Endeavor Group Q3 2023 Earnings Call Transcript

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November 8, 2023

There are 10 speakers on the call.

Operator

Welcome to the Endeavour Third Quarter 2023 Results Call. My name is Lauren, and I'll be coordinating your call today. There will be an opportunity for questions at the end of the presentation. I will now hand you over to your host, James Marsh, Head of Investor Relations to begin. Please go ahead.

Speaker 1

Good morning, and welcome to Endeavour's Q3 2023 earnings call. A short while ago, we issued a press release, which you can view on our Investor Relations site, investor.endeavorco.com. A recording of this call will also be available via that site for at least 30 days. Today, you will hear from Endeavor's CEO, Ari Emanuel and CFO, Jason Lublin, before President and COO, Mark Shapiro joins us for Q and A. The purpose of this call is to provide you with the information regarding our Q3 2023 performance.

Speaker 1

Commentary related to WWE's business and financial results The context of Endeavour's results reflect WWE's performance for the period from September 12 through September 30. I do want to remind everyone that the information discussed will include forward looking statements and or projections that involve risks, uncertainties and assumptions as well as described in the Risk Factors section of our filings with the Securities and Exchange Commission, including our 10 Qs and 10 ks. If these risks or uncertainties Our results may differ materially from those expressed or implied by such forward looking statements and projections. Forward looking statements speak only as of the date they were made, and we undertake no obligation to update them publicly in light of new information or future events, Except as legally required. Our commentary today will also include non GAAP financial measures, which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends.

Speaker 1

This measure should not be considered in isolation from or as a substitute for financial information Prepared in accordance with GAAP. Reconciliations between GAAP and non GAAP metrics for our reported results can be found in our press release issued today, As well as in the non GAAP financial information posted on our IR website. With that, I'll turn it over to our CEO, Ari Emanuel.

Speaker 2

Thanks, James, and good morning, everyone. This quarter's results reflect Endeavour's leading position in the sports and entertainment marketplace, Even and especially as market dynamics evolve. To share just a few examples, we launched TKO and immediately delivered domestic media rights increases, A record breaking global marketing partnership and new international events with sizable site fees. Also in the quarter, we announced IMG's exclusive agreement with the NFL to manage its media rights in more than 30 markets, commenced Endeavor's share repurchase program And initiated quarterly cash dividend payments. Before I discuss these and other highlights from the quarter in greater detail, I'd like to acknowledge the announcement we made last month about Endeavour's review of strategic alternatives.

Speaker 2

Given the continued dislocation between our public market value And the intrinsic value of Endeavour's underlying assets, we believe in evaluation of strategic alternatives is a prudent approach To ensure we are maximizing value for our shareholders, we will update the market if and when there's anything further to share. Turning now to the quarter. I'll start with our owned sports property segment, which includes TKO. Over just the first frame of our integration efforts, UFC and WWE have set live event records, announced international expansion plans, increased media rights fees, And confirmed a significant new global partnership. UFC had 6 live event sellouts in the quarter, and WWE set multiple records for premium live events, Money in the Bank, SummerSlam and Payback.

Speaker 2

In the Middle East, UFC announced the extension of its long standing partnership with the Department of Culture and Tourism Abu Dhabi to continue hosting 1 numbered event there each year and up to 3 fight nights in the region. Additionally, UFC will debut a first ever fight night in Saudi Arabia next March as part of Riyadh season, a clear indication that Saudi Arabia has every intention of growing its relationship with the UFC despite assumptions made about their recent investment in the Professional Fighters League. Similarly, WWE announced new international premium live events for 2024, 1 in Berlin And 1 in Perth as part of a Tourism Western Australia partnership that includes the company's largest ever site fee. On the U. S.

Speaker 2

Domestic front, WWE announced yesterday that NXT will make its broadcast television debut beginning October 2024 on The CW Network. That deal represents a 70% AAV increase and demonstrates strong demand for WWE content, Which should serve as an encouraging sign to our investor base vis a vis our Monday Night Raw discussions, which are quite active at the moment with multiple linear and streaming partners. The NXT deal comes on the heels of a new 5 year partnership with NBCUniversal to bring SmackDown back to USA Network beginning next year. That agreement represents a 40% AAV increase and includes 4 annual prime time specials that will air on NBC, Marking the first time WWE will air on the network in prime time. We are also leveraging the full Endeavor flywheel to bring new global partnership opportunities To TKO, AB InBev just announced a significant multiyear deal with UFC to become its official global beer partner beginning in 2024.

