TKO (TKO) 7 Nov 232023 Q3 Earnings call transcript

Hello, everyone. Thank you for attending today's TKO third quarter 2023 earnings call. My name is Sierra, and I will be your moderator today. [Operator Instructions] I would now like to pass the conference over to our host, Seth Zaslow, Head of Investor Relations with TKO. Please proceed.

to quarter welcome earnings and afternoon, TKO's XXXX third call. Good a while Investor which ago, short press Relations we our A on issued release, view you website. can website also recording available A call least will this via days. of our for at XX be

Commission is are today's the of everyone COO; information Officer; Ari these risks further uncertainties and the Please third from and/or and Emanuel, TKO's Andrew and results provide remarks call detail. from were Schleimer, purpose forward-looking statements our to or Andrew, assumptions. Joining or Mark any call remind materially Chief call or differ I to our information projections our those open Shapiro, Exchange for with me that on questions. The regarding see this incorrect, XXXX Ari our quarter that expressed on the assumptions prepared implied do for will we'll risks, call. may President with and to Executive prove uncertainties discussed If involve you filings materialize want CFO. After our include and performance. this Securities

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

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

markets, strategy. executing good largest including focused XX, rights WWE ever global guided, Endeavor on of integration the the everyone. and we the InBev. end media WWE, call. Seth, and high SmackDown AB Arabia synergies range cost and launching teams for first Thanks, Saudi to with includes international earnings our on and and identifying closing NXT have This partnership deal TKO's Australia, new at Welcome September been UFC our for Since to delivering bringing afternoon, events at and TKO UFC increases

provides Andrew positioned why the the to Before highlight about play ongoing so content companies progress and accelerate on together financial demand pure leading update, events. entertainment we're growth brings to to making a long-term capitalize I'd live unlock reiterate like sports TKO and for and uniquely for are we're premium shareholders. TKO X that value bullish and

that their a brands content few While WWE are more UFC premium capitalize as with know examples. we live in on fans round combined a events can and WWE's and Both iconic billion X UFC similarities we year distinct, and remain season than globally. just reached

sports ecosystem. content digital Our large, are WWE games levers are channels, of and for Both UFC is properties linear, social deeply sports Both betting. the and and across tailor-made have who video an fan diverse young engaged churn. bases antidote all for and

WWE media the upside our media group domestic enormous internationally, and addition and the Endeavor. for to In deals, leverage at high-margin powered UFC when inside U.S. IMG distribution of especially growth scale by have

increase X we margins anticipate vast the We flywheel. activate bring an the transaction April, the we've revenue strategic potential growth, these by for profile profitability rationale of underpinned we As will businesses result array expect articulated since in and TKO. as and together enhanced financial of synergies this is accelerated and this revenue Endeavor

hosting progress brand. that Sydney, all Notably, and the in particularly global including internationally the we Department East. nights Abu extension event of to significant growth X of region. Singapore to the record-breaking popularity and Paris October, and Culture and of with Now fight continue up events each reach turning partnership sellouts to in in UFC, and see numbered Tourism, Middle the making Dhabi, potential quarter, announced some highlights. In UFC's X the we the expansion, had underscore in one we UFC longstanding the At is there in the year

bringing assumptions a Additionally, expand Season. on country. of It will region arts March when UFC is mixed our events investment and Saudi and also the in a we the and despite relationship WWE's bases over a to we clear every the more presence growing with have the reflects remain deal recent made businesses WWE that Fighters indication in Kingdom Saudi next as the their with ever martial part in commitment builds partnership East, Saudi fight night Arabia's its UFC on longstanding built Professional fan focused debuts Riyadh strong there and Arabia first Arabia the time. in our to intention UFC premium Middle growing about presence of This has League. Both

site significant and high-margin a growth UFC which opportunity fees, both for Importantly, WWE. these deals represent include new

far are fees, new to track secure as site we agreement DCT we expand footprint. and deals Dhabi, to our by recent mid-X Abu in So figures anticipate we in close with and growth meaningful sign XXXX, live our time on events' anchored over

