Demo
EDR NYSE· Endeavor Group Holdings Inc.
FundamentalsNews digest Peer analysis
Login
EDR NYSE· Endeavor Group Holdings Inc.
Earnings report Q4 2023

EDR Reports Mixed Revenue Performance in Latest Quarter

Segments of Revenue

EDR operates in multiple segments, including WWE, UFC, PBR, and nonscripted content production. In the latest quarter, revenue for the year ended December 31, 2023, increased by $483.5 million, or 36.3%, to $1,815.9 million compared to the previous year. The acquisition of WWE in September 2023 contributed $383 million to this increase. UFC revenue also saw a significant increase of $152 million, driven by higher media rights fees, contractual revenue increases, higher renewals, an additional PPV event, and increased sponsorships. PBR revenue increased by $13 million, primarily due to higher ticket sales and increased revenue from the teams series. However, it is worth noting that revenue related to the DBH business, which was sold in September 2022, offset some of these gains with a decrease of $64 million.

Strengths

EDR's overall revenue performance in the latest quarter was driven by the successful acquisition of WWE, which contributed significantly to the increase. The company's UFC segment also performed well, benefiting from higher media rights fees, contractual revenue growth, and increased sponsorships. Additionally, PBR experienced growth in revenue due to increased ticket sales and revenue from the teams series. These positive results demonstrate EDR's ability to capitalize on strategic acquisitions and leverage its various segments to drive revenue growth.

Challenges

While EDR reported an overall increase in revenue, there were some challenges in certain segments. The nonscripted content production business saw a decrease in revenue of $14 million compared to the previous year. Additionally, the event and performance revenue segment experienced a decrease of $58 million, primarily due to the sale of the Academy and a decline in On Location's music business. These challenges highlight the potential volatility and risks associated with certain segments of EDR's business.

Noteworthy

It is noteworthy that EDR's revenue for the year ended December 31, 2022, experienced a significant decrease of $447.6 million, or 22.8%, compared to the previous year. This decrease was primarily due to the sale of the restricted Endeavor Content business, which accounted for $737 million in revenue. However, excluding the revenue from the restricted Endeavor Content business, EDR's revenue increased by 24% compared to the previous year. This highlights the underlying growth and resilience of the company's core operations.

Summary

EDR reported mixed revenue performance in the latest quarter. The acquisition of WWE and strong performance in the UFC and PBR segments drove overall revenue growth. However, challenges were observed in the nonscripted content production and event and performance revenue segments. Despite a significant decrease in revenue in the previous year due to the sale of the restricted Endeavor Content business, EDR demonstrated growth in its core operations. Moving forward, the company should continue to focus on leveraging its successful acquisitions and addressing challenges in certain segments to sustain and enhance its revenue performance.

Source documents

Form 10-K  filed on Feb 28, 2024
75 pages scanned

Reference data

Company financials Q4 revenue 1.58B
Analyst estimates Q4 EPS missed by -24.23%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.