Endeavor Posts Strong Q2 Bolstered by Sports and Live Events

The entertainment conglomerate led by Ari Emanuel delivers revenue that beats Wall Street forecasts

Endeavor Earnings
Photoillustration by TheWrap

Endeavor Group reported on Thursday that second-quarter revenue surged 18% from last year, as the entertainment powerhouse delivered growth from its key sports, content production and talent representation businesses.

The conglomerate run by Hollywood mogul Ari Emanuel increased revenue to $1.31 billion during the quarter, eclipsing the year-ago period’s $1.1 billion. Much of the growth was attributed to an economic recovery from the pandemic that sideswiped live events such as its Ultimate Fighting Championship franchise, though the company said concerns about a recession didn’t have much of an impact. Revenue was higher than their $1.22 billion average that Wall Street analysts were expecting.

Profit during the period rose to $42.2 million versus a loss in the year-ago period when Endeavor wasn’t a publicly traded company. Net income attributable to shareholders was $25.8 million, or 9 cents per diluted share, while earnings before certain accounting items was $306.4 million

“We benefited from strong growth globally across our segments in the second quarter,” said Emanuel. “While we recognize there are broader macroeconomic forces at play, given the quarter’s performance and our line of sight through the end of the year, we’ve once again raised our adjusted EBITDA guidance. We remain focused on our long-term strategy — leveraging the diversity and scale of our businesses to drive maximum value for our shareholders, our clients and our owned IP.”

The company’s new range is between $1.13 billion to $1.17 billion for the year. By taking the midpoint of $1.15 billion, this is $25 million higher than previous forecasts. During the first quarter, Endeavor projected revenue between $5.24 billion and $5.45 billion.

Shares rose 2% to $24.59 ahead of Endeavor releasing results. It has traded as high as $35.28 since its initial public offering last August.

Endeavor’s sports business reported revenue rose to $331.9 million, up 28% from last year. The jump was driven by an increase in media rights fees and live events such as UFC matches.

The events, experiences and rights segment posted revenue of $627.9 million, up 19% from last year. The lift was driven by the return of full-capacity live events including music festivals, the Masters, and the NCAA Final Four.

Endeavor’s marquee talent representation business posted a 9% increase in revenue to $358 million. Growth was led by strong demand for talent, including the recovery of music and comedy touring, as well as increased corporate client spending, partially offset by the sale of the restricted portion of Endeavor Content.