Endeavor Earnings: WME Sees Revenue Hit From Hollywood Strikes

In a pivotal quarter for Endeavor, with the TKO spin-out completed and the legacy company now pursuing strategic options for its business, the company reported mixed results, with strong performance from its sports business, but as the Hollywood strikes took hold . toll on its core WME representation business.

Endeavor reported third-quarter revenues of $1.34 billion and had a net loss of $116 million, with adjusted EBITDA of $311.6 million.

“Our third quarter results demonstrate the strength of our diversified portfolio and leadership position in sports and entertainment,” said Ari Emanuel, CEO of Endeavor. “We are making good progress with our TKO integration efforts, setting ticket sales or attendance records at many of our live events and continuing to capitalize on the demand for premium content and experiences. Our focus remains on maximizing shareholder value through capital return initiatives, including our share repurchase program and dividend payments, as well as our recently announced review of strategic alternatives.”

The representation segment, led by WME, had revenue of $385.6 million for the quarter, down 0.7% from last year, due to the impact of the strike, but offset by the company’s music and sports representation business. company, as well as higher results of 160over90.

The company’s events, experiences and rights segment also saw a decline in revenue, largely due to the sale of IMG Academy in June.

The company’s sports portfolio, meanwhile, continued to grow, with its owned sports properties (including Endeavor’s majority stake in TKO) bringing in $479.7 million, up more than 19% from last year. Similarly, the new sports data and technology segment had revenues of $124.8 million, up $167.2% thanks to the addition of OpenBet.

Endeavor CEO Ari Emanuel said last month that the company would explore strategic alternatives because Endeavor’s share price does not reflect its true value. Endeavor’s largest shareholder, private equity firm Silver Lake, subsequently said it was preparing a proposal to take the company private.