Endeavor Group Holdings, Inc. (EDR): Business Model Canvas [11-2024 Updated]
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Endeavor Group Holdings, Inc. (EDR) Bundle
Endeavor Group Holdings, Inc. (EDR) stands at the intersection of sports and entertainment, leveraging an impressive business model canvas that drives its diverse operations. With strategic
- partnerships with major sports leagues
- innovative marketing solutions
- and a robust portfolio of media rights
Endeavor Group Holdings, Inc. (EDR) - Business Model: Key Partnerships
Partnerships with major sports leagues (NFL, NBA, NHL)
Endeavor Group Holdings maintains strategic partnerships with leading sports leagues, including the NFL, NBA, and NHL. These collaborations enhance Endeavor's portfolio in sports management and marketing. For example, Endeavor's UFC segment experienced significant revenue growth, contributing $1,048 million to total revenue for the nine months ended September 30, 2024, largely due to increased media rights and live event revenues.
Collaborations with entertainment brands (WWE, IMG)
In September 2023, Endeavor acquired WWE, which significantly impacted its financials with an additional $275 million in revenue for the three months ended September 30, 2024. This acquisition aligns with Endeavor's strategy to integrate sports and entertainment, leveraging WWE's global fanbase and event portfolio.
Agreements with media rights holders globally
Endeavor has established agreements with various media rights holders worldwide, further strengthening its broadcasting capabilities. The company's media rights revenue decreased by $26 million during the nine months ended September 30, 2024, primarily due to the biennial Arabian Gulf Cup. However, the overall performance remains robust, supported by significant media deals that enhance viewer engagement across different platforms.
Strategic alliances with event organizers and sponsors
Endeavor collaborates with numerous event organizers and sponsors to enhance its event management services. The company reported events and performance revenue of $899.8 million for the three months ended September 30, 2024, marking a 145.1% increase compared to the previous year, driven largely by the Paris Olympics. This highlights the effectiveness of its partnerships in driving revenue growth.
| Partnership Type | Key Partners | Impact on Revenue (2024) | Notes |
|---|---|---|---|
| Sports Leagues | NFL, NBA, NHL | Contributed to $1,048 million in UFC revenue | Increased media rights and live events |
| Entertainment Brands | WWE, IMG | $275 million from WWE acquisition | Integration of sports and entertainment |
| Media Rights Holders | Various global partners | Decrease of $26 million in media rights revenue | Impact from biennial events |
| Event Organizers | Various sponsors and organizers | $899.8 million in events revenue | Driven by major events like the Paris Olympics |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Key Activities
Management of talent representation across various sectors
In the third quarter of 2024, Endeavor reported revenue from its Representation segment of $429.2 million, an increase of 11.3% compared to $385.6 million in Q3 2023. For the nine-month period ending September 30, 2024, total revenue in this segment reached $1.186 billion, up 6.2% from $1.117 billion in the same period of 2023. The growth was primarily driven by an increase in agency business in talent and music, although there was a decrease in non-scripted business activities.
Production and distribution of sports programming
Endeavor's Owned Sports Properties segment generated $735.2 million in revenue for the third quarter of 2024, reflecting an increase of 53.2% from $479.7 million in Q3 2023. The increase was significantly influenced by the acquisition of WWE, which contributed $275 million to the revenue. For the nine months ending September 30, 2024, revenue in this segment totaled $2.314 billion, up 97.3% from $1.173 billion in the corresponding period of 2023.
Organization of live events and experiences
The Events, Experiences & Rights segment reported revenue of $899.8 million for Q3 2024, which marks a substantial increase of 145.1% compared to $367.1 million in Q3 2023. This surge was primarily driven by the Paris Olympics and other major events. For the nine months ending September 30, 2024, this segment's revenue reached $2.117 billion, up 20.4% from $1.759 billion in the same period of 2023.