will TKO. our in subscriptions, integrate live its full We a the beginning significant U.S. UFC's beer biggest UFC The are bring significant with deal, Mexico, official from international particularly levels, deal ever The Bud in will also across America. Pivoting South sales a including and across ticket assets, marketing bring brands XXXX. become new social global and AB partner and InBev the media. marketing to Octagon viewership into in events flywheel global for InBev leveraging InBev in cash just and the secured globally Light and WWE. broadcast to partnership to aggregate, commitment multiyear DXC to we've Endeavor be events, opportunities AB Brazil driver AB for announced

will part next Australia August. its tourism return that event unveiled to WWE as a side, XXXX. records X WWE Australia in the Germany also first-ever in will new its quarter includes in ever events On live premium set stage multiple live partnership February premium Western site third largest for fee. event the international WWE and of

on the We it making CW pleased of media AAV increase in a this for which XX-year new The air on This first next with property, also secured history, WWE's superstars. announce solid X-year are NXT's we agreement deal front. Today, television. generation time to are XX% Network. a marks WWE rights NXT will progress the broadcast We for highlights

an process More linear with which encouraging and should brisk, and are multiple serve base to quite the importantly, the partners. our sign raw moment as vis-a-vis were streaming investor our active at demand which discussions,

heels October. have year measured, next The partner, in right in Network produce time includes and marking find time. AAV the to on a NBCUniversal, X-year to comes represents SmackDown Given September that value. back the on of we with maximizing a will we remain on annual agreement, until in-house, we all WWE air the X deal partnership which deal and over new we patient strategic to increase will October next XX% announced air the approach WWE primetime of That the NXT content our first will bring which prime that USA NBC, WWE network SmackDown existing specials in

but is after UFC to and just roof, started. With truly I'll working months the getting that, progress, WWE bringing work made playbook great Andrew. X as the is one hand designed. We've Just under off

everyone. afternoon, good and Ari, Thanks,

updates report our Before I how a couple want will and financials. integration we on of to share our our results, I discuss

them X we're rights businesses financial highly brands in the to roof. WWE stronger. Recently, April. Endeavor excited on announced make since we've and As iconic that results. we've the and delivering and are Further cost and NXT work and deal side, realized UFC with these only renewals SmackDown sponsorship Ari meaningful in highlighted, for one very back hard wins number realize discussing businesses well-positioned and the with for of Combining to These about the synergies strong Ari's InBev. beginning success bringing under been investors the with revenue the businesses of at we've and both integrating revenue leveraging early capabilities complementary, a we AB been are remarks, will media

these products. With ever deal I live UFC to event is focus and an to of our that Abu Our strategic of extension Arabia the with will of for levers to fee DCT importance our major the deals one continue previously and area further demonstrate the growth. ever-increasing articulated, emphasize with of as Kingdom for that, in business, Dhabi Saudi demand the which global pull want drive first site to

in addition such as opportunities UFC and fee WWE we and cost in teams. I on like to marketing, additional highest side. Endeavor's of In human examples, review will in deal finance, history TKO. to Elimination areas the Australia X focused on a February detailed with government Perth, East also some to XXXX, single relations identify Middle with detail legal. We're would the Chamber in We're savings provide across collaboration all also cost the resources done realize WWE's site IT, performing a

our with business we're factors, we identify operations. We've looking commenced of achieve synergies communicated structure overlapping ways how successfully the business, performed UFC, identified addition, to time. Pivoting as deliver to we determine are and areas the anticipate products. rights various live the captures as we days, such over of we and how reporting decisions business be realizing the business public done such TKO. are sponsorship, team In key as at corporate new decided a for we and administrative areas and savings. to range the already other more this in in million with UFC savings considered revenue-generating expect will of reporting to XX% optimal evaluated operating connection These production be and be has the of to In realized fully as additional previously can and upper past reviewing XXXX. which review $XX We managed, in also financial actioning transaction, to consumer review, how a end company. report that including including integration, of We're these general, media annualized on $XXX the approximately us efficiencies and as our how other of rate allow efficient results be corporate segments, in made. Based events personnel We and group, results X early unallocated will will well we upon and million expenses. WWE will run our

detail a around forward. you sure structure, we'll I'm new last As financial many report of this manner reporting you information in periods specifically the provide with we the them recast week saw, prior issued to of going historical

results our days of consolidated the a Turning the activity of Because XX for include timing transaction, results. activity and of financial to for WWE. our this quarter UFC will of quarter full

quarter Adjusted million. million, EBITDA quarter $XX an generated on XX%. income Net increase in was consolidated of XX%. For an September million was the ended of $XXX XX, a consolidated $XXX increase revenue, TKO the basis for

