Endeavor Posts Q1 Loss and Burns Through Cash as It Awaits Silver Lake Acquisition

Endeavor delivered 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 during the first quarter

Published Time: 09.05.2024 - 15:31:40 Modified Time: 09.05.2024 - 15:31:40

Endeavor delivered 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 during the first quarter.

The company released its Q1 2024 earnings report Thursday, which is likely to be one of its last as a public company as Endeavor awaits the completion of its deal to be bought out at $27.50 per share in cash by private-equity firm Silver Lake. That deal is expected to close by the end of the first quarter of 2025.

The parent company that controls publicly traded sports firm TKO Group Holdings, which houses UFC and WWE, took a hit from the $335 million charge that TKO recorded to reflect its legal settlement in a long-running antitrust case with former UFC fighters. That charge, plus revenue declines for the quarter in Endeavor’s events, experiences and rights and its sports data divisions, took a toll on Q1 earnings.

In all, total revenue for Endeavor was $1.8 billion — a big jump over Q1 2023 thanks to the Endeavor-orchestrated merger of UFC and WWE. A day earlier, TKO reported solid first-quarter results and upped full-year 2024 revenue and earnings guidance. Although TKO is a separate stock, Endeavor consolid -

ates its earnings and owns a 53.6% controlling interest in the UFC-WWE venture. Endeavor’s adjusted earnings before interest, taxes, depreciation and amortization came in at $374.1 million, but the net-income log registered a loss of $303.5 million.

Endeavor’s cash on hand fell by about $389 million to $778.6 million at the end of Q1. Total debt was $5.010 billion at March 31, 2024, compared to $5.028 billion at the end of last year.

“This quarter, Endeavor benefited from brisk demand for our sports and entertainment content, liveevents, and premium experiences,” Endeavor CEO Ariel Emanuel said in announcing the earnings. “We remain focused on maintaining our momentum through the year while working toward the close of our take-private transaction with Silver Lake.”

Endeavor is not hosting a Q1 earnings call, citing the pending deal with Silver Lake.

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