BEVERLY HILLS, Calif. - Endeavor Group Holdings, Inc. (NYSE: EDR), a global sports and entertainment company, reported a fourth-quarter earnings miss, with adjusted EPS of -$0.03, falling short of the analyst consensus estimate of $0.22.
Despite meeting revenue expectations with $1.58 billion, which aligns with the consensus estimate, the company's stock experienced a decline of 2.2% following the announcement.
Endeavor's fourth quarter was marked by significant achievements, including the closure of the WWE acquisition and the launch of TKO Group Holdings, Inc. However, the company also reported a net loss of $29.3 million for the quarter, compared to the prior year's quarter.
The Owned Sports Properties segment saw a substantial revenue increase of 113% YoY, largely due to the WWE acquisition and growth at UFC. Conversely, the Events, Experiences & Rights segment experienced an 8% decrease in quarterly revenue YoY, primarily impacted by the sale of IMG Academy.
Ariel Emanuel, CEO of Endeavor, commented on the year's performance, stating, "2023 was a transformational year for Endeavor as we strengthened our positions in sports and entertainment through many of our industry-leading assets. Endeavor’s work with TKO to secure innovative media rights deals and landmark partnership agreements is proving our thesis, and we continue to benefit from demand for premium content and live experiences."
The company's full-year 2023 revenue reached $5.960 billion, with net income at $557.5 million and adjusted EBITDA at $1.216 billion. The Sports Data & Technology segment also saw a notable annual increase, with revenue up 80% YoY, driven by the acquisition of OpenBet and growth in IMG ARENA’s betting data and streaming portfolio.
Endeavor's balance sheet at the end of the year showed $1.167 billion in cash and cash equivalents, with a slight reduction in total debt from $5.046 billion to $5.028 billion compared to the previous quarter.
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