WWE and UFC parent TKO Group Holdings is doubling its quarterly cash dividend for shareholders.
The company’s Class A common stockholders will receive a pro rata share of an aggregate distribution of approximately $150 million authorized by TKO’s board, representing a 100% increase over the prior program.
The dividend of 76 cents per share will be paid on Sept. 30 to Class A shareholders of record as of the close of business on Sept. 15.
“On the heels of our UFC and WWE U.S. domestic media rights renewals and the strong earnings and cash flow profile they provide, alongside the continued strength and momentum in our underlying business, we are proud to double TKO’s quarterly cash dividend,” TKO president and COO Mark Shapiro said in a statement. “The increased dividend, together with our share repurchase program that we expect to commence within the third quarter, reflects our ongoing commitment to a robust capital return strategy and delivering sustainable long-term value for our shareholders.”
TKO will fund its quarterly dividends with cash flow from operations and/or cash on hand. Future declarations are subject to factors including the company’s results of operations, financial condition, market conditions, earnings, cash flow requirements, restrictions in its debt agreements and legal requirements.
In addition to the dividend, TKO has launched a “potential upsize” of its existing credit facility by up to $1 billion, which is subject to market conditions and customary closing conditions.
Shares of TKO are up 30.6% year to date and 57.9% in the past year.