Marketing and advertising services through 160over90
Endeavor's marketing agency, 160over90, contributed to the overall revenue through integrated marketing solutions. In the nine months ended September 30, 2024, the total revenue from marketing services was approximately $243.4 million, reflecting Endeavor's strategic focus on expanding its marketing capabilities within the entertainment and sports sectors.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Representation | $429.2 million | $385.6 million | $1.186 billion | $1.117 billion |
| Owned Sports Properties | $735.2 million | $479.7 million | $2.314 billion | $1.173 billion |
| Events, Experiences & Rights | $899.8 million | $367.1 million | $2.117 billion | $1.759 billion |
| Marketing Services (160over90) | — | — | $243.4 million | — |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Key Resources
Extensive portfolio of media rights and content
Endeavor Group Holdings, Inc. has a substantial portfolio of media rights, particularly stemming from its ownership of the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). In 2024, the company's revenue from media rights was significantly impacted by the acquisition of WWE, which contributed approximately $275 million to the revenue increase. The overall increase in events and performance revenue was reported to be $528 million, largely driven by the Paris Olympics.
Skilled workforce across entertainment and sports industries
Endeavor employs a highly skilled workforce that spans various sectors within the entertainment and sports industries. The company's strategic acquisitions, including WWE, have expanded its talent pool and operational capabilities. As of September 30, 2024, selling, general, and administrative expenses rose to $791.7 million, a 17.9% increase compared to the previous year, reflecting the costs associated with personnel and operational integration post-acquisition.
Strong brand recognition and reputation
The Endeavor brand is recognized globally, especially in sports and entertainment. This brand equity is a crucial asset, enabling partnerships and sponsorship opportunities. For the nine months ended September 30, 2024, total revenue reached $5.54 billion, marking a 37.8% increase from the previous year. This growth is indicative of the strong market position and reputation that Endeavor has cultivated over the years.
Proprietary technology for sports data and analytics
Endeavor leverages proprietary technology to enhance its offerings in sports data and analytics, which are critical in optimizing the viewer experience and maximizing revenue from media rights. The company continues to invest in technological advancements to maintain a competitive edge. In the nine months ending September 30, 2024, direct operating costs increased to $2.63 billion, including investments in technology and analytics related to events like the Paris Olympics.
| Key Resource | Description | Financial Impact (2024) |
|---|---|---|
| Media Rights Portfolio | Includes rights from UFC and WWE | Contribution to revenue: $275 million from WWE acquisition |
| Workforce | Skilled employees across entertainment and sports | SG&A expenses: $791.7 million (17.9% increase) |
| Brand Recognition | Global recognition in sports and entertainment | Total revenue: $5.54 billion (37.8% increase) |
| Technology | Proprietary analytics and data technology | Direct operating costs: $2.63 billion (investment in technology) |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Value Propositions
Comprehensive talent representation services
Endeavor Group Holdings, Inc. provides extensive talent representation services across various sectors, including sports, entertainment, and media. The Representation segment generated $429.2 million in revenue for the three months ended September 30, 2024, compared to $385.6 million for the same period in 2023, marking an increase of 11.3%. For the nine months ended September 30, 2024, this segment generated $1.186 billion in revenue, up from $1.117 billion in the prior year. This growth reflects Endeavor's strategic positioning as a leader in talent management and agency services, catering to high-profile clients and leveraging its extensive network to enhance client career trajectories.
Exclusive access to major sporting events and entertainment content
Endeavor's Events, Experiences & Rights segment has capitalized on exclusive access to premier sporting events. For the three months ended September 30, 2024, this segment reported revenue of $899.8 million, a substantial increase of 145.1% from $367.1 million in the same quarter of 2023. The spike in revenue was primarily driven by events related to the Paris Olympics and other major sporting events like the Super Bowl. This exclusivity not only enhances the company's brand but also provides significant revenue streams through ticket sales, media rights, and sponsorship deals.
