TKO Group Holdings Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Karnovsky - JPMorgan - Analyst : Great. All right, Mark. So when we look back over the prior year, fairly significant outperformance for TKO stock, what's gone right? And what do you think has generated that buy-in from investors on the story?

Question: David Karnovsky - JPMorgan - Analyst : Okay. That was a great overview. Mark, when I talk sports media with investors, I always kind of say that in the long run for leagues and promotions, the quality of the products, everything. And I'm kind of curious how you would gauge WWE and UFC at the current moment on items like fan engagement, star power, cultural residents.

Question: David Karnovsky - JPMorgan - Analyst : Betting with each other.

Question: David Karnovsky - JPMorgan - Analyst : So let's follow up on Netflix with WWE. You're a few months in on that now. How are you kind of evaluating success here, not just in the US but also abroad? And I'm curious, as you've made the switch from linear to streaming, has anything kind of stood out in terms of how the fans are consuming the content differently?

Question: David Karnovsky - JPMorgan - Analyst : Yes. Well, WWE Netflix for now.

Question: David Karnovsky - JPMorgan - Analyst : Okay. Mark, it's always great to get your view on the sports rights market. We're at an interesting moment where linear firms are maybe kind of showing a little more caution post NBA, streamers are indicating a need for events. You've got flagship launching. How do you kind of view this moment in time for rights?

Question: David Karnovsky - JPMorgan - Analyst : Got it. All right. Mark, you've been asked the conferences and earnings calls every which way and the UFC negotiation. What can you say on the latest? And then, look, I'll take it a little differently. What are the priorities investors should be aware of outside of just maximizing AAV, right? How do you think about deal length reach, shoulder programming, and things like that?

Question: David Karnovsky - JPMorgan - Analyst : Maybe just staying on the rights, but shifting to WWE, right? The PLEs expire March '26, I think you said that's something you'd look to do after UFC. Around the world, that content is mostly distributed in Netflix along with your weekly programming. Kind of curious, as that's rolled out, how it kind of informs your view of the optimal structure here in the US? How do you kind of weigh the benefit of having more content in one place versus you might have an incremental partner that really wants those events?

Question: David Karnovsky - JPMorgan - Analyst : Got it. So live events, real standout success for WWE since you acquired the promotion. Maybe you could speak a bit to what's worked so far --

Question: David Karnovsky - JPMorgan - Analyst : Like I said, WWE really standout success on the Live Events side. Curious if you could talk to what's been working, limiting house shows, right, for instance, and kind of what are the levers ahead?

Question: David Karnovsky - JPMorgan - Analyst : All right. You recently had your first TKO takeover weekend in Kansas City. What were some of the highlights from that and should we look at this sort of as a marketing and sight fee driver? Are there kind of some cost synergies to consider? What's the learnings?

Question: David Karnovsky - JPMorgan - Analyst : Yes, plenty of opportunity. When we observe WWE shows, clear expansion of sponsorship inventory, right? We see the logos in the ring, presenting sponsors for matches. Is there any pushback from fans on these changes at all? And kind of what's next as you kind of look to build the success on the sponsor side that you already have with UFC?

Question: David Karnovsky - JPMorgan - Analyst : All right. Maybe just shifting gears a bit. You recently closed on the acquisition of IMG on location and PBR. We have some familiarity here through Endeavor's public period, but it would be great to refresh. So maybe you could just cover with IMG, what people should know about the core rights distribution and production business and maybe we'll just also throw it on location? You touched upon it in the beginning, but kind of your confidence on executing around those quadrennial events?

Question: David Karnovsky - JPMorgan - Analyst : Got it. I want to touch upon the company during the world of boxing. So you announced in March that you were partnering with Turki Al-Sheikh to form a new promotion. Mark, how big do you think this opportunity could be down the line? When could we expect to hear maybe some details about the structure, first card?

Question: David Karnovsky - JPMorgan - Analyst : Got it. All right. We got time for one more. As you noted, targeting free cash flow conversion in excess of 60, excluding certain items, you put out a goal of 70 at some point. Maybe just update us on capital allocation priorities outside the cash dividend, how to think about the buyback? And any potential changes in your approach to M&A opportunities within live entertainment sports? Like you said, you look at a lot.

Question: David Karnovsky - JPMorgan - Analyst : All right. Great. It's a good note to end on. Mark, thanks so much for being here.