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Merging the UFC and the WWE into TKO Group Holdings is proving quite profitable for Endeavor Group Holdings and its frontman, Ari Emanuel. While TKO reported a net loss of $249.5 million in its latest filing with the Securities and Exchange Commission (SEC) earlier this week, it has smashed revenue and growth expectations for this quarter.
The UFC sought to settle a pair of antitrust lawsuits in the first quarter of 2024, and the company is expected to pay $335 million to end its legal battle. This played a huge role in TKO reporting a net loss for the quarter, even though the settlement is yet to be approved by the courts.
Nevertheless, TKO did exceedingly well in terms of revenue and growth, per MMA Fighting. The UFC saw a two percent increase in revenue year after year, with $313 million earned in Q1 2024. Comparatively, they made $306.7 million in the same time frame last year. The MMA promotion's profits were primarily driven by sponsorships and live pay-per-view events for a total of $629.7 million in revenue.
On the other hand, WWE saw a six percent rise in revenue to $316.7 million. The professional wrestling promotion also signed a new $5 billion streaming deal with Netflix, which will see the popular Monday Night Raw show move to the streaming platform in 2025.
Endeavor CEO Ari Emanuel on the UFC and WWE's sustainability under the TKO Group Holdings banner
Endeavor CEO Ari Emanuel recently shared his thoughts on TKO Group Holding's Q1 earnings report and expressed his confidence in the sustainability and business strength of the UFC and the WWE.
In a recent press release via MMA Fighting, Emanuel shared a positive vision for 2024 and lauded TKO for its record-setting live events, brand deals, and media rights deals. He stated:
"TKO is off to a strong start in 2024 with multiple record-setting live events, new brand partnerships, and media rights deals for WWE Raw. With our momentum in the first quarter and solid financial results, we have raised our full-year 2024 guidance."
He also addressed the UFC's antitrust lawsuit and revealed that they had reached a settlement with the opposing party. He said:
"We also reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. These positive developments, along with the strength in our underlying businesses, give us more conviction than ever in the combination of UFC and WWE, and in TKO’s ability to deliver sustainable long-term value for shareholders."
