Q1 2024 TKO Group Holdings Inc Earnings Call

[music].

Okay.

Tamiya: Good afternoon. Thank you for attending today's first quarter TKO 2024 earnings call. My name is Tamiya, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to your host, Seth Zaslow, Head of Investor Relations. You may proceed.

Good afternoon. Thank you for attending todays first quarter Teekay, Oh 2024 earnings call. My name is to me and I will be your moderator for today's call all lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question. Please press star one on your telephone.

Seth Zaslow: But I would not to pass the conference over to your host that Saslow head of Investor Relations you May proceed.

Seth Zaslow: Good afternoon, and welcome to TKO's first quarter 2024 earnings call. A short while ago, we issued a press release, which you can view on our investor relations website. A recording of this call will also be available via our website for at least 30 days. Joining me on today's call are Ari Emanuel, TKO's Executive Chairman and Chief Executive Officer, Mark Shapiro, our President and COO, and Andrew Schleimer, our CFO.

Saslow: Good afternoon, and welcome to Teekay <unk> first quarter 2024 earnings call.

Seth Zaslow: Short while ago, we issued a press release, which you can view on our Investor Relations website.

Saslow: A recording of this call will also be available via our website for at least 30 days.

Saslow: Joining me on today's call are Ari manual Tko's executive Chair and Chief Executive Officer.

Speaker Change: Marc Shapiro, our president and COO and Andrew Schleimer, our CFO.

Seth Zaslow: After prepared remarks from Ari and Andrew, we'll open the call for questions. The purpose of this call is to provide you with information regarding our first quarter 2024 performance. I want to remind everyone that the information discussed will include forward-looking statements and projections that involve risks, uncertainties, and assumptions. Please see our filings with the Securities and Exchange Commission for further detail. If these risks or uncertainties were to materialize, or any assumptions prove incorrect, our results could differ materially from those expressed or implied on this call.

Speaker Change: After our prepared remarks from <unk> and Andrew will open the call for questions.

Seth Zaslow: Purpose of this call is to provide you with the information regarding our first quarter 2020 for performance.

Seth Zaslow: I want to remind everyone that the information discussed will include forward looking statements and or projections that involve risks uncertainties and assumptions.

Seth Zaslow: Please see our filings with the Securities and Exchange Commission for further detail.

Speaker Change: If these risks or uncertainties were to materialize or any assumptions prove incorrect. Our results may differ materially from those expressed or implied on this call.

Seth Zaslow: Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events, except as legally required. Our commentary today will also include non-GAAP financial measures, which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics can be found in our press release issued today, as well as the information posted on our IR website. With that, I'll now turn the call over to Ari.

Seth Zaslow: Forward looking statements speak only as of the date. They are made and we undertake no obligation to update them in light of new information or future events, except as legally required.

Ari: Our commentary today will also include non-GAAP financial measures, which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends.

Ari: These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP.

Ari: Reconciliations between GAAP and non-GAAP metrics can be found in our press release issued today as well as the information posted on our IR website.

Seth Zaslow: With that I'll now turn the call over to Ari.

Ari Emanuel: Thanks, Seth. TKO is off to a solid start in 2024 with strong performances across both UFC and WWE. Coming off a record 2023 for both businesses in terms of revenue and profitability, we've continued to deliver through the first quarter. We had record attendance and gates across our live events portfolio in the quarter. We secured a landmark global deal for WWE with Netflix and renewed UFC rights in multiple international markets. We landed groundbreaking brand partnerships, including a first-ever in-ring sponsor for WWE.

Ari: Thanks Seth.

Ari: <unk> is off to a solid start in 2024 with strong performance across both UFC and WWE.

Ari Emanuel: Coming off a record 2023 for both businesses in terms of revenue and profitability. We've continued to deliver through the first quarter, we had record attendance and gates across our live events portfolio in the quarter.

Ari Emanuel: We secured a landmark global deal for WWE with Netflix and renewed UFC rights in multiple international markets.

Ari Emanuel: We landed groundbreaking brand partnerships, including a first ever in ring sponsor for WWE.

Ari Emanuel: We settled all claims in the UFC antitrust lawsuits, bringing that matter to a close without introducing any further changes to our existing business operation. In April, WrestleMania 40 drew its largest ever viewership and set a WWE gate record with 145,000 fans over two days at Philadelphia's Lincoln Financial Field, and the following weekend, UFC 300 became one of the highest grossing events in UFC history. Based on Q1 performance and business momentum, today we are raising our full-year guidance for revenue and adjusted EBITDA. Andrew will share more detail on our financials shortly, but first, I will touch on recent highlights that underscore our conviction.

Ari: We settled all claims in the UFC antitrust lawsuits, bringing that matter to a close without introducing any further changes to our existing business operations in April Wrestlemania 40 drew its largest ever viewership and set of WWE gate record with 145000 fans over two days at Philadelphia as Lincoln financial field.

Ari Emanuel: And the following weekend UFC 300 became one of the highest grossing events and UFC history.

Ari Emanuel: Based on Q1 performance and business momentum today, we are raising our full year guidance for revenue and adjusted EBITDA, Andrew will share more detail on our financials shortly but first I will touch on recent highlights that underscore our conviction.

Ari Emanuel: First, as our record-setting events demonstrate, the experience economy is alive and well, especially for premium content and experiences like ours for UFC. During Q1, we sold out all five events with live audiences, setting numerous ArenaGate records. These included UFC 297 in Toronto, UFC's highest-grossing arena event in Canada; UFC 298 in Anaheim, the highest-grossing MMA event ever in California; and UFC 299 in Miami, setting the arena record and ranking among the highest-grossing UFC events of all time.

Ari Emanuel: As our record setting events demonstrate the experience economy is alive, and well, especially for premium content and experiences like ours.

Ari Emanuel: UFC also returned to Mexico City with a fight night that became our highest-grossing event in the country and coincided with the launch of our Performance Institute there. The Mexico City facility, our third Performance Institute worldwide, will accelerate our efforts to develop and support MMA athletes across Latin America, an important growth market and source of some of UFC's top talent. We're equally excited about several big upcoming fights, including Conor McGregor's highly anticipated return to the Octagon at UFC 303 on June 29th and UFC's planned debut at the Las Vegas Sphere this September. Now, turning to WWE. Premium live events in the quarter, Royal Rumble and Elimination Chamber, delivered record gross revenue and viewership. Royal Rumble even broke the all-time attendance record for Tropicana Field in St. Petersburg, Florida.

Ari Emanuel: For UFC during.

Ari Emanuel: During Q1, we sold out all five events with live audiences setting numerous arena Gate Records. These included UFC $2 97 in Toronto, Ufc's highest grossing arena event in Canada UFC.

Ari Emanuel: UFC $2 98 in Anaheim, the highest grossing MMA event ever in California, and UFC $2 99 in Miami setting the arena record and ranking among the highest grossing UFC events of all time.

Ari Emanuel: UFC also returned to Mexico city with a finite that became our highest grossing event in the country and coincide with the launch of our performance Institute there.

Ari Emanuel: Mexico City facility, our third performance Institute worldwide, we will accelerate our efforts to develop and support MMA athletes across Latin America, an important growth market and source of some of UFC top talent.

Ari Emanuel: We're equally excited about several big upcoming fights, including Conor Mcgregor as highly anticipated returned to the octagon at UFC 303 on June 29, and UFC as planned debut at the Las Vegas sphere. This September.

Ari Emanuel: An Elimination Chamber event in Perth, Australia, brought out more than 52,000 fans to mark WWE's first event in Australia since 2018 as part of an agreement with Tourism Western Australia. Throughout the quarter, WWE's events also benefited from momentum leading up to WrestleMania, with 17 consecutive sellouts for televised events. This sellout streak is the longest for televised events in WWE history. In total, WWE events in Q1 set 54 individual market records for both gross and paid tickets across all events.

Speaker Change: Turning to WWE.

Ari Emanuel: Premium live events in the quarter Royal Rumble and elimination chamber delivered record gross revenue in viewership Royal Rumble broke the all time attendance record for Tropicana field in St. Petersburg, Florida, and elimination Chamber in Perth, Australia brought out more than 52000 fans to Mark Wwe's first Australia event.

Ari Emanuel: These attendance records speak to the broader economic benefits we bring to host cities, and we are focused on partnering with local governments and maximizing revenue opportunities from the venues. As one recent example, during the quarter, Tourism Western Australia entered a multi-year partnership for UFC to return to Perth with at least two events, including the UFC 305 pay-per-view in August and one additional fight night in subsequent years. These initiatives all follow WWE's own successful partnership with the Western Australian government.

Ari Emanuel: Next, we are well positioned to continue growing our brand partners. At the beginning of the year, we merged the global partnership teams of UFC and WWE to go to market in a unified way and enable more brands to engage with our fans. Right out of the gates, our team has delivered significant wins, expanding both businesses' brand relationships across new categories, territories, and assets. UFC's record-setting partnership with Anheuser-Busch is off to a successful start, and we've added multiple first-time partners across the beverage, health, and beauty, vocational training, health care, and medical equipment categories.

Ari Emanuel: For WWE, we announced a first ever brand partner to appear center-mat at premium live events, as well as multiple premium brands, including Wheatley Vodka, Amazon Studios, and Coca-Cola. All told, we're encouraged by this fast start and remain confident in our ability to grow global partnerships revenue, particularly on the WWE side, as our team has done for UFC. Finally, our premium sports and entertainment content remains in demand. This is clearly demonstrated by the global five-plus billion dollar Netflix deal WWE announced early in the quarter.

