Sports and entertainment company TKO meets Q3 revenue expectations, net income rises

TKO group

05/11/2025 22:05

Overview

TKO Q3 revenue of $1.120 bln meets analyst expectations

Net income for Q3 rises significantly due to lower operating expenses

Company raises full-year 2025 revenue and Adjusted EBITDA guidance

TKO announces $800 mln share repurchase

Outlook

TKO raises full-year 2025 revenue guidance to $4.690 bln-$4.720 bln

Company raises full-year 2025 Adjusted EBITDA guidance to $1.570 bln-$1.580 bln

TKO cites media rights deals and integration efforts as key growth drivers

Result Drivers

IMG REVENUE DECLINE - Revenue decreased due to absence of 2024 Paris Olympics revenue, impacting IMG segment

WWE REVENUE GROWTH - Increase driven by higher ticket sales and media rights fees, including new events

NET INCOME INCREASE - Significant rise due to lower operating expenses, mainly from reduced IMG costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.12 bln
$1.12 bln (18 Analysts)
Q3 Net Income
$106.80 mln
Q3 Adjusted OIBDA
$360.20 mln
Q3 Free Cash Flow
$398.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy"

Wall Street's median 12-month price target for TKO Group Holdings Inc is $220.00, about 14.8% above its November 4 closing price of $187.35

The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release: ID:nBw2jbRF5a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)