TKO Group Holdings Inc at Morgan Stanley Technology, Media & Telecom Conference Transcript

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

Question: Benjamin Swinburne - Morgan Stanley - Analyst : We'll work on that next for next year. So we're about what -- gets into the life of TKO Holdings, plus or minus, merging the UFC and WWE. Why don't you take a step back and just talk about how the business has performed versus plan and where you see the biggest opportunity to drive value from here?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Smaller room. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 8:20PM, TKO.N - TKO Group Holdings Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Benjamin Swinburne - Morgan Stanley - Analyst : So this conference over the years, one of the big themes has always been the movement of sports to streaming and in that particular, will they, won't they?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : You guys are on Netflix, I guess, what started early January with Raw and around the world. What's been -- I know it's early, but can you tell us anything about the impact that distribution model is having on your WWE franchise?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Yes. We'll talk more about the Netflix relationship in more detail in a minute. You mentioned before the Endeavor acquisition. So I guess that closed. So now you own the businesses. I think as of what last -- late last week.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : $3.25 billion. What's the opportunity ahead for these businesses? And why does it make sense to own these along with the UFC and WWE, how does it all fit together?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Probably the biggest proof point on the location side will be the L.A. Olympics. I just wanted to ask you if your expectation is bullish and that that's going to go on as originally planned? Because obviously, with all the fires, there was definitely some concern that maybe you would have to be altered.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : I feel like I want to ask you about the French and the Trump Olympics, but I'm going to move on to my next question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 8:20PM, TKO.N - TKO Group Holdings Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Exactly. Last sort of maybe consolidated question and we'll dive into the segments a little bit. So site fees is an area you guys have been very excited about some of the other global sports have made a significant amount of money in the site fee opportunity. Can you size that for us? Maybe just help the audience think about what's allowing you guys to view that as a real growth opportunity.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : So Mark, as you know, the #1 focus in the market today is your UFC domestic rights renewal. You're in last year of the ESPN deal that goes back to 2019. It's a pretty unique structure, ESPN Plus, ESPN -- some ABC, pay-per-view model. Can you just talk maybe big picture about, first, your goals in this renewal and how you think about maximizing reach and kind of building the UFC and maximizing revenue because there can be trade-offs since as you approach it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 8:20PM, TKO.N - TKO Group Holdings Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Benjamin Swinburne - Morgan Stanley - Analyst : So I'll definitely get beat up if I don't at least ask you this question, so I'm going to ask it anyway. So the press has reported you guys are looking for over $1 billion of annual average value of total price from your new deal. And I'm just wondering if there's a message you'd like to provide to the market around where their expectations should be around AAV and term or any comment you'd want to provide on that front?

Question: Benjamin Swinburne - Morgan Stanley - Analyst :

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Makes sense. Sponsorship has been a really nice story for the company overall. I did want to ask you about TKO and sort of the Monster Energy announcement that we just heard about, are there still categories out there for the UFC in particular to -- that you haven't monetized yet?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Yes. Let's talk about WWE. I want to ask you about John Cena, turning heel, but we don't have enough time for that.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : I assume Netflix had that in the contract.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Yes. It feels like this is going to help. I want to ask, you and I talked about the PLEs for a while, and you've been always been very bullish on the opportunity there. I'm just wondering if you could compare the PLE opportunity we just talked with the UFC and what you make of Comcast spinning out USA network as part of their spin cone. And does that impact you think their interest and the opportunity for you guys?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Yes. How do you think about the pros and cons of maybe moving those to Netflix, obviously, if it made sense for you guys? Because when we look at it, and knowing that Netflix they'll be here, I think, tomorrow. They love global rights, right? That's their business. They have these PLEs everywhere but the U.S. So I have to think they'd want them. But do you think about having 1 partner globally is maybe not that attractive also? Or how do you think about it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 03, 2025 / 8:20PM, TKO.N - TKO Group Holdings Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Benjamin Swinburne - Morgan Stanley - Analyst : I'd have to say the biggest surprise to me in 204 was just the live event revenue growth that you guys put up 30% across the company, 30% at WWE with fewer events. Have you already optimized that, or are there still opportunities to grow that business meaningfully from here?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Any reason why WWE sponsorship revenues over the long term can't keep up with what you've been able to do with UFC, is there anything structural when you look at the two businesses?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : 2016.

Question: Benjamin Swinburne - Morgan Stanley - Analyst : Got it. In the minutes we have left, Mark, I want to talk about capital allocation and sort of your corporate structure. So you mentioned earlier the dividend has been effectively started as, I guess, paid out in a couple of weeks. Talk about your framework for returning capital to shareholders and how you think about the leverage appetite for the company?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : So -- that's a great ending to our conversation, Mark, anything you'd like to wrap up with any predictions for the year you want to leave for us? Any expectations for WrestleMania? John Cena?

Question: Benjamin Swinburne - Morgan Stanley - Analyst : That's a great way to end, Mark. Thank you so much for coming.