Ari Emanuel: We're incredibly excited about the potential we see with Netflix and for our fans around the world. Well ahead of the 2025 launch, the partnership is already getting off to a promising start. WrestleMania 40 streamed live on Netflix in New Zealand last month through a one-time arrangement. Despite no marketing push, WWE fans tuned in in full force, propelling the event to the number one spot in Netflix's local programming lineup for a four-day period. In addition to Netflix, we remain focused on our upcoming media renewal.

Ari Emanuel: It may be getting off to a promising start Wrestlemania 40 streamed live on Netflix in New Zealand last month through a one time arrangement. Despite no marketing push WWE fans tuned in in full force propelling the event to the number one spot and Netflix is local programming lineup over a four day span.

Ari Emanuel: In addition to Netflix we remain focused on our upcoming media renewals during the quarter. We secured a short term agreement with USA network to extend roar through the fourth quarter of 2024.

Ari Emanuel: During the quarter, we secured a short-term agreement with USA Network to extend RAW through the fourth quarter of 2024. We also continue to secure rights agreements and renewals for UFC and international territories at a healthy average annual increase. In closing, across each of our lines of business, we believe TKO is well positioned to capitalize on its strengths to drive continued growth and profitability. We remain focused on generating cost and revenue synergies, executing our strategy, and delivering sustainable long-term value for shareholders. With that, I'll turn the call over to Andrew.

Andrew: We also continue to secure rights agreements and renewals for U F C and international territory is it healthy average annual increases.

Andrew: In closing occur.

Andrew: Across each of our lines of business, we believe T K O as well positioned to capitalize on its strengths to drive continued growth and profitability.

Andrew: We remain focused on generating cost and revenue synergies executing our strategy and delivering sustainable longterm value for shareholders.

Ari Emanuel: With that I'll turn the call over to Andrew.

Andrew: Good afternoon.

Andrew M. Schleimer: I'll start with an update on integration and then shift to our financial results before discussing our capital structure and outlook for the remainder of 2024. As Ari highlighted, we continue to make significant progress with the integration of our businesses. Both are delivering strong results and are well-positioned for continued success. We remain focused on realizing the revenue and cost synergies that underpin the strategic and financial rationale for the transaction. In addition to the major wins that Ari discussed, this past weekend, we announced that Las Vegas will host WrestleMania 41 at Allegiant Stadium on April 25 in partnership with the Las Vegas Convention and Visitors Authority.

Andrew: I'll start with an update on integration and then shipped to our financial results before discussing a capital structure and outlook for the remainder of 2024.

Andrew M. Schleimer: It's already highlighted we continue to make significant progress with the integration of our businesses.

Andrew M. Schleimer: Both are delivering strong results and are well positioned for continued success.

Andrew M. Schleimer: We remain focused on realizing the revenue and cost synergies that underpins the strategic and financial rationale for the transaction.

Andrew M. Schleimer: In addition to the major ones it already discussed.

Andrew M. Schleimer: This past weekend, we announced that Las Vegas will host Wrestlemania 41 at Allegiant Stadium in April 25 in partnership with the Las Vegas Convention and visitors authority.

Andrew M. Schleimer: As we've stressed, site fees are a key area of focus for us, and this event includes a meaningful payment, as well as other cash and non-cash incentives, further to our plans to integrate our operations. Last month, we announced that NXT Battleground, one of our NXT PLEs, will be staged at UFC Apex on June 9th.

Andrew M. Schleimer: As we've stressed site. These are a key area of focus for us and this and that includes a meaningful payment as well as other cash and non cash incentives.

Andrew M. Schleimer: Further to our plans to integrate our operations.

Andrew M. Schleimer: Last month, we announced that N S. T battleground one of our <unk> will be staged UFC apex on June 9th.

Andrew M. Schleimer: This marks the first ever WWE event to be hosted at UFC's state-of-the-art event and production facility, which in partnership with On Location will offer fans premium experience packages for this event. On the cost side, we continue to make progress as we look to further optimize our cost structure. We're firmly on track to achieve the upper end of the previously communicated range of 50 to 100 million in annualized net savings this year.

Andrew M. Schleimer: This marks the first ever WWE event to be hosted at UFC state of the art event in production facility.

Andrew M. Schleimer: In partnership with non location will offer fans premium experience packages for this event.

Andrew M. Schleimer: On the cost side continued to make progress as you look to further optimize our cost structure.

Andrew M. Schleimer: Firmly on track to achieve the upper end of the previously communicated range of $50 million to $100 million, an annualized net savings this year.

Andrew M. Schleimer: As we discussed on our last earnings call, we're now primarily focused on seeking deeper business integration that will yield efficiencies across our business. Before I turn to our financial results, I want to take a moment to discuss the agreement that we reached in March to settle all claims asserted in both UFC antitrust lawsuits. We're pleased to have this matter resolved without introducing any further changes to UFC's existing business operations. The long-form settlement agreement is expected to be filed shortly with the court for approval.

Andrew M. Schleimer: Can be discussed on our last earnings call.

Andrew M. Schleimer: Primarily focused on seeking depot business integration that will yield efficiencies across our business.

Andrew M. Schleimer: Before I turn to our financial results I Wanna take a moment to discuss the agreement that we reached in March to settle all claims asserted in both UFC antitrust lawsuits.

Andrew M. Schleimer: We're pleased to have this matter resolved without introducing any further changes to U F C as existing business operations.

Andrew M. Schleimer: The long form settlement agreement is expected to be filed shortly with the court for approval.

Andrew M. Schleimer: As previously disclosed, the aggregate settlement is $335 million. We recorded a charge for this amount in the first quarter, which would be paid in three installments. The settlement is anticipated to be deductible for tax purposes as and when it is paid. As a result, we expect our tax distributions to members, as required under our UPSC structure, to be meaningfully reduced such that we won't realize an adverse dollar-for-dollar impact on cash on hand.

Andrew M. Schleimer: That's previously disclosed the aggregate settlement is $335 million.

Andrew M. Schleimer: We recorded a charge for this full amount in the first quarter, which would be paid in three installments 100 million. This quarter 100 million in Q4, and the final $135 million in the second quarter of 2025.

Andrew M. Schleimer: The settlement is anticipated to be deductible for tax purposes as N when paid <unk>.

Andrew M. Schleimer: As a result, we expect our tax distributions to members as required under our fee structure to be meaningful reduced such that we won't realize an adverse dollar for dollar impact of cash on hand.

Andrew M. Schleimer: Turning now to our financial results. First quarter 2024 reported results include three months of activity for both UFC and WWE. WWE activity is not included in the reported results for the first quarter of 2023.

Andrew M. Schleimer: Turning now to our financial results.

Andrew M. Schleimer: First quarter of 2024 reported results include three months of activity for both UFC and WWE.

Andrew M. Schleimer: WWE activity is not included in the reporting results for the first quarter of 2023.

Andrew M. Schleimer: To assist with comparability, we've presented supplemental financial information in our press release and IR website that includes WWE activity and a portion of the revenue related to the corporate group for the first quarter of 23, as well as each quarterly period from January 1st, 22 through September 11th, 23. For the first quarter of 24, TKO generated revenue of $630 million. That loss was $250 million, driven by the $335 million charge related to our legal settlement.

Andrew M. Schleimer: To assist with comparability, we presented supplemental financial information in our press release and I. Our website that includes WWE activity and a portion of the WWE related to the corporate group for the first quarter of twenty-three as well as each quarterly period from January 1st 22 September 11th 23.

Andrew M. Schleimer: But the first quarter of 24 T.

Andrew M. Schleimer: T K O generated revenue of $630 million <unk>.

Andrew M. Schleimer: That loss was $250 million driven by the 335 million charge related to our legal settlement.

Andrew M. Schleimer: Adjusted EBITDA was $282 million, and our adjusted EBITDA margin was 45%, including WWE activity from January 1 through March 31. 23 combined revenue for the first quarter of 23 was 604 million, combined adjusted EBITDA was 257 million, and our combined adjusted EBITDA margin was 42%. Inclusive of these amounts, revenue increased 4%, adjusted EBITDA increased 10%, and adjusted EBITDA margin increased 3%. Now, I'll walk you through our segment.

Andrew M. Schleimer: Addressing EBITDA was $282 million adjusted EBITDA margin was 45%.

Andrew M. Schleimer: Including WWE activity for January 1st through March 31st twenty-three combined revenue for the first quarter of twenty-three was $604 million combined adjusted EBITDA was 257 million and I'll combine adjusted EBITDA margin was 42 per cent.

Andrew M. Schleimer: Exclusive visa Mount revenue increased 4% adjusted EBITDA increased 10 per cent and adjusted EBITDA margin increased three percentage points.

Andrew M. Schleimer: Now I'll walk you through our segments.

Andrew M. Schleimer: Our UFC segment generated revenue of $313 million in the quarter, an increase of 2% or $6 million. Adjusted EBITDA was $195 million, an increase of 5% or $9 million. UFC's adjusted EBITDA margin was 62%, up from 61% in the prior year period. Revenue growth was led by partnerships, as sponsorship revenue increased 28% to $49 million. The increase was driven by new partners, including Anheuser-Busch, which launched in January, as well as increases in fees from renewal.

Andrew M. Schleimer: Our UFC segment generated revenue of $313 million in the quarter.

Andrew M. Schleimer: An increase of 2% or $6 million.

Andrew M. Schleimer: Adjusted EBITDA was $195 million, an increase of five per cent or $9 million you.