To assist $XXX portion the presented information corporate this their XX%. was activity combined WWE, of for related WWE margin WWE includes with comparability, and adjusted for of totaled Our and a was both quarter periods. On group we've the EBITDA million. full adjusted respective portions and revenue combined $XXX also million that to basis, UFC, in EBITDA corporate

was the revenue WWE Including combined Our adjusted activity was million combined $XXX margin XX%. EBITDA million. for and period, was year combined $XXX adjusted prior EBITDA

EBITDA Based Our combined both year-over-year. EBITDA adjusted XX%. was margin and increased these on revenue adjusted X% amounts, combined

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

across results increase performance increase international increased UFC The revenue $XX EBITDA million. kicked $XX prior XX% increase was step-ups million, in events in the rights an rights to margin the in an renewals, was $XXX in each driven fight million. $XXX or year. million. of The segment quarter of $XXX this strong adjusted the X contractual for was XX% night category certain business. Adjusted million reflect Our EBITDA million compared media XX% the additional generated by UFC's period, or both annual which content agreements and and of periods. continued of $XX to earlier quarter, Media

to the events. positive with also our AAVs and to in benefited demand Salt Results and our the other athlete $XXX million. million prior to The and in and million. compared X period As for cost the event year from existing $XX the tickets additional Lake numbers. increased audience additional annual Utah costs X Expenses increase year partnerships impact increase new incremental experiences of million City, due Venue, The to due driven deal events international was year-to-date. contractual a international a operational $XX increased multiyear marketing higher to increase million million. period. our revenue step-ups to fees also same in seeing to due timing increases to revenue last driven events increased increased and by previously the one Live VIP live disclosed, continued incremental site of $XX fight quarter. additional $XX due versus secured and at quarter costs bring to to within we live from and agreements production in strong partnerships Sydney, $XX matchups are million The events by was increase in was the events Australia. Sponsorship $XX primarily nights

WWE. to turning Now

mentioned, As XX. reported from I only the for XX includes through in quarter, September September XX results days WWE third

period, this million, and Combined $XXX combined 'XX adjusted was activity $XXX both adjusted was the adjusted 'XX. the This the was $XXX margin XX% prior days of million. XX%. compares For and and million in WWE the $XXX EBITDA following segment for combined $XX WWE EBITDA the a on includes third million was quarter, in EBITDA period. The revenue for million, quarter $XX commentary of full activity and of was to million. revenue in full margin Including WWE revenue adjusted WWE EBITDA XX

strong non-televised increased impact and escalation distribution rights in reflecting decrease weekly in primarily despite in The products anticipated, timing was the period. These in items as more events from product continued licensing certain in million than million as WWE's offset episode related prior content $XX million. reflected licensing decrease of results events rights airing $XX declined with XX% the of of million Consumer X guarantees. revenue programming revenue. timing shows million. of and to the less licensing absence the original primarily period live minimum XX to live the by fewer of declines $XXX to fees of in consumer SmackDown to revenue Media contractual offset events well events. demand. the Live year third-party As $X declined of $XX comparability causing rights the revenue current the quarter, revenue recognized The year an premium revenue, increase content flagship the due to and agreements partially media

accounting the flat period. fanatics as essentially and related disclosed, to transition previously increase of the content programming cost in also business As related of lower by creation to was the the offset business. venue were expenses merchandise third-party substantially the original impacted venue revenue our transition an to Expenses in merchandise

million paid Corporate a $XX TKO corporate. includes allocated primarily to of implemented operations to UFC segments and and corporate the to for Corporate also of the endeavor compared third full its the XX-day for quarter. the September. period, combined XXXX million. corporate services activity the Turning basis, the to expense cost of decrease consists third the the million in savings primarily expenses. management closing WWE not actions decrease was subsequent of the prior a result million general or fees reflects was was for administrative On $X from being Including transaction The $XX consolidated by under WWE expense agreement. $XX year, in quarter of to

