Q2 2024 TKO Group Holdings Inc Earnings Call

August 8, 2024

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Speaker Change: Are you the one that I can give my heart to? Or just the poison that I'm drawn to? It can be hard to tell the difference late at night Baby, is there a compass in your nature? Or are you tricky cause I've been there? And baby, I don't need to learn my lesson by

Charlie: Hello everyone, and welcome to the TKO Q2 2024 earnings call. My name is Charlie, and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to submit a question, please press star followed by one on your telephone keypad.

Charlie: call. My name is Charlie, and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypad. I'll now hand over to our host, Seth Zaslow, Head of Investor Relations, to begin. Seth, please go ahead.

Charlie: Hello everyone and welcome to the Q2 2024 TKO Earnings Call. My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypad.

Charlie: My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press the star, followed by one on your telephone keypads. On our hand over to our host, Seth Zaslow, Head of Investor Relations, to begin. Seth, please go ahead. Good morning and welcome to TKO's second 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. After prepared remarks from ARIA Manual, TKO's Executive Care and Chief Executive Officer, and Andrew Schweimer, TKO's Chief Financial Officer, will open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A. The purpose of this call is to provide you with the information regarding our second quarter 2024 performance. I want to remind everyone that the information discussed will include forward-looking statements and or 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 proven correct, our results may differ materially from those expressed or implied on this call. 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. Recommendations 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. Thanks, Seth. Consumers and in particular sports fans are increasingly seeking customized immersive communal experiences. And TKO has demonstrated throughout the first half of the year how we are capitalizing on this demand and building entire worlds and weekends around our premium content. Coming off a strong first quarter marked by event milestones, record audiences, innovative brand partnerships and the landmark WWE deal with Netflix, TKO delivered record revenue and profitability in the second quarter. With this continued momentum, we are again raising our full year 2024 guidance for revenue and adjusted EBITDA.

Charlie: My name is Charlie and I'll be coordinating the call today You will have the opportunity to ask a question at the end of the presentation If you'd like to register a question, please press the star, followed by one on your telephone keypads On our hand over to our host, Seth Zaslow, Head of Investor Relations to begin Seth, please go ahead Good morning and welcome to TKO's second 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 After prepare remarks from ARIA Manual, TKO's Executive Care and Chief Executive Officer An Andrew Schweimer, TKO's Chief Financial Officer, will open the call for questions Mark Shapiro, our President and Chief Operating Officer And Andrew will be handling the Q&A The purpose of this call is to provide you with the information regarding our second quarter 2024 performance I want to remind everyone that the information discussed will include forward looking statements and or 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 proven correct, our results may differ materially from those expressed or implied on this call 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-GAP 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 GAP Recommendations between GAP and non-GAP metrics can be found in our press release issue today as well as the information posted on our IR website With that, I'll now turn the call over to Ari Thanks Seth Consumers and in particular sports fans are increasingly seeking customized immersive communal experiences And TKO has demonstrated throughout the first half of the year how we are capitalizing on this demand and building entire worlds and weekends around our premium content Coming off a strong first quarter marked by event milestones, record audiences, innovative brand partnerships and the landmark WWE deal with Netflix TKO delivered record revenue and profitability in the second quarter With this continued momentum, we are again raising our full year 2024 guidance for revenue and adjusted EBITDA. Before Andrew discusses our record financial performance, I'd like to share some key highlights from the quarter that includes single event all time highs for ticket revenue and viewership significant site fees we witnessed on a global scale as well as new brand partnerships that will meaningfully drive top line revenue, margin and audience.

Charlie: I will now hand over to our host, Seth Zaslow, Head of Investor Relations, to begin. Seth, please go ahead.

Unknown Executive: Good morning, and welcome to TKO's second quarter 2024 earnings call. A recording of this call will also be available via our website for at least 30 days.

Seth Zaslow: Good morning, and welcome to TKO's second 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. After prepared remarks from Ari Emanuel, TKO's Executive Chairman and Chief Executive Officer, and Andrew Schleimer, TKO's Chief Financial Officer, we'll open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A.

Seth Zaslow: Good morning and welcome to TKO's second 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.

Unknown Executive: After prepared remarks from Ari Emanuel, TKO's Executive Chair and Chief Executive Officer, and Andrew Schleimer, TKO's Chief Financial Officer, we'll open the call for questions. 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 may differ materially from those expressed or implied on this call. 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. With that, I'll now turn the call over to Ari.

Speaker Change: After prepared remarks from Ari Emanuel, TKO's Executive Chair and Chief Executive Officer, and Andrew Schleimer, TKO's Chief Financial Officer, we'll open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A.

Seth Zaslow: The purpose of this call is to provide you with information regarding our second quarter 2024 performance. I want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions. Please see our filings with the Securities and Exchange Commission for further details. 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.

Speaker Change: The purpose of this call is to provide you with the information regarding our second quarter 2024 performance.

Speaker Change: I want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions.

Speaker Change: 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 gap and non-gap 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.

Speaker Change: 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.

Speaker Change: 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.

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

Speaker Change: 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.

Speaker Change: With that, I'll now turn the call over to Ari.

Ari Emanuel: Consumers, and in particular sports fans, are increasingly seeking customized, immersive communal experiences, and TKO has demonstrated throughout the first half of the year how we are capitalizing on this demand and building entire worlds and weekends around our premium content. Coming off a strong first quarter marked by event milestones, record audiences, innovative brand partnerships, and the landmark WWE deal with Netflix, TKO delivered record revenue and profitability in the second quarter. With this continued momentum, we are again raising our full year 2024 guidance for revenue and adjusted EBITDA.

Ari: Thanks, Seth.

Ari: Consumers, and in particular sports fans, are increasingly seeking customized, immersive communal experiences, and TKO has demonstrated throughout the first half of the year how we are capitalizing on this demand and building entire worlds and weekends around our premium content.

Speaker Change: Coming off a strong first quarter marked by event milestones, record audiences, innovative brand partnerships, and the landmark WWE deal with Netflix, TKO delivered record revenue and profitability in the second quarter.

Ari: With this continued momentum, we are again raising our full year 2024 guidance for revenue and adjusted EBITDA.

Ari Emanuel: Before Andrew discusses our record financial performance, I'd like to share some key highlights from the quarter that includes single event all-time highs for ticket revenue and viewership, significant site fees we witnessed on a global scale, as well as new brand partnerships that will meaningfully drive top line revenue, margin, and audience. First, UFC and WWE's live events continued to outperform, demonstrating that demand for premium sports and entertainment content has never been stronger.

Ari Emanuel: Before Andrew discusses our record financial performance, I'd like to share some key highlights from the quarter that include single event, all-time highs for ticket revenue and viewership, significant site fees we've witnessed on a global scale, as well as new brand partnerships that will meaningfully drive top line revenue, margin, and audience. First, UFC and WWE's live events continued to outperform, demonstrating that demand for premium sports and entertainment content has never been stronger.

Speaker Change: Before Andrew discusses our record financial performance, I'd like to share some key highlights from the quarter that include single-event all-time highs for ticket revenue and viewership, significant site fees we've witnessed on a global scale, as well as new brand partnerships that will meaningfully drive top-line revenue, margin, and audience.

Charlie: First, UFC and WWE's live events continued to outperform, demonstrating that demand for premium sports and entertainment content has never been stronger. Starting with UFC, the marquee numbered events in Las Vegas, UFC 300 and UFC 303, brought in our third and fourth highest ticket revenue of all time respectively. Additionally, UFC 302 in Newark, New Jersey set the record for Prudential Center's highest grossing event in New York. The venue history, while also becoming the most watched UFC pay-per-view prelims ever on ESPN 2, underscoring how much fans value our content both live and on screen.

Ari Emanuel: First, UFC and WWE's live events continued to outperform, demonstrating that demand for premium sports and entertainment content has never been stronger. At WWE, the quarter got off to an explosive start with WrestleMania 40, which became WWE's most successful event ever, setting records for highest grossing WWE event and most streamed entertainment event on Peacock. That momentum continued over the quarter with a powerful slate of international PLEs.

Ari: First, UFC and WWE's live events continued to outperform, demonstrating that demand for premium sports and entertainment content has never been stronger.

Ari Emanuel: Starting with UFC, the marquee numbered events in Las Vegas, UFC 300 and UFC 303, brought in our third and fourth highest ticket revenue of all time, respectively. Additionally, UFC 302 in Newark, New Jersey, set the record for Prudential Center's highest grossing event in New York. The venue history, while also becoming the most watched UFC pay-per-view prelims ever on ESPN 2, underscoring how much fans value our content both live and on screen.

Ari Emanuel: Starting with UFC, the marquee numbered events in Las Vegas, UFC 300 and UFC 303 brought in our third and fourth highest ticket revenue of all time, respectively. Additionally, UFC 302 in Newark, New Jersey, set the record for Prudential Center's highest grossing event in venue history, while also becoming the most watched UFC pay-per-view prelims ever on ESPN2, underscoring how much fans value our content, both At WWE, the quarter got off to an explosive start with WrestleMania 40, which became WWE's most successful event ever, setting records for highest-grossing WWE event and most-streamed entertainment event on Peacock. That momentum continued over the quarter with a powerful slate of international PLEs.

Ari: Starting with UFC, the marquee numbered events in Las Vegas, UFC 300 and UFC 303 brought in our third and fourth highest ticket revenue of all time respectively.

Ari: Additionally, UFC 302 in Newark, New Jersey, set the record for Prudential Center's highest grossing event in venue history, while also becoming the most-watched UFC pay-per-view prelims ever on ESPN2, underscoring how much fans value our content, both live and on screen.

Ari Emanuel: At WWE, the quarter got off to an explosive start with WrestleMania 40, which became WWE's most successful event ever, setting records for highest grossing WWE event and most streamed entertainment event on P-Cock. That momentum continued over the quarter with a powerful slate of international PLEs. Backlash France attracted more than 20,000 fans over two nights in Leone, setting records for highest grossing Smackdown and highest grossing Backlash of all time. Meanwhile, Clash at the Castle sold out two nights at OVO Hydro in Scotland, breaking WWE's record for a PLE held in an arena. Taken together, these benchmarks all underscore how we are capitalizing on the growing demand for premium content and benefiting from the experience economy around the globe.

Seth Zaslow: At WWE, the quarter got off to an explosive start with WrestleMania 40, which became WWE's most successful event ever setting records for highest grossing WWE event and most streamed entertainment event on P-Cock. That momentum continued over the quarter with a powerful slate of international PLEs. Backlash France attracted more than 20,000 fans over two nights in Leone, setting records for highest grossing Smackdown and highest grossing backlash of all time. Meanwhile, clash at the castle sold out two nights at OVO Hydro in Scotland, breaking WWE's record for a PLE held in an arena.

Speaker Change: At WWE, the quarter got off to an explosive start with WrestleMania 40, which became WWE's most successful event ever, setting records for highest-grossing WWE event and most-streamed entertainment event on Peacock.

Speaker Change: That momentum continued over the quarter with a powerful slate of international PLEs.

Ari Emanuel: Backlash France attracted more than 20,000 fans over two nights in Lyon, setting records for the highest grossing Smackdown and highest grossing Backlash of all time. Meanwhile, Clash at the Castle sold out two nights at OVO Hydro in Scotland, breaking WWE's record for a PLE held in an arena. Taken together, these benchmarks all underscore how we are capitalizing on the growing demand for premium content and benefiting from the experienced economy around the globe

Speaker Change: Backlash France attracted more than 20,000 fans over two nights in Lyon, setting records for highest-grossing SmackDown and highest-grossing Backlash of all time. Meanwhile, Clash at the Castle sold out two nights at OVO Hydro in Scotland, breaking WWE's record for a PLE held in an arena.

Ari Emanuel: Taken together, these benchmarks all underscore how we are capitalizing on the growing demand for premium content and benefiting from the experience economy around the globe.

Speaker Change: Taken together, these benchmarks all underscore how we are capitalizing on the growing demand for premium content and benefiting from the experienced economy around the globe.

Ari Emanuel: Next, we improve the economics around our live events. In May, we integrated UFC and WWE's live events groups to drive synergies across event development and scheduling, tourism incentive programs, ticketing, and fan experiences. We had several wins throughout the quarter, in particular a series of site fees and incentive packages from public and private partners that is clearly now an increasing trend. Most notably, ahead of UFC's first ever fight night in Saudi Arabia, we expanded our relationship with the General Entertainment Authority to bring a second UFC event during Riyadh Season in 2025. At the same time, WWE signed a first-of-its-kind agreement with Indiana Sports Corp to bring its three largest stadium events, WrestleMania, SummerSlam and Royal Rumble to Lucas Oil Stadium in Indianapolis over a three-year span starting in 2025.

Ari Emanuel: Next, we improve the economics around our live event. Most notably, ahead of UFC's first ever fight night in Saudi Arabia, we expanded our relationship with the General Entertainment Authority to bring a second UFC event during the Riyadh season in 2025. At the same time, WWE signed a first-of-its-kind agreement with Indiana Sports Corp. to bring its three largest stadium events, WrestleMania, SummerSlam, and Royal Rumble, to Lucas Oil Stadium in Indianapolis over a three-year span starting in 2025.

Ari Emanuel: Next, we improve the economics around our live events. In May, we integrated UFC and WWE's live events groups to drive synergies across event development and scheduling, tourism incentive programs, ticketing and fan experiences. We had several wins throughout the quarter, in particular a series of site fees and incentive packages from public and private partners that is clearly now an increasing trend. Most notably, ahead of UFC's first ever fight night in Saudi Arabia, we expanded our relationship with the general entertainment authority to bring a second UFC event during Riyadh season in 2025.

Speaker Change: Next, we improve the economics around our live events.

Speaker Change: In May, we integrated UFC and WWE's live events groups to drive synergies across event development and scheduling, tourism incentive programs, ticketing, and fan experiences.

Speaker Change: We had several wins throughout the quarter, in particular, a series of site fees and incentive packages from public and private partners that is clearly now an increasing trend.

Ari Emanuel: Most notably, ahead of UFC's first ever fight night in Saudi Arabia, we expanded our relationship with the General Entertainment Authority to bring a second UFC event during the Riyadh season in 2025. At the same time, WWE signed a first of its kind agreement with Indiana Sports Corp to bring its three largest stadium events, WrestleMania, SummerSlam, and Royal Rumble to Lucas Oil Stadium in Indianapolis over a three-year WWE also struck a partnership with Minnesota Sports and Events to make Minneapolis the host of SummerSlam for two consecutive nights in 2026.

Speaker Change: Most notably, ahead of UFC's first ever fight night in Saudi Arabia, we expanded our relationship with the General Entertainment Authority to bring a second UFC event during Riyadh season in 2025.

Ari Emanuel: At the same time, WWE signed a first of its kind agreement with Indiana Sports Corp to bring its three largest stadium events, WrestleMania, Summerslam and Royal Rumble to Lucas Oil Stadium in Indianapolis over a three year span starting in 2025. WWE also struck a partnership with Minnesota Sports and Events to make Minneapolis the host for Summerslam over two consecutive nights in 2026.

Speaker Change: At the same time, WWE signed a first-of-its-kind agreement with Indiana Sports Corp. to bring its three largest stadium events, WrestleMania, SummerSlam, and Royal Rumble, to Lucas Oil Stadium in Indianapolis over a three-year span starting in 2025.

Ari Emanuel: WWE also struck a partnership with Minnesota Sports and Events to make Minneapolis the host for SummerSlam over two consecutive nights in 2026.

Speaker Change: WWE also struck a partnership with Minnesota Sports and Events to make Minneapolis the host for SummerSlam over two consecutive nights in 2026.

Ari Emanuel: While early innings, we are encouraged by this progress and confident in our ability to continue delivering one-of-a-kind live events for venues and tourism authorities in the US and abroad that will attract sold-out crowds.

Ari Emanuel: While this is early innings, we are encouraged by this progress and confident in our ability to continue delivering one-of-a-kind live events for venues and tourism authorities in the U.S. and abroad that will attract sold-out crowds. Finally, we successfully signed new brand partners and expanded our relationships with existing ones. Top of this list is UFC's signing of the Riyadh season to the largest single event sponsorship in its history. This milestone also marks the first time a UFC event will feature a title partner, rebranding UFC 306 at Sphere Las Vegas as Riyadh Season Noche UFC, which will no doubt be a much hyped and talked about spectacle for sports fans this September.

Ari Emanuel: While early innings, we are encouraged by this progress and confident in our ability to continue delivering one of a kind live events for venues and tourism authorities in the US and abroad that will attract sold out crowds. Finally, we successfully signed new brand partners and expanded our relationships with existing. Top of this list is UFC signing of Riyadh season to the largest single event sponsorship in its history. This milestone also marks the first time a UFC event will feature a title partner rebranding UFC 306 at Sphere Las Vegas as Riyadh season Noche UFC, which will no doubt be a much hyped and talked about spectacle for sports fans this September.

Speaker Change: While early innings, we are encouraged by this progress and confident in our ability to continue delivering one-of-a-kind live events for venues and tourism authorities in the U.S. and abroad that will attract sold-out crowds.

Ari Emanuel: Finally, we successfully signed new brand partners and expanded our relationships with existing. Top of this list is UFC signing of Riyadh Season to the largest single event sponsorship in its history. This milestone also marks the first time a UFC event will feature a title partner rebranding UFC 306 at Sphere Las Vegas as Riyadh Season Noche UFC, which will no doubt be a much hyped and talked about spectacle for sports fans this September. WWE and UFC, this marks the first time TKO's global partnerships team has secured simultaneous deals for both companies, highlighting the marketing power of our integrated partnerships team and the attractive demographics and dedicated audience UFC and WWE deliver.

Ari Emanuel: Finally, we successfully signed new brand partners and expanded our relationships with existing ones. Top of this list is UFC's signing of the Riyadh season to the largest single event sponsorship in its history. This milestone also marks the first time a UFC event will feature a title partner, rebranding UFC 306 at Sphere Las Vegas as Riyadh Season Noche UFC, which will no doubt be a much hyped and talked about spectacle for sports fans this September.

Speaker Change: Finally, we successfully signed new brand partners and expanded our relationships with existing ones.

Speaker Change: Top of this list is UFC's signing of Riyadh season to the largest single event sponsorship in its history.

Speaker Change: This milestone also marks the first time a UFC event will feature a title partner rebranding UFC 306 at Sphere Las Vegas as Riyadh Season Noche UFC, which will no doubt be a much hyped and talked about spectacle for sports fans this September .

Ari Emanuel: We also signed partnership deals for Activision's Call of Duty franchise with both WWE and UFC. This marks the first time TKO's global partnerships team has secured simultaneous deals for both companies, highlighting the marketing power of our integrated partnerships team and the attractive demographics and dedicated audience UFC and WWE deliver. In closing, the strength and appeal of our iconic properties are undeniable, and the value proposition we laid out for TKO is widely evident.

Speaker Change: We also signed partnership deals for Activision's Call of Duty franchise with both WWE and UFC.

Ari Emanuel: WWE and UFC, this marks the first time TKO's global partnerships team has secured simultaneous deals for both companies highlighting the marketing power of our integrated partnerships team and the attractive demographics and dedicated audience UFC and WWE deliver.

Speaker Change: This marks the first time TKO's global partnerships team has secured simultaneous deals for both companies, highlighting the marketing power of our integrated partnerships team and the attractive demographics and dedicated audience UFC and WWE deliver.

Ari Emanuel: In closing, the strength and appeal of our iconic properties are undeniable, and the value proposition we laid out for TKO is widely evident. As we build toward the launch of WWE's partnership with Netflix and with the record-breaking NBA media rights deals, signaling powerful secular tailwinds ahead of our rights renewals, our conviction and TKO's potential for long-term growth and value creation is as strong as ever.

Ari Emanuel: In closing, the strength and appeal of our iconic properties are undeniable and the value proposition we laid out for TKO is widely evident. As we build toward the launch of WWE's partnership with Netflix and with the record breaking NBA media rights deals, signaling powerful secular tailwinds ahead of our rights renewals, our conviction and TKO's potential for long term growth and value creation is as strong as ever.

Ari Emanuel: In closing, the strength and appeal of our iconic properties are undeniable, and the value proposition we laid out for TKO is widely evident as we build toward the launch of WWE's partnership with Netflix and with the record-breaking NBA media rights deals signaling powerful secular tailwinds ahead of our rights renewal. Our conviction in TKO's potential for long-term growth and value creation is as strong as ever. With that, I'll turn the call over to Andrew.

Speaker Change: In closing, the strength and appeal of our iconic properties are undeniable and the value proposition we laid out for TKO is widely evident.

Ari Emanuel: As we build toward the launch of WWE's partnership with Netflix and with the record-breaking NBA media rights deals signaling powerful secular tailwinds ahead of our rights renewal, our conviction in TKO's potential for long-term growth and value creation is as strong as ever. With that, I'll turn the call over to Andrew.

Speaker Change: As we build toward the launch of WWE's partnership with Netflix, and with the record-breaking NBA media rights deals signaling powerful secular tailwinds ahead of our rights renewals, our conviction in TKO's potential for long-term growth and value creation is as strong as ever.

Andrew Schweimer: With that, I'll turn the call over to Andrew. Good morning. 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 the year. Riy touched on a number of areas where we are making good progress with the integration of our businesses. That said, we recently kicked off our 2025 planning process. This will be the first full year with several of our groups, such as live events and sponsorship, combined as one team across both UFC and WWE. We expect to continue to realize benefits on both the revenue and cost side from running our business more efficiently as we continue to further integrate our operations.

Andrew Schweimer: With that, I'll turn the call over to Andrew.

Andrew Schleimer: Good morning. 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 the year. Ari touched on a number of areas where we are making good progress with the integration of our businesses. That said, we recently kicked off our 2025 planning process.

Andrew Schweimer: Good morning. 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 the year. Riy touched on a number of areas where we are making good progress with the integration of our businesses. That said, we recently kicked off our 2025 planning process. This will be the first full year with several of our groups, such as live events and sponsorship, combined as one team across both UFC and WWE.

Speaker Change: With that, I'll turn the call over to Andrew.

Andrew: Good morning, 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 the year.

Andrew: Ari touched on a number of areas where we are making good progress with the integration of our businesses.

