Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor” or the
“Company”), a global sports and entertainment company, today
released its financial results for the quarterly period ended
September 30, 2023.
Highlights
- $1.344 billion in Q3 2023 revenue
- Closed UFC and WWE transaction to form TKO Group Holdings, Inc.
(“TKO”), of which Endeavor holds a 51% controlling interest on a
fully diluted basis
- Multiple ticket sales records at UFC and WWE live events
- Significant deals for sports and music talent
- Continued demand for betting data and premium sports
content
- On track to complete by year-end our previously announced share
repurchase program of up to $300 million
- Initiated quarterly cash dividend payments
- Announced initiation of formal review to evaluate strategic
alternatives for the Company
Q3 2023 Consolidated Financial Results
- Revenue: $1.344 billion
- Net loss: $116.0 million
- Adjusted EBITDA: $311.6 million
“Our results in the third quarter demonstrate the strength of
our diversified portfolio and leading position in sports and
entertainment,” said Ariel Emanuel, CEO, Endeavor. “We are making
good progress on our TKO integration efforts, setting ticket sales
or attendance records at many of our live events, and continuing to
benefit from demand for premium content and experiences. Our focus
remains on maximizing shareholder value through capital return
initiatives including our share repurchase program and dividend
payments, as well as our recently announced evaluation of strategic
alternatives.”
Segment Operating Results
- Owned Sports Properties segment revenue, which includes
TKO, was $479.7 million for the quarter, up $77.5 million, or
19.3%, compared to the third quarter of 2022. Growth was primarily
driven by higher media rights fees from contractual increases, as
well as two additional Fight Nights in the quarter, higher live
event revenue, and increases in sponsorships and site fees. Revenue
growth was also driven by the acquisition of WWE, which contributed
$52 million of revenue for the post-closing period from September
12, 2023 through September 30, 2023. Revenue was partially offset
by $33 million included in the same prior year period from Diamond
Baseball Holdings, which was sold in September 2022. The segment’s
Adjusted EBITDA was $237.4 million, up $41.7 million, or 21.3%,
year-over-year.
- Events, Experiences & Rights segment revenue was
$367.1 million for the quarter, down $27.1 million, or 6.9%,
compared to the third quarter of 2022. Segment revenue was impacted
by the sale of IMG Academy in June 2023 and partially offset by new
contracts in IMG’s media production business, certain biennial and
quadrennial events like the Ryder Cup and Rugby World Cup, and live
event revenue such as Barrett-Jackson New Orleans, as well as the
acquisition of The Armory Show this past July. The segment’s
Adjusted EBITDA was $29.8 million for the quarter, down $15.7
million, or 34.4%, compared to the third quarter of 2022.
- Representation segment revenue was $385.6 million for
the quarter, down $2.7 million, or 0.7%, compared to the third
quarter of 2022. Segment revenue was impacted by the WGA and
SAG-AFTRA strikes, partially offset by the music and sports
verticals at WME, the delivery of projects in Endeavor’s
nonscripted content production business, as well as increases at
160over90, including the acquisition of XYZ, a London-based
experiential marketing agency. Adjusted EBITDA was $96.3 million
for the quarter, down $36.6 million, or 27.5%, compared to the
third quarter of 2022.
- Sports Data & Technology segment revenue was $124.8
million, up $78.1 million, or 167.2%, compared to the third quarter
of 2022. Growth was driven by the inclusion of OpenBet, which we
acquired in September 2022, as well as growth at IMG ARENA. The
segment’s Adjusted EBITDA was $24 million for the quarter, up $19.8
million, or 476.5%, year-over-year.
Balance Sheet and Liquidity
At September 30, 2023, cash and cash equivalents totaled $1.338
billion compared to $1.616 billion at June 30, 2023. Total debt was
$5.046 billion at September 30, 2023, compared to $5.110 billion at
June 30, 2023.
For further information regarding the Company's financial
results, as well as certain non-GAAP financial measures, and the
reconciliations thereof, please refer to the following pages of
this release or visit the Company’s Investor Relations site at
investor.endeavorco.com.
Webcast Details
Endeavor will host an audio webcast to discuss its results and
provide a business update at 5 a.m. PT / 8 a.m. ET Wednesday,
November 8. The event can be accessed at:
https://events.q4inc.com/attendee/398127204
The link to the webcast, as well as a recording, will also be
available within the News/Events section of
investor.endeavorco.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. We intend such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements in this press release that do not relate to matters of
historical fact should be considered forward-looking statements,
including the Company’s initiatives to create stockholder value and
the timing of completion of repurchases under its share repurchase
program. The words “believe,” “may,” “will,” “estimate,”
“potential,” “continue,” “anticipate,” “intend,” “expect,” “could,”
“would,” “project,” “plan,” “target,” and similar expressions are
intended to identify forward-looking statements, though not all
forward-looking statements use these words or expressions. These
forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees
and involve known and unknown risks, uncertainties and other
important factors that may cause actual results, performance or
achievements to be materially different from what is expressed or
implied by the forward-looking statements, including, but not
limited to: changes in public and consumer tastes and preferences
and industry trends; Endeavor’s ability to adapt to or manage new
content distribution platforms or changes in consumer behavior;
Endeavor’s dependence on the relationships of its management,
agents, and other key personnel with clients; impacts from labor
disputes and work stoppages by unions and guilds such as the
Writers Guild of America and SAG-AFTRA, of which many of Endeavor
clients are members; Endeavor’s dependence on key relationships
with television and cable networks, satellite providers, digital
streaming partners, corporate sponsors, and other distribution
partners; risks related to Endeavor’s gaming business and
applicable regulatory requirements; risks related to Endeavor’s
organization and structure; risks related to the business
combination of UFC and WWE into TKO; and other important factors
discussed in Part I, Item 1A “Risk Factors” in Endeavor’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2022, as
any such factors may be updated from time to time in the Company’s
other filings with the SEC, including without limitation, the
Company’s Quarterly Report on Form 10-Q for the quarterly periods
ended March 31, 2023, June 30, 2023 and September 30, 2023,
accessible on the SEC’s website at www.sec.gov and Endeavor’s
Investor Relations site at investor.endeavorco.com. Forward-looking
statements speak only as of the date they are made and, except as
may be required under applicable law, Endeavor undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized
under United States generally accepted accounting principles
(“GAAP”). Please see “Note Regarding Non-GAAP Financial Measures"
and the reconciliation tables below for additional information and
a reconciliation of the Non-GAAP financial measures to the most
comparable GAAP financial measures.