Andrew M. Schleimer: You have to use adjusted EBITDA margin was 62% up from 61% in the prior year period.

Andrew M. Schleimer: Revenue growth was led by partnerships Ah sponsorship revenue increased 28% to $49 million.

Andrew M. Schleimer: The increase was driven by new partners, including Anheuser Busch, which launched in January as well as increases in fees from renewables.

Andrew M. Schleimer: Live events revenue increased 12% to $35 million. Despite one less numbered event, 3 in Q1 is compared to 4 in the prior year. Ticket sales increased as a result of the mix of event territories and venues. UFC had 11 total events, including five events with live audiences in the first quarter of this year, as compared to 10 total events, including six with live audiences in the prior year.

Andrew M. Schleimer: Live events revenue increased 12% to $35 million. Despite one last number event three in Q1 as compared to four in the prior year ticket sales increased as a result of the mix of event territory's in venues.

Andrew M. Schleimer: U F C had 11 total events, including five events with live audiences in the first quarter of this year as compared to 10 total events, including six with live audiences in the prior year.

Andrew M. Schleimer: Media rights and content revenue decreased 4% to $215 million. The decrease was primarily driven by one less numbered event, which carries a higher allocation of fixed median revenue; this impact more than offset the benefit of two additional fight nights in the quarter. Adjusted EBITDA reflected the increase in revenue and a decrease in expenses. The decrease in expenses reflected lower direct operating costs, primarily due to a decrease in production, marketing, and athlete costs, as well as a decline in direct costs of revenue due to one fewer numbered event.

Andrew M. Schleimer: Media rights in content revenue decreased 4% to $250 million the.

Andrew M. Schleimer: The decrease was primarily driven by one last number event, which carries a higher allocation to fix media revenue.

Andrew M. Schleimer: This impact more than offset the benefit of two additional fight nights and a quarter.

Andrew M. Schleimer: Adjusted EBITDA reflected the increase in revenue in a decrease in expenses.

Andrew M. Schleimer: The decreasing expenses reflected lower direct operating costs, primarily due to a decrease in production marketing an athlete costs as well as a decline indirect cost of revenue due to one fewer number to <unk>.

Andrew M. Schleimer: SG&A decreased primarily driven by lower travel expenses from one less numbered event and one less international event versus the prior year. Turning to WWE, our WWE segment generated revenue of $317 million in the quarter. Adjusted EBITDA was $140 million, and adjusted EBITDA margin was 44%. The following commentary on the first quarter includes comparisons to activity for the period from January 1st through March 31st, 2023.

Andrew M. Schleimer: SG&A decrease primarily driven by lower travel expenses from one less number to that and one less international and that versus the prior year.

Andrew M. Schleimer: Turning to WWE.

Andrew M. Schleimer: WWE segment generated revenue of $317 million in the quarter.

Andrew M. Schleimer: Suggested EBITDA was $140 million and adjusted EBITDA margin was 44 per cent.

Andrew M. Schleimer: The following commentary on the first quarter includes comparisons to activity for the period from January 1st through March 31st 2023 and.

Andrew M. Schleimer: In the first quarter of 23, revenue was $298 million, adjusted EBITDA was $117 million, and adjusted EBITDA margin was 39%. Revenue increased 6%, or $19 million, adjusted EBITDA increased 20%, or $23 million, and adjusted EBITDA margin increased 5%. Revenue growth was led by continued strong performance for live events. Live event revenue increased 58% to $50 million. The increase was primarily related to an increase in ticket sales and site fees, including a meaningful payment for the Elimination Chamber in Perth, Australia, our largest for an international territory outside of the Middle East.

Andrew M. Schleimer: The first quarter of twenty-three revenue was $298 million adjusted EBITDA was 117 million and adjusted EBITDA margin was 39 per cent.

Andrew M. Schleimer: Revenue increased six per cent.

Andrew M. Schleimer: Or $19 million adjusted EBITDA increased 20 per cent or 23 million and adjusted EBITDA margin increased five percentage points.

Andrew M. Schleimer: Revenue growth was led by continued strong performance for live events.

Andrew M. Schleimer: Rather than revenue increased 58% to $50 million.

Andrew M. Schleimer: The increase was primarily related to an increase in ticket sales in sight fees, including a meaningful payment for elimination chamber in Perth, Australia, our largest for an international territory outside of the Middle East.

Andrew M. Schleimer: Meteorites and content revenue increased 5% to $221 million. The increase was principally related to the contractual escalation of media rights fees for our flagship weekly programming, RAW and Smackdown, as well as premium live events. Sponsorship revenue decreased $3 million to $14 million, primarily due to timing and the mix of events. As expected, consumer products revenue declined $8 million to $32 million.

Andrew M. Schleimer: Media rights in content revenue increased five per cent to $221 million.

Andrew M. Schleimer: The increase was principally related to the confessional escalation of media rights fees for our flagship weekly programming raw and Smackdown, as well as premium <unk>.

Andrew M. Schleimer: Sponsorship revenue decreased 3 million to $14 million, primarily due to timing and the mix of events.

Andrew M. Schleimer: As expected consumer products revenue declined 8 million to $32 million.

Andrew M. Schleimer: The decrease was primarily due to the absence of revenue recorded in the first quarter of 23 related to the early termination of an agreement for licensed collectibles, as well as the previously disclosed accounting related to the transition of our venue merchandise business to Fanatics in May of 23. Adjusted EBITDA reflected an increase in revenue and a decrease in expenses. The decrease in expenses reflected lower personnel costs and other direct costs related to our planned cost reduction initiatives implemented following the formation of TKO, partially offset by an increase in production costs, as well as travel and entertainment. Turning to corporate, corporate reflects the general and administrative operations supporting both of our segments, including finance, legal, HR, and the executive.

Andrew M. Schleimer: The decrease was primarily due to the absence of revenue recorded in the first quarter of twenty-three related to the early termination of an agreement for license collectibles as well as the previously disclosed accounting related to the transition of our venue merchandise business. The fanatics in may of 23.

Andrew M. Schleimer: Adjusted EBITDA reflected the increase in revenue in a decrease in expenses.

Andrew M. Schleimer: The decrease in expenses reflected lower personnel costs and other direct costs related to our plan cost reduction initiatives implemented following the formation of detail <unk>.

Andrew M. Schleimer: Partially offset by an increase in production costs as well as travel and entertainment.

Andrew M. Schleimer: Corporate also includes the fees paid by TKO to Endeavor under its services agreement. Corporate expenses were $53 million for the first quarter of 2024, on a combined basis. Corporate expenses were $47 million for the first quarter of 2023. The increase was primarily due to higher personnel costs, including executive compensation, and other G&A expenses, including public company costs following the formation of TKO in September of last year. As a reminder, in mid-March, WWE began paying a services fee to Endeavor, in addition to the fee being paid by UFC. Now, moving on to our capital.

Andrew M. Schleimer: Turning to corporate.

Andrew M. Schleimer: Corporate reflects the general and administrative operations supporting both of our segments, including finance legal H R and the executive team.

Andrew M. Schleimer: Corporate also includes the fees paid by T. K O two endeavor under its services agreement.

Andrew M. Schleimer: Corporate expenses were $53 million for the first quarter of 2024 on.

Andrew M. Schleimer: On a combined basis corporate expenses were 47 million for the first quarter of twenty-three.

Andrew M. Schleimer: The increase was primarily due to hire personnel costs, including executive compensation and other G&A expenses, including public company costs.

Andrew M. Schleimer: In the formation of T. K O in September of last year.

Andrew M. Schleimer: As a reminder, in mid March WWE began paying of services fee to Endeavour. In addition to the fee being paid by U F C.

Andrew M. Schleimer: Now moving onto our capital structure.

Andrew M. Schleimer: We define free cash flow as net cash provided by operating activities less capital expenditure. Pre-cash flow excludes the majority of the mandatory tax distributions to our owners but does include the portion of cash taxes paid by TKO Public. For the quarter, we generated $28 million of free cash flow. This includes $32 million of capital expenditures, approximately $20 million of which related to WWE's new headquarters. We expect a similar level of spending in the second quarter on the new HQ, but nothing meaningful beyond that as the project has reached completion.

Andrew M. Schleimer: We define free cash flow net cash provided by operating activities less capital expenditures three.

Andrew M. Schleimer: Free cashflow, excluding the majority of the mandatory tax distributions to our owners, but does include the portion of cash taxes paid I T K O popko.

Andrew M. Schleimer: For the quarter, we generated 28 million of free cash flow.

Andrew M. Schleimer: Concludes $32 million of capital expenditures, approximately $20 million of which related to W. W. He's new headquarters.

Andrew M. Schleimer: We expect a similar level of spending in the second quarter on the new H Q, but nothing meaningful beyond.

Andrew M. Schleimer: The project has reached completion.

Andrew M. Schleimer: First quarter free cash flow was also impacted by various normal course working capital items, specifically the timing of annual bonus payments, as well as customer collections and payments related to events such as WrestleMania and UFC 300 that occurred in early April. We ended the quarter with $2.752 billion in debt and $246 million in cash and cash equivalents.

Andrew M. Schleimer: First quarter free cash flow was also impacted by various normal course, working capital items, specifically the timing of annual bonus payments as.

Andrew M. Schleimer: As well as customer collections and payments related to events, such as Wrestlemania and U F. C 300 that occurred in early April.

Andrew M. Schleimer: We ended the quarter with 2.752 billion in debt and $246 million in cash and cash equivalents.

