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Endeavor posted a mixed bag of third-quarter results, with its Representation division showing negative impact from the WGA and SAG-AFTRA strikes.
Total revenue climbed 10% over the year-ago quarter to reach $1.34 billion, with sports rights gains helping the top line exceed Wall Street analysts’ expectations. The bottom line, though, was less rosy, with net losses widening to $116 million from $12.5 million in the 2022 quarter, or 25 cents a share on a diluted basis, from 4 cents.
Representation segment revenue slipped a bit less than 1% to $385.6 million, with the WME parent blaming the downturn on the strikes. Offsetting the labor impact were factors like music and sports activity at WME, non-scripted content production deliveries and gains at 160over90, including the acquisition of XYZ, a London-based experiential marketing agency. Adjusted EBITDA in the division fell 28% to $96.3 million.
Endeavor’s Owned Sports Properties unit provided the main highlights in the quarter. The division includes the company’s 51% stake in TKO, the newly created parent of the UFC and WWE. Revenue in the division rose 19% over a year ago, hitting $479.7 million, while adjusted EBITDA grew 21% to $237.4 million. Higher media rights fees from contractual increases helped propel the results, as did the addition of two “Fight Nights” in the quarter, higher live event revenue, and increases in sponsorships and site fees. Revenue was partially offset by $33 million included in the prior-year period from Diamond Baseball Holdings, which the company sold in September 2022.
Endeavor recently initiated a strategic review process, with potential scenarios including a privatization. It went public in 2021.
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