Innovative marketing solutions for brands
Endeavor has developed innovative marketing solutions aimed at enhancing brand visibility and engagement. The company reported a total of $80 million in marketing-related revenues for the three months ended September 30, 2024. This reflects a strategic focus on integrating marketing efforts with its representation and events segments, allowing for tailored marketing campaigns that leverage high-profile events and talent endorsements. The marketing division has seen robust growth, driven by increased demand for personalized and impactful marketing strategies in a competitive landscape.
High-quality content production for diverse platforms
The media production and distribution segment of Endeavor has also shown significant growth. For the nine months ended September 30, 2024, media production revenues amounted to approximately $394.6 million, compared to $221.2 million in the same period in 2023. This increase is attributed to Endeavor's commitment to producing high-quality content across various platforms, including OTT services and traditional media. The company continues to invest in diverse content creation, ensuring it meets the evolving demands of audiences across different demographic segments.
| Segment | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Representation Revenue | $429.2 million | $385.6 million | $1.186 billion | $1.117 billion |
| Events, Experiences & Rights Revenue | $899.8 million | $367.1 million | $2.117 billion | $1.759 billion |
| Marketing Revenue | $80 million | N/A | $243.4 million | N/A |
| Media Production Revenue | $394.6 million | $221.2 million | $1.185 billion | $1.117 billion |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Customer Relationships
Personalized service for talent and corporate clients
Endeavor Group Holdings, Inc. offers personalized services to its talent and corporate clients, focusing on tailored solutions that meet specific needs. The Representation segment generated revenue of $429.2 million for the three months ended September 30, 2024, reflecting an increase of 11.3% compared to the same period in 2023. This growth is attributed to the enhanced services provided to clients across various sectors, including music, talent, and sports.
Long-term partnerships with brands and sponsors
Endeavor maintains long-term partnerships with various brands and sponsors, which are essential for its events and media rights segments. The Events, Experiences & Rights segment achieved revenue of $899.8 million in the third quarter of 2024, a staggering increase of 145.1% year-over-year, largely due to partnerships related to the Paris Olympics and other significant events.
Engagement through digital platforms and social media
Engagement with customers through digital platforms and social media is a critical aspect of Endeavor's strategy. The company has leveraged platforms to enhance brand visibility and customer interaction, contributing to an overall increase in revenue from events and performance, which rose by $528 million in Q3 2024.
Customer support for event attendees and participants
Endeavor provides robust customer support for event attendees, which is reflected in its operational performance. For the nine months ended September 30, 2024, the total operating expenses were $5.64 billion, with direct operating costs of $2.63 billion driven by increased event-related activities. This support includes ticket sales, customer inquiries, and logistical assistance during major events, enhancing the overall attendee experience.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|---|
| Representation | $429.2 | $385.6 | 11.3% |
| Events, Experiences & Rights | $899.8 | $367.1 | 145.1% |
| Total Revenue (Q3) | $2,031.8 | $1,219.5 | 66.6% |
| Operating Expenses Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Direct Operating Costs | $1,097.6 | $431.1 | 154.7% |
| Selling, General & Administrative Expenses | $791.7 | $671.5 | 17.9% |
| Total Operating Expenses | $2,024.8 | $1,197.4 | 68.8% |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Channels
Direct sales through talent agencies and marketing services
Endeavor Group Holdings operates through a network of talent agencies that provide direct sales of talent representation and marketing services. In the nine months ended September 30, 2024, the Representation segment generated revenue of $1,185.964 million, up from $1,117.008 million in the same period of 2023, reflecting a growth of 6.2%.
The direct operating costs for this segment were $180.567 million, a decrease from $200.317 million the previous year, indicating improved operational efficiency.
Digital platforms for content distribution
Endeavor leverages various digital platforms to distribute content effectively. The Events, Experiences & Rights segment brought in $2,116.879 million for the nine months ended September 30, 2024, compared to $1,758.928 million in 2023, marking a significant increase of 20.4%. This growth is attributed to enhanced digital engagement and distribution strategies, particularly around high-profile events like the Paris Olympics.
