TKO (TKO) 8 May 242024 Q1 Earnings call transcript

Good afternoon. Thank you for attending today's first quarter TKO 2024 Earnings Call. My name is Tamia, and I will be your moderator for today's call. [Operator Instructions]. I would now like to pass the conference over to your host, Seth Zaslow, Head of Investor Relations.

proceed. may You

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our outlook. to turning Now

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We I'll XXXX prospects beyond. that, are our and to about ahead for and extremely excited Seth. turn back road With the it

Andrew to and Mark ready are Operator, Thanks. questions. field

As call, an FYI Q&A for those the on not today. Ari joining is

[Operator Instructions].

The first question Swinburne from Stanley. Ben comes Morgan with

How NBA I there's opportunity feel better a ask ESPN official your of do NBA sports the context guess it's I is not TKO news. itself, you of for market I the but about to think, up. general what renewal yet, in at you Mark, that has particularly I about certainly the is it. of of lot press the obviously been part coming everyone ahead and got process. It's on making, deal guess in look given

then I sure over the dollar-for-dollar benefits Just Are impact year, settlements no tax year? saying make impact on make essentially from Thank want basically to settlement. the to or sure And cash fund you appreciate this Andrew, I just that comment understood totally the the you, of I the want your help. next that. got course the

that pay my the we for have otherwise that making Ben. the will one 'XX reduce take in million are a it terms our amount would calendar But benefit cash to and when payments tax that $XXX members, to calculating be me Let to in it of commentary, first, we're of will tax the purposes, second distributions we members. have such deductible will

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mean, I in that days left of the would years XX value going And running to Ben, in hearing then been the I've ESPN, it and programming I about frankly, tell I the mind, at almost you decline ceiling, that keep a ago back they're right, on XXXX. are lot folks your first in in SmackDown doing Ari, getting going pricing of nervous, on Khan had rights, and Nick with sports we're it getting of be the hitting a the we renewals close, And and that. renewals obviously, Raw to we're in. pushback question,

deal NASCAR deal. says The a just rights, "strong a NBC was there strong the NCA a look, deal. to and never strong entertainment Raw sports. for deal sports getting frankly, moving it women's the a now you The sports deal strong all with is including everywhere deal deal". SmackDown Netflix was the And is otherwise, into

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with comes LightShed The Partners. Ross question next from Brandon

there? through up higher was the GP, TKO of see in Formula the strong do closer acquisitions. the about which attempt future Or Moto question you WWE of was is One. expand for to to acquisition Specifically, to desire see of leads this a how your reportedly It bid opportunities you even brought than I guess, outside how a the prepared, Andrew, one-off? and quantity out you And

to acquisition, you through you there have? then sports addition to expanding in where build what organically an other of opportunity are out And see

Yes.

Mark. it's Brandon, So

Let me take that.

of just I is First really overall something Ari to really of interested of and world. kind endeavor years. Media is division ] dating does all, product that the danced for have GP Moto Dona around the back the couple I'll GP [ were something we Dorna with that at ] Moto of remind that in them days. a you and [ IMG distribution

familiar So we're with very it.

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adjusted We consolidated XX% EBITDA have at for the quarter. healthy a margin

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low significant TKO we this a a expect is annually. levels of business. overall cash saying CapEx of UFC, free WWE, long all And is generate way And to

a all of We capacity through result that. be in of increasing And as expect opportunistic to and and shareholder of value. our maximizing financial significant a lens thoughtful capital, we deployment intend to have

investments the include we the is which projects, look position, time potential our high ROI Andrew net those could reducing with all uses at something in Board. So debt organic and

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us Great. think could the opportunity premium stage UFC? And replace your is would And I And been across there. what the these over you your there how events could Saudi you them? current you or UFC WWE, quotes about you WWE in reports press tell and couple past then quickly, days, events very addition both relationship -- guess there? many expanding be to about can of and have anything and for some

with has doing events. were a say primarily nurtured from I year. of What on a and fat. been strong there and for of And and remember, it. a Brandon. very those cultivated, strong a have they that would highly delivering We've probably those in in annual each avoidance there out speculation I of other. through is, just deals way? you, let's have events relationship lot doubt, And with relationship Vince. McMahon. a very, Thank impact particular, Khan, would sustained and get the remind Kingdom in WWE would Vince Nick be I'll lot trust tied relationship gone, the healthy a we was being in looking say to a And that negative developed they X Vince handoff of folks They And of the lot Would a to have

event, do. events, perspective, is first time. and more we didn't at investment than more to which potentially, ironically or willing to will that story continue events I more in UFC event, try look to out for those which would we for WWE a festivalizing much a nothing got look already to frankly, give could commit was beyond And a their on assumed the because was [ events want of for at our this June UFC. eventizing first PFL Dana in And we planned X we but those us is until too gates great From do mean everybody live ] really this thought

