TKO Group Holdings reports soaring revenue after UFC and WWE merger in first quarterly report
It seems the decision to merge the UFC and WWE under the TKO Group Holdings banner was a profitable one. The recently created company reported its earnings as a public entity for the first time yesterday.
According to Proactive Investors, TKO Group Holdings reported an income of $449.1 million in Q3, from July to September for the UFC and part of September for WWE. Interestingly, if the WWE's full quarter earnings were included, the total revenue would've been higher by $235 million.
Sports Business Journal reported that of the $449.1 million revenue in Q3, $397.5M came from the UFC, while $51.6M came from the WWE. This figure is 32% higher than last year's from the same time period, thanks to higher income from media rights, ticket sales, and sponsorships.
It's worth noting that UFC's revenue was dominated by media rights, accounting for 67% of the total amount. This was followed by sponsorship money, then ticket sales, and then merchandise sales.
On the other hand, the net profit was $22 million less than it was last year same time period. This was due to higher operating expenses from the TKO Group Holdings merger. The public entity also generated $63.6 million in free cash flow, down by $72.5 million from $136.1 million last year same time period.
UFC-WWE merger: Dana White credits Vince McMahon for brokering huge Saudi Arabia deal
Earlier this year, there were rumors that the UFC would be heading to Saudi Arabia, and those rumors were confirmed last month. The promotion announced that it would be hosting an event in Riyadh for the first time ever next year.
In a recent interview with Sports Business Journal, Dana White spoke about the deal and how WWE frontman Vince McMahon was responsible for making it a success. It's worth noting that the WWE was among the first US-based sports companies to enter the Saudi Arabian market in 2014.
Revealing the extent of McMahon's involvement in the deal, Dana White said:
"It was Vince McMahon. It was 100% Vince McMahon. He made every call, he didn’t make on more without picking up the phone and calling me and getting me in the loop, and seeing if I was cool with this and that. He went from being, oddly enough, I don’t know why, an enemy to being an unbelievably incredible partner."
According to ESPN's Marc Raimondi, the world's biggest MMA promotion will hold its first Saudi Arabian Fight Night event in March 2024. The event will be held during the Riyadh Season festival and will be arranged in partnership with the Saudi General Entertainment Authority.