fbpx

PROFILE

MY SUBSCRIPTION

LOGOUT

x

The latest industry news to your inbox.

    

I'd like to hear about marketing opportunities

    

I accept IQ Magazine's Terms and Conditions and Privacy Policy

WME parent Endeavor posts $1.2bn revenue for Q3

WME’s parent company Endeavor has praised the resilience of live events after posting Q3 2022 revenue of $1.221 billion.

Endeavor, which owns properties such as sports agency IMG and the Ultimate Fighting Championship (UFC), recorded a net loss of $12.5 million for the quarter, but has upped its adjusted EBITDA guidance for 2022 as a whole by $10m in recognition of “continued strength across the business”.

“Our business performed well in the quarter despite a turbulent macroeconomic environment,” says Endeavor CEO Ariel Emanuel. “Given our unique positioning relative to a set of highly resilient secular industry trends across premium sports and entertainment content and live events, we remain confident in our ability to continue delivering on our long-term growth strategy while also being good stewards of capital.”

WME artists include Drake, Justin Timberlake, Adele, Bruno Mars, Pearl Jam, Kendrick Lamar, the Killers, Bjork, Frank Ocean, Foo Fighters, St Vincent and Shakira, with Snoop Dogg joining its ranks earlier this week.

Revenue from Endeavor’s representation segment was $388.3m for the three-month period, down 42% on the third quarter of 2021.

“Spending habits have shifted, but our company has a presence at every point on the purchase chain”

“The decrease was primarily due to $334 million of revenue in the prior year from the restricted Endeavor Content business, which was sold in January 2022,” says the firm. “The decrease was partially offset by continued strong demand for talent including the recovery of music and comedy touring, as well as increased corporate brand spending at [creative agency] 160over90.

Elsewhere, revenue for its owned sports properties segment was $402.3m for the quarter, up 39% on Q3 2021, while revenue from events, experiences & rights segment was down 1% to $440.6m, partially offset by growth in music and other events.

“Spending habits have shifted, but our company has a presence at every point on the purchase chain,” Emanuel told investors. “During Covid people were buying stuff, and post-Covid, they are more focused on experiences, and we are the benefit of that side of the equation.”

Full-year revenue is expected to be between $5.235bn and $5.325bn, while adjusted EBITDA is forecast to be between $1.145bn and $1.175bn, adds the company, which notes it repaid $250m of debt in the third quarter with the intent to repay an additional $250m by the year’s end.

Endeavor named Richard Weitz and Christian Muirhead as co-chairmen of WME in September, while Lucy Dickins was elevated to the position of WME global head of contemporary music and touring in August.

 


Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.