Endeavor Reports Mixed Q3 Results Amid Wider Net Losses; Strategic Alternatives Evaluated as Revenue Rises in Sports Segments Despite Strikes Impacting Representation Business
Endeavor's Q3 results exhibit the impact of Hollywood strikes on representation business but show promising growth in sports segments, particularly due to higher media rights fees and acquisition of World Wrestling Entertainment; company evaluates potential privatization amid strategic review.
- Endeavor Group Holdings reported a net loss of $116 million for Q3 2023, widening from a loss of $12.5 million the previous year. Despite the losses, the company exceeded revenue expectations, posting $1.34 billion, up 12% from the year-ago period.
- Endeavor's Owned Sports Properties segment saw a revenue climb of 19.3% year over year to $479.7 million. This increase was driven by higher media rights fees, two additional Fight Nights, higher live event revenue, and increases in sponsorships and site fees.
- Endeavor's Q3 earnings exhibited a drop in revenue in the Representation segment due to the impact of the Hollywood strikes. However, this was partially offset by positive performances in the music and sports verticals.
- The company revealed it has already repurchased up to $300 million in Class A common stock this quarter and is currently assessing strategic alternatives, including potential privatization.
- Silver Lake, controlling approximately 71% of Endeavor’s voting stock, is proposing to take the company private. Not interested in selling its shares or entertaining asset bids, the firm remains confident in Endeavor’s business trajectory.
- TKO Group Holdings, owning UFC and WWE, showcased promising first quarter results since its launch, hinting at a successful integration. The synergies between UFC and WWE, along with media rights deals and international expansion, are anticipated to provide a compelling growth narrative.
TheWrap 
Variety 
The Hollywood Reporter 
Sportico 