Andrew Schleimer: That said, we recently kicked off our 2025 planning process. This will be the first full year with several of our groups, such as live events and sponsorship, combined as one team across both UFC and WWE. We expect to continue to realize benefits on both the revenue and cost side from running our business more efficiently as we continue to further integrate our operation. When we announced the combination of UFC and WWE in April of last year, we set a target of $50 to $100 million in annualized net savings, including additional benefits we have started to realize from live events, production, and operations.

Speaker Change: That said, we recently kicked off our 2025 planning process. This will be the first full year with several of our groups, such as live events and sponsorship, combined as one team across both UFC and WWE.

Andrew Schleimer: This will be the first full year with several of our groups, such as live events and sponsorship, combined as one team across both UFC and WWE. We expect to continue to realize benefits on both the revenue and cost side from running our business more efficiently as we continue to further integrate our operation. With a year under our belts and integrated teams impacting our planning process, we anticipate further upside ahead of us.

Andrew Schweimer: We expect to continue to realize benefits on both the revenue and cost side from running our business more efficiently as we continue to further integrate our operations. With a year under our belts and integrated teams impacting our planning process, we anticipate further outside ahead of us. We announced the combination of UFC and WWE in April of last year. We set a target of 50 to 100 million in annualized net savings. Including additional benefits we have started to realize from live events, production and operation on police report that we now expect to exceed 100 million in annualized net savings.

Speaker Change: We expect to continue to realize benefits on both the revenue and cost side from running our business more efficiently as we continue to further integrate our operations.

Andrew Schweimer: With a year under our belts and integrated teams impacting our planning process, we anticipate further outside ahead of us. We announced the combination of UFC and WWE in April of last year. We set a target of 50 to 100 million in annualized net savings. Including additional benefits we have started to realize from live events, production, and operation on police report that we now expect to exceed 100 million in annualized net savings.

Speaker Change: With a year under our belts and integrated teams impacting our planning process, we anticipate further upside ahead of us.

Andrew Schleimer: When we announced the combination of UFC and WWE in April of last year, we set a target of $50 to $100 million in annualized net savings, including additional benefits we have started to realize from live events, production, and operations. I'm pleased to report that we now expect to exceed $100 million in annualized net savings.

Speaker Change: When we announced the combination of UFC and WWE in April of last year, we set a target of $50 to $100 million in annualized net savings.

Speaker Change: Including additional benefits we have started to realize from live events, production, and operation, I'm pleased to report that we now expect to exceed $100 million in annualized net savings.

Andrew Schleimer: I'm pleased to report that we now expect to exceed $100 million in annualized net savings. We obviously disagree with this ruling and believe it disregards the expertise of both our counsel and plaintiff's counsel, as well as the input of an accomplished and well-respected expert mediator, all of whom have decades of experience in antitrust case law. It prevents the athletes from receiving what plaintiff's counsel argued was in the best interest of its client.

Andrew Schweimer: Before I turn to our financial results, I want to provide an update on the status of the UFC antitrust lawsuits, as well as a development regarding our external auditors, Deloitte. As we discussed on our last earnings call, we reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. As we previously disclosed on July 30, the court issued a ruling denying the motion for preliminary approval of the settlement agreement. We obviously disagree with this ruling and believe it disregards the expertise of both our council and plaintiffs council, as well as the input of an accomplished and well-respected expert mediator, all of whom have decades of experience in antitrust case law.

Andrew Schleimer: Before I turn to our financial results, I want to provide an update on the status of the UFC antitrust lawsuits, as well as developments regarding our external auditors, Deloitte. As we discussed on our last earnings call, we reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. However, as we previously disclosed on July 30th, the court issued a ruling denying the motion for preliminary approval of the settlement agreement.

Andrew Schweimer: Before I turn to our financial results, I want to provide an update on the status of the UFC antitrust lawsuits as well as a development regarding our external auditors, Deloitte. As we discussed on our last earnings call, we reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. As we previously disclosed on July 30, the court issued a ruling denying the motion for preliminary approval of the settlement agreement.

Speaker Change: Before I turn to our financial results, I want to provide an update on the status of the UFC antitrust lawsuits, as well as the development regarding our external auditors, Deloitte.

Speaker Change: As we discussed on our last earnings call, we reached an agreement to settle all claims asserted in both UFC antitrust lawsuits.

Speaker Change: As we previously disclosed on July 30th, the court issued a ruling denying the motion for preliminary approval of the settlement agreement.

Andrew Schleimer: We obviously disagree with this ruling and believe it disregards the expertise of both our counsel and plaintiff's counsel, as well as the input of an accomplished and well-respected expert mediator, all of whom have decades of experience in antitrust case law. It prevents the athletes from receiving what plaintiff's counsel argued was in the best interest of its client.

Andrew Schweimer: We obviously disagree with this ruling and believe it disregards the expertise of both our council and plaintiffs council as well as the input of an accomplished and well respected expert mediator, all of whom have decades of experience in antitrust case law. It prevents the athletes from receiving what plaintiffs council argued was in the best interest of its clients. As we have said throughout this process, we believe strongly in the merits of our cases and are prepared to try both of these cases.

Speaker Change: We obviously disagree with this ruling and believe it disregards the expertise of both our counsel and plaintiff's counsel as well as the input of an accomplished and well-respected expert mediator, all of whom have decades of experience in antitrust case law.

Andrew Schweimer: It prevents the athletes from receiving what plaintiffs' counsel argued was in the best interest of its clients. As we have said throughout this process, we believe strongly in the merits of our cases and are prepared to try both of these cases. We are evaluating all of our options and have initiated discussions with plaintiffs' counsel, who have expressed the willingness to engage in separate settlement discussions for the Lee and Johnson case. As appropriate, we will provide further updates. The light has served as our audit firm of record for WWE and UFC for many years prior to the formation of TKO, and has been TKO's auditor since the transaction closed.

Speaker Change: It prevents the athletes from receiving what plaintiff's counsel argued was in the best interest of its clients.

Andrew Schleimer: As we have said throughout this process, we believe strongly in the merits of our cases and are prepared to try both of these cases. We are evaluating all of our options and have initiated discussions with plaintiffs' counsel, who have expressed a willingness to engage in separate settlement discussions for the Lee and Johnson cases. As appropriate, we will provide further updates. Deloitte served as our audit firm of record for WWE and UFC for many years prior to the formation of TKO and has been TKO's auditor since the transaction closed.

Speaker Change: As we have said throughout this process, we believe strongly in the merits of our cases and are prepared to try both of these cases.

Andrew Schweimer: We are evaluating all of our options and have initiated discussions with plaintiffs council who have expressed the willingness to engage in separate settlement discussions for the Lee and Johnson case. As appropriate, we will provide further updates.

Speaker Change: We are evaluating all of our options and have initiated discussions with plaintiff's counsel who have expressed the willingness to engage in separate settlement discussions for the Lee and Johnson cases.

Andrew Schleimer: As appropriate, we will provide further updates. We had expected to continue our long-term relationship with Deloitte in the years to come. Unfortunately, solely due to the effects of the technical auditor independence rules of the SEC that will be triggered when the Endeavor Take Private transaction closes, Deloitte will be unable to continue to serve as TKO's auditor. Note, this is solely due to a technical matter and has nothing to do with the work performed by Deloitte for the company or any issue with the company's financial state.

Speaker Change: As appropriate, we will provide further updates.

Andrew Schweimer: The light has served as our audit firm of record for WWE and UFC for many years prior to the formation of TKO, and has been TKO's auditor since the transaction closed. We have expected to continue our long-term relationship with Deloitte in the years to come. Unfortunately, solely due to the effects of technical auditor independence rules of the SEC that will be triggered when the endeavor take private transaction closes, Deloitte will be unable to continue to service TKO's auditor. Note this is solely due to a technical matter and has nothing to do with the work performed by Deloitte for the company, or any issue with the company's financial statements.

Speaker Change: Deloitte has served as our audit firm of record for WWE and UFC for many years prior to the formation of TKO, and has been TKO's auditor since the transaction closed.

Andrew Schweimer: We have expected to continue our long-term relationship with Deloitte in the years to come. Unfortunately, solely due to the effects of technical auditor independence rules of the SEC that will be triggered when the endeavor take-private transaction closes, Deloitte will be unable to continue to service TKO's auditor. Note this is solely due to a technical matter and has nothing to do with the work performed by Deloitte for the company, or any issue with the company's financial statements.

Andrew Schleimer: We had expected to continue our long-term relationship with Deloitte in the years to come. Unfortunately, solely due to the effects of the technical auditor independence rules of the SEC that will be triggered when the Endeavor Take Private transaction closes, Deloitte will be unable to continue to serve as TKO's auditor. Note, this is solely due to a technical matter and has nothing to do with the work performed by Deloitte for the company or any issue with the company's financial state.

Speaker Change: We had expected to continue our long-term relationship with Deloitte in the years to come.

Speaker Change: Unfortunately, solely due to the effects of technical auditor independence rules of the SEC that will be triggered when the Endeavor Take Private transaction closes, Deloitte will be unable to continue to serve as TKO's auditor.

Speaker Change: Note, this is solely due to a technical matter and has nothing to do with the work performed by Deloitte for the company or any issue with the company's financial statements.

Andrew Schweimer: We plan to file an AK after the market closes today, announcing that we've engaged KPMG as TKO's independent, registered public accounting firm. We are confident in its smooth transition to KPMG, who will complete our 2024 audit.

Andrew Schweimer: We plan to file an AK after the market closes today announcing that we've engaged KPMG as TKO's independent, registered public accounting firm. We are confident in its smooth transition to KPMG who will complete our 2024 audit.

Andrew Schleimer: We plan to file an 8K after the market closes today, announcing that we've engaged KPMG as TKO's independent registered public accounting firm. We are confident in a smooth transition to KPMG, who will complete our 2024 audit.

Speaker Change: we plan to file on eight k after the market closes today announcing that we've engaged kpm g s ts independent registered public accounting firm we are confident in move transition to kpmg who will complete our two thousand andtwenty-four audit

Andrew Schweimer: Turning now to our financial results. Second quarter reported results included three months of activity for both UFC and WWE. WWE activity is not included in the reported results for the second quarter of 2023. To assist with comparability, we've presented supplemental financial information in our press release, an IR website that includes WWE activity and the portion of WWE related to the corporate group for the second quarter of 2023. As well as each quarterly period from January 1, 2022, through September 11, 2023. For the second quarter of 2024, TKO generated a record revenue of 851 million. Net income was 151 million.

Andrew Schweimer: Turning now to our financial results. Second quarter reported results included three months of activity for both UFC and WWE.

Andrew Schleimer: Turning now to our financial results, the second quarter reported results included three months of activity for both UFC and WWE. WWE activity is not included in the reported results for the second quarter of 2023.

Andrew Schleimer: Turning now to our financial results. Second quarter reported results included three months of activity for both UFC and WWE. For the second quarter of 2024, TKO generated a record revenue of $851 million. Net income was $151 million. Adjusted EBITDA was $421 million, also a record, and our adjusted EBITDA margin was 49%. Now I'll walk you through our segment.

Speaker Change: Turning now to our financial results.

Speaker Change: Second quarter reported results included three months of activity for both UFC and WWE.

Andrew Schweimer: WWE activity is not included in the reported results for the second quarter of 2023. To assist with comparability, we've presented supplemental financial information in our press release, an IR website that includes WWE activity and the portion of WWE related to the corporate group for the second quarter of 2023. As well as each quarterly period from January 1, 2022 through September 11, 2023.

Speaker Change: WWE activity is not included in the reported results for the second quarter of 2023.

Andrew Schleimer: To assist with comparability, we've presented supplemental financial information in our press release and IR website that includes WWE activity and the portion of WWE related to the corporate group for the second quarter of 2023, as well as each quarterly period from January 1st, 2022 through September 11th, 2023. For the second quarter of 2024, TKO generated a record revenue of $851 million, net income was $151 million, adjusted EBITDA was $421 million, also a record, and our adjusted EBITDA margin was 49%, including WWE activity from April 1 through June 30, 2023.

Speaker Change: To assist with comparability, we've presented supplemental financial information in our press release and IR website that includes WWE activity and the portion of WWE related to the corporate group for the second quarter of 2023, as well as each quarterly period from January 1st, 2022 through September 11th, 2023.

Andrew Schweimer: For the second quarter of 2024, TKO generated a record revenue of 851 million. Net income was 151 million. Adjusted EBITDA was 421 million, also a record, and our adjusted EBITDA margin was 49%. Including WWE activity for April 1 through June 30, 2023, combined revenue for the second quarter was 716 million, combined adjusted EBITDA was 314 million, and our combined adjusted EBITDA margin was 44%. Inclusive of these amounts, revenue increased 19%, adjusted EBITDA increased 34%, and adjusted EBITDA margin increased 5 percentage points.

Speaker Change: For the second quarter of 2024, TKO generated a record revenue of $851 million. Net income was $151 million. Adjusted EBITDA was $421 million, also a record, and our adjusted EBITDA margin was 49%.

Andrew Schweimer: Adjusted EBITDA was 421 million, also a record, and our adjusted EBITDA margin was 49%. Including WWE activity for April 1 through June 30, 2023, combined revenue for the second quarter was 716 million, combined adjusted EBITDA was 314 million, and our combined adjusted EBITDA margin was 44%. Inclusive of these amounts, revenue increased 19%; adjusted EBITDA increased 34%; and adjusted EBITDA margin increased 5 percentage points. Now I'll walk you through our segments. Our UFC segment generated revenue of 394 million in the quarter, an increase of 29% or 89 million. Adjusted EBITDA was 232 million, an increase of 23% or 44 million.

Andrew Schleimer: Combined revenue for the second quarter was 716 million; combined adjusted EBITDA was 314 million, and our combined adjusted EBITDA margin was 44%. Inclusive of these amounts, revenue increased 19%, adjusted EBITDA increased 34%, and adjusted EBITDA margin increased five percentage points. Now I'll walk you through our segment.

Speaker Change: including w activity for april first through june thirtieth two thousand and twenty- three combined revenue for the second quarter with seven hundred and sixteen million combined adjusted ebitda was three hundred and fourteen million and our combined adjusted ebitda margin was forty-four percent

Speaker Change: Inclusive of these amounts, revenue increased 19%, adjusted EBITDA increased 34%, and adjusted EBITDA margin increased 5 percentage points.

Andrew Schweimer: Now I'll walk you through our segments. Our UFC segment generated revenue of 394 million in the quarter, an increase of 29% or 89 million. Adjusted EBITDA was 232 million, an increase of 23% or 44 million. UFC's adjusted EBITDA margin was 59% down from 62% in the prior year period. Revenue growth was led by live events, which had a record quarter and continued to benefit from the strength of the experienced economy. Live events revenue increased 114% to 69 million.

Andrew Schleimer: Our UFC segment generated revenue of $394 million in the quarter, an increase of 29% or $89 million. Adjusted EBITDA was $232 million, an increase of 23% or $44 million. Revenue growth was led by live events, which had a record quarter and continued to benefit from the strength of the experienced economy. Live events revenue increased 114% to $69 million. Ticket sales increased primarily due to one additional numbered event, four in the second quarter of this year as compared to three in the prior year, and strong demand for high-profile events such as UFC 300 and UFC 303.

Speaker Change: now i'llwalk you through west segments

Speaker Change: Our UFC segment generated revenue of $394 million in the quarter, an increase of 29% or $89 million. Adjusted EBITDA was $232 million, an increase of 23% or $44 million.

Andrew Schweimer: UFC's adjusted EBITDA margin was 59%, down from 62% in the prior year period. Revenue growth was led by live events, which had a record quarter and continued to benefit from the strength of the experienced economy. Live events revenue increased 114% to 69 million. Ticket sales increased primarily due to one additional number of events, four in the second quarter of this year as compared to three in the prior year, and strong demand for high profile events such as UFC 300 and UFC 303. Side fees were also a meaningful contributor to the increase. Results in the quarter included a $20 million side fee related to our event in Saudi Arabia, as well as a meaningful side fee for UFC 302.

Speaker Change: UFC's adjusted EBITDA margin was 59%, down from 62% in the prior year period.

Andrew Schleimer: Revenue growth was led by live events, which had a record quarter and continued to benefit from the strength of the experienced economy. Live events revenue increased 114% to $69 million. Ticket sales increased primarily due to one additional numbered event, four in the second quarter of this year as compared to three in the prior year, and strong demand for high-profile events such as UFC 300 and UFC 303. Site fees were also a meaningful contributor to the increase.

Speaker Change: Revenue growth was led by live events which had a record quarter and continued to benefit from the strength of the experienced economy.

Speaker Change: Live events revenue increased 114% to $69 million.

Andrew Schweimer: Ticket sales increased primarily due to one additional number of events, four in the second quarter of this year as compared to three in the prior year, and strong demand for high profile events such as UFC 300 and UFC 303. Side fees were also a meaningful contributor to the increase. Results in the quarter included a $20 million side fee related to our event in Saudi Arabia, as well as a meaningful side fee for UFC 302.

Speaker Change: ticket sales increaseed primarily due to one additional number event four in the second quarter of this year as compared to three in the prior year and strong demand for high profile events such as u f c three hundred and u sd three o threeate

Andrew Schleimer: Site fees were also a meaningful contributor to the increase. Results in the quarter included a $20 million site fee related to our event in Saudi Arabia, as well as a meaningful site fee for UFC 303. Media rights and content revenue increased 18% to $251 million. The increase was primarily driven by one additional numbered event. Sponsorship revenue increased 33% to $62 million.

Andrew Schleimer: Results in the quarter included a $20 million site fee related to our event in Saudi Arabia, as well as a meaningful site fee for UFC 301. Media rights and content revenue increased 18% to $251 million. The increase was primarily driven by one additional numbered event. UFC had 11 total events in both the second quarter of this year, as well as the prior year. However, as we've discussed in the past, numbered events carry a higher allocation of fixed media revenue compared to fight nights. The contractual escalation of media rights also contributes to the increase.

Speaker Change: Site fees were also a meaningful contributor to the increase. Results in the quarter included a $20 million site fee related to our event in Saudi Arabia, as well as a meaningful site fee for UFC 302.

Andrew Schweimer: Media rights and content revenue increased 18% to 251 million. The increase was primarily driven by one additional number of events. UFC had 11 total events in both the second quarter of this year as well as the prior year. However, as we've discussed in the past, the number of events carry a higher allocation of fixed media revenue compared to fight nights. The contrastal escalation of media rights also contribute to the increase. Sponsorship revenue increased 33% to 62 million. The increase was driven by new partnerships and renewals, as well as the mix of events in the quarter, including two of our biggest events, UFC 300 and UFC 303, which featured our annual International Fight Week.

Speaker Change: Meteorites and content revenue increased 18% to $251 million.

Speaker Change: The increase was primarily driven by one additional numbered event. UFC had 11 total events in both the second quarter of this year as well as the prior year. However, as we've discussed in the past, numbered events carry a higher allocation of fixed media revenue compared to fight nights.

Speaker Change: The contractual escalation of media rights also contributes to the increase.

Andrew Schleimer: Sponsorship revenue increased 33% to $62 million. The increase was driven by new partnerships and renewals, as well as the mix of events in the quarter, including two of our biggest events, UFC 300 and UFC 303, which featured our annual international fight. Adjusted EBITDA reflected the increase in revenue partially offset by an increase in expenses. The increase in expenses reflected higher direct operating costs, primarily due to an increase in production, marketing, and athlete costs, as well as an increase in direct costs of revenue due to one additional numbered event. SG&A was essentially flat year over year. Turning now to WWE.

Speaker Change: Sponsorship revenue increased 33% to $62 million.

Andrew Schleimer: The increase was driven by new partnerships and renewals, as well as the mix of events in the quarter, including two of our biggest events, UFC 300 and UFC 303, which featured our annual international fight week. Adjusted EBITDA reflected the increase in revenue partially offset by an increase in expenses. SG&A was essentially flat year over year.

Andrew Schweimer: The increase was driven by new partnerships and renewals as well as the mix of events in the quarter, including two of our biggest events, UFC 300 and UFC 303, which featured our annual International Fight Week. Adjusted even Dow reflected the increase in revenue partially offset by an increase in expenses. The increase in expenses reflected higher direct operating costs, primarily due to an increase in production, marketing and athlete cost, as well as an increase in direct cost of revenue due to one additional number of events. STNA was essentially flat year over year.

Speaker Change: The increase was driven by new partnerships and renewals, as well as the mix of events in the quarter, including two of our biggest events, UFC 300 and UFC 303, which featured our annual International Fight Week.

Andrew Schweimer: Adjusted even Dow reflected the increase in revenue, partially offset by an increase in expenses. The increase in expenses reflected higher direct operating costs, primarily due to an increase in production, marketing and athlete cost, as well as an increase in direct cost of revenue due to one additional number of events. STNA was essentially flat year over year.

Speaker Change: Adjusted EBITDA reflected the increase in revenue partially offset by an increase in expenses.

Speaker Change: The increase in expenses reflected higher direct operating costs, primarily due to an increase in production, marketing, and athlete costs, as well as an increase in direct costs of revenue due to one additional numbered event.

Andrew Schweimer: Turning now to WWE, WWE delivered record quarterly revenue and adjusted EBITDA. The financial results continue to reflect strong creative momentum in the business, as well as the benefits to both the top and bottom line from the initiatives we've implemented since the formation of TKO. Our WWE segment generated revenue of 457 million in the quarter. Adjusted EBITDA was 251 million, and adjusted EBITDA margin was 55%. The following commentary on the second quarter includes comparison to the activity for the period from April 1st through June 30th, 2023. In the second quarter of 2023, revenue was 410 million, adjusted EBITDA with 173 million, and adjusted EBITDA margin was 42%.

Andrew Schweimer: Turning now to WWE, WWE delivered record quarterly revenue and adjusted EBITDA. The financial results continue to reflect strong creative momentum in the business as well as the benefits to both the top and bottom line from the initiatives we've implemented since the formation of TKO. Our WWE segment generated revenue of 457 million in the quarter. Adjusted EBITDA was 251 million, and adjusted EBITDA margin was 55%. The following commentary on the second quarter includes comparison to the activity for the period from April 1st through June 30th, 2023.

Speaker Change: SG&A was essentially flat year over year.