Andrew M. Schleimer: As we previously discussed, we expect to have significant financial capacity over time as we grow adjusted EBITDA and generate cash. As such, we'll continue to consider a wide spectrum of opportunities to increase shareholder value, including organic investment with positive ROI, reducing our net deposition. Turning capital to shareholders in the form of share purchases and or dividends and M&A should be a unique and compelling opportunity presented. In April, we repurchased approximately 1.9 million shares for 165 million.

Andrew M. Schleimer: As we've previously discussed we expect to have significant financial capacity over time, as we grow adjusted EBITDA and generate cash.

Andrew M. Schleimer: As such will continue to consider a wide spectrum of opportunities to increase shareholder value, including organic investigate it positive ROI, reducing our net deposition returning capital to shareholders in the form of share repurchases annual dividends and M&A should a unique and compelling opportunity present itself.

Andrew M. Schleimer: In April we repurchased approximately 1.9 million shares for $165 million.

Andrew M. Schleimer: Since the formation of TKO in September 23, we've repurchased a total of approximately 3.2 million shares for $265. As publicly reported, we also looked at MotoGP. This was an asset that we thought would complement our existing portfolio and create long-term value for shareholders under our operational control. Going forward, we expect to explore opportunities to increase value and enhance our growth profile through M&A but intend to do so in a selective and disciplined manner. Now, we turn to our Outlook.

Andrew M. Schleimer: Since the formation of T. K O in September of twenty-three, we'd be purchased a total of approximately 3.2 million shares for 265 million.

Andrew M. Schleimer: As publicly reported we also looked at Moto G. P S.

Andrew M. Schleimer: This was an asset that we thought would complement our existing portfolio and create longterm value for shareholders under our operational control.

Andrew M. Schleimer: Going forward, we expect to explore opportunities to increase value and enhance our growth profile through M&A, but intend to do so in a selective and disciplined manner.

Andrew M. Schleimer: Now turn to our outlook.

Andrew M. Schleimer: As noted in our press release, we raised our full year 2024 guidance for revenue and adjusted EBITDA. We are now targeting revenue of $2.61 billion to $2.685 billion and adjusted EBITDA of $1.185 to $1.205 billion. The $35 million increase at the midpoint of both revenue and adjusted EBITDA is related primarily to, number one, strong operating performance on a year-to-date basis, primarily driven by continued strength in live events at both of our businesses, and number two, our agreement with USA Network for the domestic rights to Raw for the fourth quarter of this year.

Andrew M. Schleimer: As noted in our press release.

Andrew M. Schleimer: The full year of 2024 guidance for revenue and adjusted EBITDA.

Andrew M. Schleimer: We are now targeting revenue of 2.61 billion to 268 5 billion and adjusted EBITDA of 1.18521205 billion.

Andrew M. Schleimer: The 35 million dollar increase at the midpoint of both revenue and adjusted EBITDA is related primarily to number one strong operating performance on a year to date basis, primarily driven by continued <unk> events in both of our businesses and number two.

Andrew M. Schleimer: Agreement with USA network for the domestic rights to raw for the fourth quarter of this year as.

Andrew M. Schleimer: As a result, our guidance now includes $25 million of revenue in adjusted EBITDA for the fourth quarter. As we discussed on our last call, given the quarterly fluctuations related to the timing of events and content deliveries, among other items, we do not intend to provide quarterly guidance and believe our results are best evaluated on a full year basis. That said, as we look to the second quarter of 2024, we wanted to highlight a few notable items.

Andrew M. Schleimer: As a result, our guidance now includes $25 million of revenue and adjusted EBITDA in the fourth quarter.

Andrew M. Schleimer: Has been discussed on the last call given the quarterly fluctuation is related to the timing of events and content deliveries. Among other items, we do not intend to provide quarterly guidance and Belieber results are best evaluated on a full year basis.

Andrew M. Schleimer: That said as we look for the second quarter of 2024, we wanted to highlight a few notable items.

Andrew M. Schleimer: Given the timing of our event calendar, we expect the second quarter to be our highest revenue and adjusted EBITDA quarter of the year in terms of absolute dollars. For UFC, the current calendar includes four numbered events compared to three in the prior year period. In addition, we expect seven events with live audiences compared to five in the second quarter of 23. One of the incremental fight nights is scheduled to take place in Saudi Arabia and will include a meaningful fight.

Andrew M. Schleimer: Given the timing of all of them calendar.

Andrew M. Schleimer: The second quarter to be our highest revenue and adjusted EBITDA quarter of the year in terms of absolute dollars.

Andrew M. Schleimer: At U F C. The current calendar includes phone number to <unk> compared to three in the prior year period and.

Andrew M. Schleimer: In addition, we expect seven events with live audiences compared to five in the second quarter of 23.

Andrew M. Schleimer: One of the incremental fight nice to schedule it to take place in Saudi Arabia and will include a meaningful site fee.

Andrew M. Schleimer: At WWE, results will reflect the impact of WrestleMania 40, as well as the King and Queen of the Ring on May 25th in Jeddah. Corporate, as I mentioned a moment ago, our results will include the WWE services fee to Endeavor for a full three months, as well as UFC, which will continue to be paid. In terms of free cash flow conversion from Adjusted EBITDA, we updated our target for the year to reflect the impact of 200 million in settlement payments, which are included in operating cash flow, partially offset by the outperformance of the business in Q1, and the benefit of the raw agreement in Q4.

Andrew M. Schleimer: WWE results will reflect the impact of Wrestlemania 40, as well as King and Queen of the rain on may 25th and Jetta.

Andrew M. Schleimer: At corporate as I mentioned, a moment ago. Our results will include WWE services fee to endeavor for a full three months as well as U F C, which will continue to be paid.

Andrew M. Schleimer: In terms of free cash flow conversion from adjusted EBITDA, We updated our target for the year to reflect the impact of $200 million settlement payments, which are included in operating cash flow, partially offset by the outperformance of the business in Q1 and the benefit of the raw agreement in queue for as.

Andrew M. Schleimer: As a result, we now expect full year 2024 free cash flow conversion in excess of 40% of our Adjusted EBITDA target range. In conclusion, we generated strong first quarter results that reflected continued strength at both of our businesses. We are extremely excited about the road ahead and our prospects for 2024 and beyond. With that, I'll turn it back to Seth.

Andrew M. Schleimer: As a result, we now expect full year of 2024 free cash flow conversion in excess of 40 per cent of our adjusted EBITDA target range.

Andrew M. Schleimer: In conclusion, we generated strong first quarter results that reflected continued strength at both of our businesses.

Seth Zaslow: We are extremely excited about the road ahead, and our prospects for 2024 and beyond with that I'll turn it back to sex.

Andrew M. Schleimer: Thanks.

Seth Zaslow: Operator, Mark, and Andrew are ready to field questions. As an FYI, for those on the call, Ari is not joining Q&A.

Seth Zaslow: Brighter Mark and Andrew are ready to field questions as an F Y I for those on the call or is not joining Q&A today.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If, for any reason at all, you would like to remove that question, please press star followed by two. Again, to ask a question, please press star one. As a quick reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. The first question comes from Ben Swinburne with Morgan Stanley. Please proceed.

Seth Zaslow: Thank you we will now begin the question and answer session. If you would like to ask a question. Please press start off by one on your telephone keypad if for any reason and how you would like to move that question. Please press star followed by two again to ask a question. Please press star one quick.

Operator: Quick reminder, if you're using a speaker phone. Please remember to pick up your handset before asking a question.

Ben Swinburne: The first question comes from then Swinburne with Morgan Stanley You May proceed.

Ben Swinburne: Thanks, good afternoon, guys. I guess for Mark, I got to ask you about the NBA news. I guess it's not official yet, but there's been a lot of press on it. It's certainly making everyone feel better about the sports market in general and your renewal opportunities coming up. How do you look at the NBA deal in the context of, you know, what TKO has ahead of itself, particularly given ESPN is obviously part of that process?

Ben Swinburne: Thanks, Good afternoon guys.

Ben Swinburne: I guess remark I Gotta ask you about the N B a news I guess, it's not official yet, but there's been a lot of press on it. It's certainly making I think everyone feel better about the sports market in general and your renewal opportunities coming up how do you look at the N B a deal in the context of you know what what TKO has ahead of.

Ben Swinburne: [noise] itself, particularly given E. S. P. N is is obviously part of that process.

Ben Swinburne: And then Andrew I, just Wanna make sure I understood. Your comment on the dollar for dollar impact or no impact from the settlement are you.

Ben Swinburne: And then Andrew, I just want to make sure I understood your comment on the dollar for dollar impact or no impact from the settlement. Are you saying that basically the cash tax benefits essentially fund the settlement over the course of this year? Next year, we'll make sure I totally understand that.

Ben Swinburne: Are you, saying that that basically the cash tax benefits.

Ben Swinburne: Essentially fund the settlement over the course of this year next year, so make sure I totally got that thank you guys I appreciate the help.

Andrew M. Schleimer: Andrew will kick it off on the ladder. Let me take the second one first.

Ben Swinburne: Andrew Andrew kick it off on the let me <unk>, Let me take the second one first then but you know in terms of my commentary $200 million of payments that we will be making in calendar 24 are deductible for tax purposes, such that it will have a benefit.

Mark Shapiro: You know, in terms of my commentary, the $200 million of payments that we will be making in calendar 24 are deductible for tax, such that it will have a benefit when we're calculating our cash tax distribution to members, and it will reduce the amount that we would otherwise have to pay to members. 200 million out actually will have less of an impact on our overall cash on hand given its positive impact on cash tax liability to members given the UPSC structure, and then on your first question, Ben, I mean, Frankly, I would tell you that, Going back to the days of running programming at ESPN, and keep in mind, I left it almost 19 years ago in 2005, I've been hearing about the decline in the value of sports rights, right?

