Endeavor Group Holdings, Inc. (EDR) Bundle
A Brief History of Endeavor Group Holdings, Inc.
Endeavor Group Holdings, Inc. (EGH) has established itself as a prominent player in the entertainment and sports industry. As of 2024, the company operates through several segments, including Owned Sports Properties, Events, Experiences & Rights, and Representation. The following sections detail the financial performance and operational milestones of EGH.
Financial Performance Overview
For the nine months ended September 30, 2024, EGH reported total revenue of $5.54 billion, an increase of 38% from $4.02 billion in the same period of 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) |
|---|---|---|
| Owned Sports Properties | $2.31 billion | $1.17 billion |
| Events, Experiences & Rights | $2.12 billion | $1.76 billion |
| Representation | $1.19 billion | $1.12 billion |
| Eliminations | ($74.83 million) | ($27.89 million) |
Adjusted EBITDA for the same period increased to $297.5 million, up from $287.7 million in 2023, reflecting a growth of 3.4%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $5.64 billion, compared to $3.70 billion in 2023. Key components included:
- Direct Operating Costs: $2.63 billion (2024) vs. $1.62 billion (2023)
- Selling, General and Administrative Expenses: $2.60 billion (2024) vs. $1.88 billion (2023)
Net Income and Losses
EGH reported a net loss of $290.7 million for the nine months ended September 30, 2024, compared to a net income of $588.3 million in 2023. This significant change was influenced by various factors, including increased operating expenses and impairment charges.
Balance Sheet Highlights
As of September 30, 2024, EGH's total assets amounted to $20.78 billion, down from $21.54 billion at the end of 2023. The total liabilities stood at $10.29 billion, reflecting an increase from $9.82 billion.
| Asset/Liability Category | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Total Assets | $20.78 billion | $21.54 billion |
| Total Liabilities | $10.29 billion | $9.82 billion |
Debt Obligations
As of September 30, 2024, EGH had outstanding debt of $2.90 billion, a reduction from $4.97 billion at the end of 2023. This includes various credit facilities and obligations related to acquisitions.
Market Position and Strategic Moves
In 2024, EGH has continued to strengthen its market position through strategic acquisitions and partnerships, particularly in the sports and entertainment sectors. The company's focus on diversifying its revenue streams has been pivotal in navigating the challenges faced during the year.
Overall, Endeavor Group Holdings, Inc. remains a key player in the global entertainment landscape, leveraging its diverse portfolio and strategic initiatives to drive growth and profitability.
A Who Owns Endeavor Group Holdings, Inc. (EDR)
Ownership Structure
As of 2024, Endeavor Group Holdings, Inc. (EDR) has a complex ownership structure comprising various classes of common stock. The principal classes of stock include Class A, Class X, and Class Y common stock.
| Class of Stock | Shares Outstanding | Par Value | Ownership Percentage |
|---|---|---|---|
| Class A Common Stock | 307,864,479 | $0.00001 | Approximately 53.6% |
| Class X Common Stock | 160,244,257 | $0.00001 | Approximately 46.4% |
| Class Y Common Stock | 216,020,232 | $0.00001 | Not publicly traded |
Major Shareholders
Endeavor's major shareholders include both institutional and individual investors. The following highlights the significant ownership stakes as of 2024:
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| Silver Lake Partners | Approximately 68 million | 22.1% |
| WME Co-Founder Ari Emanuel | Approximately 15 million | 4.9% |
| Investment Firms (Various) | Approximately 150 million (combined) | 48.7% |
| Public Float | Approximately 74 million | 24.3% |
Financial Data and Market Performance
Endeavor Group Holdings, Inc. reported significant financial metrics for the nine months ended September 30, 2024, highlighting the performance and market position of the company:
| Metric | Value |
|---|---|
| Total Revenue | $5,542.7 million |
| Net Loss | $(616.5) million |
| Adjusted EBITDA | $1,037.3 million |
| Cash and Cash Equivalents | $1,234 million |
| Total Assets | $20,777.9 million |
| Total Liabilities | $10,288.9 million |
Recent Acquisitions and Changes in Ownership
In 2023, Endeavor completed the acquisition of World Wrestling Entertainment (WWE), which significantly impacted its revenue streams and ownership structure. The acquisition contributed an estimated $1,048 million to revenue for the nine months ended September 30, 2024.