Andrew Schleimer: WWE delivered record quarterly revenue and adjusted EBITDA. The financial results continue to reflect strong creative momentum in the business, as well as the benefits to both the top and bottom line from the initiatives we've implemented since the formation of TKO. Our WWE segment generated revenue of $457 million in the quarter. Adjusted EBITDA was $251 million, and adjusted EBITDA margin was 55%. The following commentary on the second quarter includes comparisons to activity for the period from April 1st through June 30th, 2023.

Speaker Change: Turning now to WWE.

Speaker Change: dewwe delivered record quarterly revenue and adjusted ebitda the financial results continue to reflect strong creative momentum in the business as well as the benefits to both the top and bottom line from the initiveswe've implemented since the formation of tko

Speaker Change: Our WWE segment generated revenue of $457 million in the quarter, adjusted EBITDA was $251 million, and adjusted EBITDA margin was 55%.

Speaker Change: The following commentary on the second quarter includes comparisons to activity for the period from April 1st through June 30th, 2023.

Andrew Schleimer: In the second quarter of 2023, revenue was $410 million, adjusted EBITDA was $173 million, and adjusted EBITDA margin was 42%. Revenue increased 11%, or $47 million. Adjusted EBITDA increased 45%, or $78 million, and the adjusted EBITDA margin increased 13%. Revenue growth was led by continued strong performance for live events. Live event revenue increased 32% to $144 million, a quarterly record. The increase was primarily related to an increase in ticket sales.

Andrew Schweimer: In the second quarter of 2023, revenue was 410 million, adjusted EBITDA with 173 million, and adjusted EBITDA margin was 42%. Revenue increased 11% or 47 million, adjusted EBITDA increased 45% or 78 million, and adjusted EBITDA margin increased 13 percentage points. Revenue growth was led by continued strong performance for live events. Live events revenue increased 32% to 144 million, a quarterly record. The increase was primarily related to an increase in ticket sales.

Speaker Change: In the second quarter of 2023, revenue was $410 million, adjusted EBITDA was $173 million, and adjusted EBITDA margin was 42%.

Andrew Schweimer: Revenue increased 11% or 47 million, adjusted EBITDA increased 45% or 78 million, and adjusted EBITDA margin increased 13 percentage points. Revenue growth was led by continued strong performance for live events. Live events revenue increased 32% to 144 million, a quarterly record. The increase was primarily related to an increase in ticket sales. Since the formation of TKO, we've been focused on increasing ticket yield, and this strategy favorably impacted our results in the quarter, not only in connection with Russell Media, but for the balance of WWE's live events in the aggregate. Media rights and content revenue increased 4% to 261 million.

Speaker Change: Revenue increased 11 percent or 47 million. Adjusted EBITDA increased 45 percent or 78 million and adjusted EBITDA margin increased 13 percentage points.

Speaker Change: yeah

Speaker Change: Revenue growth was led by continued strong performance for live events.

Speaker Change: Live events revenue increased 32% to $144 million, a quarterly record.

Andrew Schleimer: The increase was primarily related to an increase in ticket sales. Since the formation of TKO, we've been focused on increasing ticket yield, and this strategy favorably impacted our results in the quarter, not only in connection with WrestleMania, but for the balance of WWE's live events in the aggregate. Sponsorship revenue increased 6% to $25 million, primarily due to timing and the mix of events. Consumer products revenue was essentially flat at $27 million

Andrew Schleimer: Since the formation of TKO, we've been focused on increasing ticket yield, and this strategy favorably impacted our results in the quarter, not only in connection with WrestleMania, but for the balance of WWE's live events in the aggregate. Media rights and content revenue increased 4% to $261 million. The increase was primarily related to holding one additional premium live event compared to the prior year, as well as the contractual escalation of media rights fees for our flagship weekly programming and premium live events. These increases were partially offset by a decrease in third-party original programming due to the timing of delivery.

Andrew Schweimer: Since the formation of TKO, we've been focused on increasing ticket yield, and this strategy favorably impacted our results in the quarter, not only in connection with Russell Media, but for the balance of WWE's live events in the aggregate. Media rights and content revenue increased 4% to 261 million. The increase was primarily related to holding one additional premium live event compared to the prior year, as well as the contractual escalation of media rights fees for our flagship weekly programming and premium live events.

Speaker Change: The increase was primarily related to an increase in ticket sales.

Speaker Change: since the formation of tko we've been focused on increasing ticket yield and this strategy favorably impacted our results in the quarter not only in connection with us almedia but for the balance of w's live events in the aggregate

Speaker Change: Media rights and content revenue increased 4% to $261 million. The increase was primarily related to holding one additional premium live event compared to the prior year, as well as the contractual escalation of media rights fees for our flagship weekly programming and premium live events.

Andrew Schweimer: The increase was primarily related to holding one additional premium live event compared to the prior year, as well as the contractual escalation of media rights fees for our flagship weekly programming and premium live events. These increases were partially offset by a decrease in third-party original programming due to the timing of delivery. Sponsorship revenue increased 6% to 25 million, primarily due to timing and the mix of events. In the quarter, we signed new sponsors in the insurance, beverage, CTG, spirits, and entertainment categories. Consumer products revenue was essentially flat at $27 million. Results reflected an increase in video game licensing revenue, offset by the previously disclosed accountant related to the transition of our venue merchandise business to Fanatics in May 2023.

Andrew Schweimer: These increases were partially offset by a decrease in third party original programming due to the timing of delivery. Sponsorship revenue increased 6% to 25 million, primarily due to timing and the mix of events. In the quarter, we signed new sponsors in the insurance, beverage, CTG, spirits, and entertainment categories. Consumer products revenue was essentially flat at 27 million. Results reflected an increase in video game licensing revenue offset by the previously disclosed accountant related to the transition of our venue merchandise business to fanatics in May 2023.

Speaker Change: These increases were partially offset by a decrease in third-party original programming due to the timing of delivery.

Andrew Schleimer: Sponsorship revenue increased 6% to $25 million, primarily due to timing and the mix of events. In the quarter, we signed new sponsors in the insurance, beverage, CPG, spirits, and entertainment categories. Consumer products revenue was essentially flat at $27 million.

Speaker Change: Sponsorship revenue increased 6% to $25 million, primarily due to timing and the mix of events.

Speaker Change: In the quarter, we sign new sponsors in the Insurance, Beverage, CPG, Spirits, and Entertainment categories.

Andrew Schleimer: Results reflected an increase in video game licensing revenue offset by the previously disclosed accounting related to the transition of our venue merchandise business to Fanatics in May 2023. Adjusted EBITDA reflected the 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, as well as a decrease in production costs. Turning now to corporate. Corporate reflects the general and administrative operations supporting both of our segments, including finance, legal, HR, and the executive.

Speaker Change: Consumer products revenue was essentially flat at $27 million. Results reflected an increase in video game licensing revenue offset by the previously disclosed accounting related to the transition of our venue merchandise business to Fanatics in May 2023.

Andrew Schweimer: Adjust that EBITDA reflected the increase in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue and a decrease in revenue. The decrease in expenses reflected lower personnel costs and other direct costs related to our plan cost reduction initiatives implemented following the formation of TKO, as well as a decrease in production costs.

Andrew Schweimer: Adjust that EBITDA reflected the increase in revenue and a decrease in[inaudible] The decrease in expenses reflected lower personnel costs and other direct costs related to our plan cost reduction initiatives implemented following the formation of TKO as well as a decrease in production costs.

Speaker Change: Adjusted EBITDA reflected the 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, as well as a decrease in production costs.

Andrew Schweimer: Turning now to corporate. Corporate reflects the general and administrative operations supporting both of our segments, including finance, legal, HR, and the executive team. Corporate also includes the fees paid by TKO to Endeavor under its services agreement. Corporate expense expenses were 62 million for the second quarter of 2024. On a combined basis, corporate expenses were 47 million for the second quarter of 2023. As a reminder, the WWE services fee to Endeavor didn't take effect until the six-month anniversary of the closing of the transaction. As a result, the second quarter of 2024 was the first time that TKO's quarterly results reflected a full three months of activity, in addition to the fee UFC continued to pay.

Andrew Schleimer: Corporate also includes the fees paid by TKO to Endeavor under its services agreement. Corporate expenses were $62 million for the second quarter of 2024. On a combined basis, corporate expenses were $47 million for the second quarter of 2023. As a reminder, the WWE services fee to Endeavor didn't take effect until the six-month anniversary of the closing of the transaction.

Andrew Schweimer: Turning now to corporate. Corporate reflects the general and administrative operations supporting both of our segments, including finance, legal, HR and the executive team. Corporate also includes the fees paid by TKO to endeavor under its services agreement. Corporate expense expenses were 62 million for the second quarter of 2024. On a combined basis, corporate expenses were 47 million for the second quarter of 2023. As a reminder, the WWE services fee to endeavor didn't take effect until the six month anniversary of the closing of the transaction.

Speaker Change: Turning now to corporate. Corporate reflects the general and administrative operations supporting both of our segments, including finance, legal, HR, and the executive team.

Speaker Change: Corporate also includes the fees paid by TKO to Endeavor under its services agreement.

Speaker Change: Corporate expenses were $62 million for the second quarter of 2024.

Speaker Change: On a combined basis, corporate expenses were $47 million for the second quarter of 2023. As a reminder, the WWE services fee to Endeavor didn't take effect until the six-month anniversary of the closing of the transaction.

Andrew Schleimer: As a result, the second quarter of 2024 was the first time that TKO's quarterly results reflected a full three months of activity in addition to the fee UFC continued to pay. The increase was also 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. Moving on to our capital structure, we define free cash flow as net cash provided by operating activities less capital expenditure. Free cash flow excludes the majority of the mandatory tax distributions to our owners but does include the portion of cash tax paid by TKO PubCo.

Andrew Schleimer: As a result, the second quarter of 2024 was the first time that TKO's quarterly results reflected a full three months of activity in addition to the fee UFC continued to pay. Moving on to our capital structure, we define free cash flow as net cash provided by operating activities less capital expenditure.

Andrew Schweimer: As a result, the second quarter of 2024 was the first time that TKO's quarterly results reflected a full three months of activity in addition to the fee UFC continued to pay. The increase was also due to higher personnel costs, including executive compensation and other GNA expenses, including public company costs, following the formation of TKO in September of last year.

Speaker Change: As a result, the second quarter of 2024 was the first time that TKO's quarterly results reflected a full three months of activity in addition to the fee UFC continued to pay.

Andrew Schweimer: The increase was also due to higher personnel costs, including executive compensation and other GNA expenses, including public company costs, following the formation of TKO in September of last year.

Speaker Change: The increase was also 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.

Andrew Schweimer: Moving on to our capital structure. We define free cash flow as net cash provided by operating activities less capital expenditures. Free cash flow excludes the majority of the mandatory tax distributions to our owners, but does include the portion of cash tax paid by TKO Pubco. For the quarter, we generated 219 million of free cash flow. This includes 12 million of capital expenditures, approximately 7 million of which related to WWE's new headquarters. We expect approximately 10 million of spending in the second half of the year on WWE's HQ, but nothing meaningful beyond that point. The quarter was also impacted by the timing of working capital, with certain revenues recognized in Q2 that will not be collected until the third quarter, most notably the site be associated with our WWE Saudi event, King and Queen of the Ring.

Speaker Change: Moving on to our capital structure.

Speaker Change: We define free cash flow as net cash provided by operating activities less capital expenditures.

Speaker Change: Free cash flow excludes the majority of the mandatory tax distributions to our owners, but does include the portion of cash tax paid by TKO PubCo.

Andrew Schleimer: For the quarter, we generated $219 million of free cash flow. This includes $12 million of capital expenditures, approximately $7 million of which related to WWE's new headquarters. We expect approximately $10 million of spending in the second half of the year on WWE's HQ, but nothing meaningful beyond that point. The quarter was also impacted by the timing of working capital with certain revenues recognized in Q2 that will not be collected until the third quarter, most notably the site fee associated with our WWE Saudi Arabia event, King and Queen of the Ring. We ended the quarter with $2.744 billion in debt and $278 million in cash and cash equivalents.

Speaker Change: For the quarter, we generated $219 million of free cash flow.

Speaker Change: This includes $12 million of capital expenditures, approximately $7 million of which related to WWE's new headquarters. We expect approximately $10 million of spending in the second half of the year on WWE's HQ, but nothing meaningful beyond that point.

Andrew Schweimer: We expect approximately 10 million of spending in the second half of the year on WWE's HQ, but nothing meaningful beyond that point. The quarter was also impacted by the timing of working capital with certain revenues recognized in Q2 that will not be collected until the third quarter, most notably the site be associated with our WWE Saudi event King and Queen of the ring. We ended the quarter with 2.744 billion in debt and 278 million in cash and cash equivalents.

Speaker Change: The quarter was also impacted by the timing of working capital with certain revenues recognized in Q2 that will not be collected until the third quarter, most notably the site fee associated with our WWE Saudi event, King and Queen of the Ring.

Andrew Schweimer: We ended the quarter with 2.744 billion in debt and 278 million in cash and cash equivalents. 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 at positive ROI, reducing our net debt position, and returning capital to shareholders in the form of cash. We've shared repurchases and/or dividends, and M&A should a unique and compelling opportunity present itself to increase value, but intend to do so in a selective and disciplined manner.

Speaker Change: We ended the quarter with $2.744 billion in debt and $278 million in cash and cash equivalents.

Andrew Schweimer: 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 at positive ROI, reducing our net debt position, returning capital to shareholders in the form of cash. We've shared repurchases and or dividends, and M&A should a unique and compelling opportunity present itself to increase value, but intend to do so in a selective and disciplined manner. In the quarter, we repurchased approximately 1.9 million shares for 165 million. Since the formation of TKO in September of 2023, we've repurchased a total of approximately 3.2 million shares for 265 million.

Andrew 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 at positive ROI, reducing our net deposition, returning capital to shareholders in the form of share or purchase, or dividends, and M&A should a unique and compelling opportunity present itself to increase value, but we intend to do so in a selective and disciplined manner. In the quarter, we repurchased approximately 1.9 million shares for $165 million.

Andrew Schleimer: As we previously discussed, we expect to have significant financial capacity over time as we grow adjusted EBITDA and generate cash. In the quarter, we repurchased approximately 1.9 million shares for $165 million. Since the formation of TKO in September of 2023, we've repurchased a total of approximately 3.2 million shares for $265 million. Now, turning to our outlook. As noted in our press release, we are raising our full year 2024 guidance for revenue and adjusted EBITDA for the second quarter in a row.

Speaker Change: As we previously discussed, we expect to have significant financial capacity over time as we grow adjusted EBITDA and generate cash.

Speaker Change: As such, we'll continue to consider a wide spectrum of opportunities to increase shareholder value, including organic investment at positive ROI.

Speaker Change: Reducing our Net Deposition.

Speaker Change: Returning capital to shareholders in the form of share or purchases and or dividends. An M&A should a unique and compelling opportunity present itself to increase value, but intend to do so in a selective and disciplined manner.

Andrew Schweimer: In the quarter, we repurchased approximately 1.9 million shares for $165 million. Since the formation of TKO in September of 2023, we've repurchased a total of approximately 3.2 million shares for 265 million.

Speaker Change: In the quarter, we repurchased approximately 1.9 million shares for $165 million.

Andrew Schleimer: Since the formation of TKO in September of 2023, we've repurchased a total of approximately 3.2 million shares for $265 million. Now, turning to our outlook. As we've discussed in the past, we manage the business with a focus on full-year performance. Therefore, we believe our results are best evaluated on a full-year basis given the quarterly fluctuations that are inherent in our operations related to the timing of our events and content deliveries, among other items.

Speaker Change: Since the formation of TKO in September of 2023, we've repurchased a total of approximately 3.2 million shares for $265 million.

Andrew Schweimer: Now it's turning to our outlook. As we've discussed in the past, we managed the business with a focus on full-year performance. Therefore, we believe our results are best evaluated on a full-year basis given the quarterly fluctuations that are inherent in our operations related to the timing of our events and content deliveries, among other items. As noted in our press release, we are raising our full-year 2024 guidance for revenue and adjusted EBITDA for the second quarter in a row. We are now targeting revenue of 2.67 to 2.745 billion and adjusted EBITDA of 1.22 to 1.24 billion.

Andrew Schweimer: Now it's turning to our outlook. As we've discussed in the past, we managed the business with a focus on full-year performance. Therefore, we believe our results are best evaluated on a full-year basis given the quarterly fluctuations that are inherent in our operations related to the timing of our events and content deliveries among other items. As noted in our press release, we are raising our full-year 2024 guidance for revenue and adjusted EBITDA for the second quarter in a row.

Speaker Change: Now it's turning to our outlook.

Speaker Change: As we've discussed in the past, we manage the business with a focus on full-year performance. Therefore, we believe our results are best evaluated on a full-year basis given the quarterly fluctuations that are inherent in our operations related to the timing of our events and content deliveries, among other items.

Andrew Schleimer: As noted in our press release, we are raising our full year 2024 guidance for revenue and adjusted EBITDA for the second quarter in a row. We are now targeting revenue of $2.67 to $2.745 billion and adjusted EBITDA of $1.22 to $1.24 billion. The increase is related primarily to strong operating performance on a year-to-date basis in the following areas, continued strength in live events at both of our businesses, and increased expectations for sponsorship revenues at USC. Conversely, these increases are partially offset by incremental production costs, most notably related to UFC 306 at the sphere.

Speaker Change: As noted in our press release, we are raising our full year 2024 guidance for revenue and adjusted EBITDA for the second quarter in a row. We are now targeting revenue of $2.67 to $2.745 billion and adjusted EBITDA of $1.22 to $1.24 billion.

Andrew Schweimer: We are now targeting revenue of 2.67 to 2.745 billion and adjusted EBITDA of 1.22 to 1.24 billion. The increase is related primarily to strong operating performance on a year-to-date basis in the following areas continued trends in live events at both of our businesses and increased expectations for sponsorship revenues at USC. Conversely, these increases are partially offset by incremental production costs, most notably related to UFC 306 at the sphere. On our last call, we noted that we expected the second quarter to be the highest revenue and adjusted EBITDAQ quarter of the year in terms of absolute dollars, mainly due to the strength in our live events business and the favorable timing of events at both UFC and WWE, and it was.

Andrew Schweimer: The increase is related primarily to strong operating performance on a year-to-date basis in the following areas: continued trends in live events at both of our businesses and increased expectations for sponsorship revenues at USC. Conversely, these increases are partially offset by incremental production costs, most notably related to UFC 306 at the Sphere. On our last call, we noted that we expected the second quarter to be the highest revenue and adjusted EBITDAQ quarter of the year in terms of absolute dollars, mainly due to the strength in our live events business and the favorable timing of events at both UFC and WWE, and it was.

Andrew Schleimer: The increase is related primarily to strong operating performance on a year-to-date basis in the following areas, continued strength in live events at both of our businesses, and increased expectations for sponsorship revenues at USC. Conversely, these increases are partially offset by incremental production costs, most notably related to UFC 306 at the sphere. On our last call, we noted that we expected the second quarter to be the highest revenue and adjusted EBITDA quarter of the year in terms of absolute dollars, mainly due to the strength in our live events business and the favorable timing of events at both UFC and WWE. And it was.

Speaker Change: The increase is related primarily to strong operating performance on a year-to-date basis in the following areas.

Speaker Change: continued strength in live events at both of our businesses, and increased expectations for sponsorship revenues at UFC. Conversely, these increases are partially offset by incremental production costs, most notably related to UFC 306 at the Sphere.

Andrew Schleimer: On our last call, we noted that we expected the second quarter to be the highest revenue and adjusted EBITDA quarter of the year in terms of absolute dollars, mainly due to the strength in our live events business and the favorable timing of events at both UFC and WWE. And it was. As we look to the third quarter of 2024, we wanted to highlight a few notable items. At UFC, the current calendar includes 10 events compared to 13 events in the prior year period.

Speaker Change: On our last call, we noted that we expected the second quarter to be the highest revenue and adjusted EBITDA quarter of the year in terms of absolute dollars, mainly due to the strength in our live events business and the favorable timing of events at both UFC and WWE. And it was.

Andrew Schweimer: As we look through the third quarter of 2024, we wanted to highlight a few notable items. At UFC, the current calendar includes 10 events compared to 13 events in the prior year period. In addition, we expect three number of events compared to four in the prior period, as well as six events would live audiences. Compared to nine in the third quarter of 2023. The timing of the calendar is expected to meaningfully impact our largest revenue stream, media rights and content revenue. To a lesser degree, we expect the timing of the calendar to impact live events revenue, as such should be substantially mitigated by strong underlying trends in pricing and attendance.

Andrew Schleimer: As we look to the third quarter of 2024, we wanted to highlight a few notable items. At UFC, the current calendar includes 10 events compared to 13 events in the prior year period. In addition, we expect three numbered events compared to four in the prior period, as well as six events with live audiences compared to nine in the third quarter of 2023. The timing of the calendar is expected to meaningfully impact our largest revenue stream, media rights and content revenue.

Speaker Change: As we look to the third quarter of 2024, we wanted to highlight a few notable items.

Speaker Change: At UFC, the current calendar includes 10 events compared to 13 events in the prior year period.

Andrew Schleimer: In addition, we expect three numbered events compared to four in the prior period, as well as six events with live audiences compared to nine in the third quarter of 2023. The timing of the calendar is expected to meaningfully impact our largest revenue stream, media rights and content revenue. To a lesser degree, we expect the timing of the calendar to impact live event revenue, as such it should be substantially mitigated by strong underlying trends in pricing and attendance. We're incredibly excited about holding UFC 306 at the Sphere in September and the opportunity to create a once-in-a-lifetime experience.

Speaker Change: In addition, we expect three numbered events compared to four in the prior period, as well as six events with live audiences compared to nine in the third quarter of 2023.

Speaker Change: The timing of the calendar is expected to meaningfully impact our largest revenue stream, media rights and content revenue. To a lesser degree, we expect the timing of the calendar to impact live events revenue as such should be substantially mitigated by strong underlying trends in pricing and attendance.

Andrew Schleimer: To a lesser degree, we expect the timing of the calendar to impact live event revenue, as such it should be substantially mitigated by strong underlying trends in pricing and attendance. We're incredibly excited about holding UFC 306 at the Sphere in September and the opportunity to create a once in a lifetime experience. As we've discussed, we expect to incur production costs in the quarter that are meaningfully higher than our historical norm for a numbered event and, as mentioned, higher than previously anticipated.

