TKO (TKO) 27 Feb 242023 Q4 Earnings call transcript

Good afternoon. Thank you for attending TKO's Full Year 2023 Earnings Call. My name is Cole, and I'll be the moderator for today's call. [Operator Instructions]

I would now like to turn the conference over to our host, Seth Zaslow, Head of Investor Relations. ahead. go Please

welcome and Full XXXX Year Good to Call. Earnings afternoon, TKO's

of a ago, Investor which recording least also XX while for short our press available Relations call via be we A days. our A at on issued release, website will view you website. this can

we'll Executive Ari CFO. our the Joining COO; President open me TKO's and on and After Executive Chief Andrew are call and today's our prepared and from remarks Officer; Andrew, Emanuel, Schleimer, questions. for Ari Chair Mark call Shapiro,

with The the purpose projections and/or remind will detail. Securities year for expressed I from of were you this the discussed call is Commission or statements to incorrect, information assumptions XXXX that uncertainties to or materially provide on filings involve If want risks materialize everyone results this Exchange with further information forward-looking full or to any those implied that our prove risks, the regarding uncertainties and see our include Please differ assumptions. performance. and these may our call.

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

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

to the call With that, I'll over Ari. turn now

afternoon, good everyone. and Seth, Thanks,

for grossing agreements TKO, and Throughout during WWE for records Anheuser-Busch. records significant live multiple partnership reflect event We at viewership the our we media most TKO's highest secured each launched for across events Smackdown including rights the records international including We attendance to form our in premium meaningful demand and unified efforts with with achieved strong and NXT merging we including as WWE, Middle teams fees UFC East We year. international as domestic WWE's live UFC and XX inked and and significant global robust well best-in-class events. content viewership and in premium XXXX, site integration notably progress results in the event a increases U.S. for Australia, partnerships and made partnership global UFC organization. new

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international to Turning rights.

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I'll turn to Seth. it that, back With

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

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

a afternoon, deal picture start bigger the you, Good to is Ari, company a This maybe guys. a sort of seminal event for industry. question. kind of with your also Netflix but

dollars, the a over the means and to quick content Andrew for Netflix for it about guidance. WWE all period business what what Beyond time? the globally? follow-up longer Raw the you think a do just And on I And excites bringing had you of

transformative think same basis. it's your largest on deal first them. and television We with on on think I time non-scripted entertainment question, as the sport. relationship benefits and from have with ton with very excited the do Listen, we We're global Like an with a the and of the deal, We streamer ESPN+, and They're level about indicated the which is we're excited strategic pleased deal them the are you extremely about. with And the a significant. on We're Netflix. this we're relationship side. a the UFC based terms. financial made the movie stuff

reach, is important. going forward our can global We benefit AVOD. that I product So think, in extremely FVOD think and we them for with strategy their

you great for deal left Comcast and I And we for one now PLE. deals. so CW have, Netflix now it's of have a NXP a with as and we SmackDown, good combination. think, assortment And the can see,

all, all So incredible. pretty in

It quarter. and and cash And to there a on then, will like this the fourth revenue that. quantify Raw distributed point, point at Andrew, you just be flow to sounds expect finer can't put have just

that there's And make sure in I I nothing so want the to got right. guide. just

based that got is We on any you a of basis rate exclude currently Yes, terms QX, equivalent right. which upon the run million. deal off to existing income $XX

them. quarter just for say following. would have anything be fourth believe the will, Raw we in I Again, And don't We aired. the

Andrew you. We said, have no with We pretty the feel he positive that. about further through went than as information it. numbers But

Yes, don't then. numbers assume any

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Brandon from is question Partners. next LightShed Our Ross with

allocation. with I up wanted on First, to follow commentary Andrew's capital

look check said that to that open until situations. to lot a generally there you're of you large did on double off would very If stock be hold wanted special mention to you shareholder buying XXXX. going And you stock were Just you for sell directly? that at that to once, would potentially in a

my then -- to question to I'm trying second political. be learn was And

your was What question? second

And then is, question this global Netflix. you did with deal second the

markets the I think on didn't contemplated the not clarity the at give international what long deal or are real term. in over covered you time

would helpful. clarity be on could that you any that give So

free one, Yes. flow. have XXXX. expect cash Look, We did in What say cash first some on conversion is to EBITDA on to hand of the cash terms in that adjusted Brandon, we gave me or let take flow capital meaningful we allocation. guidance

around means, And balance. adjusted a look building for anticipate this year. limit income point fine think healthy. over to was You exploration up next was point but the the potential commentary any over the was months, 'XX. doesn't, by be at in for the our our That's XX cash sans just balance cash of I rather X the any position things That cash QX. range EBITDA meaningful the raw we'd end We of by of the

value. we creating or lens was we through On stock. the a opportunistic, look, and any the question, second opportunistic be There view that generally shareholder sold would of be to think shareholder opportunity look I

participated, know, you X.X million, As we the roughly mentioned million $XXX of remarks tune in I our as prepared of shares.

based just with as on and first over I said add, $X would I the an It's incredible is this, listen, answer Netflix billion. Ben partner.