As of April 2024, Endeavor repurchased shares of TKO Class A common stock from Vincent K. McMahon, totaling approximately $146.2 million, further consolidating its ownership in TKO OpCo.
Conclusion on Ownership Dynamics
The ownership landscape of Endeavor Group Holdings, Inc. reflects a diverse range of stakeholders, from institutional investors to key executives, contributing to its strategic direction and market performance.
Endeavor Group Holdings, Inc. (EDR) Mission Statement
Company Overview
Endeavor Group Holdings, Inc. (EDR) is a global sports and entertainment company that operates various segments including owned sports properties, events, experiences, rights, and representation. The company's mission focuses on maximizing the value of its assets through innovative and strategic management of its diverse portfolio.
Mission Statement
As of 2024, Endeavor’s mission is to lead the sports and entertainment industry by delivering unparalleled experiences, fostering creativity, and driving sustainable growth for its partners, clients, and stakeholders. The company aims to harness the power of its media and live events to connect audiences globally.
Key Financial Metrics
In 2024, Endeavor has demonstrated significant financial performance across various metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $2,031.8 million | $1,219.5 million | 66.6% |
| Operating Income (Loss) | $6.99 million | $22.17 million | -68.4% |
| Net (Loss) Income | $(420.36) million | $(115.98) million | 262.1% |
| Adjusted EBITDA | $1,037.3 million | $602.3 million | 72.2% |
Revenue Breakdown by Segment
The revenue generation across different segments showcases the strategic focus of Endeavor:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Owned Sports Properties | $1,048 million | $255.5 million | 311.8% |
| Events, Experiences & Rights | $899.8 million | $367.1 million | 145.1% |
| Representation | $125.9 million | $112.3 million | 12.7% |
Strategic Initiatives
Endeavor's mission is further supported by strategic initiatives aimed at enhancing its market position:
- Acquisition of World Wrestling Entertainment (WWE) in September 2023, contributing significantly to revenue growth.
- Expansion of media rights agreements to enhance content distribution and audience engagement.
- Investment in innovative technologies to improve live event experiences and operational efficiencies.
Market Position and Future Outlook
Endeavor's mission aligns with its commitment to market leadership in sports and entertainment, focusing on:
- Leveraging global events like the Paris Olympics to drive revenue and brand visibility.
- Enhancing stakeholder engagement through targeted marketing and partnership strategies.
- Continuing to adapt to industry trends, including digital transformation and audience preference shifts.
How Endeavor Group Holdings, Inc. (EDR) Works
Overview of Business Segments
Endeavor Group Holdings, Inc. operates through several segments, primarily focusing on owned sports properties, events, experiences and rights, and representation. The company is significantly influenced by major events and media rights, particularly stemming from high-profile events like the Paris Olympics.