Speaker 2

The deal is UFC's biggest ever in the aggregate, including cash and marketing assets. In addition to TKO, the owned Sports Properties segment includes results from professional bull riders. PBR's 2nd team series season began in July and averaged more than 1,000,000 total viewers Broadcast partner CBS and had similarly robust attendance at its live events. In our Events, Experiences and Rights segment, As mentioned, IMG's media group announced an exclusive agreement with the NFL to manage the league's media rights in more than 30 markets across Asia and Europe Beginning next year. This NFL deal represents the latest in a series of ways Endeavor is integral to the NFL ecosystem across commercial areas, Including licensing, digital marketing, premium hospitality and experiences, player representation, and marketing on behalf of NFL teams and sponsors.

Speaker 2

Also in the quarter, Freeze bolstered its U. S. Presence with acquisitions of the Armoury Show in New York and Expo Chicago, 2 of the longest running art fairs in the U. S. And completed a successful second edition of Free Seoul in South Korea with 120 Galleries and 70,000 visitors.

Speaker 2

At On Location, momentum going into Super Bowl 58 is strong. By the end of the quarter, we'd already sold more On Location packages than ever before at that point in the Also on locations, premium hospitality for WWE Money in the Bank in London became its highest grossing non WrestleMania event ever, And UFC 293 in Sydney drove the highest year to date UFC VIP revenue. Both events are examples of ways the Endeavour flywheel supports TKO's growth And are testaments to the demand we are seeing for sports events and premium experiences across our platform. Pivoting to our Representation segment, Notwithstanding impact from the strikes, performance during the quarter was buoyed by the Endeavor flywheel and the diversified business we've grown at WME. In music, WME had a successful festival season in the quarter and increased our industry leading market share in the country music category.

Speaker 2

Our investment in sports is also continuing to pay off. WME Sports struck record breaking deals this year. With their deals, Bengals quarterback Joe Burrow became the highest paid player in NFL history, and 49ers defensive lineman Nick Bosa Became the highest paid defensive player ever. WME Sports has already negotiated more than $1,000,000,000 in football contracts this season With more than $700,000,000 in guarantees, IMG's industry leading licensing team continued to deliver first of their deals in the quarter, including a partnership between Macy's and Gap that will see 250 Macy's stores across the country debut Gap pop ups within their footprint. And activating a crucial part of the Endeavor flywheel, 160 over 90, together with WME and Endeavor's Talent Ventures team, incubated and launched WME client Snoop Dogg's Doctor Bombay Ice Cream.

Speaker 2

The product debuted in more than 3,500 Walmart locations nationwide. Turning next to our Sports Data and Technology segment. Following Open Bet's successful launch with OPAP in Greece, We have been pursuing opportunities in additional emerging markets. In the quarter, Open Bet signed a new partnership with Play7 to enter Brazil's sports betting market. We see significant opportunity ahead in Brazil, and OpenBet is well positioned to capitalize on the market's highly anticipated opening to regulated sports betting And potentially other digital gaming products.

Speaker 2

With that, I'll turn things over to Jason.

Speaker 3

Thanks, Ari, and good morning, everyone. I'll start by walking you through our financial results for the Q3. I'll then provide you some color around what we're seeing in each of our operating segments. All comparisons will be to the Q3 of 2022. For the quarter ended September 30, 2023, We generated $1,344,000,000 in consolidated revenue, up $123,000,000 or 10.1%.

Speaker 3

Net loss for the quarter was $116,000,000 compared to net loss of $12,500,000 a year ago. The change in net loss was largely driven by increased Transaction related expenses associated with the TKO transaction. Adjusted EBITDA for the quarter was 311,600,000 Up $8,500,000 or 2.8 percent. Now I'll walk you through each of our segments. Our Owned Sports Property segment generated revenue of $179,700,000 in the quarter, up $77,500,000 or 19.3 percent, while the segment's adjusted EBITDA For the quarter was $237,400,000 up $41,700,000 or 21.3 percent.

