TKO Group Holdings Inc at UBS Global Media & Communications Conference Transcript

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

Question: Ryan Gravett - UBS Investment Bank - Analyst : So a lot has happened in the first calendar year for TKO. You signed our landmark deal with Netflix for WWE content. Recently, announced an acquisition for some of the sports assets and Endeavor among many other items through the year. So maybe just to set the stage, can you talk about the key learnings over the past year and your top priorities as we go into '25?

Question: Ryan Gravett - UBS Investment Bank - Analyst : So definitely, a lot of topics that I'd like to touch on. But maybe if we could start with the UFC renewal topic right now on investors' minds. I mean maybe just from a high level, across the sports ecosystem, we've seen a lot of rights continue to see pretty substantial increases at renewal. So maybe if you could just give us your view on the health of the rights marketplace right now and you think UFC is positioned for this renewal?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Yeah. Maybe just following up on, one of your comments there, Mark. I think the UFC is unique because like you're saying you do have full control over the amount of programming, what the lineup looks like. So you're doing around 42, 43 events per year right now. How are you thinking about the right balance going forward? And I guess within that, does that give you opportunities to perhaps put up the rights across multiple buyers this time around?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Okay. One last one on the UFC. We've seen from the tech platforms, global rights are a key part of their business case.

Question: Ryan Gravett - UBS Investment Bank - Analyst : -- going after sports rights. So maybe it'd be great to get your views if that's an avenue that the UFC could go around this -- this time? Or generally how the international rights marketplace is performing for you?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Got you. Let's talk about the WWE. Starts on Netflix in about a month. So maybe if you could let us know how you're feeling about the launch and especially after those Jake Paul and Mike Tyson numbers?

Question: Ryan Gravett - UBS Investment Bank - Analyst : They were quite high. Yeah. Where do you see the partnership going?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Got you. How do you think this deal can maybe help some of your other revenue lines, and most think about sponsorship here, just given the likely expanded reach that you'll have and anything you can share in terms of how the economics might work with Netflix?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Got you. So maybe the -- if we stick with WWE for a minute, the -- you have another big rights for now coming up; WWE Network deal currently with Peacock. Frankly, we don't get as much information on the viewership just given it's not readily available from Nielsen. So anything you can say in terms of how that's been performing for Peacock and NBCU and just how you're thinking about the renewal?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Yeah. The model of low volume, very high premium, do you think that continues to lend itself mostly to streaming distribution? Or is there another avenue there you could go?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Then just in terms of the quantity of PLEs, WrestleMania is a multi-day event now. I think SummerSlam also going down that route. So -- is there opportunity to expand these events to more than just single night or how are you thinking about the quantity?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Got you.

Question: Ryan Gravett - UBS Investment Bank - Analyst : So maybe let's shift over to the live events portion of the business started off by talking about how strong the experienced economy has been. Can you talk to the sustainability of the demand you're seeing, anything in the forward bookings? And I think at WWE this year, there's been a nice inflection in terms of -- so any color you can provide on what --

Question: Ryan Gravett - UBS Investment Bank - Analyst : I think the time line is for -- it's penetrating that remaining two-thirds of the major events that don't have site fees today?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Okay. Song sponsorship, a $375 million for next year?

Question: Ryan Gravett - UBS Investment Bank - Analyst : I wrote it down.

Question: Ryan Gravett - UBS Investment Bank - Analyst : I guess what's the -- what have been the drivers? It seems like WWE started to get some traction in the last quarter, more in ring sponsors. Can you talk about what?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Are there still more verticals to tap on the UFC side? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 4:15PM, TKO.N - TKO Group Holdings Inc at UBS Global Media & Communications Conference

Question: Ryan Gravett - UBS Investment Bank - Analyst : Okay. Great.

Question: Ryan Gravett - UBS Investment Bank - Analyst : So maybe we can talk about the sports assets from Endeavor that will be coming over. Maybe just at a high level to start, Can you talk about why these assets make sense within the TKO umbrella?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Maybe diving more into the PBR. And talk about a similar league-level asset, a little bit different structure. You moved to the team series model a couple of years ago. You talk about the financial profile, what the major drivers are over the next few years? And I think margins are in the mid-teens right now. What's the opportunity?

Question: Ryan Gravett - UBS Investment Bank - Analyst : For our location, maybe outside of the owned properties, I mean, where are we in terms of penetration of these hospitality offerings in major sports events, and --

Question: Ryan Gravett - UBS Investment Bank - Analyst : Yeah. Maybe just to wrap up, anything else out there that I think makes sense under the TKO umbrella, a boxing is an opportunity that's surpass?

Question: Ryan Gravett - UBS Investment Bank - Analyst : Great. I think that's a great place to wrap it up. Thanks, Mark.