TKO Group (TKO) Goldman Sachs Communicopia + Technology Conference 2025 summary

Strategic growth and media rights

• Achieved significant growth through long-term media rights deals, including a $1.1 billion, seven-year UFC deal at double previous rates and expanded partnerships with Netflix, ESPN, and Paramount+.

• Retained and expanded international rights, leveraging IMG's global distribution expertise to maximize value across 150+ territories, with staggered renewals and packaging opportunities.

• Launched new franchises like Wrestlepalooza and expanded into boxing, aiming for 12-16 league fights annually and 2-4 super fights with Saudi partners, monetizing through media rights and site fees.

• Focused on recurring, stable revenue streams with escalators, robust financial forecasts, and strong free cash flow conversion above 60%.

• Emphasized humility and execution, with ongoing efforts to integrate operations and extract further synergies from recent mergers and acquisitions.

Sponsorships, partnerships, and live events

• Global partnerships revenue is set to surpass $400 million, with UFC and WWE attracting more mainstream brands and controlling broadcast and in-arena integration.

• New ad inventory from media deals enables holistic 360-degree sponsorship packages, with early focus on institutional marketing as ad tech solutions mature.

• Live event demand remains strong, with premium hospitality experiences driving ticket yield and site fees, and ongoing optimization of pricing and venue selection.

• Site fee opportunities are expanding, with 25+ premier fights and additional events like PBR and boxing being packaged for cities globally.

• WWE is replicating UFC's ticket yield strategies, with evidence of margin improvement and further room for growth.

Financial performance and capital allocation

• Consolidated EBITDA margin projected at 35%-40% for next year, with WWE matching UFC's 59% margin in Q2, driven by partnerships, ticketing, and site fees.

• Free cash flow conversion remains above 60%, supporting robust capital return programs, including a recent dividend increase and a share buyback commitment by end of Q3.

• Operating leverage is high, with disciplined reinvestment in talent and programming, maintaining a lean cost structure and competitive pay for top performers.

• On Location continues to expand in premium hospitality, focusing on risk-sharing deals and selective IP additions, with strong performance in major global events.

• Capital allocation prioritizes shareholder returns over M&A, with opportunistic acquisitions considered only if highly accretive.