Endeavor First Quarter Buoyed By Return Of Live Events, Talent Representation

Attempt Sales rose 38% to nearly $1.5 billion and the company reported net income of $518 million as talent representation and live events jumped. EPS for the first quarter ended March was $1.19, a year after the talent agency. UFC The owner and live event operator went public in an IPO.

Its stock was stable until recently, pulled down by broader market turmoil and new shocks around streaming economics. Today it trounced the down market, gaining 1.83% to close at $18.35.

The company cited customer demand for premium content and live events, including the resumption of comedy and concert touring, which was hit hard by Covid. Segment revenue representing $357 million was up 44% and adjusted EBITDA, a type of operating income, jumped 65% to $102 million.

The return of more full-capacity live events, including Super Bowl LVI, the Miami Open, the NCAA Final Four and Freeze LA, increased Events, Experiences and Rights revenue 53% to $826 million, as well as an increase of $38 million in revenue. The acquisition of NCSA increased $93 million or 239% year-over-year adjusted EBITDA of $132.5 million.

The high-profile UFC in the sports property segment saw a 5% jump in sales for the UFC on sponsorship, licensing, commercial PPV and event-related revenues to $297 million – offset by a lower PPV event in the quarter compared to the same prior year. Duration – Plus more number of PBR programs with full attendance. The company said adjusted EBITDA of $149 million was up 2%, reflecting a cost to Diamond Baseball Holdings in the off-season.

Endeavor raised its full-year 2022 revenue guidance to between $5.2 billion and $5.47 billion; and raised its adjusted EBITDA guidance to between $1.1 billion – $1.15 billion.

“Our growth in the first quarter was driven by our ability to respond to the high demand for premium content and live events,” said CEO Ariel Emanuel. “We feel pretty good about where we sit relative to the secular tailwind across all of our businesses.”

The company ended the quarter with $2 billion in cash and $5.7 billion in debt.

We’re hosting a call at 5 p.m. ET to discuss execution numbers and outlook.