Financial Performance
For the three months ended September 30, 2024, Endeavor reported total revenue of $2,031.8 million, a significant increase of 66.6% from $1,219.5 million in the same period of 2023. The increase was driven primarily by:
- Owned Sports Properties: $735.2 million (up 53.2% from $479.7 million in 2023)
- Events, Experiences & Rights: $899.8 million (up 145.1% from $367.1 million in 2023)
- Representation: $429.2 million (up 11.3% from $385.6 million in 2023)
Revenue Breakdown
The following table summarizes the revenue components for Endeavor Group Holdings:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Media Rights | $497,779 | $349,547 |
| Technology Platforms and Services | $12,874 | $13,996 |
| Media Production, Distribution and Content | $148,416 | $155,419 |
| Events and Performance | $983,607 | $377,993 |
| Talent Representation and Licensing | $341,488 | $248,837 |
| Marketing | $80,009 | $86,639 |
| Total Revenue | $2,031,790 | $1,219,547 |
Operating Expenses
For the three months ended September 30, 2024, Endeavor's operating expenses were as follows:
- Direct Operating Costs: $1,097.6 million (up 154.6% from $431.1 million in 2023)
- Selling, General and Administrative Expenses: $791.7 million (up 17.9% from $671.5 million in 2023)
- Depreciation and Amortization: $135.5 million (up from $66.6 million in 2023)
- Total Operating Expenses: $2,024.8 million (up 68.6% from $1,197.4 million in 2023)
Adjusted EBITDA
Endeavor reported an Adjusted EBITDA of $6.9 million for the three months ended September 30, 2024, compared to $22.2 million in 2023. The Adjusted EBITDA margins were affected by increased operating costs related to the Paris Olympics and other events.
Net Income and Losses
For the three months ended September 30, 2024, Endeavor reported a net loss of $(420.4 million), compared to a loss of $(116.0 million) in the prior year. The loss from continuing operations was attributed to increased operating costs and expenses associated with the significant events during the period.
Balance Sheet Highlights
As of September 30, 2024, Endeavor Group Holdings had total assets of $20,777.9 million and total liabilities of $10,515.7 million, yielding a total equity of $10,262.2 million.
Future Outlook
Endeavor's future performance will heavily depend on the success of ongoing and upcoming events, including the upcoming media rights negotiations and other strategic initiatives aimed at enhancing revenue streams.
How Endeavor Group Holdings, Inc. (EDR) Makes Money
Revenue Sources
Endeavor Group Holdings, Inc. generates revenue through several key segments:
- Owned Sports Properties
- Events, Experiences & Rights
- Talent Representation and Licensing
- Marketing Services
Financial Performance Overview
For the nine months ended September 30, 2024, Endeavor reported a total revenue of $5.54 billion, an increase of 37.8% compared to the same period in 2023.
| Segment | Revenue (2024) | Revenue (2023) | Increase (%) |
|---|---|---|---|
| Owned Sports Properties | $2.31 billion | $1.17 billion | 97.3% |
| Events, Experiences & Rights | $2.12 billion | $1.76 billion | 20.4% |
| Talent Representation and Licensing | $1.19 billion | $1.12 billion | 6.2% |
| Marketing Services | $243 million | $241 million | 0.8% |
Events and Performance Revenue
In Q3 2024, revenue from events and performance reached $899.8 million, a significant increase of 145.1% compared to Q3 2023, primarily driven by the Paris Olympics.
Operating Costs
Direct operating costs for the nine months ended September 30, 2024, were $2.63 billion, up from $1.62 billion in 2023, marking an increase of 62.5%.
| Cost Type | 2024 ($ million) | 2023 ($ million) | Increase (%) |
|---|---|---|---|
| Direct Operating Costs | $2,630.4 | $1,618.6 | 62.5% |
| Selling, General and Administrative | $2,596.8 | $1,884.6 | 37.8% |
| Depreciation and Amortization | $416.6 | $171.7 | 142.6% |
EBITDA Performance
Adjusted EBITDA for the nine months ended September 30, 2024, was $1.04 billion, an increase of 72.2% compared to the previous year.
| Period | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Increase (%) |
|---|---|---|---|
| Nine Months Ended September 30 | $1,037.3 million | $602.3 million | 72.2% |
Challenges and Losses
Despite the revenue gains, Endeavor reported a net loss of $977.6 million for the nine months ended September 30, 2024, compared to a profit of $586.8 million in 2023.
Conclusion on Financial Strategy
Endeavor's financial strategy focuses on leveraging its diverse portfolio of events and properties to drive revenue growth while managing operational costs effectively.
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Resources:
- Endeavor Group Holdings, Inc. (EDR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Endeavor Group Holdings, Inc. (EDR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Endeavor Group Holdings, Inc. (EDR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.