with of less free third approximately with $XX pursuant million year in cash capital quarter, compared TKO We of $XXX in as due decrease associated dividend primarily $X.X in million to operating Class TKO onetime activities $XXX $XX transaction. cash the payments we the We in quarter net per by equivalents. on cash In cash a to agreement, Moving cash The debt of capital share. million the $XXX A to expenditures. flow million In form and cash transaction returned ended prior as capital shareholders $X.XX generated our in million the was September, special billion and the to flow define structure. in provided period. free to the

uses of of of return shareholders well generative specific for be alternatives expect dividends the appropriate a as the range ROI of at as share of the as business long-term Given and/or capital, for cash a capital combined of positive the form well the repurchases. and to leverage in investment business, there of we process We're capital. including of the organic the spectrum profile free high plan more financial the wide the in around formulating strong net deployment nature as to of flow TKO

As Up-C. we've is an previously discussed, TKO structure

to will be quarterly of owners, tax a structures, distributions is Endeavor to with cover obligations cash basis. OpCo periodic making TKO and on OpCo Up-C As common TKO its

targets to quarterly are our our TKO given guidance of year company's full provide related year other evaluated full Now and as among deliveries, fluctuations to best related outlook. the for content believe on a plan results We basis, we to timing the consolidated events things.

intend as focused budgeting the in to We February. We on report are laser well for businesses when our fourth as full issue synergy XXXX results year XXXX. further we our finding outlook opportunities quarter respective integration,

closed firmly record and when We expectations we been for work on conclusion, opportunities about ongoing UFC our deliver track with conviction to of adjusted turn months it WWE, increased, Based company. remain the than 'XX that, less excited the of consummated only great to in are it's identifying full and and far, Seth. and EBITDA excited both seen our both transaction. In while on which this year combined are the the deal, integrating about since has we're and we've X TKO. With at so line performance what accelerate been hard we've revenue we back profile to I'll for the the businesses future extremely

Thanks, open for we're to call Andrew. the Operator, questions. ready

first question Ben Swinburne Stanley. with from today Our Morgan comes Instructions] [Operator

and to is properties want unique of contracted flow you the back some high you cash come conversion of which why I and free cash flow revenues put about this generation. the to sort made and X of together comments these companies company, free

is and that, thinking for company. all So obviously new this about right level one to about think are leverage need with thing you the guys

for not can to you sense the makes dividends, And what next of you a and number talking M&A as about TKO? spend you're could look of this you attractiveness talk put the at buybacks think if running it, So relative over company want a years? couple just minute on about you even

us with some as our we you really regard position, capital and Maybe TKO's remarks, a the with margins, follow-up strong specific as philosophy And integration Andrew Ben, Andrew on flow with myself, generation, will [indiscernible]. TKO's free can cash in with net we're you opportunities manageable our it's various can on the which into from questions of other allocation right discuss to mentioned capital financial to early of hear debt the healthy the focused kind of growing plans revenues, TKO strong has profile, prepared allocation too had. future. present now.

think line with talk to is further to can opportunistic on preclude industrial that as articulated, nature some the and and to Obviously, And to remarks being a Ari's now guidance shareholder my of put business. meet share in obviously, are said, full given particularly relatively we high call the that value. repayment specificity, provide evaluating next lens return of right there, Look, shareholders, expect first debt cash through of capital a remain our logic those focus to we deal. and full look, more flow to statistics the strategic prepared articulated, generative Ari our available But stock I the on And our the about Yes. of now. laser I out And does repurchases, with is as all XXXX. That February, remarks, in buy-side, and for us on maximizing when sell-side first with we us, our from rationale did committed and update we meaningfully announced alternatives being transaction. earnings folks, then, we between not when we sound. me, Mark that this undervalued articulated, as all plans tethered time year our an giving outlook, year for excuse Ben,

mean, why popular of here. it's daily you I Mark. that's are as I first most basis. us say, a the on would can it's This X question that frankly, imagine, the is Ben, question just asked,