Speaker 3

Revenue growth in this segment was primarily driven by As well as 2 additional Fight Night events compared to the prior year quarter. Segment revenue growth was also driven by higher live event revenue and sponsorships In addition to higher site fees from multiyear partnerships, the WWE acquisition also contributed $52,000,000 of revenue for the post closing As a reminder, the prior year quarter included $33,000,000 of revenue related to Diamond Baseball Holdings, Which we sold in September 2022. PBR also posted 19 series events in the quarter, which drove a 26% increase in attendance over Now turning to Events Experiences and Rights. The segment recorded revenue of 367,100,000 Down $27,100,000 or 7 percent. Segment adjusted EBITDA was $29,800,000 down $15,700,000 or 34.4 percent.

Speaker 3

The prior year quarter included $72,000,000 of revenue from IMG Academy, which we sold this past June. The decrease in segment revenue was partially offset by increases in media production revenue at IMG's media business from new contracts, including Major League Soccer, As well as media production for certain biennial and quadrennial events, including the Ryder Cup and Rugby World Cup, which did not occur in 2022. Increased revenue related to On Location's premium hospitality at the Ryder Cup. Live event revenue primarily driven by new events such as Barrett Jackson, New Orleans and our acquisition of the Armoury Show Art Fair in July of this year. Segment adjusted EBITDA for the quarter was primarily adversely affected by the sale of IMG Academy, On Location's ongoing IOC investment, Which began in the Q3 of last year and is inclusive of personnel, marketing and technology costs and decreases at Endeavor Streaming.

Speaker 3

Moving on to our Representation segment, revenue was $385,600,000 down 2,700,000 Segment revenue was impacted by a $29,000,000 decrease at the agency, primarily driven by the impact of the WGA and SAG Absor Strikes, Partially offset by growth in the sports and music divisions. This decrease was further offset by content delivery within our non scripted production business As well as increases at $160,090,000 in IMG's licensing business. WME Sports closed record breaking NFL and NBA player deals And WME's music touring business had a strong quarter driven by continued demand for live music. More than 200 WME clients performed across festivals including In the Q3, segment adjusted EBITDA was 96,300,000 Down $36,600,000 or 27.5 percent primarily related to the adverse impact from both strikes. Related to the estimated impact of the strikes, we previously estimated the impact of the strikes would adversely affect our representation revenue by up to 25,000,000 Per month on average relative to our forecast at the time.

Speaker 3

In the quarter, our agency performed better than expected, Primarily due to overall deals being suspended at a slower rate than anticipated, profit participations And outperformance in areas previously mentioned such as sports and music. As a result, the strike impact adversely affected our agency revenues in the range of $40,000,000 to $50,000,000 in the quarter. Looking to the Q4, we expect the originally estimated impact of the strikes to continue Based on the lagging effect of the WGA strikes, the ongoing SAG Apsa strike as well as the time needed to meaningfully ramp production. Now turning to our Sports Data and Technology segment. Revenue was $124,800,000 up $78,100,000 While adjusted EBITDA was $24,000,000 up $19,800,000 Growth in this segment revenue was attributed to the addition of Open Bet, which we acquired in September of 2022, as well as growth in bedding and data and streaming at IMG Arena across a widening portfolio.

Speaker 3

For Wimbledon, IMG Arena delivered data feeds to more than 250 sportsbooks covering 6.51 matches. IMG Arena also entered a multiyear partnership with Conference USA to become the lead official data rights collector for football and men and women's basketball. Moving on to our capital structure. We ended the quarter with $5,050,000,000 in debt and $1,340,000,000 in cash, Resulting in $3,740,000,000 in net debt. Our net leverage was 3.22 times at quarter end.

Speaker 3

As a recognition of our deleveraging progress and close of the TKO transaction, S and P Global Ratings Recently upgraded our parent issuer credit rating, inclusive of the UFC Credit Group to BB- from B plus In conclusion, given Endeavour's previously announced review of strategic alternatives, we are tabling discussions related to capital allocation and annual guidance At this time, with that I'll hand it over to James.

Speaker 1

Thanks Jason. Operator, can we open up for questions now?

Speaker 4

2, if I could, 1 on the strike and 1 on the health of the consumer. So first on the strike, I know nothing is certain, but it does seem like we're getting closer to a resolution, hopefully by Thanksgiving as opposed to the dispute extending into December of 2024. Jason, I know you talked a bit about the expectations for Q4, but can you help us think about the shape The eventual recovery to your representation business and maybe Hollywood overall once things are hopefully resolved. And it seems like There's a lot of pent up demand for things to pick up day 1, but I was wondering what kind of impediments there might be to getting the machine fully up and running And when we might get there? Is this a mid-twenty 24 event, for example?