Andrew Schweimer: To a lesser degree, we expect the timing of the calendar to impact live events revenue as such should be substantially mitigated by strong underlying trends in pricing and attendance. We're incredibly excited about holding UFC 306 at the sphere in September and the opportunity to create a once in a lifetime experience. As we've discussed, we expect to incur production costs in the quarter that are meaningfully higher than our historical norm for a number of events and as mentioned, higher than previously anticipated.

Andrew Schweimer: We're incredibly excited about holding UFC 306 at the Sphere in September and the opportunity to create a once-in-a-lifetime experience. As we've discussed, we expect to incur production costs in the quarter that are meaningfully higher than our historical norm for a number of events, and as mentioned, higher than previously anticipated. At WWE, we expect healthy revenue growth and strong adjusted EBITDAQ driven by continued progress on our initiatives to take costs out of the business. Regarding three cash flow conversion, we are referring to our outlook at an excess of 40% of adjusted EBITDAQ for the full year.

Speaker Change: We're incredibly excited about holding UFC 306 at the Sphere in September and the opportunity to create a once-in-a-lifetime experience.

Andrew Schleimer: As we've discussed, we expect to incur production costs in the quarter that are meaningfully higher than our historical norm for a numbered event and, as mentioned, higher than previously anticipated. At WWE, we expect healthy revenue growth and strong adjusted EBITDA driven by continued progress on our initiatives to take costs out of the business. Regarding free cash flow conversion, we are reforming our outlook at an excess of 40% of adjusted EBITDA for the full year.

Speaker Change: As we've discussed, we expect to incur production costs in the quarter that are meaningfully higher than our historical norm for a numbered event, and as mentioned, higher than previously anticipated.

Andrew Schweimer: At WWE, we expect healthy revenue growth and strong adjusted EBITDAQ driven by continued progress on our initiatives to take costs out of the business. Regarding three cash flow conversion, we are referring our outlook at an excess of 40% of adjusted EBITDAQ for the full year.

Andrew Schleimer: At WWE, we expect healthy revenue growth and strong adjusted EBITDA driven by continued progress on our initiatives to take costs out of the business. Regarding free cash flow conversion, we are reaffirming our outlook at an excess of 40% of adjusted EBITDA for the full year.

WWE: At WWE, we expect healthy revenue growth and strong adjusted EBITDA driven by continued progress on our initiatives to take costs out of the business.

Speaker Change: Regarding free cash flow conversion, we are reaffirming our outlook at an excess of 40% of adjusted EBITDA for the full year.

Andrew Schweimer: In conclusion, we generated strong second 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.

Andrew Schleimer: In conclusion, we generated strong second-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.

Speaker Change: In conclusion, we generated strong second 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.

Seth Zaslow: With that, I'll turn it back to Set.

Seth Zaslow: With that, I'll turn it back to set.

Seth Zaslow: Thanks, Andrew. Operator, we're ready to open the call for questions. Of course, thank you. If you'd like to ask a question, please press 1.

Andrew Schleimer: Thanks, Andrew. Operator, we're ready to open the call for questions.

Unknown Executive: Thanks, Andrew, operator. We're ready to open the call for questions. Of course, thank you. If you'd like to ask a question, please press star followed by one on your telephone keypads. If you'd like to explore your question, please press star followed by two. When preparing to ask your question, please ensure you are unmuted locally.

Operator: Thanks Andrew, operator, we're ready to open the call for questions. Of course, thank you. If you'd like to ask a question, please press star followed by one on your telephone keypads. If you'd like to explore your question, please press star followed by two. When preparing to ask your question, please ensure you are unmuted locally.

Seth Zaslow: Thanks, Andrew. Operator, we're ready to open the call for questions.

Operator: Of course, thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. If you'd like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure that you are unmuted locally.

Brandon Ross: Our first question comes from Brandon Ross of Lightshed Partners. Brandon, your line is open. Please go ahead.

Operator: Our first question comes from Brandon Ross of Light Shared Partners. Brandon, your line is open. Please go ahead. Brandon, are you there? Why don't we go to the second of your questions?

Brandon Ross: Our first question comes from Brandon Ross of Lightshed Partners. Brandon, your line is open. Please go ahead. Brandon, are you there? Why don't we go to the second to do a question? Wow, Charlie, why don't we go to the next question? He's there, he's there. Brandon, are you there? Yeah, you guys can't hear me at all. Yeah, we got you now. Hey, Brandon, it's Mark and Andrew. I'll worry you. Okay, there.

Speaker Change: Our first question comes from Brandon Ross of Light Shared Partners. Brandon, your line is open, please go ahead.

Unknown Executive: Brandon, are you there? Why don't we go to the second to do a question? Wow, Charlie, why don't we go to the next question? He's there; he's there.

Seth Zaslow: no

Speaker Change: Brandon, are you there?

Speaker Change: Why don't we go to the second question?

Operator: Wow, Charlie. Why don't we go to the next question?

Speaker Change: Wow. Charlie, why don't we go to the next question? He's there. He's there.

Brandon Ross: Brandon, are you there? Yeah, you guys can't hear me at all. Yeah, we got you now.

unknown: Yeah, you.

Operator: Yeah, you guys can't hear me at all. Yeah, we got you now. Hey, Brandon, it's Mark and Andrew. How are you?

Speaker Change: Brandon, are you there?

unknown: Yeah, we got you now. Hey, Brandon, it's

Mark Shapiro: Hey, Brandon, it's Mark and Andrew. I'll worry you. Okay, there. Sorry about that. Brandon, when you get, when you're the first guy to go and hit, and you got to, you got to be there, man. You can't, we can't be calling you three times. We got to put you at the back of the line, maybe. I was there. I'll take the blame on the technical difficulties. How about that? Thank you.

Speaker Change: Yeah, you guys can't hear me at all. Yeah, we got you now. Hey, Brandon, it's Mark and Andrew. How are you? Okay. Sorry about that. Brandon, when you're the first guy to go and hit, you gotta be there, man. We can't be calling you three times. We gotta put you at the back of the line, maybe.

Unknown Executive: Okay, there. Sorry about that. Brandon, when you get when you're the first guy to go and hit, and you have to you have to be there, man. You can't we can't be calling you three times. We got to put you at the back of the line, maybe.

unknown: Brandon, when you get, when you're the first guy to go and hit, and you gotta, you gotta be there, man. You can't, we can't be calling you three times. We gotta put you at the back of the line.

Brandon Ross: Sorry about that. Brandon, when you get when you're the first guy to go and hit and you got to you got to be there, man, you can't we can't be calling you three times. We got to put you at the back of the line, maybe. I was there. I'll take the blame on the technical difficulties. How about that? Thank you.

Brandon Ross: I was there. First, I'll take the blame for the technical difficulties. How about that? Thank you. Thank you. Good morning. So, you too.

Brandon: I was there. First, I'll take the blame on the technical difficulties. How about that? All right. Thank you. Thank you. Good morning. So a couple of things. One is in the prepared, Ari really highlighted

Brandon Ross: Good morning. So you two, a couple of things. One is in the prepared, already really highlighted how much bigger of a profit center live event has become, especially at WWE. And you've attacked it in a lot of different ways, including venue size pricing. Just wanted to get a sense of where you are in that optimization journey at this point. How do you go about optimizing ticket prices? How much room is there on the PLE? Are we going to see, you know, this move to stadiums and multi nights? Any color you could you could give us to kind of model out into the future would be helpful.

Brandon Ross: A couple of things. One is in the prepared, Ari really highlighted how much bigger of a profit center a live event has become, especially at WWE. And you've attacked it in a lot of different ways, including venue size and pricing. Just wanted to get a sense of where you are in that optimization journey at this point. How do you go about optimizing ticket prices? How much room is there on the PLEs? Are we gonna see, you know, this move to stadiums and multi-night? Any color you could give us to kind of model out into the future would be helpful.

Mark Shapiro: Good morning. So you two, a couple of things. One is in the prepared, already really highlighted how much bigger of a profit center live event has become, especially at WWE. And you've attacked it in a lot of different ways, including venue size pricing, just wanted to get a sense of where you are in that optimization journey at this point. How do you go about optimizing ticket prices? How much room is there on the PLE?

unknown: Hello, YouTube. A couple of things. One is in the prepared, Ari really highlighted it.

Speaker Change: How much bigger of a profit center live events

Speaker Change: has become, especially at WWE, and you've attacked it in a lot of different ways, including venue size, pricing. Just wanted to get a sense of where you are in that optimization journey at this point.

Speaker Change: How do you go about optimizing ticket prices? How much room is there on the PLEs? Are we going to see this move to stadiums and multi-night? Any color you could give us to model out into the future would be helpful.

Mark Shapiro: Are we going to see, you know, this move to stadiums and multi nights, any color you could you could give us to kind of model out into the future would be helpful. Yeah, look, I you're a little all over the map there. So I want to make sure, you know, maybe there's a couple of questions you want to ask us. But I would just say that, you know, from a revenue synergies perspective, you know, it's just right now knock on wood, clear skies ahead.

Mark Shapiro: Yeah, look, I you're a little all over the map there. So I want to make sure, you know, maybe there are a couple of questions you want to ask us. But I would just say that, you know, from a revenue synergies perspective, you know, it's just right now, knock on wood, clear skies ahead. I mean, we're seeing no detraction whatsoever from the consumer, from the sports fan, whether it's the live events and our ticket yields. As you know, we put out a press release that every time we do a site fee deal. We've done a number of them; I'm not going to start listing them off, but a number of them now, and it's clearly a huge growth sector for us. You know, our sponsorship, putting our two teams together, clear skies there as well.

Mark Shapiro: Yeah, look, you're a little all over the map here. So I want to make sure, you know, maybe there's a couple of questions you want to ask us. But I would just say that, you know, from a revenue synergies perspective, it's just, knock on wood, clear skies ahead. I mean, we're seeing no detraction whatsoever from the consumer from the sports fan, whether it's the live events or our ticket yields. As you know, we put out a press release every time we do a site fee deal. We've done a number of them, but I'm not going to start listing them off.

Speaker Change: Yeah, look, you're a little all over the map there, so I want to make sure, you know, maybe there's a couple of questions you want to ask us, but I would just say that.

Speaker Change: you know, from a revenue-centered use perspective, you know, it's just...

Mark Shapiro: I mean, we're seeing no detraction whatsoever from the consumer from the sports fan, whether it's the live events and our ticket yields. As you know, we put a press release that every time we do a site fee deal. We've done a number of them, I'm not going to start listing them off, but a number of them now and it's clearly a huge growth sector for us, you know, our sponsorship, putting our two teams together, clear skies there as well.

Speaker Change: Right now, knock on wood, clear skies ahead. I mean, we're seeing no detraction whatsoever from the consumer, from the sports fan.

Speaker Change: Whether it's the live events and our ticket yields, as you know, we put a press release out every time we do a site feed deal. We've done a number of them. I'm not going to start listing them off, but a number of them now, and it's clearly a huge growth sector for us.

Mark Shapiro: But a number of them now, and it's clearly a huge growth sector for us. You know, our sponsorship, putting our two teams together, clear skies there as well. I mean, we're already at our budgeted number for the UFC this year, and there's a lot of headroom to go on the WWE. And on the media rights side internationally, you know, IMG has just been a powerhouse for us, leveraging their offices, their people, their soldiers around the world with other properties to see that we're commanding the kind of rights fees we should be getting in these countries now that UFC and WWE are growing the way they're growing. So look, these are meaningful areas for us, and I would just tell you, don't underestimate the Netflix play here.

Speaker Change: You know, our sponsorship, putting our two teams together.

Mark Shapiro: I mean, we're already at our budgeted number for the UFC this year, and there's a lot of headroom to go on the WWE and on the media right side. Internationally, you know, IMG has just been a powerhouse for us, you know, leveraging their offices, their people, their soldiers around the world with other properties to see that we're commanding the kind of rights fees we should be getting in these countries now that you have seen WWE are growing, you know, the way they're growing. So look, these are meaningful areas for us, and I would just tell you, don't underestimate the Netflix play here, okay, in the sense that the Netflix deal for WWE is all about discovery, right?

Mark Shapiro: I mean, we're already at our budgeted number for the UFC this year and there's a lot of headroom to go on the WWE and on the media right side, internationally, you know, IMG has just been a powerhouse for us, you know, leveraging their offices, their people, their soldiers around the world with other properties to see that we're commanding the kind of rights fees we should be getting in these countries now that you have seen WWE are growing, you know, the way they're growing. So look, these are meaningful areas for us and I would just tell you, don't underestimate the Netflix play here, okay, in the sense that the Netflix deal for WWE is all about discovery, right?

Speaker Change: Clear skies there as well.

Speaker Change: I mean, we're already at our budgeted number for the UFC this year, and there's a lot of headroom to go on the WWE.

Speaker Change: And on the media rights side, internationally, you know, IMG has just been a powerhouse for us, you know, leveraging their offices, their people, their soldiers around the world with other properties.

Speaker Change: to see that we're commanding the kind of rights fees we should be getting in these countries now that UFC and WWE are growing, you know, the way they're growing.

Mark Shapiro: New audiences, new viewership, casual viewers, you're going to go to that front page and WWE is going to be right there being promoted, being marketed. That's a whole new audience for us, the folks that are already fans of WWE, they will follow, it will be appointment, but Netflix will serve to be a real discovery platform with us and specifically that will help us brand in when it comes to site fees and sponsorship.

Mark Shapiro: Okay, in the sense that the Netflix deal for WWE is all about discovery, right? New audiences, new viewership, casual viewers. You're going to go to that front page, and WWE is going to be right there being promoted, being marketed. That's a whole new audience for us. The folks that are already fans of WWE, they will follow; it will be an appointment. But Netflix will serve to be a real discovery platform for us. And specifically, that will help us, Brandon, when it comes to site fees and sponsors.

Speaker Change: so these are meaningful areas for us and i would just tell you don't underestimate

Speaker Change: The Netflix play here, okay, in the sense that.

unknown: The Netflix deal for WWE is all about discovery, right? New audiences, new viewership, and casual viewers. You're going to go to that front page, and WWE is going to be right there being promoted, being marketed. That's a whole new audience for us. The folks that are already fans of WWE, they will follow; it will be an appointment. But Netflix will serve to be a real discovery platform for us. And specifically, that will help us, Brandon, when it comes to site fees and sponsors.

Speaker Change: The Netflix deal for WWE is all about discovery, right? New audiences.

Mark Shapiro: New audiences, new viewership, casual viewers; you're going to go to that front page and WWE is going to be right there being promoted, being marketed. That's a whole new audience for us; the folks that are already fans of WWE will follow. It will be appointment, but Netflix will serve to be a real discovery platform with us and specifically that will help us brand in when it comes to site fees and sponsorship.

Speaker Change: New viewership.

Speaker Change: casual viewers. You're going to go to that front page and WWE is going to be right there being promoted, being marketed. That's a whole new audience for us. The folks that are already fans of WWE, they will follow. It will be appointment. But Netflix will serve to be a real discovery platform with us.

Speaker Change: And specifically, that will help us, Brandon, when it comes to site fees and sponsorship.

Brandon Ross: Got it, and then the NBA deal finally wrapping up if it actually is wrapping up. I guess UFC is really moving into focus and was just trying to think about the intrinsic value of the paper view asset that you have. In the past, you've been extremely helpful with viewership growth for the PLE's on WWE. I was wondering if you could just talk to us about how. UFC viewership of the paper views and pricing has evolved since the last deal and especially what you're seeing in recent trend. Look, ESPN and Disney were very aggressive, if you will, on pricing the pay-per-view.

Mark Shapiro: Got it, and then the NBA deal finally wrapping up if it actually is wrapping up, I guess UFC is really moving into focus and was just trying to think about the intrinsic value of the paper view asset that you have in the past, you've been extremely helpful with viewership growth for the PLE's on WWE. I was wondering if you could just talk to us about how. UFC viewership of the paper views and pricing has evolved since the last deal and especially what you're seeing in recent trend.

unknown: Got it. And then the NBA deal is finally wrapping up, if it actually is wrapping up. UFC viewership of pay-per-views and pricing has evolved since the last deal and especially what you're seeing in recent trends.

Mark Shapiro: got it. And then the NBA deal is finally wrapping up, if it actually is wrapping up, I guess UFC is really moving into focus, and I was just trying to think about the intrinsic value of the pay-per-view asset that you have. In the past, you've been extremely helpful with viewership growth for the PLEs on WWE. I was wondering if you could just talk to us about how UFC viewership of the pay-per-views and pricing has evolved since the last deal and especially what you're seeing in recent trends. Look, ESPN and Disney were very excited about it.

Brandon Ross: Got it. And then the NBA deal finally wrapping up, if it actually is wrapping up.

Speaker Change: I guess UFC is really moving into focus.

Speaker Change: and was just trying to think about the intrinsic value of the pay-per-view asset that you have. In the past, you've been extremely helpful with viewership growth for the PLEs on WWE. I was wondering if you could just talk to us about how...

Speaker Change: UFC viewership of the pay-per-views and pricing has evolved since the last deal and especially what you're seeing in recent trends.

Mark Shapiro: Look, ESPN and Disney were very aggressive, if you will, on pricing pay-per-view. I mean, they have full control over that. We have input, but they have control given what they're paying us for those rights.

Mark Shapiro: Look, ESPN and Disney were very aggressive, if you will, on pricing the paper view. I mean, and they have full control over that. I mean, we have inputs, but they have control given what they're, they're paying us for those rights. So over the period of our partnership, as you asked, they probably went a little quicker and a little higher than we would have liked and we voiced that to them, especially in this kind of era of piracy, where we're seeing our piracy numbers really jacked up and we think that's driven by them pricing it too high.

Speaker Change: Look, ESPN and Disney were very aggressive.

Mark Shapiro: I mean, and they have full control over that. I mean, we have inputs, but they have control given what they're paying us for those rights. So, over the period of our partnership, as you asked, they probably went a little quicker and a little higher than we would have liked, and we voiced that to them, especially in this kind of era of piracy, where we're seeing our piracy numbers really jacked up, and we think that's driven by them pricing it too high. So they were very receptive to that feedback. We had a meeting in Las Vegas a few months ago with Jimmy Petaro and Dana, and they took the price down, if you will, in terms of offering a new market promotion, where if you buy by a certain date, well in advance of the numbered fights, you were going to get a discount, and then the price, of course, increases once you pass that date.

Speaker Change: if you will, on pricing the pay-per-view. I mean, and they have full control over that. I mean, we have input, but they have control given what they're, they're paying us for those rights.

Mark Shapiro: So over the period of our partnership, as you asked, they probably went a little quicker and a little higher than we would have liked. And we voice that to them, especially in this kind of era of piracy, where we're seeing our piracy numbers really jacked up. And we think that's driven by them pricing it too high. And they were very receptive to that feedback. We had a meeting in Las Vegas a few months ago with Jimmy Pataro and Dana, and they took their price down, if you will, in terms of offering a new marketing promotion where if you buy by a certain date, well in advance of the numbered fights, you were going to get a discount.

Speaker Change: So.

Speaker Change: Over the period of our partnership, as you asked,

Speaker Change: They probably went a little quicker and a little higher than we would have liked.

Speaker Change: And we voice that to them, especially in this kind of era of piracy, where we're seeing our piracy numbers.

Speaker Change: really jacked up and we think that's driven by them pricing it too high. So they were very receptive to that feedback. We had a meeting in Las Vegas a few months ago with Jimmy Pataro and Dana.

Mark Shapiro: So they were very receptive to that feedback. We had a meeting in Las Vegas a few months ago with Jimmy Petaro and Dana and they took the price down, if you will, in terms of offering a new market promotion, where if you buy by a certain date, well, in advance of the of the numbered fights, you were going to get a discount and then the price, of course, increases once you pass that date.

Speaker Change: And they took their price down, if you will, in terms of offering a new marketing promotion where if you buy by a certain date, well in advance of the numbered fights, you were going to get a discount and then the price.

Mark Shapiro: And then the price, of course, increases once you pass that date. And they're seeing good success with that. So like audiences, at the live events where we're selling out and breaking records, you see it all in the press release. And like the yield that we're commanding, which in many cases, specifically with WWE, has been higher than we even planned for, we're also sustaining our buys when it comes to pay-per-view, so we feel, you know, really good about that.

Mark Shapiro: And they're seeing good success with that. So like audiences in the live events where we're selling out and breaking records; you see it all in the press release. And like the yield that we're commanding, which is, in many cases, specifically with WWE, been higher than we even planned. We're also sustaining our buys when it comes to paper views, so we feel, you know, really good about that.

Mark Shapiro: And they're seeing good success with that. So like audiences in the live events where we're selling out and breaking records, you see it all in the press release. And like the yield that we're commanding, which is in many cases, specifically with WWE, been higher than we even planned. We're also sustaining our buys when it comes to paper views, so we feel, you know, really good about that.

Speaker Change: of course increasesis once you passast that date and they're seeing good success with that so like audience ces

Speaker Change: in the live events where we're selling out and breaking records, you see it all in the press release. And like the yield that we're commanding, which is

Speaker Change: In many cases, specifically with WWE, been higher than we even planned for. We're also sustaining our buys when it comes to pay-per-view, so we feel really good about that.

Brandon Ross: Excellent, thank you.

Mark Shapiro: Excellent, thank you. Thank you.

Ben Swinburne: Thank you. Our next question comes from Ben Swinburn of Morgan Stanley. Ben, Yolana's open. Please go ahead. Good morning. Can you hear me? Yes, we can. Hello. Okay, so make sure I didn't want to have Brandon's problems over here. Good morning, guys. Good morning.

Speaker Change: excellent thank you

Ben Swinburne: Our next question comes from Ben Swinburn of Morgan Stanley, Ben Yolana's open. Please go ahead. Good morning. Can you hear me? Yes, we can. Hello. Okay, so make sure I didn't want to have Brandon's problems over here. Good morning, guys. Good morning. Two questions on WWE, you know, another huge year of your growth in live events, revenues, and, and yet expenses were down. I think, and you said production costs were down.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Ben Swinburne of Morgan Stanley . Ben, your line is open, please go ahead.

Unknown Caller: Good morning, can you hear me? Yes, we can. Hello. Okay, to make sure I didn't want to have Brandon's problems over here. Good morning, guys. Good morning. Two questions.

unknown: Yes, we can. Hello. Okay, to make sure I didn't want to have Brandon's problems over here. Good morning, guys.

