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WME parent boosted in Q2 by return of live events

Continued growth across Endeavor's portfolio has led the company to increase its full-year forecast for adjusted EBITDA

By IQ on 12 Aug 2022

Ariel Emanuel, Endeavor

Ariel Emanuel, Endeavor


WME parent Endeavor has reported continued growth across its portfolio in the second quarter of 2022, prompting the company to increase its full-year forecast for adjusted EBITDA.

Endeavor, which also owns sports agency IMG and the Ultimate Fighting Championship (UFC), among other properties, generated revenue of US$1.313 billion for the quarterly period ended 30 June, 2022.

Net income came to $42.2m while adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) totalled $306.4m.

The agency’s representation business (comprising WME, sports agency IMG and Endeavor Content) generated revenue of $358m for the quarter, up $29.7m or 9% compared to the second quarter of 2021.

The segment’s adjusted EBITDA was $111.2m for the quarter, up $49.5m or 80% year over year.

According to the company, the growth was primarily driven by the continued strong demand for talent, including the recovery of music and comedy touring, as well as increased corporate client spending.

WME artists include Drake, Justin Timberlake, Adele, Bruno Mars, Pearl Jam, Kendrick Lamar, the Killers, Bjork, Frank Ocean, Foo Fighters, St Vincent, Shakira and more.

Elsewhere, the Events, Experiences & Rights segment revenue was $627.9m for the quarter, up $99.2m or 19% compared to the second quarter of 2021.

“We benefited from strong growth globally across our segments in the second quarter”

Increases were primarily driven by the return of full-capacity live events including music festivals, the Masters, and the NCAA Final Four, as well as the inclusion of the Madrid Open and NCSA acquisitions.

The segment’s adjusted EBITDA was $108.1 million for the quarter, up $71.3m or 194% year over year.

Owned Sports Properties segment revenue was $331.9m for the quarter, up $73.1m or 28% compared to the second quarter of 2021.

Growth was primarily driven by an increase in media rights fees and live event, partnership, consumer product and licensing revenues at UFC, as well as higher revenues at PBR (Professional Bull Riders), and the inclusion of Diamond Baseball Holdings.

The segment’s adjusted EBITDA was $161.3m for the quarter, up $29.0m or 22% year over year.

The upswing in each segment has prompted Endeavor to slightly adjust its full-year forecast for adjusted EBITDA to a range of $1.13bn to $1.17bn, which is up from the estimate of $1.1bn to $1.15bn offered in May with Q1 results.

Revenue for 2022 is expected to be between $5.235bn and $5.475bn, as estimated in the Q1 results.

“We benefited from strong growth globally across our segments in the second quarter,” said Ariel Emanuel, CEO, Endeavor.

“While we recognise there are broader macroeconomic forces at play, given the quarter’s performance and our line of sight through the end of the year, we’ve once again raised our Adjusted EBITDA guidance. We remain focused on our long-term strategy – leveraging the diversity and scale of our businesses to drive maximum value for our shareholders, our clients and our owned IP.”

 


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