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Mar 31, 2024

Endeavor Q1 2024 Earnings Report

Endeavor's Q1 2024 results, showing revenue growth in Owned Sports Properties offset by declines in other segments, and a net loss due to increased operating expenses.

Key Takeaways

Endeavor reported $1.850 billion in revenue for Q1 2024. The company experienced growth in its Owned Sports Properties segment, driven by the acquisition of WWE and increased revenue at UFC and PBR. However, this growth was offset by declines in the Events, Experiences & Rights, Representation, and Sports Data & Technology segments. The company reported a net loss of $303.5 million, impacted by increased operating expenses.

Endeavor's Q1 2024 revenue reached $1.850 billion.

Owned Sports Properties segment revenue increased by 94.0%, driven by the acquisition of WWE and growth at UFC and PBR.

Events, Experiences & Rights segment revenue decreased by 7.0%, impacted by the sale of IMG Academy and the timing of media rights.

A definitive agreement to be acquired by Silver Lake was announced in April.

Total Revenue
$1.85B
Previous year: $1.6B
+15.9%
EPS
$0.86
Previous year: $0.03
+2766.7%
Gross Profit
$849M
Previous year: $1.6B
-46.8%
Cash and Equivalents
$779M
Previous year: $719M
+8.3%
Free Cash Flow
-$199M
Previous year: $41.7M
-577.8%
Total Assets
$21.5B
Previous year: $12.6B
+70.5%

Endeavor

Endeavor

Endeavor Revenue by Segment

Forward Guidance

Endeavor is set to be acquired by Silver Lake, with stockholders receiving $27.50 per share in cash. The transaction is expected to close by the end of the first quarter of 2025, pending customary closing conditions and regulatory approvals.

Positive Outlook

  • Stockholders will receive $27.50 per share in cash.
  • Silver Lake is the global leader in technology investing.
  • No other stockholder approval is required.
  • A dividend of $0.06 per share will be paid each quarter until the deal closes.
  • The transaction provides certainty of value for stockholders.

Challenges Ahead

  • The transaction is subject to customary closing conditions.
  • Required regulatory approvals are needed.
  • The transaction is not expected to close until the end of the first quarter of 2025.
  • The company will be delisted from the NYSE upon closing.
  • Future strategic decisions will be influenced by Silver Lake.

Revenue & Expenses

Visualization of income flow from segment revenue to net income