Ben Swinburne: Good morning. Can you hear me?

Ben Swinburne: Yes, we can. Hello. Okay. I just want to make sure I didn't want to have Brandon's problems over here.

Ben Swinburne: Two questions on WWE: you know, another huge year of your growth in live events, revenues, and, and yet expenses were down. I think, and you said production costs were down. I just, maybe you could unpack what's happening there with this, you know, mid 50s margin at WWE. Because obviously, that's really impressive. And then I guess I would have thought the free cash flow conversion guidance might have come up just on the straw on the guidance raise, but also I thought I figured you'd take the settlement out of the free cash flow. Maybe it's just too uncertain at this point.

Ben Swinburne: Good morning guys. Good morning. I wanted to ask two questions. On WWE.

Ben Swinburne: You know another huge year-over-year growth in live events revenues and And yet expenses were down. I think Andrew you said production costs were down. I just maybe you could unpack

Ben Swinburne: I just, maybe you could unpack what's happening there with this, you know, mid 50s margin at WWE. Because obviously that's really impressive. And then I guess I would have thought the free cash flow conversion guidance might have come up just on the straw on the guidance raise, but also I thought I figured you'd take the settlement out of the free cash flow. Maybe it's just too uncertain at this point. So I wonder maybe you could just comment on free cash flow as well. Thanks so much.

Speaker Change: What's happening there with this, you know, mid-fifties margin at WWE, because obviously that's really impressive. And then I guess I would have thought the free cash flow...

Speaker Change: Conversion guidance might have come up just on the guidance raised, but also I figured you'd take the settlement out of the free cash flow, but maybe it's just too uncertain at this point. So I'm wondering maybe you could just comment on free cash flow as well. Thanks so much.

Ben Swinburne: So I wonder maybe you could just comment on free cash flow as well. Thanks so much.

Andrew Schweimer: Yes, take the second one first, Ben. As you know, we recorded a charge in the first quarter in connection with the settlement at the same time. We, we adjusted our free cash flow conversion to include the $200 million of payments that would otherwise have been made this year should we have already received preliminary approval and then final approval, which was anticipated by the end of the year. We have not revised or adjusted our expense, flowing through any of our financial statements for the cash outflow for purposes of free cash flow conversion. That being said, if payments were to be delayed in the event that this ends up in the settlement, as I've articulated, we are in discussions with Pointless Council.

unknown: Yes, I'll take the second one first, Ben. As you know, we recorded a charge in the first quarter in connection with the settlement. At the same time, we readjusted or adjusted our free cash flow conversion to include the $200 million of payments that would otherwise have been made this year, should we have already received preliminary approval and then final approval, which was anticipated by the end of the year. We have not revised or adjusted our expenses going through any of our financial statements for the cash outflow for purposes of free cash flow conversion.

Unknown Caller: Yes, I'll take the second one first, Ben. As you know, we recorded a charge in the first quarter in connection with the settlement. At the same time, we readjusted or adjusted our free cash flow conversion to include the $200 million of payments that would otherwise have been made this year, should we have already received preliminary approval and then final approval, which was anticipated by the end of the year. We have not revised or adjusted our expenses flowing through any of our financial statements for the cash outflow for purposes of free cash flow conversion.

Andrew Schweimer: Yes, take the second one first, Ben. As you know, we recorded a charge in the first quarter in connection with the settlement at the same time. We, we adjusted or adjusted our free cash flow conversion to include the $200 million of payments that would otherwise have been made this year should we have already received preliminary approval and then final approval, which was anticipated by the end of the year. We have not revised or adjusted our expense, flowing through any of our financial statements for the cash outflow for purposes of free cash flow conversion.

Speaker Change: yes yes to take the second one first bend as you know we recorded a charge in the first quarter in connection with the settlement

Speaker Change: At the same time, we readjusted or adjusted our free cash flow conversion to include

Speaker Change: The $200 million.

Speaker Change: of payments that would otherwise have been made this year should we have already received preliminary approval and then final approval, which was anticipated by the end of the year. We have not revised or adjusted our expense flowing through any of our financial statements or the cash outflow for purposes of

Andrew Schleimer: That being said, if payments were to be delayed in the event that this ends up in a settlement, as I've articulated, we are in discussions with plaintiff's counsel and have separated into two cases for purposes of those discussions, then free cash flow conversion would go up. And obviously, we would have to take a look potentially at the charge that is flowing through our financial statements. But we don't have any updated information that would cause us at this time to modify our expectations for the balance of the year. But we will, of course, keep you guys posted as things develop, and any material information will come to pass.

unknown: That being said, if payments were to be delayed in the event that this ends up in a settlement, as I've articulated, we are in discussions with plaintiff's counsel and have separated into two cases for purposes of those discussions, then free cash flow conversion would go up. And obviously, we would have to take a look potentially at the charge that is flowing through our financial statements. But we don't have any updated information that would cause us at this time to modify our expectations for the balance of the year. But we will, of course, keep you guys posted as things develop, and any material information will come to pass. I'm going to WWE, and I also want to hit on something I think Brandon asked.

Andrew Schweimer: That being said, if payments were to be delayed in the event that this ends up in the settlement, as I've articulated, we are in discussions with Pointless Council. And if separate these two cases for purposes opposed discussions, then free cash flow conversion would go up and obviously we would have to take a look potentially at the charge that is flowing through our financial statements, but we don't have any updated information that would cause us at this time to modify our expectations for the balance of the year. But we will, of course, keep you guys posted as things develop and any material information will come to pass going to WWE.

Speaker Change: Free Cash Flow Conversion. That being said, if...

Speaker Change: Payments were to be delayed in the event that this ends up in a settlement. As I've articulated, we are in discussions with Plaintiffs' Counsel and have separated into two cases for purposes of those discussions.

Andrew Schweimer: And if separate these two cases for purposes opposed discussions, then free cash flow conversion would go up and obviously we would have to take a look potentially at the charge that is flowing through our financial statements, but we don't have any updated information that would cause us at this time to modify our expectations for the balance of the year. But we will, of course, keep you guys posted as things develop, and any material information will come to pass going to WWE.

Speaker Change: then free cash fil conversion would go up and obviously we would have to

Speaker Change: take a look potentially at the charge that is flowing through our financial statements but we don't have any update an improvement that would causeus at this time to modify our expectations for the balance of the year but we will of course if you p guys postedit as things develop and any material information will come to path

Andrew Schleimer: Going to WWE, and I also want to hit on something Brandon asked, this quarter was a big quarter for WWE live events, anchored by WrestleMania in early April. Then other PLAs, we had one additional PLA this quarter versus the prior year quarter at WWE, and these tend to carry higher revenue and higher gross margin contribution. On the production side, we have been successful at taking costs out of the business on production, and this has simply been blocking and tackling.

Andrew Schweimer: And I also want to hit something, hit on something I think Brandon F. You know, this quarter was a big quarter for WWE live event anchored by WrestleMania in early April, then other PLAs. We had one additional PLA this quarter versus the prior year quarter at WWE. We tend to carry a higher margin and higher revenue and higher margin or gross margin contribution. On the production side, we have been successful in taking cost out of the business on production. And this has simply been blocking and tackling. This is looking deep into each PNL, seeing what's superfluous and otherwise.

Andrew Schweimer: And I also want to hit something hit on something I think Brandon F. You know, this quarter was a big quarter for WWE live event anchored by WrestleMania in early April, then other PLAs we had one additional PLA this quarter versus the prior year quarter at WWE. We tend to carry a higher margin and higher revenue and higher margin or gross margin contribution. On the production side, we have been successful and taking cost out of the business on production.

unknown: This quarter was a big quarter for WWE live events, anchored by WrestleMania in early April. Then other PLAs; we had one additional PLA this quarter versus the prior year quarter at WWE. And these tend to carry a higher margin and higher revenue and higher gross margin or gross margin contribution. On the production side, we have been successful at taking costs out of the business during production. And This has simply been blocking and tackling.

Speaker Change: Going to WWE and I also want to hit on something I think Brandon asked.

Speaker Change: You know, this quarter was a big quarter for WWE live event, anchored by WrestleMania in early April . Then other PLAs, we had one additional PLA this quarter versus the prior year quarter.

Speaker Change: at w tend to carry a higher margin and higher higher revenue and higher margin gross margin contribution

Speaker Change: on the production side.

Speaker Change: We have been successful at taking costs out of the business on production. And this has simply been blocking and tackling. This is looking deep into each P&L, seeing what's superfluous and otherwise. And one of the reasons why we were able to get comfortable raising our estimates

Andrew Schleimer: This is looking deep into each P&L, seeing what's superfluous and otherwise. And one of the reasons why we were able to get comfortable raising our estimates on synergies in excess of $100 million is largely due to live event production and the efficiencies that we've been able to find there. So I wish there was some magic other than getting our hands dirty and really digging deep into the P&Ls for each of these events.

unknown: This is looking deep into each P&L, seeing what's superfluous and otherwise. And one of the reasons why we were able to get comfortable raising our estimates on synergies in excess of $100 million is largely due to live event production and the efficiencies that we've been able to find there. So I wish there was some magic other than getting our hands dirty and really digging deep into the P&Ls for each of these events.

Andrew Schweimer: And this has simply been blocking and tackling. This is looking deep into each PNL, seeing what's superfluous and otherwise. And one of the reasons why we were able to get comfortable raising our estimates on synergies in excess of 100 million is largely through live event production and the efficiencies that we've been able to find there. So, I wish there was some magic other than getting our hands dirty and really digging deep into the PNL for each of these events, but we've been able to find efficiencies.

Andrew Schweimer: And one of the reasons why we were able to get comfortable raising our estimates on synergies in excess of 100 million is largely through live event production and the efficiencies that we've been able to find there. So, I wish there was some magic other than getting our hands dirty and really digging deep into the PNL for each of these events, but we've been able to find efficiencies. In some cases, we've been able to reduce production elements and increase our sellable inventory in venue by just making the show smaller and not changing the ultimate product for television or for our audience in arena.

Speaker Change: on

Speaker Change: Synergies in excess of $100 million is largely through live event production and the efficiencies that we've been able to find there. So, you know, I wish there was some magic other than getting our hands dirty and really digging deep into the P&Ls for each of these events, but we've been able to find efficiencies. In some cases, we've been able to reduce production elements.

Andrew Schleimer: But we've been able to find efficiencies. In some cases, we've been able to reduce production elements and increase our saleable inventory in venue by just making the show smaller and not changing the ultimate product for television or for our audience in the arena. So there's efficiency there as well.

unknown: But we've been able to find efficiencies. In some cases, we've been able to reduce production elements and increase our saleable inventory in venue by just making the show smaller and not changing the ultimate product for television or for our audience in the arena. So there's efficiency there as well.

Andrew Schweimer: In some cases, we've been able to reduce production elements and increase our sellable inventory in venue by just making the show smaller and not changing the ultimate product for television or for our audience in arena. I would also say Ben that the cost energies are going extremely well and really the credits of the teams, I mean they're working hand in glove, Lawrence Epstein and Nikon of course are heading all this up but Pete Dropick on the on the ticketing side in the arena, site fee side, I mean just driving huge opportunities and the opportunity for us to still going through cities to get a combo weekend if you will is in our near future for several cities where we could do a[inaudible] for.

Speaker Change: increase our saleable inventory in venue by just making the show smaller and not changing the ultimate product for television or for our audience in arena. So there's efficiency there as well.

Mark Shapiro: I'd also say, Ben, that while the cost synergies are going extremely well, and it's really a credit to the teams, I mean, they're working hand-in-glove. Lawrence Epstein and Nick Kahn, of course, are heading all this up, but Pete Drobik on the ticketing side, in the arena, site fee side, I mean, just driving huge opportunities, and the opportunity for us to still go into cities to get a combo weekend, if you will, is in our near future for several cities where we could do a smackdown, if you will, and then, of course, also have either So that's what's out there. And on the production side, Lee Fitting and Craig Borsari are working hand-in-glove to get our costs down everywhere from trucks to cloud storage and usage. I am so thrilled about that.

Andrew Schweimer: I would also say, Ben, that the cost energies are going extremely well, and really the teams, the credits of the teams. I mean, they're working hand in glove; Lawrence, Epstein, and Nikon, of course, are heading all this up. But Pete Dropick on the ticketing side and the arena, site fee side, I mean, just driving huge opportunities and the opportunity for us to still go into cities to get a combo weekend, if you will, is in our near future for several cities where we could do a smackdown, if you will, and then, of course, also have either one of our Friday fights on the UFC or, of course, a numbered fight.

Speaker Change: you know

Speaker Change: i would also say been that while the cost synergies are going extremely well and really the tes credit teams i mean they're working and glove larenn have seen a knicon of course arere heading all this up but peak drove on the on the ticketing side in the arena site fee side i mean just driving huge opportunities in the opportunity for us to

Speaker Change: still going to cities to get a combo weekend, if you will, is in our near future for several cities, where we could do a smackdown, if you will, and then, of course, also have either one of our Friday fights on

Andrew Schweimer: So that's out there. And on the production side, you know, Lee Fitting and Craig Borsari are working hand in glove to get our cost down everywhere from trucks to cloud storage and usage. So thrilled about that. But on the revenue synergy side, the WWE is really the one that's going to benefit in the near-term future. As I said earlier, UFC is already at their budgeted sponsorship number for the year. But we see attractive long-term growth opportunity specifically for the WWE brand because it's been under-monetized to date. And we're focused on closing that gap between the two properties in the next couple of years here.

Speaker Change: you have c or of course a numberbered fight so that that dout there and on the production side leave fitting and craigor sorry are working hand and love to get our cost down everywhere from trucks to cloud storage usage so thrilled about that but on the revenuees synergy side

Mark Shapiro: But on the revenue synergy side, WWE is really the one that's going to benefit in the near future. As I said earlier, UFC is already at its budgeted sponsorship number for the year. But we see an attractive long-term growth opportunity specifically for the WWE brand because it's been under-monetized to date. And we're focused on closing that gap between the two properties in the next couple of years.

Speaker Change: If the WWE is really the one that's going to benefit in the near term future, as I said earlier, UFC is already at their budgeted sponsorship number for the year, but we see attractive long term growth opportunity.

Speaker Change: specifically for the WWE brand because it's been under-monetized to date. We're focused on closing that gap between the two properties in the next couple of years here.

Ben Swinburne: Big sense.

unknown: Makes sense. Thanks, guys.

Unknown Caller: makes sense. Thanks, guys.

Unknown Executive: Thanks, guys. Thank you.

Speaker Change: Makes sense. Thanks, guys.

David Karnovsky: Our next question comes from David Kahnowski of JP Morgan. David, your line is open. Please go ahead. Thank you. I'm proud of the site fees. I'm interested in how you view the best way to optimize this over the long term. Is this kind of a pure volume game where you look to get paid on as many events as possible? Or is this what we're about, kind of increasing the value of events and highlighting that to those cities and venues is the way to kind of thrive competitive prices? Yeah, look, it's on the head there. David, it's a balance, right?

Operator: Our next question comes from David Karnovsky of J.P. Morgan. David, your line is open, please go ahead.

Speaker Change: Thank you.

Speaker Change: now next question comes from david can op see your jp morgan david juana is open please go ahead

David Karnovsky: Thank you. Mark, on the site fees, I'm interested in how you view the best way to optimize this over the long term. Is this a pure volume game where you look to get paid for as many events as possible, or is this more about increasing the value of events and highlighting that to host cities and venues as a way to drive competitive pricing?

David Karnovsky: Thank you. Mark, on the site fees, I'm interested how you view the best way to optimize this over the long term. Is this kind of a pure volume game where you look to get paid on as many events as possible, or is this more about kind of increasing the value of events and then highlighting that to host cities and venues as a way to kind of drive competitive pricing?

Mark Shapiro: Yeah, look, it's headed on the head there, David. It's a balance, right? I mean, it's both.

Mark: Yeah, look, it's headed on the head there, David. It's a balance, right? I mean, it's both.

Mark Shapiro: I mean, it's both. We are, you know, our is really focused on festivalizing our events. Further than we're doing it right now. With concerts and obviously we have the win and adding, you know, culinary kind of taste opportunity, which you see at events like the US Open in New York and just making our events certainly really attractive for the hardcore sports fan but also making it more of a cultural event. And I think the more we can do that, we can really expand the stay, if you will. The event becomes a one day, a two day, a three day.

Speaker Change: We are

Speaker Change: You know, ARI is really focused on festivalizing our events further than we're doing it right now with concerts and obviously we have the weigh-in and adding, you know, culinary kind of taste opportunity, which you see at events like the U.S. Open in New York and just making our events

Mark Shapiro: We are, you know, Ari is really focused on festivalizing our events further than we're doing it right now, with concerts, and obviously, we have the weigh in and adding, you know, a culinary kind of taste opportunity, which you see at events like the US Open in New York, and just making our events certainly really attractive for the hardcore sports fan, but also making it more of a cultural event. And I think the more we can do that, we can really expand the stay, if you will. The event becomes a one day, a two day, a three day event. I mean, it really moves from one to three days, which is something cities and municipalities have communicated to us they would like to see more of, and they could spend more from their tourism bureaus or whatever it might be if we could expand the number of days that we come to

Speaker Change: Certainly really attractive for the hardcore sports fan, but also making it more of a cultural event.

Speaker Change: And I think the more we can do that, we can really expand the stay, if you will. The event becomes a one-day, a two-day, a three-day. I mean, it really moves from one to three days, which is something cities...

Mark Shapiro: I mean, it really moves from one to three days, which is something cities and municipalities have communicated to us they would like to see more of, and they could spend more from their tourism bureaus or whatever it might be if we could expand the number of days that we come to town. So, you know, we're driving it hard in the sense of improving the quality of our overall event, both timeline, duration, and the content itself. But at the same time, driving a hard bargain and really pitting these cities up against each other. You know, look, we're going to Vegas for WrestleMania, but truthfully, we easily could have gone to Minneapolis, and in fact, for a while, they looked like the favorite until Vegas came in the end and trumped them.

Speaker Change: And municipalities have communicated to us that they would like to see more of, and they could spend more from their tourism bureaus or whatever it might be, if we could expand the number of days that we come to town.

Mark Shapiro: So, you know, we're driving it hard in the sense of improving the quality of our overall event, both the timeline, duration, and the content itself. But at the same time, driving a hard bargain and really pitting these cities up against each other. You know, look, we're going to Vegas for WrestleMania, but truthfully, we easily could have gone to Minneapolis. And, in fact, for a while, they looked like the favorites until Vegas came in at the end and trumped them.

Speaker Change: So, you know, we're driving it hard in the sense of improving the quality of our overall event, both timeline, duration, and the content itself.

Speaker Change: but at the same time driving a hard bargain and really pitting these cities up against each other look we're going to veue as for rasomlania but

unknown: Truthfully, we easily could have gone to Minneapolis. And, in fact, for a while, they looked like the favorites until Vegas came in at the end and trumped them. So it's just being really transparent with these cities and these local government officials, letting them know what they have to do using the power of our leverage, the power of our relationships, and the power of the demand for our content to get us the price and the numbers, and really the ticket we're looking for.

Speaker Change: Truthfully, we easily could have gone to Minneapolis, and in fact, for a while, they looked like the favorites.

Mark Shapiro: So, it's just being really transparent with these cities and these local government officials, letting them know what they have to do using the power of our leverage, the power of our relationships, and the power of the demand for our content to get us the price and the numbers and really the ticket we're looking. for.

Mark Shapiro: So it's just being really transparent with these cities and these local government officials, letting them know what they have to do using the power of our leverage, the power of our relationships, and the power of the demand for our content to get us the price and the numbers, and really the ticket we're looking for.

Speaker Change: and Phil Vegas came in at the end and trumped them. So, it's just being really transparent with these cities and these local government officials, letting them know what they have to do using the power of our leverage, the power of our relationships and the power of the demand for our content to get us the price and the numbers that we need.

Mark Shapiro: The only thing worth adding is that historically WWE was largely a domestic product, and as we continue to bring WWE events overseas, there is demand for this model from tourism boards, etc., so those fit quite nicely in our effort to grow this lineup.

Mark Shapiro: The only thing worth adding is, historically, WWE was largely a domestic product, and as we continue to bring WWE events overseas, there is demand for this model from tourism boards, et cetera, so those fit quite nicely in our effort to grow this line up. And then I'm a WWE sponsorship, which like we added, Wingstop is a sponsor for the PLE events, which is in addition to crime.

Mark Shapiro: The only thing worth adding is historically WWE was largely a domestic product, and as we continue to bring WWE events overseas, there is demand for this model from tourism boards, et cetera, so those fit quite nicely in our effort to grow this line up. And then I'm a WWE sponsorship, which like we added, wingstop is a sponsor for the PLE events, which is in addition to crime. Just wanted to see if you could dig into your strategy in terms of limiting those in the ring sponsors from out of the biggest events you have and how you see that building out over time.

Speaker Change: and really the ticket we're looking for

Speaker Change: The only thing worth adding is historically WWE was largely a domestic product and as we continue to bring WWE events overseas there is demand for this model from tourism boards etc so those fit quite nicely in our effort to grow this line item.

unknown: And then on the WWE sponsorship, I saw you added Wingstop as a sponsor for the POE events, which is in addition to Prime. Just wanted to see if you could dig into your strategy in terms of limiting those in-ring sponsors for now to the biggest events you have and how you see that building out over time. We don't. We don't see any limitations.

Mark Shapiro: And then on the WWE sponsorship, I saw you added Wingstop as a sponsor for the POE events, which is in addition to Prime. Just wanted to see if you could dig into your strategy in terms of limiting those in-ring sponsors for now to the biggest events you have and how you see that building out over time. We don't. We don't see any limitations.

Speaker Change: and then i'm a w that be ponsorship revaluated wing stop is a sponsor for the palite offense which is an addition of crime just wanted to see if into your strategy in terms of limiting those in responsors from out of the the biggest events you have and how do you see that building out over time

Mark Shapiro: Just wanted to see if you could dig into your strategy in terms of limiting those in the ring sponsors from out of the biggest events you have and how you see that building out over time. We don't, we don't see any limitations; frankly, it's all right. If you want to be in the ring, if you want center canvas, you know, you want to be in the corners, you want to be the clock. When it comes to the UFC, I mean, we are out there, Grant Norris and Lukas Cavallis are, of course, you know, running the combined global partnerships group.

