Endeavor, which continues to benefit from the return of “full capacity” live events, generated $1.3 billion in revenue and $42.2 million in net income in the second quarter. The sports and entertainment company also said it plans to pay off $250 million in debt by the end of the third quarter of this year.
Adjusted EBITDA for the quarter was $306.4 million and earnings per share were 9 cents.
The company raised its adjusted EBITDA guidance to a range of $1.130 billion to $1.170 billion, from $1.1 billion to $1.15 billion proposed in May, “due to performance and performance in the quarter. [Endeavor’s] line of sight by the end of the year”, says Endeavor CEO Ari Emanuel, again citing “broad macroeconomic forces”.
The company’s entertainment segment, which includes talent agency WME, reported revenue of $358 million, up 9% year-over-year, due in part to “an increase in music and comedy tours, as well as an increase in of corporate customer spending, Endeavor said in an earnings release.
Endeavor’s Events and Rights segment grew 19% year-over-year to $627.9 million, which the company attributed to “the return of live events to full capacity” such as music festivals, Masters and Final Four of the NCAA. .
But the company’s sports properties, which include UFC, the professional bull-riding organization acquired by Endeavor in 2015 due to higher PBR revenue than Endeavor’s other segments, the company’s sports properties, which include UFC, which had the highest growth; higher media rights fees and licensing revenue for the UFC; and the addition of Diamond Baseball Holdings, the operator of minor league baseball teams that Endeavor acquired in December but will sell later this year. Total revenue from the sports segment for the quarter was $331.9 million.
“We benefited from strong global growth in our segments in the second quarter,” Emanuel said in announcing the results on Thursday. “We remain focused on our long-term strategy: leveraging the diversity and scale of our business to deliver maximum value to our shareholders, our customers and the intellectual property we own.”
Earlier this week, Endeavor said it would sell Diamond Baseball Holdings to private equity firm Silver Lake, which owns a majority stake in Endeavor, for $280 million. The company’s rapid change was fueled by Endeavor’s existing business with MLB and the MLB Players Association, according to Endeavor President Mark Shapiro. The transaction is expected to close in the fourth quarter.
“Ultimately, our relationship with the MLB and MLBPA takes precedence due to our shared agency business and our continued investment in the baseball representation practice at WME Sports,” Shapiro said earlier this week.
Shortly after the earnings announcement, Endeavor’s IMG also announced that it had acquired a majority stake in collector car auction company Barrett-Jackson.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