Speaker 4

And second, Ari, I know you called out the strength you're seeing across, It seems like effectively all of your events, but is there anything more you can share about the health of the consumer that you're seeing? It seems like you've been largely insulated so far, but we are seeing more and more cracks in the system in different industries. So would appreciate any added perspectives. Thank you.

Speaker 2

So on the first question, I'll take it. This is Ari. Thanks for the question. It takes you'll probably see going into the first Quarter, the ramp up of things that were shut down because of the strikes. So the things that were closed, we had 19 days, 30 days, whatever amount.

Speaker 2

They'll pick up. Hopefully, the strike ends in the next couple of days. They'll prep again and then go at the beginning of the year. The rest of the new stuff and I agree with you, there's tons of pent up demand, a lot of stuff on the runway. That will get going probably, I'm saying April ish May, because you remember, you have to have 2 to 3 months of prep, And then you can start doing the productions both on the movie and television side.

Speaker 2

So that's kind of the timeline to all of that. I think Mark will hit the consumer.

Speaker 5

Yes. Hey, Cucan. How are you? Too bad, Ari and I thought we were going to wait up this morning and this strike would be over. I'm sure Yes, I was thinking the same thing on this call.

Speaker 5

Let's hope by the time we get to Disney, that's the case, for everybody's sake. On the general health of the consumer, look, you kind of answered it. I don't want to hex anything here. But the bottom line is we seem to be somewhat insulated and our peers so far are reporting that they're somewhat insulated, right? I Disney is going to go later today, but up till now, they're kind of forecasting $10,000,000,000 in profits this year For their theme parks, everybody's talking about ticket prices being so high.

Speaker 5

In the summer, crowds were supposedly lower. Meanwhile, they're up 5x from a decade ago. Live Nation, of course, the other day just had their strongest quarter ever. They're on pace for record revenue in 20 Great. The reporting record attendance.

Speaker 5

And then you kind of move over to our surf, if you will, and we've got record attendance and ticket per caps At multiple events ranging pretty broadly from WWE to UFC to PBR All the way to Freeze, which is our art fair that you know we hold in London and we hold in Korea, and just It's been a good story for us. So we're not really seeing any slowdown. And then probably preempting another question, when you look at the Olympics in the state of Bonn location, And keep in mind, what we sell there are mainly travel packages. Some the consumer that wants to go to Paris To go to multiple games, they need help with hotel, they want experiences and often airfare is a part of that. And we are we have sold through 1 third of our goal already and the stacking of our marketing Doesn't even take place till Q1, Q2.

Speaker 5

As you can see from NBC and their Sunday Night Football package, They just started to hit the Olympics hard. And every time they hit it, that bodes well for us. So, so far, insulated, Health and consumer seems strong and we're believe me we're keeping an eye out for it.

Speaker 4

Great. Thanks operator. Thank you both.

Operator

Thank you. Our next question comes from David Karnovsky from JPMorgan. David, please go ahead.

Speaker 6

Thank you. Maybe following up on the prior question, as we reach the end game on the actors' strike, maybe you provide your updated view on the demand environment Prescripted kind of once we get past that initial pent up period. And then just sticking on the rep side, I think there's been a fair amount of investor debate about Sustainability of concert touring, whether it can grow off 2023 levels. I think you mentioned 200 of your artists On the road in Q3, so would appreciate kind of your view on sustainability how that might look into 2024? Thanks.

Speaker 2

I don't see the pent up demand ending anytime soon. You're going to be Ramping, I mean the hardest thing we're going to have to do is scheduling of people, mainly on the actor side, because there's going to be so much product Happening. And so I don't think anything is going to even after the first wave slowdown in that regard, This constant drumbeat of this content at a peak, I don't believe that's the case. You're going to see this I think through 2025. They've already pushed a bunch of stuff into 2025.

Speaker 2

Warner Bros. They've talked about it. Disney, they've talked about it. So I don't see it slowing down for a while. You want to

Speaker 5

Yes. Just on the music side, I mean, it's ironic. We're sitting here in Nashville at our country music Office, where we lead the industry in terms of music representation, a stellar leadership team here. And we're Reviewing really our record bookings to date and forecasting next summer to be equally as strong. So Artists want to tour.

Speaker 5

Crowds want to see them. And we're seeing record attendance and record Ticket per caps, frankly, a lot of endorsement and sponsorship deals that are following that. So very consistent with what Live Nation is reporting. That bodes well for us. Don't see it slowing down.

