Endeavor First Quarter Buoyed By Return Of Live Events, Talent Representation

Business

Endeavor sales jumped 38% to nearly $1.5 billion and the company reported net income of $518 million as talent representation and live events jumped. EPS was $1.19 for the first quarter ended in March, a year after the talent agency, UFC owner and live event operator went public in an IPO.

Its stock was steady until recently, pulled down by broader market turmoil and new jitters around streaming economics. Today it bucked a down market, rising 1.83% to close at $18.35.

The company cited demand for clients across premium content and live events, including comedy and the resumption of concert touring that was hit hard by Covid. Representation segment revenue of $357 million was up 44% and adjusted EBITDA, a kind of operating income, jumped 65% to $102 million.

Events, Experiences & Rights revenue of $826 million rose 53% driven by the return of more full-capacity live events, including Super Bowl LVI, the Miami Open, the NCAA Final Four and Frieze LA, as well as $38 million in revenue from the acquisition of NCSA. Adjusted EBITDA of $132.5 million was up by $93 million, or 239%, year-on-year.

High profile UFC, in the sports properties segment, saw a 5% bump in sales to $297 million on sponsorship, licensing, commercial PPV and event-related revenue for UFC – offset by one fewer PPV event in the quarter compared to the same prior year period – as well as a greater number of PBR events with full attendance. Adjusted EBITDA of $149 million was up 2%, reflecting costs at Diamond Baseball Holdings in the offseason, the company said.

Endeavor raised its full-year 2022 revenue guidance to between $5.2 billion and $5.47 billion; and boosted its adjusted EBITDA guidance to between $1.1 billion – $1.15 billion.

“Our growth in the first quarter was driven by our ability to respond to the high demand for premium content and live events,” said CEO Ariel Emanuel. “We feel great about where we sit relative to the secular tailwinds across all of our businesses.”

The company ended the quarter with cash of $2 billion and debt at $5.7 billion.

Execs are hosting a call at 5 pm ET to discuss the numbers and outlook.

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