side. there are won't We of we're is XX% will is we're a and where side synergies strong conversion period. get near Budweiser have forever. to properties. remind around I the we'd to sits days. I the the and WWE XX% and these going these been up high be there, keenly XX% that and it revenue It aware with similar flow uniquely free with deals big conversion we going historically. And cost quickly on will and done cash have X once XX% to of Ari the we synergies our quiet some mean, talk about. folks to the to Andrew mean, be UFC was of we're sometimes articulated, going our have and where as deal that we lot have UFC in Obviously, Obviously, get WWE into on But the

innings opportunistic Andrew and the early focused conversations meantime, just to don't we'll a out. expect We we're said, plan. we're with lay we to specific it. you and with So the here. as along We're In in can But back will plan have today way. February a you Board, be the be articulate on in

Our next Partners. question comes from Brandon Ross with LightShed

in you could your What negotiations is the does got lot you've there's sports in of confidence that gives licensing. concern really then this around latest increase improve strategy that that tell on state a the guys a the deal, the environment prepared still on highlighted going rights the how Raw year? then on And rights coming the us And but you So of Raw? the is welcome. to about NXT nice you of investor anything, course, impact

pleased ratings just churn that no is XX% thing the to WWE TKO SmackDown, of the first and up XX%, me we urgency compared the content an ratings down have. it's one of no year-round the WWE. of update, X and air think the and cetera. this. time our as in companies, cable is to I broadcast are for day, we I will appealing scheduling the time NXT we're demo prime big content. On real flexibility compared with XX%. We've the start will and X% there's down that content SVODs et you WWE you NBC. cable That's up healthy compared delivered WWE churn XX% let in all XX% for XX%. in content regarding which there's to about and very a very down to content, have And key cable viewership. issues up renewal, and produce and year We Raw, per Viewership content for attractive So lot on SmackDown consistency strong, increase. the do with agreement. there's first when think said, And UFC specials both momentum.

First will relationship It's on network, about, feel will its market not prime strong be with the March deal also a not time 'XX. probably live, WWE air time. was fact network who may all a is good of think NBC, continued current I live. WWE we or And deal owner that the expires now remember, of the you the XX% may

the you relates CW plays of new know, having or developing participants the role will increase. as a developed regarding an last the renewal, in with WWE. XXX% Raw under that banner. And U.S. home. And WrestleMania healthy parties of year's may CW a XX% were very deal. reaches on renewal, it NXT become strong as in for not time Raw. the NXT productive broadcast NXT pleased with may Nearly we're important the multiple agreement, a It's network. really air to households. talent conversations NXT major On XX% first network, is

the exactly announcement, with comfortable very patient, UFC. measured, we process in did going what to timeline with We regarding with our be we're And calculated position. We're expect approach, no Raw's Raw. robust the specific a

really situation good we're in. So about that the we feel

at. we're that's so And

Yes.

there's sports your bring Brandon, of state when on second So on part issue love just out if you question, I on really rights, an there. as the this up of the overall going

a went the of sports I happening CW. last few now And in process. a to underscore course, late LIV, up the the ACC, portfolio They're like time for of number got have They is NBA Let's on monster adding programming. robust lined Xfinity having everybody's the properties their but checked, NXT. The with negotiating their Good great until them, piece series been of current they've exclusive what's rights April an the good just a months. kind period last NBA. for get partners, And cetera. et to of

Netflix Cup. So Adam's a the launch about position to in there. Netflix good is

rights, up will, extra So anybody they're in going for that table toe the you their live had and as you Peacock sports that's took down open NFL there was water, expect massive questions and about cetera, the et off playoff know, the you going game, number. can an Netflix a road. just And to is if dipping

of the only and X, So dollars It and remains very we're on to fandom. robust position. rights of is sports in the us. being state for strong the robust we're in it's spent Raw point, lot sports It's it's is a brand got got And ratings this. strong, middle rights longevity, very time with a healthy property, our affinity, up, take going not equity a this. got of to super it's it. to got And Ari's