Mark Shapiro: <unk> arc cash tax distributions G members and it will reduce the amount that you would otherwise have to pay two numbers. So the 200 million out actually would be less of an impact on overall cash on hand, giving us.

Mark Shapiro: Is it an impact.

Mark Shapiro: To cash tax liability to members, giving yahtzee structure.

Speaker Change: Got it.

Mark Shapiro: And then on your on your.

Mark Shapiro: Your first question that I mean, you know.

Mark Shapiro: Frankly, I would tell you that.

Mark Shapiro: Going back to the days of running programming and E. S. P N and keep in mind I left it almost 19 years ago in 2005, I've been hearing about the decline in the value of sports right. So I think we're gonna be hitting a ceiling. We're getting close folks are getting nervous are pricing it in and obviously and.

Mark Shapiro: That we're gonna be hitting a ceiling, we're getting close, folks are getting nervous, they're pricing it in, and obviously, in doing the RAW renewals and the Smackdown renewals with Nick Khan and Ari. We had a lot of pushback on that.

Mark Shapiro: During the raw renewals in the Smackdown renewals with <unk> and Ari.

Mark Shapiro: And frankly, you know, just everywhere you look, it says otherwise. The NCAA deal was a strong deal for all the rights, including women's sports. The NASCAR deal was a strong deal. The Smackdown deal moving to NBC is a strong deal. Netflix, never getting into sports, and now Raw is there with sports entertainment, quote-unquote, is a strong deal. And the NBA, everyone kind of laughed when Adam said he could get 3X, or if they didn't laugh, they doubted it. And I think when this is all said and done, he's going to be close to 3X.

Mark Shapiro: We we have a lot of pushback on that and and frankly, you know just everywhere you look at it says otherwise the N C. A deal was a strong deal for all the rights, including the women's sports. The NASCAR deal was a strong deal.

Mark Shapiro: The Smackdown deal moving to N. B CS is a strong deal Netflix never getting into sports now roars, there with sports Entertainment quote unquote.

Mark Shapiro: Is a strong deal and the N b, a everyone kind of laughed when Adam said, he could get three X or if they didn't laugh. They doubted it and I think when this is all said and done she's going to be close to three X and that's what happens when you have four bidders at the table and a minimum and you'll have a premium sports <unk>.

Mark Shapiro: And that's what happens when you have four bidders at the table at a minimum, and you have a premium sports property like the NBA. We look at UFC as a premium sports product with great growth ahead of it. We feel good about the potential package that we'll end up with.

Mark Shapiro: Hoppert he liked the M B a.

Mark Shapiro: B U F C as a premium sports product with great growth ahead of it we feel good about the potential package that will end up with <unk>.

Mark Shapiro: And we see the demand for live sports is outstripping the supply of premium sports content. And the great thing about UFC, let's not forget, it's not just a volume product. In fact, it's not really a volume product. It's a premium volume product, sort of like the NFL used to be before Thursday Night Football. It was, frankly, Sunday and Monday nights. It was driven by scarcity.

Mark Shapiro: And we see the demand for lives sports is outstripping the supply of premium sports content.

Mark Shapiro: And the great thing about U F C. Let's not forget it's not just a volume product in fact, it's not really a volume product. It's a premium volume product short of like the NFL used to be before Thursday night football. It was frankly Sunday and Monday nights. It was driven by scarcity and I think U F C.

Mark Shapiro: And I think UFC benefits the same way. We're also both at once a subscriber acquisition tool and a churn antidote. We're attractive to digital and linear, and we're year-round. Going back to the initial point, I mean, we feel good about where we are. We're live, we're urgent, we're a shared experience. And we're optimistic about the potential package we will end up.

Mark Shapiro: Benefits the same way, we're also bolted once a subscriber acquisition tool and a churn antidote were attractive digital and linear and were year round. So.

Mark Shapiro: Going back to the initial point I mean, we feel good about where we are reliable urgent were shared experience and we're optimistic at the potential package, you'll end up with.

Speaker Change: Thanks, a lot.

Speaker Change: Thank you.

Brandon Ross: Thank you. The next question comes from Brandon Ross with Lightjet Partners.

Speaker Change: Thank you. The next question comes from the brand and Ross with Life Partners you.

Brandon Ross: You May proceed.

Brandon Ross: Hi guys. Thanks for taking the questions. Andrew, in your prepared speech, you brought up your bid for MotoGP, which was reportedly even higher than for Formula One. It leads to the question, I guess, about how you see the future of TKO. Specifically, how strong is the desire to expand outside of UFC and WWE through acquisitions? And do you see a quantity of opportunities out there, or was this acquisition attempt closer to a one-off? And then, in addition to expanding through acquisition, are there other sports where you see an opportunity to build organically out of what you have?

Brandon Ross: Hi, guys. Thanks for taking my questions.

Brandon Ross: Andrew and the Preparer to brought up your bid for Moto G P, which was reportedly even higher than formula one.

Brandon Ross: It leads to the question I guess about how you see the future of T. K O. Specifically, how strong is the desire to expand outside of U F C.

Brandon Ross: And WWE through acquisitions, and do you see a quantity of opportunities out there or was this acquisition attempt closer to a one off and then in addition to expanding through acquisition are there other sports where do you see an opportunity to bill to organically out of what you have.

Mark Shapiro: Yeah, so Brandon and Mark, let me take that. You know, first of all, really dating back to just the Endeavor days, MotoGP is something Dorna overall is something that, you know, Ari and I were really interested in, and we have kind of danced with them for a couple of years. I'll remind you that the media division at IMG does distribution of the Dorna MotoGP product around the world. So we're very familiar with it. We're familiar with the investors as well because some of them have been or are in our stack at Endeavor as a public company. And frankly, MotoGP kind of lines up with WWE and UFC, right?

Brandon Ross: Yeah, So Brandon it's Mark let me, let me take that.

Brandon Ross: First of all really dating back to just the endeavor days Moto G. P. As something that Donna overall is something that are.

Mark Shapiro: Really interested in and we have kind of danced with them for a couple of years I'll remind you that the media division in IMG does distribution of the doorknob motor GB product around the world. So we are very familiar with it.

Mark Shapiro: We're familiar with the investors as well because some of them have been or are in our stack and endeavor as a public company and frankly Moto G. P kind of lines up with W. W. U F. C right same kind of multiple gross levers year round sport for the most part driven by sponsorship ticketing premium hot.

Mark Shapiro: Same kind of multiple growth levers, a year-round sport for the most part, driven by sponsorship, ticketing, premium hospitality, site fees. I mean, it's kind of what we do. And it doesn't really have a strong following in the US, so we thought there was something there for us. But look, we knew Liberty was in there. We knew it made a lot of sense for F1 and why they would want it, potentially why MotoGP, the Formula One of motorcycles, would want to be with them. And so we kind of danced around the hoop in a very non-binding way.

Mark Shapiro: Fatality site fees I mean, it's kinda, what we do and it doesn't really have.

Mark Shapiro: A strong following in the U S. So we we thought there was something there for us but look we knew Liberty was in there. When you have made a lot of sense for F. One why they would want it potentially why Moto G. P. The formula one of motorcycles would want to be with them and so we kind of danced around the hoop and a very nonbinding way.

Mark Shapiro: And ultimately, they made the decision, as we suspected, to go with Liberty. I would tell you that... Look, you see, our financial results today, they're strong for Q1. We raised our annual guidance for revenue and adjusted EBITDA. We have a healthy adjusted EBITDA margin at 45% consolidated for the quarter. We have strong free cash flow conversion for the year in excess of 40%, likely well in excess of 50% in 2025.

Mark Shapiro: And ultimately they made the decision as we suspected to go with Liberty I would tell you that.

Mark Shapiro: Look you see in our financial results today, they're strong for Q1 was raised our annual guidance in revenue and adjusted EBITDA, We have a healthy adjusted EBITDA margin at 45% consolidated for the quarter, we have strong free cash flow conversion for the year in excess of 40% likely well in excess of 50% in 2025.

Mark Shapiro: WWE, UFC, and overall, TKO is a low-cap-ex business. And this is all a long way of saying we expect to generate significant levels of free cash annually. We expect to have significant and increasing financial capacity as a result, and we intend to be thoughtful and opportunistic in our deployment of capital, all through the lens of maximizing shareholder value. So those potential uses could include organic investment in high ROI projects, reducing our net debt position, which is something we look at all the time with Andrew and the board, a return of capital to shareholders through share repurchases or dividends, which I know a lot of folks on this call are anxious to hear more about, and, to your last point, attractive M&A opportunities that are strictly confined to premium sports content and live events.

Mark Shapiro: Five W. W. U F C. Overall T K O as a low capex business and this is all a long way of saying, we expect to generate significant levels of free cash annually, we expect to have significant and increasing financial capacity as a result of that and we intend to be thoughtful and opportunistic and all.

Mark Shapiro: Deployment of capital all through a lens of maximizing shareholder value. So those potential users could include organic investments in a high R. O Y projects, reducing our net debt position, which is something we look at all the time with Andrew and the board a return of capital to shareholders through share repurchases are <unk>.

Mark Shapiro: And which I know a lot of folks on this on this call are anxious to hear more about and to your last point attractive M&A opportunities that are strictly confined to premium sports content and live events, there's no genre and the content universe that is hotter and sports and I say.