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And Exactly. Brandon, the I do Vince call look. million -- and shares. And terms it We'll have out. going do sideline. specifically It's I to let's he'll He of mean, still all on obviously, in stock. he's we're whatever registered. talking believe, McMahon see. XX about just a we're We'll cashing holds,

sell we're idea if no if timing. or to his out with not any on We're wait or like discussions or no not have him. plans We so he on sell he us just you. much, and going having does, of find He's view motive to given how point around

that become that And of out Netflix fine as international in right when in I put on just to -- and terms a one, all available. to point and the Netflix, a clear they think what's of has point Brandon, be deal, and territories on

with off LatAm. kicking But we're

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and definite And was priority -- them. for Yes. I markets -- Brandon. those really was a priority definite them. are U.K. LatAm for just mean a premier them, for

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Our next question MKM. is from Eric ROTH Handler with

Two questions actually.

do you of have does you Europe, afterwards. brand may what how sort like question back with or what international WWE second UK. with deal, And Netflix now not extension this may the come with to regards with impact First, I'll WWE

question. that understand I really first don't

on of does have or you partner impact like Latin at partnering brand extensions with does future that help all morphed one NXT up Just with or now America with sort what those may Europe UK, NXT NXT any with what it you lines? something Netflix into do along having WWE NXT you help as global of U.K. have you maybe

the call he on WWE, Nick? can also on is from Khan it. and Nick comment

Yes.

global us, Netflix helps a us think a that. has product We So always with priority. for been localized

to stars Perth, weekend, more France, local calendar tryouts the those international for as live all event this the scheduled at Australia, you for if Riyadh, our even from look past this So Berlin, markets Canada, down expand road we over Lyon, premium year, markets. the look world,

time that and Netflix So will covered of we that be be feel will deal. confident part over the all

it -- then for deal Netflix to everybody. is just doesn't also And important our remember know

on from creating global content a they programming basis. look essentially some evaluate. first We and us preclude and a doesn't new window deal Netflix Our that have just have events to rights would

for doesn't opportunity of have they're incremental an sell we all create to NXT kinds that but be rights So just it fee. to across the new line first in pay and board, to an fee, going -- it rights material,

we had UFC, Contender after created have have we the we Like with the we Ultimate Series, Fighter. which

see -- bull team as can relates and you individual and in we're it event. created we creative a So had riding, the we

do this So ability within to we have deal. the that

is because on they incremental any well a there they Netflix collecting program Ari's on we're ESPN similar first as And out new to when no, point look very right. say, and have

Got it.

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talked Secondly, and events past UFC the weekend with having in about you've WWE. back-to-back

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So XXXX There as the promoting of Monday you regard revenue site all Utah star at was did, significantly. X now arena. licensing as in Night, you only it Saturday is kind Night, City, on WWE Office, This a as alone, Saturday The you be opportunity, Box for time. significant -- et was stuff. fees, ticket And Mexico to know, at are was looking Those we we a out, will on calendar. Raw savings And SmackDown Night cetera. pointed there at the Monday the was saw you was significant in just Anaheim, in UFC in There's the there so a with sponsorship you as Chandler event. revenue, the was growing WWE could saw imagine X. there package, which there, Night,

and more lot our just of was will of a more that some recognize, be we and there's there's cost synergies but that there's events, to there So because come. X crossover there,

one, just hit the on a that to topline. Ari, put Yes, pin

deal, Eric, and realize both venue we the We these topline, doesn't rent benefit rent a negotiate to ticket properties programs of economics virtue economics weekend. can cost On necessarily weekend. the this or both the of Ari same more bringing from preferential multi-visit the and the that as same packaging the by about past and venue together same we talked to shows building with did have if will, be, bring side, in it beneficial venue. by same rebates you beneficial virtue X

logistical on get really and starts interesting, production otherwise. efficiencies operation and So T&E, to look, event it any before that's savings other

well in here. works something So that's that's the look,

ESPN This ABC there that and time, years of night night even is any very having savings, there Eric, satellite I it. good were So region, back-to-back personnel, in -- think were and cost right? name to Sunday you shows truck, is was same just Monday football, this here time analogy a analogous the substantial kind back.

production So we the of the effect cost real synergies. us think on for a halo there's side

next David question from with JPMorgan. Our Karnovsky is

Ari, joint of as latest seeing obviously venture thoughts I to get you then rights the linear distribution pressure upcoming legacy positioned? on the sports wanted also just Network for the sports renewals the on your agreement with landscape, firms WWE UFC but with kind how and Netflix, media continued given and are some

have we there's Netflix. mean, latter just our to Well, you partnerships have what players with did have the Comcast marketplace subs ESPN/ESPN+ as know, the what the PLEs that good relates about we've But UFC regard playoffs with deal Mark as feel on to negotiation currently the up. PLEs we based I and and the UFC. a it strongly we pretty have. that the and we we on in with very just We point, the the just done coming and many for completed football

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think going that's I positively.

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specifically more upward all but college talk on can an it's Mark trend. on football,

Yes.

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us Great. on interest TKO. now. Well, the Operator, and thank you, call today's can your in conclude for everyone, joining for you call

call. your Thank for today's concludes That all you participation.

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