get I a and properties, keep switch direct-to-consumer, it's be just to just these premium properties. it objectively, new for so subscriber the see do deal. and move I marketing which say, they themselves, are the those be maximize same we antidote next in we standing That's ESPN+. do can every flip they on WWE to fee going going When thing the lot to from And like want on network or to of frankly, one churn, partner all to want count because on rights selves to and the [ move point, a up driving we are last events number mind we said WrestleMania, a overnight. And October, folks as to production of when folks good year-round next in And years, about trigger for we prelims think go position, reported and would X points to remind going have premium. our going urgency ESPN+ talks partner can But you the we the those just there until a we partners. have have a they're a because literally often urgency. Ari's When X year-round next to any for our is to month, at ]. And the Ari UFC. to sports We to that in to for we're sign sign trigger can to ESPN's we're patient it's for up our all a PLE

just… maybe then And

there? off. We you Brandon, cut him are

Apologies. It drop reason. the from some Brandon's for did Mr. call appears line

So question. to will next we move the

Baker from comes Guggenheim. question Next with Curry

integration largest that synergies the the you ultimately drill on revenue you update Could think start on in so initial the on a thoughts Could areas seems on off see help And synergy the opportunity us maybe front? more the far? of where like timing? And us go? you how specifically UFC going announcement. revenue is Saudi any maybe down could nice to frame aggregate with you you're It

integration on opportunities would I pleased well. what how the teams coming side. really with the cost is profitability going early companies, together we're growth profile the and the enhance and are and but identifying that the It's Here's the days, both say, revenue of both we're to side on

the side, both discussed to the first, then let and Curry, my as in revenue pivot me and And we'll to Ari hit cost remarks. side we've Yes. and reiterate prepared

and areas. we these closed the And of prior to $XX at in upper combining end end efficiencies of we here. forward. stone this to operations range. all million achieve that to left of September, into the We got million $XXX seeing the this over going to guiding We're the that's summer. And we business cost got previously really business from of range really looking started deeper after expect upper unturned the synergies. announced We And feel no in good

to year we can side range, that be said, in of XX% we're back me, balance, going of those realize Those front some quickly February. will we to roughly -- cost guide. And XXXX. to full in pivot on excuse our move reflected XX%, of as that XXXX. of you those of more -- synergies So get XX% expect and in balance the impact will We'll being see the

happen whether of the announced we've there side. can. events into think, that And [indiscernible] On attractive of well-positioned as having the us look, the on Endeavor spending without it'd you've with as for time a in a be parent company and as transaction, many taste as we're side, leveraging probably our deal again, then many date, deals partners we we've time Flywheel, well and connection We stated the we're which live synergies NXP, SmackDown revenue Saudi side, of lot are extract and some with of sponsorship as we value site this revenue tentacles doesn't how which got fee lot the much discussed this candidly to to time extension and DCT and Raw.

a in and we're [ to and and Lawrence say run the run UFC I'll best-in-class that day-to-day already, that, our Curry, that, the with UFC. sides WWE of already -- out between of both we deal, our ] several Connor the Yes. expect and right with is We've AB excuse deal categories mimic day-to-day me, of Epstein gate the TKO just They've obviously, fence in integrated the of the partnerships WWE. on team.

both brands selling makes sense. unsold street category on X in one have where the together on individually the of selling end, where properties those the out we it cases, not So and some course, other, to but we're already

from a but setting fees, of beyond think the we're touched live site Andrew I table. perspective well, kind event as on, the

a point, have [indiscernible] Lawrence going Dana see is date time. which White, building you such long the a a for Perth, that a and been place UFC So for

their see the have we then with lay and in the we We So sponsorship the opportunities. in WME we to the foundation, own right come it you Endeavor other behind working. And that pipeline network events. We with comes expect cities. in already local festivalize and WWE blueprint lay can and

it UFC, going a on a for we're at WWE. doing the also already in have in UFC, date, Shanghai and in on be haven't obviously, China. looking in be time You which later will We'll the but through what's we to which long next great Saudi, been our story now be China

frankly, UFC record out of into we And properties. ticket pricing that, Beyond especially numbers course, is across and is XX. tapping of the way that, we've location both the experiential capability happening gate, hospitality got at Board, and which for Endeavor has. location on sell the at we're the out now dynamic ticketing have And hospitality, for a WWE our WrestleMania rounded seeing