Mark Shapiro: We don't. We don't see any limitations, frankly. It's all about price.

Mark Shapiro: We don't we don't see any limitations, frankly, it's all right. If you want to be in the ring, if you want center canvas, you know, you want to be in the corners, you want to be the clock. When it comes to the UFC, I mean, we are out there, Grant Norris and Lukas Cavallis are, of course, you know, running the combined global partnerships group. We are out there talking to new categories.

Speaker Change: We don't. We don't see any limitations, frankly.

Mark Shapiro: If you want to be in the ring, if you want the center canvas, you know, you want to be in the corners, you want to be the clock. When it comes to the UFC, I mean, we are out there. Grant Norris and Luke Kostivalas are, of course, running the combined global partnerships group. We are out there talking to new categories. We are also talking to traditional categories. And we're open for business. I would say these two and their teams are getting about as creative as any league I've ever seen.

Speaker Change: It's all about price. If you want to be in the ring, if you want center canvas...

Speaker Change: you want to be in the corners

Speaker Change: You want to be the clock when it comes to the UFC? I mean, we are out there, Grant Norris and Lukasz Kowalyser.

Mark Shapiro: We are out there talking to new categories. We are out there talking to traditional categories. And we're open for business. I would say these two and their teams are get about as creative as any league I've ever seen. And we're open to anything, frankly. I mean, we're not, you know, looking to over-commercialize it. And certainly we're definitely never going to cheap in the brand. But at the end of the day, we're the league, you know, we're the commissioner. We have total control. And, you know, we're only limited by our own creativity. And when you look at Wingstop or frankly, you know, even our new Budweiser deal.

Mark Shapiro: We are out there talking to traditional categories. And we're open for business. I would say these two and their teams are get about as creative as any league I've ever seen. And we're open to anything, frankly. I mean, we're not, you know, looking to over commercialize it. And certainly we're definitely never going to cheap in the brand. But at the end of the day, we're the league, you know, we're the commissioner.

Speaker Change: Of course, running the combined global partnerships group, we are out there talking to new categories, we are out there talking to traditional categories, and we're open for business. I would say these two and their teams get about as creative as any league I've ever seen.

Mark Shapiro: And we're open to anything, frankly. I mean, we're not, you know, looking to over commercialize it. And certainly, we're definitely never going to cheapen the brand.

Speaker Change: and we're open to anything frankly i mean we're not looking this over commercialize it and certainly

Mark Shapiro: But at the end of the day, we're the league, you know, we're the commissioner, we have total control. And, you know, we're only limited by our own creativity. And when you look at Wingstop or, or frankly, you know, even our new Budweiser deal, I would say Monster. I would say crypto.com.

Speaker Change: we're definitely never going to cheap in the brand but at the end of the day were the league you know where the commissioner we have total control and you know we're only limited by our own creativity and when you look at wing stop or are frankly you know even our new budwise or deal and

Mark Shapiro: We have total control. And, you know, we're only limited by our own creativity. And when you look at wingstop or frankly, you know, even our new Budweiser deal. And I would say monster, I would say crypto.com. We're constantly shocking and jiving with these guys pivoting on what's working for you and what's not. What's what what else do you want? What else can we create for you? And of course, usually when we're moving or changing something in the contract that comes with an increase.

Mark Shapiro: And I would say monster, I would say Crypto.com. We're constantly shocking and jiving with these guys, pivoting on what's working for you and what's not. What's what? What else do you want? What else can we create for you? And of course, usually when we're moving or changing something in the contract, that comes with an increase. So it's all about monetizing and maximizing the dollar opportunities. And frankly, the ad market, you know, is strong, not just for media, but certainly for experiential activation. And, of course, sporting events. If you don't see us fill it up fast enough, David, it's only because we're not yet getting the price, and we want we will not give away inventory.

Mark Shapiro: We're constantly shucking and jiving with these guys, pivoting on what's working for you and what's not. What's what? What else do you want? What else can we create for you? And, of course, usually when we're moving or changing something in the contract that comes with it. So, it's all about monetizing and maximizing the dollar opportunities. And frankly, the ad market is strong, not just for media, but certainly for experiential activation, and, of course, sporting events. If you don't see us filling it up fast enough, David, it's only because we're not yet getting the pricing we want. We will not give away inventory.

Speaker Change: i would say monster i would say cryptodot com we're constantly shocking and giriving with these guys piming on what's working for you and what's not what's what else do you want

Speaker Change: What else can we create for you? And of course, usually when we're moving or changing something in the contract, that comes with an increase.

Mark Shapiro: So it's all about monetizing and maximizing the dollar opportunities. And frankly, the ad market, you know, is strong, not just for media, but certainly for experiential activation. And of course sporting events. If you don't see us fill it up fast enough, David, it's only because we're not yet getting the price and we want we will not give away inventory.

Speaker Change: So it's all about monetizing and maximizing the dollar opportunities and frankly the ad market you know is strong not just for media but certainly for experiential activation and of course sporting events.

Speaker Change: six

Speaker Change: You don't see us fill it up fast enough, David. It's only because we're not yet getting the pricing we want. We will not give away inventory.

Operator: That's it. Thank you. Of course, our next question comes from Ryan Trebet of UBS. Ryan, your line is open. Please go ahead.

Operator: That's it. Thank you. Operator, let's take the next question, please. Of course, our next question comes from Ryan Trebet of UBS. Ryan, your line is open. Please go ahead. Great, thanks.

Ryan Tremet: Thank you, operator. Let's take the next question, please. Of course, our next question comes from Ryan Tremet of CBS. Ryan, you'll want to open, please go ahead. Great, thanks. Maybe just circling back on the USC rights, but on the international side. Can you give us an update on how international rights renewals are performing and if you're going to share what kind of step-ups you're seeing and. This is more broadly how you characterize the demand environment for sports rights relative to what we're seeing in the US.

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

David Karnovsky: Understood. Thank you.

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

Ryan Tremet: Of course, our next question comes from Ryan Tremet of CBS Ryan, you'll want to open please go ahead. Great, thanks. Maybe just circling back on the USC rights, but on the international side. Can you give us an update on how international rights rights renewals are performing and if you're going to share what kind of stepups you're seeing and. This is more broadly how you characterize the demand environment for sports rights relative to what we're seeing in the US.

Operator: Of course, our next question comes from Ryan Trebet of UBS. Ryan, your line is open, please go ahead. Great, thanks.

Speaker Change: Of course, our next question comes from Ryan Trebek of PBS. Ryan, your line is open, please go ahead.

Ryan Trebek: great thingss may be just circing back on the u usc rights but on the international side could you give us an update on how international rights rights renewals are performing in if you're goinging to share what kind of step up you're seeingin

Speaker Change: this just more broadly how you would characterize the demand environment forsports rights relative to what we're seeing the us

Mark Shapiro: Yeah, what I would tell you there is, first of all, remember when we moved to Netflix in January. You know, for the most part, Netflix will have our international rights. There will be several regions in countries they don't yet have, but because of current contracts, when those contracts roll up, they'll pick them up. So this is primarily a UFC conversation, and what I would tell you is IMG is really a secret weapon for us because the intelligence is second to none. The fact that they have 35 offices around the world is gives us kind of person to person contact, name basis, a lot of business they're doing.

Mark Shapiro: Yeah, what I would tell you there is, first of all, remember, when we moved to Netflix in January, you know, for the most part, Netflix will have our international rights. There will be several regions and countries they don't yet have, but because of current contracts, but when those contracts roll up, they'll pick them up. So this is primarily a UFC conversation.

unknown: Yeah, what I would tell you there is, first of all, remember when we moved to Netflix in January? But nonetheless, we're seeing increases when deals roll off.

Ryan Tremet: Yeah, what I would tell you there is, first of all, remember when we moved to Netflix in January, you know, for the most part, Netflix will have our international rights. There will be several regions in countries they don't yet have, but because of current contracts, but when those contracts roll up, they'll pick them up. So this is primarily a UFC conversation and what I would tell you is IMG is really a secret weapon for us because the intelligence is second to none.

Speaker Change: Yeah, what I would tell you there is, first of all, remember when we moved to Netflix in January ,

Ryan Trebek: for the most part netflix will have our international rights there will be several regions and countries that don't yet have but because of current contracts but when those contracts roll up they'll pick them up so this is primarily u sc conversation and what i would tell you is

Mark Shapiro: And what I would tell you is IMG is really a secret weapon because the intelligence is second to none. The fact that they have 35 offices around the world gives us kind of person to person contact, a name basis, a lot of business they're doing, we can see around corners. And it gives us the opportunity to kind of step up. You know, we expect to get it. We're not going to get any specific numbers on international. And what we're seeing and what we're getting, what I would tell you is international is not as hot as it is domestically in the US. But nonetheless, we're seeing increases when deals roll off.

Speaker Change: i am g is really a secret weapon for us

Ryan Tremet: The fact that they have 35 offices around the world is gives us kind of person to person contact, name basis, a lot of business they're doing. We can see around corners and it gives us the opportunity to get the kind of step up, you know, we expect to get it. We're not going to get any specific numbers on international and what we're seeing and what we're getting, what I would tell you is international is not as hot as it is domestically in the US. But nonetheless, we're seeing the increases when deals roll off. Got it, thanks Mark. You got it.

Ryan Trebek: because the intelligence is second to none. The fact that they have...

Speaker Change: 35 offices around the world.

Ryan Trebek: is gives us kind of person-to-person contact, name basis, a lot of business they're doing. We can see around corners and it gives us the opportunity to get to kind of step up.

Mark Shapiro: We can see around corners, and it gives us the opportunity to get the kind of step up, you know, we expect to get it. We're not going to get any specific numbers on international, and what we're seeing and what we're getting. What I would tell you is international is not as hot as it is domestically in the US. But nonetheless, we're seeing the increases when deals roll off. Got it, thanks, Mark.

Speaker Change: We expect to get it. We're not going to get any specific numbers on international and what we're seeing and what we're getting. What I would tell you is international is not as hot as it is domestically in the U.S.

Ryan Trebek: but nonetheless we're seeing the increases when deals roll out

Stephen Laszczywik: You got it. Our next question comes from Stephen Laszczyvik from Goldman Sachs. Stephen Ulan is open; please proceed. Hey guys, thanks for the questions.

Mark: Got it. Thanks, Mark.

Operator: Our next question comes from Stephen Leshevick from Goldman Sachs. Stephen, your line is open, please proceed.

Operator: Our next question comes from Stephen Nasiewicz from Goldman Sachs. Stephen, your line is open, please proceed.

Stephen Laszczyk: Our next question comes from Stephen Laszczyvik, from Goldman Sachs, Stephen Ulan is open, please proceed. Hey guys, thanks for the questions.

Speaker Change: our next question comes from stephen lhiv from goldman sax stephen iron is open please proceed

Stephen Laszczyk: Hey guys, thanks for the questions. First, maybe for Mark on live events, you guys see a pretty large swath of the income distribution across your two properties. So just be curious if you could impact some of the consumer trends you're maybe seeing at the moment, and then any thoughts on where there might still be opportunity across the properties to take some more price over the next year on the live event side. And then Andrew, you called out the sphere in September. Just curious if you could add any context around some of the revenue or costs we should expect to see come in during the quarter. Thank you.

Stephen Laszczywik: First movie for Mark on live events. You guys see a pretty large swap. We've got lots of the income distribution across your two properties. I'll just be curious if you could impact some of the consumer trends. You're maybe seeing at the moment, and then any thoughts on where there still might be opportunity across the properties to take some more price over the next year on the live event side. And then Andrew, you caught out the sphere in September. Just curious if you could add any context around some of the revenue or costs we should expect to see come in in the quarter.

Stephen Laszczyk: First movie for Mark on live events. You guys see a pretty large swap. We've got lots of the income distribution across your two properties. I'll just be curious if you could impact some of the consumer trends. You're maybe seeing at the moment and then any thoughts on where there still might be opportunity across the properties to take some more price over the next year on the live event side.

Stephen Lhiv: Hey, guys, thanks for the questions. First, maybe for Mark on live events, you guys see a pretty large swath of the income distribution across your two properties. I'd just be curious if you could impact some of the consumer trends you're maybe seeing at the moment, and then any thoughts on where there still might be opportunity across the properties to take some more price over the next year on the live event side. And then, Andrew, you called out the sphere in September . Just curious if you could add any context around some of the revenue or costs we should expect to see come in in the quarter. Thank you.

Andrew Schweimer: And then Andrew, you caught out the sphere in September. Just curious if you could add any context around some of the revenue or costs we should expect to see come in in the quarter. Thank you. Thanks, Stephen. Look, I covered this a little bit. I guess all I would tell you is, it was interesting. When Ari and I were listening to the Disney quarterly earnings call and hearing Bob Higer talk about the lower end consumer, if you will, on the income side, is kind of holding back.

Stephen Laszczywik: Thank you. Thanks, Stephen. Look, I covered this a little bit. I guess all I would tell you is, it was interesting. When Ari and I were listening to the Disney quarterly earnings call and hearing Bob Higer talk about the lower end consumer, if you will, on the income side, is kind of holding back. There's things slow down to the Disney parks, or maybe they're just moderating and getting back to normal. Because, of course, you know, post-COVID, the theme parks were just unstoppable. And then, meanwhile, he said the higher end consumer is maybe not doing the theme parks, but they're traveling more internationally.

Mark Shapiro: Thanks, Stephen. Look, I covered this a little bit. I guess all I would tell you is, you know, it's interesting. When Ari and I were listening to the, you know, the Disney.

Mark: Thanks, Stephen. Look, you know, I covered this a little bit. I guess all I would tell you is, you know, it was interesting when Ari and I were listening to the, you know, the Disney

unknown: When Ari and I were listening to the, you know, the Disney. The lower end consumer, if you will, on the income side, is kind of holding back. They're seeing things slow down for the Disney parks, or maybe they're just moderating and getting back to normal because, of course, post-COVID, the theme parks were just unstoppable. And then, meanwhile, he said the higher-end consumer is maybe not doing the theme parks, but they're traveling more internationally, on the F&B and the merchandise side for our partners are also very strong.

Andrew Schweimer: There's things slow down to the Disney parks or maybe they're just moderating and getting back to normal. Because, of course, you know, post COVID, the theme parks were just unstoppable. And then meanwhile, he said the higher end consumer is maybe not doing the theme parks, but they're traveling more internationally. All I can tell you is where we sit, specifically, Stephen, we can also tell you about advanced sales. We're just not seeing any slow down.

Mark Shapiro: Quarterly Earnings Call and hearing Bob Iger talk about how the lower end consumer, if you will, on the income side, is kind of holding back. They're seeing things slow down for the Disney parks, or maybe they're just moderating and getting back to normal because, of course, you know, post-COVID, the theme parks were just unstoppable. And then, meanwhile, he said the higher-end consumer is maybe not doing the theme parks, but they're traveling more internationally.

unknown: Quarterly Earnings Call and hearing Bob Iger talk about

Speaker Change: the lower end consumer if you will on the income died

unknown: is kind of holding back there's thing things slow down to the disney parks or or maybe they're just moderating and getting back tothe normal because of course postcovid the theme pars were just unstoppable

Speaker Change: And then meanwhile, he said the higher-end consumer is maybe not doing the theme parks, but they're traveling more internationally.

Mark Shapiro: All I can tell you is where we sit; specifically, Stephen, we can also tell you about advanced sales. We're just not seeing any slowdown. I mean, it's a credit. I think that it's kind of matchups, Dana White is delivering weekend and week out and the creativity of Paul the Veck on the on the WWE side. And by the way, that's, you know, that's the tall order. He's got a Friday night show. He's got a Monday night show. He's got NXT. We're talking with other content providers on more short-form content. A bunch of deals that Nikon is currently working on, and we'll announce and do time.

Mark Shapiro: All I can tell you is where we stand, specifically, Stephen. We can also tell you about advanced sales. We're just not seeing any slowdown. I mean, it's a credit, I think, to the kind of matchups Dana White is delivering week in and week out and the creativity of Paul Levesque on the WWE side. And, by the way, that's a tall order.

unknown: All I can tell you is where we sit, specifically, Stephen, we can also tell you about advanced sales.

Andrew Schweimer: I mean, it's a credit. I think that it's kind of matchups, Dana White is delivering weekend and week out and the creativity of Paul the veck on the on the WWE side. And by the way, that's, you know, that's the tall order. He's got a Friday night show. He's got a Monday night show. He's got NXT. We're talking with other content providers on more short form content. A bunch of deals that Nikon is currently working on and we'll announce and do time.

Speaker Change: We're just not seeing any slowdown. I mean, it's a credit, I think, to the kind of matchups Dana White is delivering week in and week out, and the creativity of Paul Levesque on the WWE side. And by the way, that's...

Mark Shapiro: He's got a Friday night show, he's got a Monday night show, he's got NXT. We're talking with other content providers on more short-form content, a bunch of deals that Nikon is currently working on and will announce in due time. The fans, they're just coming full bore. Demos are strong, age groups are strong, and we're seeing a lot of pickup in the Hispanic markets, which is a real priority for us to grow on the UFC side because we've just opened a performance institute there in Mexico City, and we're really aiming at growing that audience, and the spectacle that we're going to have at the sphere is going to be really targeting So it's just really a good place to be right now. We don't take it for granted.

Speaker Change: You know, that's a tall order. He's got a Friday night show, he's got a Monday night show, he's got NXT, we're talking with other content providers on more short form content, a bunch of deals that Nikon is currently working on and will announce in due time.

Mark Shapiro: The fans are, they're just coming full board, demos are strong, age group is strong, seeing a lot of pickup on the Hispanic markets, which is a real priority for us to grow on the UFC side because we just opened a performance institute there in Mexico City. And we're really, we're really aiming on growing that audience, and our spectacle that we're going to have at the sphere is going to be really targeting the Hispanic audience, the Latin audience. So it's just, it's just really a good place to be right now. We don't think it's for granted.

Andrew Schweimer: The fans are, they're just coming full board, demos are strong, age group is strong, seeing a lot of pickup on the Hispanic markets, which is a real priority for us to grow on the UFC side because we just opened a performance institute there in Mexico City. And we're really, we're really aiming on growing that audience and our spectacle that we're going to have at the sphere is going to be really targeting the Hispanic audience, the Latin audience.

unknown: up

Speaker Change: The fans, they're just coming full bore. Demos are strong, age group is strong, seeing a lot of pickup on the Hispanic markets, which is a real priority for us to grow on the UFC side because we've just opened a performance institute there in Mexico City, and we're really.

Speaker Change: We're really aiming on growing that audience and the spectacle that we're going to have at the SPHERE is going to be really targeting the Hispanic audience, the Latin audience.

Andrew Schweimer: So it's just, it's just really a good place to be right now. We don't think it's for granted. We're watching our pricing, but we're probably not being aggressive enough on the WWE side, but we're being careful. We're working with a lot of dynamic ticketing providers to see us get the leg up that we expected when we put this merger together. But you see our front, I mean UFC and WWE are selling out a week in and what week out and the per caps on the FNB and the merchandise side for our partners are also very strong.

Mark Shapiro: We're watching our pricing, but we're probably not being aggressive enough on the WWE side, but we're being careful. We're working with a lot of dynamic ticketing providers to see us get the leg up that we expected when we put this merger together. UFC and WWE are selling out week in and week out, on the F&B, and the merchandise side for our partners is also very strong. So I, you know, I think it's the fact that these two properties are such a long events, the duration, you get so many fights on a fight night for UFC, and of course, WWE takes a while to play out as well. I think we're still a good buy for the consumer.

unknown: So...

Mark Shapiro: We're watching our pricing, but we're probably not being aggressive enough on the WWE side, but we're being careful. We're working with a lot of dynamic ticketing providers to see us get the leg up that we expected when we put this merger together. But you see our front, I mean UFC and WWE are selling out a week in and week out, and the per caps on the FNB and the merchandise side for our partners are also very strong. So I think it's the fact that these two properties, it's such a long event, the duration. You get so many fights on a fight night for UFC, and of course WWE takes a while to play out as well.

unknown: It's just it's just really a good place to be right now. We don't take it for granted. We're watching our pricing but

Speaker Change: We're probably not being aggressive enough on the WWE side, but we're being careful. We're working with a lot of dynamic ticketing providers to see us get the leg up that we expected when we put this merger together.

Speaker Change: I mean, UFC and WWE are, you know, selling out week in and week out, and the per capita

unknown: on the fb and the merchandise side for our partners are also very strong so know i think it's this

Andrew Schweimer: So I think it's the fact that these two properties, it's such a long event, the duration. You get so many fights on a fight night for UFC and of course WWE takes a while to play out as well. I think we're still a good buy for the consumer. It's a great night out. It's a great family event for the, on the WWE side. And for the sports fans, you know, UFC is, it's just really, really in the zeit case right now.

unknown: So, you know, I think it's a good buy for the consumer. The fact that these two properties are such a long events, the duration, you get so many fights on a fight night for UFC, and of course, WWE takes a while to play out as well. I think we're still a good value for the consumer.

unknown: The fact that these two properties

unknown: It's such a long event, the duration, you get so many fights on a fight night for UFC, and of course, WWE takes a while to play out as well. I think we're still a good buy for the consumer. It's a great night out. It's a great

Mark Shapiro: I think we're still a good buy for the consumer. It's a great night out. It's a great family event for the, on the WWE side. And for the sports fans, you know, UFC is, it's just really, really in the zeitgeist right now.

Mark Shapiro: It's a great night out. It's a great family event on the WWE side. And for sports fans, you know, UFC is just really, really popular right now. We're trying to capitalize on that when it comes to the ticket price.

unknown: It's a great night out. It's a great family event on the WWE side. And for sports fans, you know, UFC is just really, really popular right now. We're trying to capitalize on that when it comes to the ticket price.

Speaker Change: family events for the on the w type and for the sports fans sc is' just really really in the z case right now we're trying to capitalize on that when it comes to the ticket procap

Andrew Schweimer: Jacob Brookhapp. And on the sphere, you know, just some color; we're bullish. Obviously, we've talked about this being a cultural event. And, you know, Dana has, you know, publicly, you've stated how much we're investing in this event. And obviously, this is going to be a massive spectacle for those in the arena and for those at home. On the top side, this will, you know, be one of the largest gates. If not, meaningfully, the largest gate that we've ever done. And then the cost side, it's going to be the single largest investment that we're making in an event.

