TKO Raises 2025 Guidance as Momentum from UFC and WWE Licensing Deals Cements Firm's Conviction.
In a surprise move, the parent company of the MMA league and wrestling franchise, TKO, has hiked its full-year guidance following the lucrative new deals with Paramount and ESPN for rights to UFC and WWE events. The financial boost comes on the heels of solid third-quarter results, despite a tough year-over-year comparison to last year's Summer Olympic Games in Paris.
While revenue took a hit, down 27% to $1.12 billion, net income skyrocketed to $106.8 million, representing a significant swing from $3.4 million in the same quarter of last year. The company also reported a substantial increase in free cash flow, growing by $247.9 million to $398.9 million.
TKO's CEO and Executive Chair Ariel Emanuel attributed the company's renewed optimism to the sustained momentum generated by its deals with UFC and WWE. "We are once again raising our full-year guidance," he said. "Having secured landmark multiyear media rights deals, our conviction in TKO has never been stronger."
With UFC set to launch on Paramount, TKO is now projecting revenue of $4.69 billion to $4.72 billion for the year, up from its previous target of $4.3 billion. The adjusted EBITDA guidance has also been lifted to $1.57 billion to $1.58 billion, marking a significant increase.
The company's focus on operational execution remains unchanged, with efforts aimed at integrating and unlocking synergies between its various brands, including WWE, IMG, On Location, and PBR. With its newfound momentum, TKO is well-positioned to maximize shareholder value in the years ahead.
In a surprise move, the parent company of the MMA league and wrestling franchise, TKO, has hiked its full-year guidance following the lucrative new deals with Paramount and ESPN for rights to UFC and WWE events. The financial boost comes on the heels of solid third-quarter results, despite a tough year-over-year comparison to last year's Summer Olympic Games in Paris.
While revenue took a hit, down 27% to $1.12 billion, net income skyrocketed to $106.8 million, representing a significant swing from $3.4 million in the same quarter of last year. The company also reported a substantial increase in free cash flow, growing by $247.9 million to $398.9 million.
TKO's CEO and Executive Chair Ariel Emanuel attributed the company's renewed optimism to the sustained momentum generated by its deals with UFC and WWE. "We are once again raising our full-year guidance," he said. "Having secured landmark multiyear media rights deals, our conviction in TKO has never been stronger."
With UFC set to launch on Paramount, TKO is now projecting revenue of $4.69 billion to $4.72 billion for the year, up from its previous target of $4.3 billion. The adjusted EBITDA guidance has also been lifted to $1.57 billion to $1.58 billion, marking a significant increase.
The company's focus on operational execution remains unchanged, with efforts aimed at integrating and unlocking synergies between its various brands, including WWE, IMG, On Location, and PBR. With its newfound momentum, TKO is well-positioned to maximize shareholder value in the years ahead.
it's like they're finally getting the recognition they deserve as a legit player in the sports world 
but i'm still skeptical about their growth projections, $4.69 billion is a big number 
need to see some real numbers back it up
think this is more than just a coincidence that they're raising their guidance after landing these big deals... might be some kinda corporate push for more expansion & control 
what's really going on behind the scenes here? 
also, why are they focusing so much on synergies between brands? seems like they're trying to create this whole empire 
And I gotta say, their confidence is totally justified after those solid Q3 results 
Ariel Emanuel is on point with his leadership 
Now we're talking about $4.69 billion to $4.72 billion in revenue... that's some serious growth 
Their new deals with UFC & WWE are literally a game changer! 
Ariel Emanuel's confidence in the company is totally justified, they must be doing something right 
Plus, that free cash flow increase is a big plus 
. What if these licensing deals don't pan out as expected? How will TKO recoup its investment?
It's like they're saying "we told you so" to all the naysayers who thought they were stuck in neutral 
. The question is, what does this mean for the future of sports media? Are we gonna see a shift towards more subscription-based models or are these deals just a flash in the pan? 
I think it's the latter... at least for now 
And that net income of $106.8 million? Woah, they're on fire! 
I love how their CEO is all optimistic about the future, too - he seems super confident in TKO's abilities