Academy, in sold to Orleans This hospitality of adjusted quarter business occur new the premium for New by segment the Pep quadrennial or Experiences Events Endeavor included did $XX.X EBITDA Event as including of for decreases on the $XX.X decrease which Rugby Major events $XX year. by the IMG year third to World revenue Art IMG million down segment Writer events, and prior of in last adjusted our Cup, Streaming. million League driven increases which million began Soccer, quarter in ongoing revenue turning of as costs Segment marketing media Armory recorded $XXX.X of primarily at X%. The Segment technology Ryder sale was of new July is past on-location this production media at contracts, affected partially of the year Rights. biannual inclusive and Cup. The at XX.X%. from acquisition the revenue was by and and June. we revenue quarter IMG's IOC adversely personnel, Fair primarily not Show related million, investment, which Live Bare in Now revenue this and EBITDA production including such down XXXX. $XX.X offset million, Increased locations and revenue as Jackson, Academy,

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a affected to million As revenues in our impact the million quarter. $XX agency result, in the the of adversely $XX strike range

to to WGA of fourth originally the the to SAG lagging quarter, as the ongoing strikes of on meaningfully the continue the Looking effect production. we ramp estimated expect strikes, time well as the impact needed based after strike the

growth in attributed September Technology Now million, bettiing Growth at $XX as turning streaming addition up widening up $XX.X while the Data in IMG to and which revenue million, across XXXX this $XXX.X segment. a portfolio. as Revenue adjusted million. to $XX.X and EBITDA arena data OpenBet, well was our of Sports of segment acquired in was and million, we was

IMG Winmilton, a Arena to Conference to and partnership more XXX with and matches. for the football basketball. rights women's feeds data entered than become official USA Arena men also data collector sportsbooks covering For XXX delivered multiyear IMG week's

ended with billion quarter $X.XX $X.XX Moving the billion in our net resulting billion in structure. $X.XX debt. and cash, capital debt in on to We in

end. leverage at net Our quarter was X.XXx

hand issuer a and the As recognition Global our time. Ratings S&P over Endeavour's to given upgraded capital inclusive of close that, annual our the to B+. credit I'll of UFC we BB- alternatives, are transaction, this parent review at previously discussions of and Group from conclusion, deleveraging tabling Credit related it of recently With James. progress to announced rating, guidance In allocation TKO strategic

for Thanks, open up we Jason. Operator, can questions now.

[Operator Our Gulmarg comes question [Phon] ISI. first Instructions] Kurt from with Ethical

and on strike If of I the the health consumer. could, on one the one

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Thank added you. any perspective. appreciate we'd So

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time line So that. all that's of the kind to of

I Mark consumer. will think hit the

will and be Hey bad the were this Kurt, same I this on going morning call. strike wake sure Too thing thought you. are Yes. Davos how thinking and I'm up we over. the to

get the for the by we to hope Disney, Let's case time sake. that's everybody's

answered don't On insulated, reporting somewhat of and here. to to you I Disney look, But peers for line year seem until now, the their heck general is insulated But want be of health they're bottom up the somewhat kind we it. consumer, the anything are this later going profits forecasting right? of far today. to that so is in they're $XX go theme parks. kind billion our

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believing on to far, an consumer So, insulated we're it. for keeping and we're eye so seems health strong,

question comes Our from David from next JPMorgan. Karnovsky

Maybe the up you. prior Thank following question. on

provide scripted we we the been of of demand past XXXX think levels. whether there's side, of I the game pent-up investor for about grow concerttouring And maybe once updated it As rep on on amount reach end kind period? strike, actor fair get initial of the the our you can just the environment a on sticking then view that debate sustainability

your artists in road you I QX. mentioned XXX the think of on

might would Thanks. I on how your into view So that 'XX. sustainability, appreciate look

pent-up I demand the see anytime don't soon. ending

do be to mainly to because You're going thing people happening. be scheduling product much so hardest the to we're going to there's The actor ramping. of have going side is on

don't I -- that regard, the slow going anything wave a content so constant the believe think don't to And of after down is case. peak. in this even drumbeat first at this I that's

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You want to...

Yes.

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Goldman Steve Lacszcyk from question comes Sachs. from next Our

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for PGA. there a have the also bid You out

us forward? growth TKO might the quarter? And just Could then year-over-year to the in us that going So one just strategy from extent differ approach income and in there's what scale quick might the could maybe how a think if strategy at I we for you inorganic drove for that just that change unpack the how platform update Endeavor, the Jason. industry was curious on in you net opportunity sports

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festival. In music addition, we're a adding

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sports, actually you you when about sports, really as think are those the event. define those So

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Yes.

know fact on it already elaborate mentioned Just think on just that I that. glad of lot discussion to to you written Stephen, want there's been that a responded I a I'm about lot it, because I the this, and

the M&A. with consistent we Just on with maximize even to we we The synergies. with at make not well. focused represented same-sitesponsorship. be we sure of we Tour. we them golfers, internationally make set media even as our we're fans Ari's -- a closely Endeavor in side, dialogue here. everybody a because times, are to very and we represent comprehensive on but We're revenue owned they the have level Obviously, on integration represent want working rights have and and PGA On history to about what TKO do. PGA sure elaborate We them flywheel thinking long point, the there, to We're events, some lot certainly not

over their World. XXX the official clients we sports DP tour, partners have We betting, analytics. do are have that like XX of We

on So we commercial you will, if have services. multiple disciplines,

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I context here. important can net is about think income. So that Jason, very talk you the

Yes, Steve, transaction million neighborhood two on would point the neighborhood line, plus to the in and $XX costs income being the -- transaction transaction with net One also primarily items. two costs $XX-ish I TKO associated million associated with in that restructuring of the plus. of

So nonrecurring. obviously, big and in the impact those onetime both income net nature for were quarter, to

Our from from Cowen. next Glagola question TD comes Stephen

Ari, to view existing synergies within consideration you any you exploring? X.X do other private of a see platform currently potential hinder as Lake's Endeavor own? would you're that relative ago, do assets Silver the take go-private public think took years you strategic alternatives how a proposal recently you also, And you

know around that I'm private or are question. and that, review I'm on relates as not anything I appreciate anything or go we the the lawyers just mentioned. to answer my the Since it you've But have, you commenting to going

ask you mind that. then for more, Do question I Okay. if apologize

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from comes question Steve Partners. next Port Our final Joyce from Research David

some do where drivers could On the business, rights data purview much still you you rely there? the adding could the any and Sports you Data on of or what's internationally? here? talk be growth Technology domestically further How of regulation about to And your from

David. Thanks, it. one us right. All I love Bringing with S&T,

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Operator, David. everyone Thanks, to Thank call. can close in here. just want the conclusion thank you. I you

joining, Thank This everyone. today's call. concludes for you

You your may now disconnect lines.