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Jun 30, 2024

Endeavor Q2 2024 Earnings Report

Endeavor's Q2 2024 financial results were released, revealing revenue growth driven by Owned Sports Properties and Representation segments, offset by a net loss due to discontinued operations.

Key Takeaways

Endeavor reported $1.751 billion in revenue for Q2 2024, with growth in Owned Sports Properties and Representation segments. The company experienced a net loss of $253.8 million, impacted by discontinued operations, while adjusted EBITDA reached $380.7 million.

Q2 2024 revenue reached $1.751 billion.

Owned Sports Properties segment experienced growth due to marquee live events and partnerships.

Representation segment benefited from recovery following WGA and SAG-AFTRA strikes and demand for music tours.

The company is progressing towards a take-private transaction with Silver Lake.

Total Revenue
$1.75B
Previous year: $1.44B
+21.9%
EPS
$0.19
Previous year: $1.29
-85.3%
Adjusted EBITDA
$381M
Previous year: $305M
+24.9%
Gross Profit
$871M
Previous year: $1.31B
-33.3%
Cash and Equivalents
$698M
Previous year: $1.62B
-56.8%
Free Cash Flow
$372M
Previous year: $40.6M
+816.5%
Total Assets
$21.2B
Previous year: $13.3B
+58.9%

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, and the transaction is expected to close by the end of the first quarter of 2025, pending customary conditions and approvals.

Positive Outlook

  • Stockholders will receive $27.50 per share in cash.
  • Silver Lake will acquire 100% of the outstanding shares it does not already own.
  • No other stockholder approval is required.
  • The merger agreement requires the Company to declare and pay a dividend of $0.06 per share each quarter.
  • The transaction is expected to close by the end of the first quarter of 2025.

Challenges Ahead

  • The transaction is subject to customary closing conditions.
  • The transaction requires regulatory approvals.
  • There are risks related to the potential transaction with Silver Lake.
  • The company is exposed to changes in public and consumer tastes and preferences.
  • The company's operations are subject to impacts from changes in discretionary and corporate spending.

Revenue & Expenses

Visualization of income flow from segment revenue to net income