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Endeavor reports first-quarter loss in anticipation of Silver Lake acquisition

Endeavor posted a loss for the first three months of the year as the parent company of UFC, WWE, WME and IMG burned through nearly $400 million in cash in the first quarter.

The company released its first-quarter 2024 earnings report on Thursday, which will likely be one of its last as a public company as Endeavor awaits completion of the deal, which is expected to be purchased in cash at $27.50 per share by private equity firm Silver Lake. This transaction is expected to be completed by the end of the first quarter of 2025.

The parent company that controls publicly traded sports company TKO Group Holdings, which houses the UFC and WWE, has been hit with a $335 million settlement by TKO as part of a legal settlement in a long-running antitrust case with former UFC fighters. This charge, as well as a decline in revenue this quarter from Endeavor’s events, experiences and rights and sports data businesses, weighed on first-quarter results.

Overall, Endeavor’s total revenue was $1.8 billion, a big jump from the first quarter of 2023 thanks to Endeavor’s orchestrated UFC and WWE merger. A day earlier, TKO reported solid first-quarter results and raised its revenue and earnings guidance for full-year 2024. Although TKO is a separate company, Endeavor is consolidating its earnings and owns a 53.6% controlling interest in the UFC-WWE venture. Endeavor’s adjusted earnings before interest, taxes, depreciation and amortization were $374.1 million, but net income posted a loss of $303.5 million.

Endeavor’s cash balance declined by approximately $389 million to $778.6 million at the end of the first quarter. As of March 31, 2024, total debt was $5.010 billion, up from $5.028 billion at the end of last year.

“During the quarter, Endeavor benefited from strong demand for our live sports and entertainment content
events and unique experiences,” Endeavor CEO Ariel Emanuel said in announcing the earnings. “We remain focused on maintaining momentum throughout the year as we work to complete our take-private transaction with Silver Lake.”

Endeavor is not making a first-quarter earnings call, citing its pending deal with Silver Lake.