Mark Shapiro: There's no genre in the content universe that is hotter than sports, and I say that being the president of two companies here, one being Endeavor, which is all about Hollywood music. I mean, sports experiences in all their forms are in high demand. But make no mistake, whatever we look at, whatever we dance with, whatever we ultimately chase, we will be there. It will have to be in a creative deal. And finally, it must have significant long-term growth opportunities with multiple levers of growth in the way that UFC and WWE have.

Mark Shapiro: That being the president of two companies your one being endeavor, which is all about Hollywood music I mean sports experiences in all its forms are in high demand, but make no mistake, whatever we look at whatever we dance with whatever we ultimately chase we will be disciplined.

Mark Shapiro: Have to be an accretive deal and finally, it must have significant longterm growth opportunities with multiple levers of growth in the way that UFC and Ww have them in spades.

Mark Shapiro: And then very quickly, over the past couple of days, there's been some press reports and quotes out of Saudi Arabia about you expanding your relationship there, I guess, for both UFC and WWE. Can you, anything you could tell us about what you think the opportunity is there and how many events you could stage across WWE and UFC? And, you know, would these be in addition to your current premium events or replace them? Thanks.

Mark Shapiro: Alright, and then very quickly over the past couple of days there have been some press reports and quotes out of Saudi about you expanding your relationship there I guess for both UFC and WWE can.

Mark Shapiro: Anything you could tell us about what you think the opportunity is there and how many events you could stage across WWE in U F C and <unk> would these be in addition to your current premium events or replace them. Thanks.

Speaker Change: Thank you Brandon.

Mark Shapiro: What I would say there is, you know, let's remember we have a strong and healthy relationship with the kingdom through WWE and doing two annual events. And I'll just remind folks, for the avoidance of doubt, those deals were primarily and highly tied to Vince McMahon. And there was a lot of speculation with Vince being gone. Would that impact the relationship in a negative way? Would they be looking to get out of it?

Mark Shapiro: What I would say there is you know, let's remember we have a strong and healthy relationship with the kingdom through WWE and doing two annual events a year.

Mark Shapiro: And I'll, just remind folks for the avoidance of data Oh those deals were primarily in highly tied to Vince Mcmahon and there was a lot of speculation with Vince being gone would that impact the relationship in a negative way would they be looking to get out of it and I would say proudly that Nick con in.

Mark Shapiro: And I would say proudly that Nick Kahn, in particular, has developed and sustained, cultivated, nurtured a very, very strong relationship in a handoff from Vince. And they have a lot of trust in each other. They have a lot of faith.

Mark Shapiro: Particular has developed and sustained cultivated nurtured a very very strong relationships and.

Mark Shapiro: In a handoff from Vince and they have a lot of trust in each other they have a lot of faith, we've been delivering on those events and potentially we could look to do more events, but nothing is planned beyond those two events at this time and we will continue to look at events housing or festivals rising those WWE events more than we are.

Mark Shapiro: We've been delivering on those events, and potentially, we could look to do more events. But nothing is planned beyond those two events at this time, and we will continue to look at eventing or festivalizing those WWE events more than we already do. From a UFC perspective, you know, Frankly, Dana was willing to, you know, give this a try for our first event, which is in June, and didn't really want to commit to much more until we got out of the gates on that first event, which I thought was ironically a great story for us, because everybody assumed their investment in PFL would mean live TV for UFC. And I think you know what that means. And it's quite the contrary.

Mark Shapiro: Already do from a UFC perspective, frankly, Dana was willing to give this a try for our first event, which is in June and didn't really want to commit too much more until we got out of the gates on that first first event.

Mark Shapiro: Which I thought was ironically, a great story for us because everybody assume their investment in P. F. L would mean live for UFC and I think you know what that means and it's quite the contrary dana's developed a great relationship as well and in tandem with Nick and so much show that we were willing to us and they were willing to commit to another.

Mark Shapiro: Dana's developed a great relationship as well, and in tandem with Nick. And so much so that we were willing, and they were willing, to commit to another event next year. So right now, I have no more plans than one event per year. And frankly, it's just this year and next year; there's nothing more beyond that. But as you can see, with our sphere event that we announced for September, they're going to invest in sponsorship of that event.

Mark Shapiro: <unk> event next year, so right now no more plans than the one event per year.

Mark Shapiro: Frankly, it's just this year next year, there's nothing more beyond that but as you can see with our sphere event that we announced for September they're going to invest in sponsorship of that event and by the way.

Mark Shapiro: And by the way, just, you know, over on the Endeavor side, and this is not an Endeavor call whatsoever, but we have a lot of history with them in tennis, and PIF investing in our tennis events. So relationships, good across the board, good C suite relationships, getting out of the gate, feeling each other out, good experiences. And we plan to build on that if it continues as such. Andrew, you

Mark Shapiro: Over on the Endeavour side and this is not an endeavor call whatsoever, but we have a lot of history with them in tennis and Tiffany investing in our tennis events. So relationships good across the board good see sweet relationships getting out of the gate feeling each other out good experiences and we plan to build on that if it.

Mark Shapiro: Continues as such Andrew.

Andrew M. Schleimer: The only thing I'd note, Brandon, is in terms of the calendar. We've never really discussed specifically whether or not, you know, this would be an increase in output or one of our existing events. But what we can say is it does carry a meaningful site fee in 2025, the additional event in Saudi Arabia. So stay tuned as we get deeper into the year and start talking about 25, but we're likely not going to comment on incremental output while those opportunities obviously do present themselves and are available to us. And it goes without saying that DCT in Abu Dhabi is strong.

Mark Shapiro: That I'd note Brandon is in terms of calendar you know, we've never really discussed specifically, whether or not you know this would be an increase in output or one of our existing events, but what we can say it does carry a meaningful site fee in.

Andrew M. Schleimer: In 2025, the additional event in in Saudi Arabia, So stay tuned as we get deeper into the year and start talking about 25 lately.

Andrew M. Schleimer: Lately.

Andrew M. Schleimer: Comment on incremental outfit, while those opportunities obviously do present themselves and are available to us and it goes without saying D. C. T. In Abu Dhabi is a strong.

Mark Shapiro: And it goes without saying that DCT and Abu Dhabi are a strong, experienced, and great track record partner of UFC. I mean, they have and we've talked about expanding that relationship in a multitude of ways. Obviously, we do events there on an annual basis. We're committed for the long term. We have a partnership to expand UFC events in the Middle East with them. So they're a part of anything we do with Saudi Arabia or anybody else. We've talked about potentially launching one of our performance institutes there. So everything we do in the Middle East, we do it in conjunction and in tandem. Strong communication with our friends at D3.

Mark Shapiro: An experienced.

Mark Shapiro: And great track record partner of UFC. They have we talked about expanding that relationship in a multitude of ways. Obviously, we do events. There on an annual basis. We're committed long term, we have a partnership to expand UFC event in the middle East with them. So they're a part of anything we do with Saudi Arabia or anybody else we've.

Mark Shapiro: About potentially launching one of our performance institutes there so everything we do in the Middle East we do it in conjunction and in tandem <unk> strong.

Mark Shapiro: Communication with our friends in D C T.

Speaker Change: Thank you.

Speaker Change: Thank you.

Robert S. Fishman: Thank you. The next question comes from Robert Fishman with Moffitt & Nathanson. Please proceed.

Mark Shapiro: Thank you. The next question comes from Robert Fishman with Martha Nathan said you May proceed.

Robert S. Fishman: Hi, good afternoon. I have two questions for you guys, actually both on media rights. So, different angle, but with college football playoffs locked into their exclusive ESPN deal and all the ongoing NBA negotiations with multiple partners, I'm curious, do you have a strong preference to keep your future rights exclusive to one partner? Or are you open to bringing in multiple partners like NASCAR ended up doing? And then second question, with ESPN set to be included in Disney+ as a tile, can you share if Disney has the existing rights to include UFC matches? Or would you prefer that to lead to a separate negotiation for those rights?

Robert S. Fishman: Hi, Good afternoon, two questions for you guys actually both meteorite so different angle that with college football playoffs locked into their exclusive E. S. P N deal and all the ongoing MBA negotiations with multiple partners I'm curious it do you have a strong preference to keep.

Robert S. Fishman: Your future right exclusive to one partner are you open to bring in multiple partners like NASCAR ended up doing.

Robert S. Fishman: And then the second question with ESPN set to be included in the Disney plots as a tile and your Saraf Disney has the existing rights to include UFC matches or would you would that lead to a separate negotiation for those right. Thanks very much.

Mark Shapiro: Thanks very much. Thanks, Robert. On the second

Mark Shapiro: Thanks, Robert. On the second one, yes, they have the rights in our current deal to include the UFC events. As far as multiple partners, one partner, you know, we'll see what happens, you know, when we get there. Our window opens up in mid-January.

Robert S. Fishman: Thanks, Robert on the second one yes, they have the rights and our current deal. So include the U F C events as far as multiple partners. One partner you know, we'll see what happens.

Mark Shapiro: It's a three-month window with UFC and the Walt Disney Company. They're a great partner. They are the best marketing machine in the business, and they are the number one premier automatic destination for sports fans everywhere, certainly in the U.S. But that is the first stop shop. That is the go-to when it comes to looking for sports events.

Mark Shapiro: When we get there are window opens up in mid January.

Mark Shapiro: It's a three month window with us with UFC and the Walt Disney Company.

Mark Shapiro: They're a great partner they are the best marketing machine in the business and they are the number one premier automatic destination for sports fans everywhere certainly in the U S. But that is that is the first stop shop that is the go to when it comes to looking for sports events. So we're not looking to get away.

