Endeavor moves to third quarter loss – Deadline


Endeavor turned red last quarter with a $12.5 million loss coming not from its core business, but from a minority investment in struggling college sports marketing film Learfield, and its remaining 20-year stake. % in Endeavor Content.

Endeavor sold the bulk of Endeavor Content in January to Korea’s CJ ENM, retaining 20% ​​of the scripted business, the unscripted portion, and some advisory services in sales and financing of documentaries and films.

The company led by CEO Ari Emanuel posted a profit of $63 million in the year-ago quarter.

Learfield IMG College is a big college sports marketing movie with Endeavor and Silver Lake among its investors.

Total writedowns, for $84.5 million net of tax, included impairments and resulted in an EPS loss of 4 cents per share versus positive 16 cents the prior year.

Endeavor’s revenue went from $1.39 million to $1.22 million, but on track.

The company’s UFC-led Owned Sports Properties division saw revenue jump 39% to $402 million on higher media rights fees and revenue from live events, partnerships, merchandise consumption and licenses, as well as an additional à la carte event and more. events with live audience. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 45% to $196 million.

Events, Experiences & Rights had flat sales of $440.6 million (down 1%) on select media rights deals for events that don’t happen every year, including the Ryder Cup, UEFA Europe and CONCACAF World Cup qualifying matches, as well as the schedule of events some of which took place earlier in 2022 than the previous year. He cited the growth of Wimbledon, Frieze Seoul, the Aer Lingus Classic and music events. Adjusted EBITDA was $49.7 million, down 42% due to the timing of events, prior year insurance payments and higher personnel costs.

Performance revenue of $388 million for the quarter was down 42%, but largely because last year’s figure included $334 million in sales from Endeavor Content. Excluding that, revenues were up 17%. The company noted strong demand for talent, including the continued resumption of music and comedy tours, and increased corporate branding spending.

EBITDA of $133 million decreased by 6%. The prior year included $26.5 million from Endeavor Content.

“Our business performed well during the quarter despite a turbulent macroeconomic environment,” Emanuel said. “Given our unique positioning against a set of highly resilient secular industry trends across premium sports and entertainment content and live events, we remain confident in our ability to continue to implement our strategy of long-term growth while being good stewards of capital.”

The company said total debt stood at $5.427 billion at the end of September, up from $5.684 billion on June 30. It repaid $250 million last quarter and expects to do the same in the current fourth quarter.

Cash and cash equivalents totaled $970.8 million in September and $1.8 billion in June.

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