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we And so were much that another to to willing to -- event year. commit willing next so they were

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site I'd output this Brandon, not we calendar, say would terms specifically an it Saudi only our note, meaningful XXXX, be in does of never we've fee is But a or The thing whether in existing what the Arabia. event really events. carry can or in one additional increase is discussed in of

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Robert question Thank you. comes from next you. Thank Fishman The with MoffettNathanson.

on both actually, Media for you Rights. questions guys, Two

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MKM. next from Eric comes question the Handler Roth with

Two questions.

you too? terms of was bit looked wondered to up matches. how the about a regards maybe pricing about year but sponsored with the considerably It sponsorships. this in could of can like number I volume not little if went year-over-year of But WrestleMania, talk volume increases, you First, just sponsorship talk

and/or pricing in sponsorships, strong the metric our terrific it ticket attendance, north, or you into But is on yields and volume team a Yes. Eric I number. both put Philadelphia can measure. tell -- think pricing, guide the specifics and both what I was WrestleMania that social specifically look, we release viewership, to partnerships a global don't sponsorship we or were in for us clearly ticket mean, hits. which And a by every had I on together on overall get sales,

be Vegas -- announced NBC Great really biggest really happy the with board. mean event year. the across going we've in I just extraordinary I Obviously, is with results. Peacock we're the to viewed next Comcast, history, know

jewel WrestleMania it the comes with in way. And it when So every to is regard to just to expand continues sponsorship. WWE frankly,

long-term major WWE. partnerships sponsorship, growth global both lever for view to group continue leagues, a we of mean our our as UFC I and

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and with in And vice packaging activation and partners, we're and will, media a that's on official versa marketing dollars if we're front. partnerships there perspective. out And in-store going only So story our sponsorships benefit their you work long -- a will happy. for be that good And our are be story us, to that to term if for but partners. partners our will a not good from

the UFC events a number markets there take which demand to good at as given And secondly, understand Apex, UFC and is of larger That's arenas. of strong business are Okay. for little I them events, try with why how helpful. some take better, a to then not those

Yes.

of have meaningfully. we Las significant do our down there we Apex amount since UFC a So hold our in have numbers those Vegas, that you've those seen of I have COVID, on think outside what we out campus held gone events of worked is way and

about events view fan there's our much also road it's is it doing a bringing us the that but on profile, costs of as for generating Apex. income, domestically, about is them as at certain growing said, we opportunity profitability analysis base margins holding being benefit and internationally and events that cost That ensuring we maintain and

to Las them I'm in as not could carry ensure those Apex terming events Vegas. turf the And sure to is to generate structure what lowest profitability. cycle, but cost And we in appreciate, for any home do revenue you right our just mix us hold top line in do the budget

to perfect we working but rest So I at do the we're assured and mix yet, numbers the that found think don't looking so.

to to there, side on fan being base. no to city, to we're air global DMA for Dana of right, introducing state the a substitute the of out and there's side, And region, that. region getting consumer, DMA and touching road. Eric, sport going built And a new the if to to with [indiscernible] going going the err we're White on Forties the on one UFC,

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we So very take that seriously.

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The next with Laszczyk Goldman Stephen Sachs. from question is

for on Events. Live Maybe Mark

opportunity the out follow-up quarter. growth business see thinking the about in called growth the for site then forward, most where for Curious, going year. pricing the fees you between through of that for You the you're opportunity balance a and Andrew. strength And the attendance, sizing

flow free there on cash settlement cash of benefit, to the the Just a year? to free clarify the underlying tax guidance, change the flow was net and for

Yes.

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to payments. those solely it's So impact reflect the of

are Stephen, on good you that? And

great. was that Yes,

more Okay. second we And think your have I on one question. do -- just then

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events both properties. across is strength business brisk the We're seeing at live board. in Our the

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here. cooking are things all So

with final comes Gravett The from UBS. question Ryan

Great.

Just for Andrew.

opportunity the related rights some the it for You that of macro interest across? up you at the -- mentioned through to business can getting or the Xx that end media range? in higher you business an operate or what confidence company I renewals the versus rate if operating guess, towards comes maybe more rounds the give Is me room leaving next will leverage. think of M&A

I more it's think simple. much

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reasonable range end. a to even the upper that's and manageable believe We very

this transaction financial the the is and to numbers. business key -- So thesis this underpinning our in of of investment the those what profile really, really comfort underpins

you right. today. conclude All the on Operator, call joining for you, Ryan. everyone, call. Well, Thanks, can thank us the

TKO earnings first the for quarter your XXXX you call. concludes Thank This participation.

your You lines. disconnect may now