WWE Raw Inks Deal with USA for Q4 2024

TKO Group Holdings beat Wall Street revenue expectations to a pulp in its first quarter 2024 earnings report Wednesday, though a $335 million UFC fighter pay settlement pushed the company from a profit to a loss in the quarter.

The company also cut a new WWE distribution deal, albeit a relatively minor one: Raw, which will move to Netflix in January 2025, will continue to run on USA Network through the end of this year. USA’s current deal for Raw was set to expire at the end of September. TKO says it is receiving $25 million for the program during the three month window.

The Endeavor-controlled company, which owns the UFC and WWE, reported revenue of $629.7 million, with a net loss of $249.5 million and adjusted EBITDA of $282.2 million. The company also raised its guidance for the year to $2.685 billion in revenue, and adjusted EBITDA of over $1.2 billion

The loss is attributable to the $335 million UFC settlement from March, with the rise in revenues thanks to a boost from the company’s live events business, including UFC 300 and the WWE’s Royal Rumble.

“TKO is off to a strong start in 2024 with multiple record-setting live events, new brand partnerships, and media rights deals for WWE Raw,” said TKO CEO Ari Emanuel in a statement. “With our momentum in the first quarter and solid financial results, we have raised our full year 2024 guidance. We also reached an agreement to settle all claims asserted in both UFC antitrust lawsuits. These positive developments, along with the strength in our underlying businesses, give us more conviction than ever in the combination of UFC and WWE, and in TKO’s ability to deliver sustainable long-term value for shareholders.”

Between the businesses, WWE delivered $316.7 million in revenue and $140.2 million in adjusted EBITDA, with UFC delivering $313 million in revenue and $195.1 million in adjusted EBITDA.

The UFC saw its live events, sponsorships and consumer products segments rise, with media rights down slightly due to one less numbered event. A majority of the WWE’s revenue came from media rights.