Andrew Schweimer: Jacob Brookhapp. And on the sphere, you know, just some color, we're bullish. Obviously, we've talked about this being a cultural event. And, you know, Dana has, you know, publicly, you've stated how much we're investing in this event. And obviously this is going to be a massive spectacle for those in the arena and for those at home. On the top side, this will, you know, be one of the largest gates. If not, meaningfully, the largest gate that we've ever done.

Andrew Schleimer: And on the sphere, just in color, look, we're bullish, obviously, you know, we've talked about this being a cultural event, and Dana has publicly stated how much we're investing in this event. And obviously, this is going to be a massive spectacle for those in the arena and for those at home. On the plus side, this will be one of the largest gates, if not meaningfully the largest gate that we've ever done. And on the cost side, it's going to be the single largest investment that we're making in an event, and it's even more expensive than we originally anticipated.

Speaker Change: an honthesphere just in color we're busllish obviously we've talked about this being a cultural event and what danata has

Speaker Change: Publicly stated how much we're investing in this event and obviously this is going to be a massive spectacle for those in the arena and for those at home.

Speaker Change: On the top side, this will be one of the largest gates, if not meaningfully, the largest gate that we've ever done. And on the cost side, it's going to be the single largest investment that we're making in an event.

Andrew Schweimer: And then the cost side, it's going to be the single largest investment that we're making in an event. And it's even more expensive than we originally anticipated. And that's reflected in our new guide. So, you know, we talked about some, you know, headwinds going into the balance, excuse me, Tellwinds going into the balance of the year. But if there's one meaningful headwind that has a direct dollar for dollar impact on EBITDA, it's the incremental expense.

Andrew Schweimer: And it's even more expensive than we originally anticipated. And that's reflected in our new guide. So, you know, we talked about some, you know, headwinds going into the balance, excuse me, tailwinds going into the balance of the year. But if there's one meaningful headwind that has a direct dollar-for-dollar impact on EBITDA, it's the incremental expense. We're seeing at the Sphere. And Steven, little anecdote here: you know, Ari and I held a dinner in Paris for the Olympics. That's the fact we're Andrew and I are coming to you from right now for our premier ad partners.

Mark Shapiro: And that's reflected in our new guide. So we talked about some headwinds going into the balance, excuse me, tailwinds going into the balance of the year. But if there's one meaningful headwind that has a direct dollar for dollar impact on EBITDA, it's the incremental expense we're seeing. Stephen, a little anecdote here.

Speaker Change: And it's even more expensive than we originally anticipated. And that's reflected in our new guide. So, you know, we talked about some headwinds going into the balance, excuse me, tailwinds going into the balance of the year. But if there's one meaningful headwind that has a direct dollar for dollar impact on EBITDA, it's the incremental expense we're seeing at the sphere.

Andrew Schweimer: We're seeing at the sphere. And Steven, little anecdote here, you know, Ari and I held a dinner in Paris for the Olympics. That's the fact we're Andrew and I are coming to you from right now for our premier ad partners. And one of them made a comment about us being in a position and always sort of having an history. And I credit Dana with this more than anybody else of not making every decision based on the dollar that we are committed to growing the brand.

unknown: And Stephen, a little anecdote here. Ari and I held a dinner in Paris for the Olympics.

Mark Shapiro: Ari and I held a dinner in Paris for the Olympics. In fact, Andrew and I are coming to you from right now for our premier ad part. And one of them made a comment about us being in a position and always sort of having a history, and I credit Dana with this more than anybody else, of not making every decision based on the dollar. That we are committed to growing the brand, we are committed to growing the audience, and sometimes we will make investments that, you know, in the short term won't necessarily pencil out, but long-term, they will be a big win for us and will pay out tenfold.

Speaker Change: and stephen a little annago to here no rianand i held a dinner in paris for the olympics that's fact we' andre h orare coming to you from right now for our premier ad partners

unknown: And one of them made a comment about us being in a position and always sort of having a history, and I credit Dana with this more than anybody else, of not making every decision based on the dollar. That we are committed to growing the brand, we are committed to growing the audience, and sometimes we will make investments that, you know, in the short term won't necessarily pencil out, but in the long term, they will be a big win for us and play out tenfold. And that's what the sphere is when Andrew talks about a spectacle.

Mark Shapiro: And one of them made a comment about us being in a position and always sort of having a history. And I credit Dana with this more than anybody else of not making every decision based on the dollar; that we are committed to growing the brand. And we are committed to growing the audience, and sometimes we will make investments that, you know, short term won't necessarily pencil out, but long term, there will be a big, a big win for us and play out tenfold. And that's what the sphere is when Andrew talks about a spectacle. This event is going to be very positive for the UFC brand in business long term.

unknown: And one of them made a comment about...

unknown: us being in a position and always sort of having a history,

Andrew Schweimer: And we are committed to growing the audience and sometimes we will make investments that, you know, short term won't necessarily pencil out, but long term, there will be a big, a big win for us and play out tenfold. And that's what the sphere is when Andrew talks about a spectacle. This event is going to be very positive for the UFC brand in business long term. And if we have to spend more than we've ever spent on an event and believe me, we're doing that.

unknown: Not making every decision based on the dollar.

Andrew Schweimer: It will pay off long term. We expect to use this event to grow our fan base to increase fan engagement and most importantly to capitalize on the growth area that is the Latin market for us. That's great. Thank you both.

unknown: that we are committed to growing the brand, we are committed to growing the audience, and sometimes we will make investments.

unknown: that short term won't necessarily pencil out but long term there will be a big a big win for us and play out tenfold

Andrew Schweimer: Thank you.

unknown: This event is going to be very positive for the UFC brand in business for the long term. And if we have to spend more than we've ever spent on an event, and believe me, we're doing that, it will pay off long term. We expect to use this event to grow our fan base, increase fan engagement, and most importantly, to capitalize on the growth area that is the market for us.

Mark Shapiro: And that's what the sphere is when Andrew talks about a spectacle. This event is going to be very positive for the UFC brand in business for the long-term, and if we have to spend more than we've ever spent on an event, and believe me, we're doing that, it will pay off long-term. We expect to use this event to grow our fan base, to increase fan engagement, and, most importantly, to capitalize on the growth area that is the lap-dam market for us.

unknown: And that's what the sphere is when Andrew talks about a spectacle.

unknown: this this event is going to be very positive for the u usc brand in business long term and if we have to spend more than we've ever spent on an event and believe me we're doing that it will pay off long term we expect to use this event to grow our fan base to increase ban engagement and most importantly to capitalize on the growth area that is the lack dam market for us

Mark Shapiro: And if we have to spend more than we've ever spent on an event, and believe me, we're doing that. It will pay off long term. We expect to use this event to grow our fan base, to increase fan engagement, and most importantly, to capitalize on the growth area that is the Latin market for us.

Unknown Executive: That's great. Thank you both. Thank you.

Operator: That's great. Thank you both. Thank you. Thank you. Our next question comes from Peter Supino of Wolf Research.

Speaker Change: That's great. Thank you both.

Peter Supino: Our next question comes from Peter Sapino of All Three Search, Peter. Your line is open. Please go ahead. Thank you. Good morning.

unknown: Thank you.

Peter Supino: Our next question comes from Peter Sapino of all three search Peter. Your line is open. Please go ahead. Thank you. Good morning. I wonder if you could help us think as big as we can about your longer term growth opportunity outside the United States, especially in terms of event count and productivity. To exploit that over time. And I'd also like to hear from you about the international distribution you'll get from Netflix and how that compares to your prior international distribution since that's what's an important driver of demand. Thank you. Thanks Peter.

Speaker Change: Thank you. Our next question comes from Peter Cipino of Wolf Research. Peter, your line is open. Please go ahead.

Peter Supino: Peter, your line is open. Please go ahead. Thank you. Good morning. I wondered if you could help us think as bigly as we can about your

Peter Supino: I wonder if you could help us think as big as we can about your longer term growth opportunity outside the United States, especially in terms of event count and productivity. To exploit that over time. And I'd also like to hear from you about the international distribution you'll get from Netflix and how that compares to your prior international distribution, since that's what's an important driver of demand. Thank you. Thanks, Peter. You know, I would say that on the on the first question, I guess we could talk about the international international one first. Look, what we love about the Netflix partnership is not like you're going to pop up in a lot of countries.

Speaker Change: Thank you. Good morning. I wondered if you could help us think as bigly as we can about your longer term growth opportunity outside of the United States, especially in terms of event count and productivity.

Speaker Change: to exploit that over time. And I'd also love to hear from you about the international distribution you'll get from Netflix and how that compares to your prior international distribution, since that's such an important driver of demand. Thank you.

Operator: Thank you. Our next question comes from Peter Supino of Wolf Research. Peter, your line is open. Please go ahead.

Ari Emanuel: You know, I would say that on the on the first question, I guess we could talk about the international international one first. Look, what we love about the Netflix partnership is not like you're going to pop up in a lot of countries. We're not already in. Right. I mean, we're in 170 countries right now, but further international expansion as a priority, but more importantly, the fan ofivity and fan engagement, that is our priority with Netflix, reaching new fans, bringing in new customers, new audiences, really expanding that is the goal.

Peter: Thanks, Peter.

Speaker Change: You know, I would say that on the, on the first question, or I guess we could talk the international, international one first. Look.

Mark Shapiro: You know, I would say that on the first question, or I guess we could talk about the international one first. Look, what we love about the Netflix partnership, it's not like you're going to see it popping up in a lot of countries we're not already in, right? I mean, we're in a hundred and seventy countries right now, but further international expansion is a priority, but more importantly, fan-advocacy and fan engagement, that is our priority with Netflix.

unknown: What we love about the Netflix partnership, it's not like you're going to see it popping up in a lot of countries we're not already in, right? I mean, we're in 170 countries right now. But further international expansion is a priority, but more importantly,

Mark Shapiro: We're not already in. Right. I mean, we're in 170 countries right now, but further international expansion is a priority. But more importantly, the fan ofivity and fan engagement, that is our priority with Netflix, reaching new fans, bringing in new customers, new audiences, really expanding that is the goal. And by the way, it's the goal for them. So we've got checker boarded. Across the world, if you will. What's the priority for them to grow their audiences? Right? Areas like Brazil? And what's the priority for us to bring in expanded audiences? And we'll work hand-in-hand; in fact, we'll launch a co-marketing plan together.

Speaker Change: Fanavidity and fan engagement, that is our priority with Netflix. Reaching new fans, bringing in new customers, new audiences, really expanding that is the goal. And by the way, it's the goal for them. So we've kind of checkerboarded.

Mark Shapiro: Reaching new fans, bringing in new customers, new audiences, really expanding that is the goal. And by the way, it's the goal for them. So we've checkerboarded, across the world, if you will, what's the priority for them to grow their audiences, right? Areas like Brazil?

Ari Emanuel: And by the way, it's the goal for them. So we've got checker boarded, across the world, if you will. What's the priority for them to grow their audiences? Right? Areas like Brazil? And what's the priority for us to bring in expanded audiences? And we'll work hand-in-hand in fact, we'll launch a co-marketing plan together. We'll buy media and also do an outdoor campaign to see if we can get the attention of new audiences and new fans.

Speaker Change: across the world, if you will, what's the priority for them to grow their audiences, right? Areas like Brazil, and what's the priority for us to bring in expanded audiences?

Mark Shapiro: And what's the priority for us to bring in an expanded audience? And we'll work hand-in-hand. In fact, we'll launch a co-marketing plan together. We'll buy media and also do an outdoor campaign to see if we can get the attention of new audiences and new fans.

unknown: And we'll work hand-in-hand. In fact, we'll launch a co-marketing plan together. We'll buy media and also do an outdoor campaign to see if we can get the attention of new audiences and new fans. And that's really the way we're looking at it. So again, it's not like we're not in a lot of places, but we need to increase our passionate fan base. We need to increase

unknown: And we'll work hand-in-hand. In fact, we'll launch a co-marketing plan together where we'll buy media and also do an outdoor campaign to see if we can get the attention of new audiences and new fans.

Mark Shapiro: We'll buy media and also do an outdoor campaign to see if we can get the attention of new audiences and new fans. And that's really the way we're looking. So, again, it's not like we're not in a lot of places, but we need to increase the passion at fan base. We need to increase engagement. We want to bring more women to the table. It's impressive that our sport is 40% female on the UFC side. And, of course, WWE already plays to families. But UFC specifically has rooms to grow there. Love to get this to a place where it's 50-50.

Mark Shapiro: And that's really the way we're looking at it. So again, it's not like we're not in a lot of places, but we need to increase our passionate fan base. We need to increase engagement. We want to bring more women to the table. It's impressive that our sport is 40% female on the UFC side. And, of course, WWE already plays to families, but UFC specifically has room to grow there. I'd love to get this to a place where it's 50-50.

Ari Emanuel: And that's really the way we're looking. So, again, it's not like we're not in a lot of places, but we need to increase the passion at fan base. We need to increase engagement. We want to bring more women to the table. It's impressive that our sport is 40% female on the UFC side. And of course, WWE already plays to families. But UFC specifically has rooms to grow there. Love to get this to a place where it's 50-50.

unknown: And that's really the way we're looking at it. So again, it's not like we're not in a lot of places, but we need to increase.

unknown: We want to bring more women to the table. It's impressive that our sport is 40% female on the UFC side. And of course, WWE already plays to families, but UFC specifically has room to grow there. I'd love to get this to a place where it's 50-50. At one time, that might have sounded impossible, but we're trending in that direction, especially on the ratings side in terms of some of the feedback we're getting from ESPN and how many women are watching UFC fights. And we're not just talking about women fighters; we're talking the entire card.

unknown: The passionate fan base. We need to increase engagement. We want to bring more women to the table. It's impressive that our sport is 40%.

unknown: female on the UFC side and a score of course WWE already plays to families but UFC specifically has room to grow there. I'd love to love to get this to a place where a 50-50 at one time that might have sounded like impossible but uh you know we're trending in that direction you know especially in the on the ratings side in terms of some of the feedback we're getting from ESPN and how many women are watching UFC fights and we're not just talking women fighters we're talking the entire card so look we're we're very attractive worldwide we're gonna we're gonna dig deep into that and we've got the power of Netflix's programming the power of Netflix as a marketing partner the power of Netflix's pockets when it comes to dollars as a marketing partner

Mark Shapiro: At one time, that might have sounded impossible, but we're trending in that direction, especially on the ratings side, in terms of some of the feedback we're getting from ESPN and how many women are watching UFC fights. And we're not just talking about women fighters. We're talking the entire card.

Mark Shapiro: At one time, that might have sounded like impossible. But, you know, we're trying in that direction, especially on the rating side in terms of some of the feedback we're getting from ESPN, and how many women are watching UFC fights. And we're not just talking women fighters; we're talking the entire card. So, look, we're very attractive worldwide. We're going to dig deep into that. And we've got the power of Netflix as programming, the power of Netflix as a marketing partner. And so, we're bullish on how we're going to do from a ticket yield standpoint. And, of course, international rights on the IMG stuff.

Ari Emanuel: At one time that might have sounded like impossible. But, you know, we're trying in that direction, especially on the rating side in terms of some of the feedback we're getting from ESPN, and how many women are watching UFC fights. And we're not just talking women fighters, we're talking the entire card. So, look, we're very attractive worldwide. We're going to dig deep into that. And we've got the power of Netflix as programming, the power of Netflix as a marketing partner. And so, we're bullish on how we're going to do from a ticket yield standpoint. And, of course, international rights on the IMG stuff.

Mark Shapiro: So look, we're very attractive worldwide. We're going to dig deep into that. And we've got the power of Netflix's programming, the power of Netflix as a marketing partner, the power of Netflix's pockets when it comes to dollars as a marketing partner. And so we're bullish on how we're going to do from a ticket yield standpoint and, of course, international rights on the IMG.

unknown: So look, we're very attractive worldwide. We're going to dig deep into that. And we've got the power of Netflix's programming, the power of Netflix as a marketing partner, the power of Netflix's pockets when it comes to dollars as a marketing partner. And so we're bullish on how we're going to do from a ticket yield standpoint. And, of course, international rights on the IMG stuff.

unknown: And so we're bullish on on how we're going to do from a ticket yield standpoint and of course international rights on the IMG stock.

Ari Emanuel: The first question was, yeah, look, I think in just thinking about it, Peter, we're thinking big as I articulated earlier. While WWE historically had some prime premiere shows internationally, a vast majority, the overwhelming majority of their live events were here domestically. And we think bringing those shows overseas to new markets, to build new fan bases, and build fan affinity alongside Netflix is going to be a major opportunity for us. We've seen in the limited time that we've been involved, whether it be in Perth, Australia, whether it be in recent backlash in France. We did a PLE in Germany as well in the second quarter.

Ari Emanuel: The first question was, yeah, look, I think in just thinking about it, Peter, we're thinking big as I articulated earlier, while WWE historically had some prime premiere shows internationally, a vast majority, the overwhelming majority of their live events were here domestically. And we think bringing those shows overseas to new markets, to build new fan bases, and build fan affinity alongside Netflix is going to be a major opportunity for us. We've seen in the limited time that we've been involved, whether it be in Perth, Australia, whether it be in recent backlash in France, we did a PLE in Germany as well in the second quarter.

Mark Shapiro: Yeah, look, I think in just thinking about it, you know, Peter, we're thinking big. As I articulated earlier, while WWE historically had some, you know, prime, you know, premier shows internationally, a vast majority, the overwhelming majority of their live events were here domestically. And we think bringing those shows overseas to new markets to build new fan bases and build fan affinity alongside Netflix is going to be a major opportunity for us.

unknown: first question

Speaker Change: Yeah, look, I think in just thinking about it, you know, Peter, we're thinking big, as I articulated earlier, while WWE historically had some, you know, prime, you know, premiere shows internationally, a vast majority, the overwhelming majority of their live events were here domestically.

unknown: And we think bringing those shows overseas to new markets to build new fan bases and build fan affinity alongside Netflix.

Mark Shapiro: We've seen it in the limited time that we've been involved, whether it be in Perth, Australia, or this recent backlash in France; we did a PLE in Germany as well in the second quarter.

unknown: is going to be a major opportunity for us. We've seen it in the limited time that we've been involved, whether it be in Perth, Australia, whether it be in this recent backlash in France. We did a PLE in Germany as well in the second quarter. There is significant appeal for our content internationally. And then as I said earlier, it just opens us up for more site fees in these markets as well. So the more international events we're going to do, the more site fee opportunities we have, particularly for the top line. So we're not going to size it for you, but we're feeling pretty good. Yeah, look, you got to point back to New Zealand too. I mean, we did a test.

Ari Emanuel: There is significant appeal for our content internationally. And then, as I said earlier, it just opens us up for more sight fees in these markets as well. So, the more international events we're going to do, the more likely opportunities we have, particularly for the top line. So, we're not going to size it for you, but we're feeling pretty good. Yeah, look, you got a point back to New Zealand too. I mean, we did a test in New Zealand of our UFC programming live events on Netflix. And we won the night in ratings. I mean, that's insane.

Mark Shapiro: There is significant appeal for our content internationally. And then, as I said earlier, it just opens us up to more site fees in these markets as well. So the more international events we're going to do, the more site fee opportunities we have, particularly for the top line. So we're not going to size it for you, but we're feeling pretty good. Yeah, look, you got to point back to New Zealand, too. I mean, we...

Mark Shapiro: Look, you got to point back to New Zealand, too. I mean, we did a test, you know, in New Zealand of our UFC programming live event on Netflix, and we won the night in ratings. I mean, that's insane.

unknown: you know, in New Zealand, of our UFC programming live events on Netflix. And we won the night and ratings. I mean, that's insane.

unknown: You know in New Zealand

unknown: of our UFC programming live event on Netflix.

Ari Emanuel: And we won the night in ratings. I mean, that's insane. We did no marketing prior to there was no warning or messaging that this was coming, because of course Netflix was not worried that there were being conservative in terms of testing the tech, which by the way there was not one hitch. So, we were excited to see that, but that was just gravy when the audience numbers came back. So, when you're thinking long-term growth for us, obviously our media deal is strong. Obviously, sight fees are really capitalizing on that sponsorship, but international rights fees will definitely be part of the equation. Thank you.

Mark Shapiro: We did no marketing prior to; there was no warning or messaging that this was coming because, of course, Netflix was not worried that they were being conservative in terms of testing the tech, which, by the way, there was not one hitch. So we were excited to see that. But that was just gravy when the audience numbers came back.

Mark Shapiro: We did no marketing prior to there was no warning or messaging that this was coming, because of course Netflix was not worried that there were being conservative in terms of testing the tech, which by the way there was not one hitch. So, we were excited to see that, but that was just gravy when the audience numbers came back. So, when you're thinking long-term growth for us, obviously our media deal is strong. Obviously, sight fees are really capitalizing on that sponsorship, but international rights fees will definitely be part of the equation.

unknown: And we won the night in ratings. I mean, that's insane. We did no marketing prior to... There was no warning or messaging that this was coming because, of course, Netflix was...

unknown: We did no marketing prior to; there was no warning or messaging that this was coming because, of course, Netflix was not worried that they were being conservative in terms of testing the tech, which, by the way, there was not one hitch. So we were excited to see that. But that was just crazy when the audience numbers came back.

unknown: Not worry, but they were being conservative in terms of testing the tech, which, by the way, there was not one hitch. So we were excited to see that. But that was just gravy when the audience numbers came back. So when you're thinking long term growth for us.

Mark Shapiro: So when you're thinking long-term growth for Obviously, our media deal is strong, obviously, site fees, we're really capitalizing on that, sponsorship, but international rights fees will definitely be part of the equation. Our next question comes from Eric Handler of Ross Capital. Eric, your line is open, please proceed. Yes, good morning. Thanks for the question.

Speaker Change: obviously our media deal is strong obviously site fees are ' really capitalizing on that sponsorship but international rights fees will definitely be part of the equation thank you

Unknown Executive: Thank you.

Eric Handler: Our next question comes from Eric Handler of Roth Capital. Eric Chulan is open. Please proceed. Yes, good morning. Thanks for the question. At this point, a lot has already been asked, but I guess with the WWE PLE deal that expires one quarter after the UFC deal, how are you thinking about do you run that? At a similar time frame as the UFC deal, do you want to get the UFC deal situated before you think about that PLE deal? So any color you can give there would be great. Thanks, Eric. A couple thoughts there. I mean, we might as well just cover the whole media rights situation because I know you're speaking in terms of timing for the PLEs, but of course we've got the USC as well.