Mark Shapiro: So we're not looking to get away from them. We're not looking to reduce our commitment. But at the same time, you know, we have a window. We'll listen, we'll talk, and we'll do what's in the best interest of the UFC going forward.

Mark Shapiro: From them, we're not looking to reduce our commitment.

Mark Shapiro: But at the same time.

Mark Shapiro: We have a window will listen we'll talk and will do what's in the best interests of the USA going forward.

Operator: Operator, let's take the next question, please.

Speaker Change: Upper to affect the next question. Please.

Eric Owen Handler: So the next question comes from Eric Handler with the Roth MKN. You may proceed.

Operator: The next question comes from Eric Handler with Roth and can you May proceed.

Eric Owen Handler: Good afternoon. Thanks for the question. There are two questions.

Eric Owen Handler: Good afternoon, and thanks for the question.

Eric Owen Handler: Two questions first.

Eric Owen Handler: With regards to Wrestlemania I Wonder if you could talk a little about the sponsorships. It looked like volume was up considerably year over year in terms of the number of sponsored matches, but can you talk about.

Mark Shapiro: First, with regard to WrestleMania, I wondered if you could talk a little about the sponsorships. It looked like volume was up considerably year over year in terms of the number of sponsored matches. But can you talk about not just the volume of sponsorship increases but maybe how pricing went this year too?

Eric Owen Handler: Not just volume of sponsorship increases, but maybe how pricing went this year too.

Mark Shapiro: Yeah, I mean, look, we don't, Eric, get into specifics on the pricing and or, you know, guide specifically to a global partnerships or sponsorship number. But what I can tell you is, it was clearly a strong WrestleMania for us in Philadelphia, by every metric and measure. And I think we had a terrific release on that. The team put together from ticket sales, our ticket yields, our sponsorships, both in volume and pricing, which were both North overall attendance, viewership, and social hits. Great

Speaker Change: Yeah, I mean, we don't arrogant and get into specifics on on the pricing and or Guy.

Mark Shapiro: <unk>, specifically to a global partnerships or sponsorship number.

Mark Shapiro: But.

Mark Shapiro: I can tell you is it was it is clearly.

Mark Shapiro: Clearly a strong wrestlemania for us in Philadelphia by every metric and measure and I think we had a terrific release on that.

Mark Shapiro: Team put together Ah from ticket sales are ticket yields are sponsorships. Both involved you may and pricing which were both north.

Mark Shapiro: Overall attendance viewership social hits.

Mark Shapiro: I mean, the biggest-viewed event and Peacock History were just really extraordinary across the board. I know NBC and Comcast were really happy with the results. Obviously, we've announced that.

Mark Shapiro: Great I mean, the biggest viewed event.

Mark Shapiro: And Peacock history. It just really extraordinary across the board I know NBC with Comcast, we're really happy with the results obviously, we've announced.

Mark Shapiro: Vegas is going to be there next year. So, you know, WrestleMania just continues to expand in every way. And frankly, it is the jewel when it comes to the WWE with regard to sponsorship. I mean, we continue to use sponsorship, our global partnerships group, as a major long-term growth lever for both of our leagues, UFC and WWE. We have one best-in-class unified team now, led by Grant Norris and Luke Askovalos, who are doing an extraordinary job and are well on their way to hitting their numbers this year.

Mark Shapiro: Vegas is going to be next year or so Wrestlemania just just continues to expand in every way and frankly it is the jewel when it comes to the WWE with regard to sponsorship and we continued abuse sponsorship our global partnerships group as a major longterm growth lever for both of our.

Mark Shapiro: Leaves UFC and WWE, we have one best in class unified team now led by grant and the worst and Lou cost abolished do an extraordinary job and well on their way to the hitting their numbers. This year and our strategy continues to be a reliance and focus on expanding our core partnerships and closing.

Mark Shapiro: New categories with strong consumer fanned crossover for both brands, we the Budweiser deals off the charts, we talked about that in the opening comments. That's a long term partnership on the U F C and we see opportunities potentially to expand that the weather's UFC or maybe in the WWF long.

Mark Shapiro: And our strategy continues to be reliance and focus on expanding our core partnerships and closing new categories with strong consumer and fan crossover for both brands. The Budweiser deal is off the charts. We talked about that in the opening comments.

Mark Shapiro: That's a long-term partnership with the UFC, and we see opportunities potentially to expand that, whether it's UFC or maybe into WWE long-term. And of course, our Prime Hydration deal was our first deal with an in-ring sponsor for WWE right in the center of the mat. So, a great story there.

Mark Shapiro: Term.

Mark Shapiro: And of course, our prime hydration deal was our first deal of having an enraged sponsor for.

Mark Shapiro: For the WWE right in the center of the Mat so.

Mark Shapiro: A great story, there and finally I will just add we're doing a better job of selling with N. D. C. N E. S. P. N. They are going to market shelling Cross platform Cross channel and we're doing it.

Mark Shapiro: And finally, I would just add that we're doing a better job of selling with NBC and ESPN. They are going to market, selling cross-platform, cross-channel, and we're doing it as a partnership. So we're out there with official sponsorships and partnerships and, you know, in-store partners, if you will, from a marketing and activation perspective, and we're packaging in media dollars, and vice versa on their front. And that's going to be not only a good story for us, but a good story for our partners. And that will work to our benefit in the long term if our partners are happy.

Mark Shapiro: As a partnership so we're out there with official sponsorships and partnerships.

Mark Shapiro: In store partners, if you will from the marketing activation perspective, or packaging immediate dollars and vice versa on their front and that's that's gonna be not only a good story for us, but a good story for our partners and and that will be then we work to our benefit longterm of our partners are happy.

Mark Shapiro: Okay, that's helpful. And then secondly, as I try to understand the USG business a little better, given how strong demand is for events, why not take some of those events at UFC Apex, which there are a good number of, and take them to markets with, you know, larger arenas?

Speaker Change: Okay. That's helpful. And then secondly, as I try to understand USD business a lot better.

Mark Shapiro: Given how strong demand is for events why not take some of those events that UFC apex, which there are a good number of and take them to markets with larger.

Mark Shapiro: Larger arenas.

Mark Shapiro: Yeah, so I think what you've seen is since we have worked our way out of COVID, we have held a significant number of events outside of UFC Apex, and those that we do hold on our campus there in Las Vegas, those numbers have gone down meaningfully. That being said, bringing events on the road is as much about building our fan base as it is generating income, but it's also about ensuring that we maintain certain margins and profitability profiles.

Speaker Change: Yeah. So I think what you've seen is since we have worked our way out of Covid via L. A significant amount of events outside of you have to keep the apex and those that we do Ah hold on our campus there in Las Vegas, those numbers have gone.

Mark Shapiro: Down meaningfully that being said.

Mark Shapiro: Bringing events on the road is as much about growing our fanbase is generating income, but it's also about ensuring that we maintain certain margins and profitability profile.

Mark Shapiro: And there's a cost-benefit analysis for us where we view the opportunity costs of doing events domestically, internationally, and holding them at Apex. And what we do in any budget cycle is, I'm sure you can appreciate, determine the right mix, not just to generate top-line revenue, but to ensure profitability, and those Apex events do carry the lowest cost structure for us to hold them on our home turf in Las Vegas. So I don't think we've found the perfect mix yet, but rest assured that we're looking at the numbers and working on it, and Eric, if we're going to err on one side, we're going to

Mark Shapiro: There is a cost benefit analysis for us that we view opportunity costs doing events domestically internationally and holding them at apex in and what we do in any budget cycle as I'm sure. You can appreciate is determined the right mix match us to generate top line revenues, but to ensure profitability and those effects event drew Carey.

Mark Shapiro: The lowest cost structure for us to hold them in our own turf in Las Vegas. So I don't think we found the perfect mix, yet, but and rest assured that we're looking at the numbers and working to do so and Eric.

Mark Shapiro: And Eric, if we're going to err on one side, we're going to err on the side of going on the road. You know, Dana White built the UFC, with Lawrence Epstein and the Fertittas, getting out city to city, region to region, DMA to DMA, and touching the consumer, right, introducing a new sport to a global fan base. And being there, there' So we are at the apex in front of a couple of hundred people. It's just not the same experience, and we're not getting that close.

Mark Shapiro: We're going to err on one side, we're going to err on the side of going on the road.

Mark Shapiro: <unk> built the UFC.

Mark Shapiro: Lawrence Epstein and the <unk> of getting out city to city region to region, DMA, DMA and touching the consumer right, introducing a new sport to a global fanbase and being there there's no substitute for that so we are in the in the apex in front of a couple of hundred people. It's just not the same experience.

Mark Shapiro: And we're not getting that touch and we get that feedback when we go to a city like Nashville, when we go to a city like Columbus, We hereby long time since you've been here. There's a reason why the sell out it's here and you're getting the ticket yields that you're getting so we we take that very seriously if we're going to err on the side of the router.

Mark Shapiro: And we get that feedback. When we go to a city like Nashville, when we go to a city like Columbus, we hear about it, long time since you've been here, there's a reason why the sellout is here and you're getting the ticket yields that you're getting. So we take that very seriously. If we're gonna air on the side of the road kind of under our own tent in Vegas, it's going to be on the road.

Mark Shapiro: Under our own journey Vegas, it's going to be on the road.

Speaker Change: Thank you.

Speaker Change: Thank you.

Stephen Neild Laszczyk: Thank you. The following question comes from Stephen Laszczyk with Goldman Sachs. Please proceed.

