Posted on 8/07/125 by Colin Vassallo
TKO Group Holdings, Inc. announced financial results for its
second quarter ended June 30, 2025.
“TKO generated strong financial results in the quarter, led
by record performance at both UFC and WWE,” said Ariel
Emanuel, Executive Chair and CEO of TKO. “Our live content
and experiences are proving a key differentiator for
organizations and brands looking to capture audience, and
our strategy is tailor made for today’s experience economy
and the white-hot sports event marketplace. Given the
continued momentum across our portfolio and our overall
business outlook, we are raising our guidance for the full
year.”WWE merchandise
Revenue increased 10%, or $115.2 million, to $1.308 billion.
The increase primarily reflected an increase of $21.5
million at UFC, to $415.9 million, and an increase of $99.4
million at WWE, to $556.2 million, partially offset by a
decrease of $13.0 million at IMG, to $306.6 million.
Net Income was $273.1 million, an increase of $226.9 million
from $46.2 million in the prior year period. The increase
primarily reflected the increase in revenue and a decrease
in operating expenses. The decrease in operating expenses
reflected a decrease in direct operating costs of $114.8
million, a decrease in selling, general and administrative
expenses of $3.9 million, and a decrease in depreciation and
amortization of $19.5 million. The decrease in direct
operating costs was primarily due to the write down of
unsold tickets that was recorded in the prior year period in
the IMG segment for the 2024 Paris Olympics.
WWE revenue increased 22%, or $99.4 million, to $556.2
million primarily related to a $41.6 million increase in
live events and hospitality revenue, a $33.6 million
increase in partnerships and marketing revenue, an $18.2
million increase in media rights, production and content
revenue, and a $6.0 million increase in consumer products
licensing and other revenue.
The increase in live events and hospitality revenue was due
to higher ticket sales revenue as well as an increase in
site fees, primarily due to revenue recorded related to both
domestic and international premium live events.
The increase in partnerships and marketing revenue was
primarily due to new partners and an increase in fees from
renewals compared to the prior year period, most notably
related to WrestleMania 41.
The increase in media rights, production and content revenue
was primarily related to the timing of the previously
disclosed format expansion of SmackDown as well as the
contractual escalation of media rights fees, notably the
impact of WWE’s global content distribution agreement with
Netflix, compared to the prior year period. The increase in
consumer products licensing and other revenue was primarily
related to higher video gaming revenue and merchandise sales
compared to the prior year period.