The Endeavor Group posted revenue for its fiscal fourth quarter of US$1.26 billion, a decline of 16 per cent year-over-year (YoY), though the company cited the financial gains made in its owned sports properties segment.
- The owned sports properties segment posted US$301.4 million for Q4, a nine per cent increase YoY. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was US$142.4 million, a rise of 14 per cent. Total revenue and adjusted EBITDA for the 2022 financial year were US$1.3 billion (up 20 per cent) and US$648.2 million (up 21 per cent), respectively
- The events, experiences and rights segment saw its revenue up eight per cent YoY at US$557.7 million for Q4. Adjusted EBITDA was US$52.4 million, down four per cent. For the year, it reported US$2.5 billion in revenue, a 21 per cent YoY gain
- The representation segment’s revenue for the quarter was US$408.5 million, down 43 per cent YoY. Adjusted EBITDA was up nearly five per cent to US$123.9 million.
- For Q4, Endeavor recorded a net loss of US$225.7 million
- For 2022, total revenue reached US$5.27 billion, an increase of 3.75 per cent YoY, and adjusted EBITDA was US$1.16 billion. Net income was US$321.7 million for the year
The Endeavor-owned Ultimate Fighting Championship (UFC) sold out 21 consecutive events in 2022, while also gaining record sponsorship sales volume, boosting revenue in the owned sports properties segment. The company added that the UFC saw increases in media rights fees as a result of ten renewed deals.
The events, experiences and rights segment saw an annual increase in revenue thanks to heightened consumer demand and lifted restrictions for premium experiences and live events, including tennis’ Miami Open, Super Bowl LVI and the National Collegiate Athletic Association (NCAA)’s March Madness games, as well as the inclusion of the Madrid Open and the OpenBet sports betting firm. Revenue growth was offset by the expiration of some media rights deals and the cycle of sporting events.
“We are encouraged by our performance in our first full year as a public company,” said Ariel Emanuel, chief executive, Endeavor.
“Our business has proven resilient despite ongoing macroeconomic headwinds. As 2023 comes into focus, we remain confident in Endeavor’s ability to deliver long-term value given our position on the supply side of premium content and live events and experiences.”
Endeavor is anticipating revenue to reach between US$5.83 billion and US$5.98 billion for 2023, representing 12% growth at the midpoint.