X pretty ultimately properties. mean, to was these no synergies, recipe the We're bullish. surprise revenue merging So that for I of the anybody.

thing it stated will conversion. free WWE all the businesses, other only cash to flow that, our are the I numbers the and high-margin that And which very increase as for Mark relates would add the just things to UFC

The next question comes from Ryan Gravett with UBS.

touched that thinking how few You you the more next reinvestments PFL the following just years in balancing from minority bit landscape and And the prepared I this your at see UFC the over guess, margin on a remarks, broadly, in the here? about just expansion investment received? evolving but the MMA how curious you're space competitive

probably increased just sport is following. rising growing boats I encouraged is Well, and interest or by for the fastest UFC tides in my the Competition say new and all the would lift WWE. the MMA the we're opinion. not

this Football So we we MMA It's as we competition, a there. football, have only with -- any there's wrestling college do competition only don't see competition of other not not zero-sum lot game. organizations. -- have don't a out or

we We strong have at UFC, XXX strong -- fighters, total. in have a a stable over

UFC where as to the fighters I and be. And Saudi. good think of about our prepared come in with future I remarks, relationship my to want want we feel discussed is

Fight Night its As one intentions relationship XXXX, we recently clear March to Riyadh UFC. to high very announced bring that grow with that we example, UFC Saudi's indication in

our the that's So of kind it. feeling about

our SRJ Yes. advantage. made we PFL, investment look Look, the to at in it

have we pipeline we league, have we trying properties. I is players is have are Not the PFL, fighters. XXX to good. the have trying the -- to get Bellator, to point, are. NFL. no do premier issue into a we major mean, their only to ultimately XFL with I Those ultimately, mean, to feeder Ari's over We akin and which competition get you're fighters, UFC, yes that's the

heels on, came first In And because call something fact, it then increase coming been us, our we announced take investor out, it out, is supportive when this fighter to deal. And for in going has was were well on UFC we're deal. they're a to the of of after they're prove fighters lot totally on think, supportive going prove PFL trouble. out them of ESPN. Saudi the going should experience I that that, on pay, every to us. of ESPN. they're We being quickly on And what's

So for for their UFC. discussions the they MMA, more is obviously now, at bringing motorsports. rumors there aggressive And events Kingdom. appetizer them. serve on more of is They're stuff investment is kinds in we that out very They're they is what the to be the right FX. more in as about potential Saudi WTA good great in which All want are to just have, being to Arabia all will the meal, us. Finals tennis. really know which it's going looking There's the for an

Operator, let's question. take last one

last question David Karnovsky from today with will Our JPMorgan. come

are given your site how or super calendar? plus for many the I'm sponsorship know then either to think think factor like growing days inventory think Curious these you you assets then that the super underutilized, interested And overall of instance? had or the how for idea WWE. ring public, you coming since do do at WWE And into how realistic opportunities strategy UFC you about fees? weekends, incremental been they of discussed events

about clean that has inventory very huge Here's what Very at you, the there's increasing inventory opportunities say can was to before we open increased in stadium. I to been the around into the with, UFC. that. now open ring the he we work very around. would He's think Vince happy We and like

of really of I domestically that will pretty it sign. on. put easily. in a we night, WWE, take Saturday that's WWE ability we night kind can and can territories, and a Friday starting That Once looking a think us good Monday move our are and an that at UFC again. And indication night prove for some give to model, it we So both globally

And to many specifically forward, but everybody. there for just our just David, Ari going Frankly, out got with, overall, open come who's out going who are alert We're just the -- categories, mentioned, going about to too never in we've as in not sports talk an we're open. space, now never just negotiating and competitors marketplace.

deals about as We're robust. aggressive. it's this best-in-class anybody the ultimately got we'll time. we're but to come give each of being playbook going talk our to they a So fruition, at team, We've and not

But now WWE of opening I'll a up are for just team and at there's inventory Vince that reemphasize the us. ton

you today's for us Thank conclude you, now everyone, can call. the on Operator, joining call.

you Thank conference conclude That participation. your will today's now for all call.

You line. may now your disconnect