Speaker 5

The festivals that we are a part of that we have an ownership position or we book ourselves Equally, equally brisk.

Speaker 1

Thanks. Operator, next question please.

Operator

Thank you. Our next question comes from Steve Lavasek from Goldman Sachs. Steve, please go ahead.

Speaker 7

Hey guys, good morning. Maybe first on the sports strategy at Endeavor. Even with the USC now over at TKO, you still have some fairly Sizable sports assets at Endeavor, PBR, the Miami and Madrid Tennis Open, I think being some of your biggest. They also had a bid out there for the PGA. So I was Curious just if you could update us on the sports strategy at Endeavor, to the extent which you think there's opportunity to scale platform and how that strategy might differ from how TKO might approach inorganic growth in the industry going forward?

Speaker 7

And then maybe just a quick one for Jason. Could you unpack what drove the year over year change in net income for us in the quarter? Thank you.

Speaker 2

On the sports strategy, when you think about the Miami Open or Madrid, if you've ever been to the Madrid Open, I mean, one of the biggest attractions, they sell these packages for the food festival that happens outside it. In addition, We're adding a music festival. So those are not yes, they're sports, but they're really events, Cultural events surrounding the same thing with Miami. So when you think about those sports, As you define the sports, those are actually really events. The sport is the UFC, the sport is WWE.

Speaker 2

Yes, PBR is there, But that's also an event, a country kind of event that travels. So that's how we think about it. As it relates to the PGA, remember, we had fees going back I don't know if you read all the details of the structure of our offer. And when we realized that, One, the prices were getting ridiculous, and they weren't going to recognize our fees. We didn't want to actually participate.

Speaker 5

Yes. Just Stephen, I want to elaborate on that because I know there's been a lot of discussion on this, a lot written about it. And just the fact that you mentioned it, I think I'm glad Ari responded to that. Just to make sure we level set with everybody because we want to be consistent in Our dialogue here. We're not even on the TKO side, we are very focused on the integration there, And we're working closely with the Endeavor Flywheel to make sure we maximize revenue synergies.

Speaker 5

We're not even thinking about M and A. The PGA, to Ari's point, we have a long, elaborate, comprehensive history with the PGA Tour. Obviously, fans and what they do, we represent a lot of golfers, but we represent them and have represented them on media rights at times, certainly internationally as well, On events, we own some sanctions, sponsorship. We have 160 over 90 clients that are official partners Of the tour like DP World, we do their sports betting. We have analytics.

Speaker 5

So we have a Multiple disciplines, if you will, on commercial services. So the opportunity was there that, hey, would we be interested in making a minority investment, Being part of a consortium and by the way that consortium was probably TBD down the line and all we said was Absolutely, we'd be interested in making a 10% minority investment as long as many of these commercial services deals, Those contracts could get extended for $25,000,000 per year. It was an aggressive ask. Maybe it was unrealistic. We figured it would get shut down.

Speaker 5

It ultimately did, and then we were out of it. So it wasn't like we weren't talking out of 2 sides of our mouth. We're not looking to buy the PGA Tour, but certainly, if we can have a little slice while we're getting our commercial services extended at a nice Premium, we would do that. That just wasn't to be. So I think that context is very important here.

Speaker 5

Jason can talk about the net income.

Speaker 3

Yes, Yvonne, the net income line, I would point to primarily 2 items. One being transaction costs associated with the TKO transaction in the neighborhood of 70 ish million plus and also restructuring costs associated with that transaction in the neighborhood of 70,000,000 So those were big impacts in net income for the quarter, obviously both one time in nature and non recurring.

Speaker 1

Great. Thanks, Stephen. Operator, I have a question. Great.

Speaker 7

Thank you for that.

Operator

Thank you. Our next question comes from Stephen Glagoula from TD Cowen. Stephen, please go ahead.

Speaker 8

Hi, thanks for the question. Ari, as you recently took Endeavor public and a half years ago, how do you view Silver Lake's consideration of a take private proposal relative to other potential strategic alternatives you're exploring? And also, do you think a go private would hinder any platform synergies that you see currently existing within the assets you

Speaker 2

Since my lawyers are around and you know the answer that I'm going to have, I'm not commenting on anything as it relates to go private I'm not going to review anything that you've just mentioned, but I appreciate the question.