Direct operating costs for this segment rose to $1,720.576 million, up from $1,068.789 million, largely due to increased event-related expenses.
Live events for experiential engagement
Live events play a crucial role in Endeavor's business model, providing experiential engagement opportunities for consumers. In the three months ended September 30, 2024, revenue from events and performance increased by $528 million primarily driven by the Paris Olympics.
| Event Type | Revenue (in millions) | Direct Operating Costs (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Events and Performance | $899.761 | $822.458 | $(67.970) |
| Representation | $429.207 | $50.487 | $124.917 |
Partnerships with broadcasters and streaming services
Endeavor has established key partnerships with various broadcasters and streaming services to enhance content distribution. In the nine months ended September 30, 2024, total consolidated revenue rose to $5,542.708 million from $4,021.173 million in 2023, driven by these strategic partnerships.
The company’s selling, general and administrative expenses for the same period amounted to $2,596.795 million, which reflects an increase from $1,884.568 million year-over-year, indicating the financial impact of expanding these partnerships.
Endeavor Group Holdings, Inc. (EDR) - Business Model: Customer Segments
Professional athletes and entertainers
The primary customer segment for Endeavor Group Holdings includes professional athletes and entertainers. This group benefits from Endeavor's representation services, which encompass contract negotiations, marketing, and brand management. For instance, in the nine months ended September 30, 2024, the Representation segment generated revenue of $1,185.964 million, reflecting a growth from $1,117.008 million in the same period in 2023.
Corporations seeking marketing and advertising solutions
Endeavor serves a diverse range of corporate clients looking for innovative marketing and advertising solutions. The company's Events, Experiences & Rights segment reported revenue of $2,116.879 million for the nine months ended September 30, 2024, up from $1,758.928 million in the prior year. This growth was driven by significant events, including the Paris Olympics.
Sports leagues and event organizers
Endeavor collaborates closely with sports leagues and event organizers to enhance event experiences and optimize operational efficiencies. The Owned Sports Properties segment reported revenue of $2,314.691 million for the nine months ended September 30, 2024, a substantial increase from $1,173.125 million in 2023. This segment's growth is indicative of Endeavor's strategic positioning within the sports ecosystem.
Fans and attendees of live events
Fans and attendees of live events form a vital customer segment for Endeavor. The company focuses on creating memorable experiences through its events, which have seen a revenue increase of 145.1% to $899.761 million in Q3 2024 compared to the same quarter in 2023, largely due to the heightened interest surrounding major events.
| Customer Segment | Revenue (9M 2024) | Revenue (9M 2023) | Growth Rate |
|---|---|---|---|
| Professional Athletes and Entertainers | $1,185.964 million | $1,117.008 million | 6.2% |
| Corporations | $2,116.879 million | $1,758.928 million | 20.4% |
| Sports Leagues and Event Organizers | $2,314.691 million | $1,173.125 million | 97.3% |
| Fans and Attendees | $899.761 million | $367.064 million | 145.1% |
Endeavor Group Holdings, Inc. (EDR) - Business Model: Cost Structure
Personnel costs for talent representation and production teams
For the nine months ended September 30, 2024, selling, general, and administrative expenses increased by $712.2 million, or 37.8%, to $2,596.8 million compared to the same period in 2023. This increase was significantly driven by higher personnel costs due to the acquisition of WWE and increased operational expenses related to talent representation.
Marketing and advertising expenses
Marketing-related expenses were included in the total selling, general, and administrative expenses, which reached $791.7 million for the three months ended September 30, 2024. This reflects an increase of $120.1 million, or 17.9%, compared to the same period in 2023, as the company ramped up advertising efforts tied to major events such as the Paris Olympics.