Eric Handler: Our next question comes from Eric Handler of Roth Capital. Eric Chulan is open. Please proceed. Yes, good morning. Thanks for the question.

Operator: So when you're thinking long-term growth for Our next question comes from Eric Handler of Ross Capital. Eric, your line is open. Please proceed. Yes, good morning. Thanks for the question.

Operator: Our next question comes from Eric Handler of Ross Capital. Eric, your line is open, please proceed.

Eric Handler: Thank you.

Operator: Our next question comes from Eric Handler of Roth Capital. Eric, your line is open, please proceed.

Mark Shapiro: At this point a lot has already been asked, but I guess with the WWE PLE deal that expires one quarter after the UFC deal, how are you thinking about do you do run that? At a similar time frame as the UFC deal, do you want to get the UFC deal situated before you think about that PLE deal, so any color you can give there would be great. Thanks, Eric. A couple thoughts there.

Speaker Change: Yes, good morning. Thanks for the question. At this point a lot has already been asked, but I guess with the

Speaker Change: WWE PLE deal that expires one quarter after the UFC deal, how are you thinking about, do you run that?

Speaker Change: you know, at a similar time frame as the UFC deal, do you want to get the UFC deal situated before you think about that PLE deal? So any color you can give there would be great.

Eric Handler: Thanks, Eric. A couple thoughts there. We might as well cover the whole meteorite situation because I know you're speaking in terms of timing for the PLEs, but of course, we've got the UFC as well. Look, we, I'll tell you kind of holistically how Ari, Andrew, and I see this, and, of course, Nick and Lawrence play a key role here in these renewals. I don't need to tell you the market for premium content, such as ours, remains extremely strong.

Speaker Change: Yeah, thanks Eric. Couple thoughts there, I mean we might as well just cover the whole meteorite situation because I know you're...

Mark Shapiro: I mean, we might as well just cover the whole media rights situation because I know you're speaking in terms of timing for the PLEs, but of course we've got the USC as well. Look, I'll tell you kind of holistically how are Andrew and I see this and of course Nick and Lawrence play a key role here in these renewals. I don't need to tell you the market for premium content such as ours, you know, remains extremely strong.

Speaker Change: you're speaking in terms of a timing for the ps that of course we've got the usc as well well we i'll tell you kind of holistically how arandre and i see this and of course nick and lawrence play key ty role here in these renewals

Mark Shapiro: Look, I'll tell you kind of holistically how Andrew and I see this, and of course Nick and Lawrence play a key role here in these renewals. I don't need to tell you the market for premium content such as ours, you know, remains extremely strong. You know, look no further than the NBA renewal, which is I think higher than Adam even thought it was going to be. The Christmas Day Games on Netflix, where there was big competition for net between Netflix and Amazon for those two games. I think the announcement by Zad Lawton and Warner Brothers, just even for the French Open, much smaller property, and I would add that IMG did that deal for them for the French Test Federation, but that rights fee went from 12 million a year to 65 million a year, 650 million dollars 10 years for the French Open.

unknown: I don't need to tell you the market for premium content, such as ours, remains extremely strong. Look no further than the NBA renewal, which is, I think, higher than Adam even thought it was going to be. The Christmas Day games on Netflix, where there was a big competition between Netflix and Amazon for those two games.

unknown: i don't need to tell you the market for premium content such as ours remains extremely strong look no further than the nba renewal

Eric Handler: You know, look no further than the NBA renewal, which is, I think, higher than Adam even thought it was going to be. And the Christmas Day games on Netflix, where there was a big competition between Netflix and Amazon for those two games.

Mark Shapiro: You know, look no further than the NBA renewal, which is I think higher than than Adam even thought it was going to be the Christmas Day Games on Netflix where there was big competition for net between Netflix and Amazon for those two games. I think the announcement by Zad Lawton and Warner Brothers, just even for the French Open, much smaller property and I would add that IMG did that deal for them for the French Test Federation, but that rights fee went from 12 million a year to 65 million a year, 650 million dollars 10 years for the French Open.

unknown: which is, I think, higher than Adam even thought it was going to be. The Christmas Day Games.

Speaker Change: and net books where there was big competition for net between netflix and amazon for those two games i think

Mark Shapiro: I think the announcement by Zaslov and Warner Brothers, just even for the French Open, a much smaller property, and I would add that IMG did that deal for them, for the French Tennis Federation. But that rights fee went from $12 million a year to $65 million a year, $650 million, 10 years for the French Open.

unknown: I think the announcement by Zaslov and Warner Brothers, just even for the French Open, a much smaller property, and I would add that IMG did that deal for them, for the French Tennis Federation. But that rights fee went from $12 million a year to 65 million a year, $650 million, 10 years, for the French Open.

Speaker Change: the announcement by zad law ton and warner no therthere's just even for the french open much smaller property and i would add that i am g did that deal for them for for the french tis federation but that rights fe went from twelve million a year

unknown: to $65 million a year, $650 million in 10 years for the French Open.

Mark Shapiro: And I know that the USDA has two years left on their deal with ESPN to the US Open, and IMG also is representing the USDA on that rights negotiation, and I'm very optimistic on how that's going to turn out for the USDA and, of course, the value that ESPN will get in return. Now you come to the UFC and the PLEs. I mean, this is content that airs year-round. We're strong and attracting viewers and sub in this whole direct to consumer environment. We're in both are very strong when it comes to reducing churn, and both are very strong as it relates to linear and network television.

Mark Shapiro: And I know that the USDA has two years left on their deal with ESPN to the US Open and IMG also is representing the USDA on that rights negotiation and I'm very optimistic on how that's going to turn out for the USDA and of course the value that ESPN will get in return. Now you come to the UFC and the PLEs. I mean, this is content that airs year round. We're strong and attracting viewers and sub in this whole direct to consumer environment.

unknown: And I know that the USDA has two years left on their deal with ESPN for the US Open, and IMG also is representing the USDA in that rights negotiation. And I'm very optimistic about how that's going to turn out for the USDA and, of course, the value that ESPN will get in return. Now you've come to the UFC and the PLEs. I mean, this is content that airs year-round. We're strong at attracting viewers and subscribers in this whole direct-to-consumer environment we're in. Both are very strong when it comes to reducing churn, and both are very strong as it relates to linear and network television.

Mark Shapiro: And I know that the USDA has two years left on their deal with ESPN for the US Open, and IMG also is representing the USDA in that rights negotiation. And I'm very optimistic about how that's going to turn out for USDA and, of course, the value that ESPN will get in return. Now that you've come to the UFC and the PLEs, I mean, this is content that airs year round. We're strong at attracting viewers and subscribers in this whole direct-to-consumer environment we're in. Both are very strong when it comes to reducing churn.

unknown: And I know that the USDA has two years left on their deal with ESPN for the US Open, and IMG also is representing the USDA on that rights negotiation, and I'm very optimistic on how that's going to turn out for

unknown: USDA and of course the value that ESPN will get in return. Now you come to the UFC and the PLEs, I mean, this is content that airs year round.

unknown: We're strong in attracting viewers and subs in this whole direct-to-consumer environment we're in. Both are very strong when it comes to reducing churn, and both are very strong as it relates to linear and network television. Let's not forget whether it's ABC or NBC.

Mark Shapiro: We're in both are very strong when it comes to reducing churn and both are very strong as it relates to linear and network television. Let's not forget whether it's ABC or NBC. Those are still very important and very much a part of the equation in right deals going forward. You see it with the MBA deal where NBC will be carrying games in addition to ABC and ESPN. So, you know, we feel very good about about these renewals.

unknown: Let's not forget, whether it's ABC or NBC, those are still very important and very much a part of the equation in rights deals going forward. You see it with the NBA deal, where NBC will be carrying games in addition to ABC and ESPN. So... And I can tell you this is as hot as I've seen it, but it is about timing. Very, very important to understand that. Sports rights are strong, and they've survived, but it's timing. Sometimes they're hot, and sometimes they're warm. So what it is today isn't necessarily what it's going to be next year. It could be hotter, by the way, but we'll see how that plays out.

Mark Shapiro: And both are very strong as it relates to linear and network television. Let's not forget, whether it's ABC or NBC; those are still very important and very much a part of the equation in rights deals going forward. You see it with the NBA deal where NBC will be carrying games in addition to ABC and ESPN. So, you know, we feel very good about these renewals. I've been doing rights fees here, right deals, I should say for 25 years, both on the buyer and the seller side, you know, dating back to my days at ESPN, whether it's Monday Night Football, NASCAR, or our owned assets, and I can tell you this is as hot as I've seen it, but it is about timing.

Mark Shapiro: Let's not forget whether it's ABC or NBC. Those are still very important and very much a part of the equation in right deals going forward. You see it with the MBA deal where NBC will be carrying games in addition to ABC and ESPN. So, you know, we feel very good about these renewals. I've been doing rights fees here, right deals, I should say, for 25 years, both on the buyer and the seller side, you know, dating back to my days at ESPN, whether it's mine and I football, NASCAR, or our own assets. And I can tell you this is hot as I've seen it, but it is about timing; very, very important to understand it.

unknown: Those are still very important and very much a part of the equation in rights deals going forward. You see it with the NBA deal, where NBC will be carrying games in addition to ABC and ESPN, so

unknown: You know, we feel very good about these renewals. I've been doing rights fees here, or rights deals, I should say, for 25 years, both on the buyer and the seller side, you know, dating back to my days at ESPN, whether it's Monday Night Football, NASCAR, or our owned assets.

Mark Shapiro: I've been doing rights fees here, right deals, I should say, for 25 years, both on the buyer and the seller side, you know, dating back to my days at ESPN, whether it's mine and I football, NASCAR or our own assets. And I can tell you this is hot as I've seen it, but it is about timing, very, very important to understand it. Sports rights are strong and they've sustained, but it's timing.

Mark Shapiro: Very, very important to understand that. Sports rights are strong, and they've survived, but timing. Sometimes they're hot, and sometimes they're warm. So what it is today isn't necessarily what it's going to be next year. It could be hotter, by the way, but we'll see how that plays out.

unknown: and

unknown: I can tell you this is as hot as I've seen it.

Mark Shapiro: Sports rights are strong, and they've sustained, but it's timing. Sometimes they're hot, and sometimes they're warm. So what it is today isn't necessarily what it's going to be next year. Could be hotter, by the way. But we'll see how that plays out. Sports or premium sports are bringing people in. Sports are unifying. Sports are live, and they're really important to every platform right now. So the numbers are coming in strong, but it is about timing, and we'll see, we'll see what happens when we enter our windows. To your point about the PLEs, we don't anticipate discussions in 2025, but there's no timetable that has been said.

unknown: But it is about timing. Very, very important to understand that.

unknown: sports rights are strong and they sustained but its

Mark Shapiro: Sometimes they're hot and sometimes they're warm. So what it is today isn't necessarily what it's going to be next year. Could be hotter, by the way. But we'll see how that plays out sports or premium sports are bringing people in sports are unifying sports are live and they're really important to every platform right now. So the numbers are coming in strong, but it is about timing and we'll see we'll see what happens when we enter our windows.

unknown: tiny

unknown: Sometimes they're hot, and sometimes they're warm. So what it is today isn't necessarily what it's going to be next year. Could be hotter, by the way, but we'll see how that plays out. Sports are a premium, sports are bringing people in, sports are unifying, sports are live, and they're really important to every platform right now, so the numbers are coming in strong. But it is about timing, and we'll see what happens when we enter our windows.

unknown: Sports are a premium, sports are bringing people in, sports are unifying, sports are live, and they're really important to every platform right now. So the numbers are coming in strong, but it is about timing, and we'll see what happens when we enter our windows. To your point about the PLEs, we anticipate discussions in 2025, but there's no timetable that has been set.

Mark Shapiro: Sports are a premium. Sports are bringing people in. Sports are unifying. Sports are live, and they're really important to every platform right now. So the numbers are coming in strong, but it is about timing, and we'll see what happens when we enter our windows. To your point about the PLEs, we don't anticipate discussions in 2025, but there's no timetable that has been set.

Andrew Schweimer: To your point about the PLEs, we don't we anticipate discussions in 2025, but there's no timetable that has been said, at this time.

unknown: To your point about the PLEs, we anticipate discussions in 2025, but there's no timetable that has been set at this time.

Jason Bazinet: at this time.

Operator: Operator, we'll take one last question.

Mark Shapiro: Operator, I want to ask one last question. Of course, our final question of today comes from Jason Bazinet or Citi. Jason, you're on his open; please go ahead. Thanks. You guys have obviously done a good job on the revenue and cost side with these two properties together.

Operator: Operator, I want to ask one last question.

Speaker Change: operateor to take one last question

Operator: Of course, our final question of today comes from Jason Bazanek of Citi. Jason, your line is open. Please go ahead.

Operator: Of course, our final question of today comes from Jason Bazinet of Citi. Jason, your line is open; please go ahead.

Jason Bazinet: Of course, our final question of today comes from Jason Bazinet or Citi Jason, you're on his open please go ahead. Thanks. You guys have obviously done a good job on the revenue and cost side with these two properties together.

Jason Bazanek: of course our final question of today comes from the chase in the pasenet or city jason uline is open please go ahead

Jason Bazinet: Thanks. You guys have obviously done a good job on the revenue and cost side with these two properties together. Do you mind just rolling the clock back and reminding us when you created TKO why you didn't take all of the sports assets inside Endeavor, including PBR, and make them part of TKO? And is PBR something that could become part of the TKO family going forward?

Jason Bazanek: thanks you guys have obviously done a good job on the revenue and cost side with these two properties

Mark Shapiro: Do you mind just rolling the clock back and reminding us when you created TKO, why you didn't take all of the sports assets inside Endeavor, including PBR, and make a part of TKO, and is PBR something that could become part of the TKO family going forward. Thanks. What I would say on that, Jason, is that first of all, just with regard to PBR specifically, that was just never in the cards. I mean, you know, we were negotiating with Vincent Bann at the time, and from day one, he was only open to doing this merger, if you will, if it was these two properties, period. End of story.

Mark Shapiro: Do you mind just rolling the clock back and reminding us when you created TKO, why you didn't take all of the sports assets inside endeavor, including PBR, and make a part of TKO, and it's PBR something that could become part of the TKO family going forward. Thanks. What I would say on that, Jason, is that first of all, just with regard to PBR specifically, that was just never in the cards. I mean, you know, we were negotiating with Vincent Bann at the time, and from day one, he was only open to doing this merger, if you will, if it was these two properties, period end of story. So there was no discussion on PBR.

Operator: together.

Operator: um

Jason Bazanek: do you mind just roll in the clock back and reminding us when you created tko why you didn't take all of the sports assets inight deavor including ppr and make a part of tkl in is pb something that could become part of the t family going forwardthank

Mark Shapiro: What I would say on that, Jason, is that... First of all, just with regard to PBR specifically, that was just never in the cards. I mean, you know, we were negotiating with Vince McMahon at the time. And from day one, he was only open to doing this merger, if you will. If it was these two properties, period, end of story. So, there was no discussion about PBR. So that's the reason why that happened.

Mark Shapiro: What I would say on

Speaker Change: and many, many more. Thank you.

Speaker Change: What I would say on that, Jason, is that

Speaker Change: First of all, just with regard to PBR specifically, that was just never in the cards. I mean, you know, we were negotiating with with Vince McMahon at the time, and from day one, he was only open to doing this merger, if you will.

unknown: It was these two properties, period, end of story. So there was no discussion about PBR. So that's the reason why that happened.

Mark Shapiro: So there was no discussion on PBR. So that's the reason why that happened, and you know, as far as anything else, beyond that, I mean, look, we're always going to view M&A through the lens of value creation, end of story. And you know, we'll be opportunistic, where we see value there, we see properties that are going to power our assets long-term, that are going to accelerate our growth, that have career revenue and cost synergies. You know, right now TKO is one of the cleanest stories in media, and we don't want to fluid our story, we don't want to complicate our model, we're not creating Endeavor 2.0, we're going to be disciplined, we're going to be always value accretive, we're going to keep an eye on obviously leverage ratio, and anything we ever look at.

unknown: It was these two properties. Period. End of story. So there was no discussion on PBR.

Mark Shapiro: So that's the reason why that happened, and you know, as far as anything else, beyond that, I mean, look, we're always going to view M&A through the lens of value creation, end of story, and you know, we'll be opportunistic, where we see value there, we see properties that are going to power our assets long-term, that are going to accelerate our growth, that have career revenue and cost synergies. You know, right now TKO is one of the cleanest stories in media, and we don't want to fluid our story, we don't want to complicate our model, we're not creating Endeavor 2.0, we're going to be disciplined, we're going to be always value accretive, we're going to keep an eye on obviously leverage ratio, and anything we ever look at.

unknown: And, you know, as far as anything else beyond that, I mean, look, we're always going to view M&A through the lens of value creation, end of story. And, you know, we'll be opportunistic where we see value there; we see properties that are going to power our assets long term, that are going to accelerate our growth, that have clear revenue and cost synergies. You know, right now, TKO is one of the cleanest stories in the media, and we don't want to pollute our story.

Mark Shapiro: And, you know, as far as anything else beyond that, I mean, look, we're always going to view M&A through the lens of value creation, end of story. And, you know, we'll be opportunistic. Where we see value there, we see properties that are going to power our assets long term, that are going to accelerate our growth, that have clear revenue and cost synergies. You know, right now, TKO is one of the cleanest stories in the media, and we don't want to pollute our story.

unknown: So, that's the reason why that happened, and you know, as far as anything else beyond that, I mean, look, we're always going to view M&A through the lens of value creation. End of story.

unknown: And, you know, we'll be opportunistic where we see value there, we see properties that are going to power our assets long term, that are going to accelerate our growth, that have clear revenue and cost synergies.

unknown: You know, right now, TKO is one of the...

unknown: Cleanest stories in media and we don't want to pollute our story. We don't want to complicate our model. We're not creating Endeavor 2.0 We're going to be disciplined. We're going to be always value accretive We're going to keep an eye on obviously leverage ratio and anything we ever look at

Mark Shapiro: We don't want to complicate our model. We're not creating Endeavor 2.0. We're going to be disciplined. We're going to be always value accretive. We're going to keep an eye on, obviously, the leverage ratio, and anything we ever look at, I think has to be viewed with the lens of pairing a capital return program, whether that is a dividend or that is a share buyback. That

unknown: We don't want to complicate our model. We're not creating Endeavor 2.0. We're going to be disciplined. We're going to be always value accretive. We're going to keep an eye on, obviously, the leverage ratio and anything we ever look at.

Mark Shapiro: I think has to be also viewed with the lens of pairing a capital return program, whether that is a dividend or that is a share buyback. That's a priority for us. But there's nothing about the PBR asset that doesn't feel like it's not orthogonal to whatever you're building on the sports side. There's nothing that's uniquely different about that sport versus other sports. No, I mean, look, these are two separate companies. Keep that in mind.

Mark Shapiro: I think has to be also viewed with the lens of pairing a capital return program, whether that is a dividend or that is a share buyback, that's a priority for us. But there's nothing about the PBR asset that doesn't feel like it's not orthogonal to whatever you're building on the sports side. There's nothing that's uniquely different about that sport versus other sports.

unknown: I think has to be also viewed with the lens of pairing a capital return program. Whether that is a dividend or that is a share buyback, that's a priority for us.

Mark Shapiro: But there's nothing about the PBR asset that doesn't feel like it's not orthogonal to whatever you're building on the sport side. There's nothing that's uniquely different about that sport versus other sports.

Speaker Change: But there's nothing about the PBR asset that doesn't feel like it's not orthogonal to whatever you're building on the sports side. There's nothing that's uniquely different about that sport versus other sports.

Mark Shapiro: No, I mean, look, these are two separate companies, right? Keep that in mind.

Mark Shapiro: No, I mean,

Mark Shapiro: No, I mean, look, these are two separate companies. Keep that in mind. I mean, TKO is a public company, own shareholders, its own board, and don't get me wrong, that's obviously a great league and on the Endeavor side, we're very hands on with it, but I'm not going to comment or speculate on its overlakes plans for their assets as they begin to take it private.

Mark Shapiro: I mean, you know, TKO is a public company, with its own shareholders, its own board. And, don't get me wrong, that's obviously a great league. And, you know, on the Endeavor side, we're very hands-on with it. But I'm not going to comment or speculate on Silver Lake's plans for their assets as they begin to.

unknown: No. I mean, look, these are two separate companies, right? Keep that in mind. I mean, you know, TKO is a public company.

Unknown Executive: I mean, TKO is a public company, own shareholders, its own board, and don't get me wrong, that's obviously a great league. And on the Endeavor side, we're very hands on with it, but I'm not going to comment or speculate on its overlakes plans for their assets as they begin to take it private. Thank you, everyone. Thank you. Thank you everyone for joining us on today's call and for your interest in TKO Operator. You can conclude the call now. Thank you; this concludes today's call. Thank you so much for joining.

unknown: own shareholders, its own board, and you know, don't get me wrong, you know, that's obviously a great league and, you know, on the Endeavor side.

unknown: We're very hands-on with it but I'm not going to comment or speculate on Silver Lake's plans for their assets as they as they begin to take it private.

Seth Zaslow: Thank you everyone. Thank you.

unknown: Thank you. Thank you everyone for joining us on today's call and for your interest in TKO. Operator, you can conclude the call now.

Unknown Executive: Thank you. Thank you everyone for joining us on today's call and for your interest in TKO. Operator, you can conclude the call now.

Operator: Thank you everyone for joining us on today's call and for your interest in TKO operator, you can conclude the call now.

unknown: okay thank you everyone

unknown: Thank you. Thank you everyone for joining us on today's call and for your interest in TKO. Operator, you can conclude the call now.

Operator: Thank you. This concludes today's call. Thank you so much for joining us. You may now disconnect your lines.

Operator: Thank you, this concludes today's call. Thank you so much for joining. You may have this connect your line.

unknown: right

Unknown Executive: You may have this connect your line.

Speaker Change: thank you this concludes today's call thank you so much for joining you now disconnect your lines

Q2 2024 TKO Group Holdings Inc Earnings Call

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