Speaker 8

Okay. Do you mind if I ask Question number. I apologize for that.

Speaker 1

No problem. Yes. How do

Speaker 8

you For the core representation business, you've said that this business has historically grown revenue and EBITDA, the double digit CAGR over the last decade. And how do you think the end of the packaging deals and fees and the new terms in the riders and actors contracts following these strikes are going to impact that growth, That core growth over the next 5 to 10 years. Thanks.

Speaker 2

Well, here's what I would say to you is, we have a very big diversified Business as you can see by our results, so whether it be sports, whether it be music, whether it be digital, whether it be books, So we feel very good about now the well roundedness of the whole organization. So even though there's no packages, we also have Old packages and as you can see on Netflix, everybody is selling their properties, their old properties like they sold Ballers, they sold Suits. Suisse is one of the biggest shows. Those are big fees that come back in packages on the old packages. So we really feel good about the portfolio that we've put together.

Speaker 1

Thank you. Operator, next question. Thanks.

Operator

Thank you. Our next final question comes from David Joyce from Seaport Research Partners. Please go ahead, David.

Speaker 9

Thank you. On the Sports Data and Technology business, could you talk about some of the growth drivers from here? How much do you rely on any further regulation Domestically or internationally, and kind of what's the purview of where you could still be adding to your data rights there?

Speaker 5

Thanks, David. Bringing us home with SD and T,

Speaker 2

I love it.

Speaker 5

All right. So what I would say

Speaker 2

on this front, What we would say is, remember we have 2 parts of

Speaker 5

our business. One part is Open Bet, which is B2B, it's infrastructure, it's tech, It's white label for the myriad of sports betting operators who are out there and increasingly more and more these days to your point Because regulation is lifting, you can see Brazil on the horizon. Finland, huge opportunity. Yesterday, just had a great meeting with an operator in the Dominican Republic. So this is a very Noisy area which plays to our benefit because they're not going to go out there, many of these players, and spend all the capital required On infrastructure, on tech and on labor, when they can just white label it in a much more efficient manner, both cost and speed with Open Bed.

Speaker 5

So we feel very bullish about that business. It's a good quarter for us in this area, and the prospects for 2024 With more and more regulation getting lifted, play to our advantage. The area we have to be careful on is the IMG Arena side. And that is, to your point, sports data rights. I think here to 4, we've been very disciplined at this point.

Speaker 5

We don't play Tier 1 Kind of Trojan horse money loser properties. I'm not going to single anybody out specifically or any company specifically. But often, It is a rice be fast to try to get the sports data from some of these major leagues. And frankly, the margins are just too tight. There's too much risk we can't make money on that.

Speaker 5

So we play in the Tier 2 properties, the Tier 3 properties and often package it With our media division at IMG, where we can get all kinds of efficiencies and synergies to make these profitable and strong margins. That's where we're going to continue to stay. So we are very content being the number 3 player in that marketplace behind Genius and Sports Radar, which, of course, has been at it longer than anybody else and probably is the leader and certainly the biggest.

Speaker 1

Great. I

Speaker 5

appreciate it.

Speaker 3

You got it.

Speaker 4

Thanks, David. I just want

Speaker 1

to thank everyone in conclusion here. Operator, you can

Operator

This concludes today's call. Thank you for joining everyone. You may now disconnect your lines.

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Key Takeaways

  • TKO integration drove record live event performance with increased media rights fees (e.g., 70% AAV boost for NXT and 40% for SmackDown) and new global partnerships like AB InBev’s official global beer deal beginning in 2024.
  • Endeavor has initiated a strategic review to explore alternatives aimed at closing the gap between its public market value and the intrinsic value of its underlying assets.
  • IMG secured an exclusive NFL media rights management agreement across more than 30 markets in Asia and Europe, while Freeze’s U.S. art fair acquisitions and On Location’s premium hospitality sales highlight growth in the Events, Experiences & Rights segment.
  • The Representation segment absorbed a $40–50 million impact from the WGA and SAG-AFTRA strikes but still closed record-breaking NFL/NBA player contracts and saw strong live music touring demand.
  • In Q3, consolidated revenue rose 10.1% year-over-year to $1.344 billion and adjusted EBITDA increased 2.8% to $311.6 million, while net loss widened to $116 million due primarily to transaction and restructuring costs, and net leverage stood at 3.22×.
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Earnings Conference Call
Endeavor Group Q3 2023
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