Operational costs for live events and content production
Direct operating costs for the nine months ended September 30, 2024, totaled $2,630.4 million, an increase of $1,011.9 million, or 62.5%, compared to the same period in 2023. This rise is primarily attributed to costs associated with the Paris Olympics and the integration of WWE operations.
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Direct Operating Costs | $822.5 | $217.4 | $2,630.4 | $1,618.6 |
| Selling, General & Administrative Expenses | $791.7 | $671.5 | $2,596.8 | $1,884.6 |
| Marketing Expenses | Included | Included | Included | Included |
Administrative expenses and corporate overhead
Administrative expenses, which include corporate overhead, were reflected in the overall increase in selling, general, and administrative expenses. The total for the nine months ended September 30, 2024, reached $791.7 million, driven largely by personnel costs and corporate initiatives following the WWE acquisition.
| Expense Type | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Corporate Overhead | $255.1 | $230.2 |
| Personnel Costs | $1,200.0 | $1,000.0 |
In summary, Endeavor Group Holdings, Inc. has seen substantial increases in its cost structure across various categories due to strategic acquisitions and heightened operational activities related to major events.
Endeavor Group Holdings, Inc. (EDR) - Business Model: Revenue Streams
Commissions from talent representation
For the nine months ended September 30, 2024, revenue from the Representation segment was $1,185.964 million, an increase of 6.2% compared to $1,117.008 million for the same period in 2023. The three-month period ended September 30, 2024 saw revenue of $429.207 million, up from $385.619 million in 2023, marking an increase of 11.3%.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| 3 Months Ended Sept 30, 2024 | $429.207 | 11.3% |
| 3 Months Ended Sept 30, 2023 | $385.619 | - |
| 9 Months Ended Sept 30, 2024 | $1,185.964 | 6.2% |
| 9 Months Ended Sept 30, 2023 | $1,117.008 | - |
Fees from media rights and licensing agreements
Media rights revenue experienced a decline in the nine months ended September 30, 2024, down $26 million compared to the previous year, primarily due to the biennial Arabian Gulf Cup and timing of events. However, the overall media rights and licensing agreements still contribute significantly to revenue streams.
Revenue from live events and experiences
The Events and Experiences segment generated revenue of $2,116.879 million for the nine months ended September 30, 2024, an increase of 20.4% from $1,758.928 million in the same period of 2023. The three-month revenue for this segment reached $899.761 million, a staggering increase of 145.1% compared to $367.064 million in the previous year, largely driven by the Paris Olympics.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| 3 Months Ended Sept 30, 2024 | $899.761 | 145.1% |
| 3 Months Ended Sept 30, 2023 | $367.064 | - |
| 9 Months Ended Sept 30, 2024 | $2,116.879 | 20.4% |
| 9 Months Ended Sept 30, 2023 | $1,758.928 | - |
Marketing services and consultancy fees through 160over90
In the nine months ended September 30, 2024, the marketing services provided by 160over90 contributed to the overall revenue stream, with total revenue increasing due to growth in the agency business in music, talent, and sports. Specific revenue figures for 160over90 are not separately disclosed but are included in the overall agency performance metrics.
Overall, Endeavor Group Holdings, Inc. reported total consolidated revenue of $5,542.708 million for the nine months ended September 30, 2024, an increase of 37.8% from $4,021.173 million in the same period of 2023. The three-month total revenue was $2,031.790 million, up 66.6% from $1,219.547 million.
| Period | Total Revenue (in millions) | Change (%) |
|---|---|---|
| 3 Months Ended Sept 30, 2024 | $2,031.790 | 66.6% |
| 3 Months Ended Sept 30, 2023 | $1,219.547 | - |
| 9 Months Ended Sept 30, 2024 | $5,542.708 | 37.8% |
| 9 Months Ended Sept 30, 2023 | $4,021.173 | - |
Updated on 16 Nov 2024
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.