Mark Shapiro: Thank you. That's all my question comes from Steven Classic with Goldman Sachs. You May proceed.

Stephen Neild Laszczyk: Hey, great. Good afternoon.

Stephen Neild Laszczyk: Okay, great. Good afternoon, maybe from arc on life events, you called the strand spot in the corner I'm curious going forward you were talking about sizing the opportunity and growth for that that business.

Stephen Neild Laszczyk: Between pricing attendance site fees, where you see the most opportunity for growth through the balance of the year and then a follow up for for Andrew just to clarify on that the free cash flow guidance net of the settlement in the tax benefit was there I changed underline free cash flow <unk> for their thank you.

Mark Shapiro: Maybe from your work on live events, you caught the strength in the quarter. Curious going forward, you're thinking about sizing the opportunity and growth for that business between pricing, attendance, and site fees, where you see the most opportunity for growth through the balance of the year. And then a follow up for Andrew, just to clarify on that free cash flow guidance net of the settlement and the tax benefit. Was there a change to underlying free cash flow for the year? Thank you.

Andrew M. Schleimer: Yeah, so on the second one, we changed our guidance from in excess of 50%, excuse me, to an excess of 40% solely due to the fact that the 200 million of cash payments that will make do hit operating cash flow, and our free cash flow metric reconciles to the closest gap metric, which starts with operating free cash, excuse me, operating cash flow. So it's solely to reflect the impact, and Stephen.

Speaker Change: Yeah. So on the second one we changed our guidance from in excess of 50 50 per cent excuse me through in excess of 40%. So Lee.

Andrew M. Schleimer: To the fact that the $200 million of cash payments that will make do hit operating cash flow and are free cash flow metric reconcile so the closest gasometric, which starts elaborating precast excuse me operating cash flow. So it's solely to reflect the impact of those payments.

Mark Shapiro: and Stephen, are you good at that? Yeah, that was great. Thank you. Okay, and then I'm just your second, you with your homework. Look, I would just tell you because it kind of tees me up to. If you would, my.

Stephen: And Steven are you good on that.

Stephen: Yeah that was great. Thank you.

Speaker Change: Okay, and then I'm just your second.

Speaker Change: We do have one more question yeah.

Speaker Change: Okay great.

Speaker Change: Look I would just tell you cause it kind of.

Speaker Change: Tease me up too if.

Speaker Change: If you wouldn't mind.

Mark Shapiro: When Ari and I look at the overall TKO business, the way we think about the final thoughts, if you will. I mean, look, this quarter has just been gangbusters for us. We want to sustain this momentum. You are 100 percent right. In this post-COVID world, we are still in a major event and experience economy. It's hot, and it's a strong reason, not to mention the competition and the brands, and, of course, the writing, that we had such a strong Q1 beat and are effectively putting out our raise for the year. Our business is brisk across the board.

Speaker Change: When when already and I look at the overall TKL business the way we.

Mark Shapiro: Think about the final thoughts if you will I mean look this this this quarter has just been gang busters for US we want us sustain this momentum you you are 100% right in this kind of post Covid World. We are still in a major event inexperience economy. It's.

Mark Shapiro: It's hot and it's a strong reason not to mention the competition and the brands and of course the writing.

Mark Shapiro: That we had such a strong Q1 beat and.

Mark Shapiro: Actively putting out a raise for the year our business is brisk across the board.

Mark Shapiro: We're seeing strength in the live events. In both properties, our ticket yields are up. To your point on site fees, frankly, they're becoming the norm.

Mark Shapiro: We're seeing strength and alive events at both properties are ticket yields are up.

Mark Shapiro: To your point on site fees, frankly, they're becoming the norm when we take the show on the road.

Mark Shapiro: When we take the show on the road, you know, we're going to need subsidies and cash in order to bring our events to your city. And beyond that, the cities where we're already getting site fees, so we're coming back for year two, we're seeing those site fees increase. So demand is high, and the dollars that cities are willing to pay for our business are increasing with every phone call we have.

Mark Shapiro: We're going to need subsidies and or cash in order to bring our events to your city and beyond that the cities, where we're already getting side seats. So we're coming back for a year or two we're seeing those sites. These increase so demand is high and the dollars that cities are willing to pay for our <unk>.

Mark Shapiro: <unk> is.

Mark Shapiro: Is is increasing.

Mark Shapiro: Our global partnerships are on track, as we've discussed. The timing and the magnitude of our net cost synergies are at the upper end of our guidance, arguably slightly north of the guide is where I think we're going to end up. We've got the UFC antitrust lawsuit settled. And going to your point on the events, just take a look at what we have in front of us. Conor McGregor in June at UFC 303. The Sphere in September at UFC 306, although that will be an expensive event to put on, just for the record. That's not a normal event.

Mark Shapiro: With every phone call we have our global partnerships are on track as we discussed the timing and the magnitude of our net net cost synergies are at the upper end of our guidance.

Mark Shapiro: Arguably slightly north of the guide is what I think we're going to end up slightly north we've got the UFC antitrust lawsuit settled and go into your point on the events just take a look at what we have in front of US Connor Mcgregor in June the U F. C 303, the sphere in September UFC 306, although that will be an expensive.

Mark Shapiro: Event to put on just for the record that's not a normal event. This fear is a sphere and it wasn't necessarily built for U F C events.

Mark Shapiro: The Sphere is the sphere, and it wasn't necessarily built for UFC events. And it will be a one and done. We will do a one and done. That is what Dana White has told us. And he's going to make it extra special. We've got Madison Square Garden in the fall, which we haven't announced yet, in terms of the details, specifics, and dates. And as I mentioned, we've got WrestleMania in Vegas next year, which will be a powerhouse.

Mark Shapiro: We got the extension of the UFC Saudi deal in 2025. And, by the way, where it looked like we had a stub period for the WWE at the end of this year and no reason really to get a rights fee from anybody, we were able, due to the strong partnership, to get NBC and Comcast to pay us $25 million for that stub period. So all things are in place.

Mark Shapiro: And it will be a one and done we will do a one and done that is what Dana White has told us and he's going to make it extra special we've got Madison Square Garden in the fall, which we haven't announced yet in terms of the the detail specifics and dates and as I mentioned, we've got Wrestlemania in Vegas next year, which will be a powerhouse we got the extension of UFC Saudi deal in 2002.

Mark Shapiro: 45, and Oh by the way, where it looked like we had a stub period for the WWE at the end of this year and no reason really to get a right to be from anybody we.

Mark Shapiro: We were able due to strong partnership to get N B C and Comcast it at $25 million for that stuff period, So all things or cooking here.

Mark Shapiro: Thanks, Mark. Thanks, Andrew. Thank you. Operator, let's take one last question, please.

Speaker Change: Thanks. Thanks.

Mark Shapiro: <unk>.

Speaker Change: Thank you upgrade of upstate one last question. Please.

Ryan Andrew Gravett: I believe the final question comes from Ryan Gravett with UBS. You may proceed.

Speaker Change: Alright. The final question comes from Ryan grabbed it with E. B S. You May proceed.

Ryan Andrew Gravett: Great, thank you. Just for Andrew, you mentioned that the business can operate at up to three times leverage. I guess, what would you be confident in operating towards the higher end of that range? Is it more macro or interest rate related? Or maybe the company getting through the next rounds of the media rights renewals versus maybe leaving some room for M&A if an opportunity comes across?

Ryan Andrew Gravett: Oh, great. Thank you for Andrew.

Ryan Andrew Gravett: You mentioned that the business you think the business can upgrade it up to three times leverage.

Ryan Andrew Gravett: <unk> I guess, we'll give you confidence in operating towards the higher end of that range.

Ryan Andrew Gravett: More macro or interest rate related or maybe the company getting through the next rounds of media rights who knows versus.

Speaker Change: Some rain for M&A.

Ryan Andrew Gravett: If an opportunity comes across.

Andrew M. Schleimer: I think it's much more simple. As we've articulated and demonstrated through performance and our plan, this is just a company that generates a meaningful amount of free cash flow that will continue to grow its top line and create margin. Given the financial profile and the significant amount of contracted revenue here, and our sort of bullish nature on the next round of media rights renewals for our key properties, we believe that's a reasonable and very manageable range, even to the upper end. So the financial profile of this business and really the key underpinning of the investment thesis of this transaction is what really underpins our company.

Andrew: I think it's much more simple as we've articulated and demonstrated through performance Ah NR plan. This is just a company that generates a meaningful amount the free cash flow.

Andrew M. Schleimer: That will continue to grow top line and create margins given.

Andrew M. Schleimer: Given the financial profile in the contracted a significant amount of contracted revenue ear.

Andrew M. Schleimer: Are sort of bullish nature on the next round media rights renewals up for a key properties.

Andrew M. Schleimer: We believe that's a reasonable and very manageable ainge, even to the upper end. So the financial profile is business and real.

Andrew M. Schleimer: The key underpinnings to the investment pieces of this transaction is what underpins our comfort in those numbers.

Speaker Change: Alright. Thanks.

Seth Zaslow: Thanks, Ryan. All right. Well, thank you, everyone, for joining us on the call today. Operator, you can conclude the call.

Speaker Change: Excellent alright, well. Thank you everyone for joining us on the call today, operator, you can conclude the call.

Operator: This concludes the first quarter TKO 2024 earnings call. Thank you for your participation. You may now disconnect your line.

Speaker Change: This concludes the first quarter TKO between 24 earnings call. Thank you for your participation you may now disconnect your line.

Operator: Oh.

Operator: This concludes the first.