Sports and entertainment firm TKO Group's Q3 revenue rises but misses estimates

Overview

• US sports and entertainment firm's Q3 revenue rose 21% yr/yr but missed analyst expectations

• Adjusted EBITDA climbed 54% yr/yr to $555.7 mln

• Company raised full-year 2026 revenue and Adjusted EBITDA guidance, plans more share repurchases

Outlook

• Company raises 2026 revenue guidance to $5.790 bln-$5.830 bln

• Company raises 2026 adj EBITDA guidance to $2.295 bln-$2.315 bln

• Company outlook assumes all planned live events, including in Middle East, proceed as scheduled

Result Drivers

• UFC GROWTH - Revenue at UFC rose 60% yr/yr, driven by higher media rights fees from a new distribution agreement, more live events, and increased ticket sales, per co

• IMG SEGMENT - IMG revenue rose 16% yr/yr, mainly from new marketing deals in tennis and soccer and FIFA World Cup 2026 hospitality sales, per co

• WWE MIXED PERFORMANCE - WWE revenue fell 1% yr/yr as fewer premium live events and lower ticket sales offset gains from higher media rights fees and new partnerships, per co

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 4 "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 $230.00, about 22.9% above its November 3 closing price of $187.20

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 35 three months ago

Reuters Recommended Reads

• Nov 4 - Madison Square Garden beats Q1 revenue estimates on more concerts

• Nov 3 - Cinemark posts record Q3 revenue, net income up 146%

• Nov 2 - Ryman Hospitality Q3 revenue beats on group and leisure demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)