About Endeavor
Endeavor is a global sports and entertainment company, home to
many of the world’s most dynamic and engaging storytellers, brands,
live events, and experiences. The Endeavor network specializes in
talent representation through entertainment agency WME; sports
operations and advisory, event management, media production and
distribution, and brand licensing through IMG; live event
experiences and hospitality through On Location; full-service
marketing through global cultural marketing agency 160over90; and
sports data and technology through IMG ARENA and OpenBet. Endeavor
is also the majority owner of TKO Group Holdings, Inc. (NYSE: TKO),
a premium sports and entertainment company comprising UFC and
WWE.
Website Disclosure
Investors and others should note that Endeavor announces
material financial and operational information to its investors
using press releases, SEC filings and public conference calls and
webcasts, as well as its Investor Relations site at
investor.endeavorco.com. Endeavor may also its our website as a
distribution channel of material company information. In addition,
you may automatically receive email alerts and other information
about Endeavor when you enroll your email address by visiting the
“Investor Email Alerts” option under the Resources tab on
investor.endeavorco.com.
Consolidated Statements of
Operations
(Unaudited)
(In thousands, except share and
per share data)
Three Months Ended September 30, Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue
$
1,344,395
$
1,221,416
$
4,377,444
$
4,007,694
Operating expenses: Direct operating costs
487,886
398,518
1,796,182
1,601,544
Selling, general and administrative expenses
715,231
601,469
2,017,115
1,729,174
Insurance recoveries
—
—
—
(993
)
Depreciation and amortization
81,207
63,571
209,036
195,177
Impairment charges
28,196
689
28,196
689
Total operating expenses
1,312,520
1,064,247
4,050,529
3,525,591
Operating income
31,875
157,169
326,915
482,103
Other (expense) income: Interest expense, net
(81,956
)
(75,608
)
(257,360
)
(197,385
)
Tax receivable agreement liability adjustment
(20,297
)
(10,405
)
(7,779
)
(61,497
)
Other (expense) income, net
(12,863
)
9,325
753,227
463,133
(Loss) income before income taxes and equity losses of affiliates
(83,241
)
80,481
815,003
686,354
Provision for (benefit from) income taxes
29,995
8,515
205,906
(6,020
)
(Loss) income before equity losses of affiliates
(113,236
)
71,966
609,097
692,374
Equity losses of affiliates, net of tax
(2,748
)
(84,504
)
(22,291
)
(145,026
)
Net (loss) income
(115,984
)
(12,538
)
586,806
547,348
Less: Net (loss) income attributable to non-controlling interests
(46,776
)
(2,499
)
244,809
212,035
Net (loss) income attributable to Endeavor Group Holdings, Inc.
$
(69,208
)
$
(10,039
)
$
341,997
$
335,313
(Loss) earnings per share of Class A common stock: Basic
$
(0.23
)
$
(0.04
)
$
1.14
$
1.22
Diluted
$
(0.25
)
$
(0.04
)
$
1.12
$
1.19
Weighted average number of shares used in computing (loss)
earnings per share: Basic
301,876,322
285,870,317
298,311,200
278,724,574
Diluted(1)
300,640,142
289,806,633
301,305,267
450,758,061
(1) The diluted weighted average number of shares of
300,640,142 and 301,305,267 for the three and nine months ended
September 30, 2023, respectively, includes weighted average Class A
common shares outstanding, plus an assumed exchange of Endeavor
Profits Units into shares of the Company’s Class A common stock,
plus additional shares from RSUs, Stock Options and Phantom Units,
less shares to be received under the accelerated share repurchase
agreement, as noted in the table below: Weighted average
Class A Common Shares outstanding - Basic
301,876,322
298,311,200
Additional shares assuming exchange of all Endeavor Profits Units
—
828,375
Additional shares from RSUs, stock options and Phantom Units, as
calculated using the treasury stock method
—
2,165,692
Shares to be received under the accelerated share repurchase
agreement
(1,236,180
)
—
Weighted average Class A Common Shares outstanding - Diluted
300,640,142
301,305,267
Securities that are anti-dilutive for the three and nine
months ended September 30, 2023, are additional shares based on an
assumed exchange of Endeavor Manager Units and Endeavor Operating
Units into 156,137,338 shares, as well as additional shares from
Stock Options, RSUs, Endeavor Profits Units, and redeemable
non-controlling interests.
Segment Results
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue: Owned Sports Properties
$
479,748
$
402,272
$
1,173,125
$
1,030,891
Events, Experiences & Rights
367,064
394,118
1,758,928
1,742,861
Representation
385,619
388,335
1,117,008
1,103,611
Sports Data & Technology
124,847
46,720
356,271
152,134
Eliminations
(12,883
)
(10,029
)
(27,888
)
(21,803
)
Total Revenue
$
1,344,395
$
1,221,416
$
4,377,444
$
4,007,694
Adjusted EBITDA: Owned Sports Properties
$
237,417
$
195,749
$
602,322
$
505,760
Events, Experiences & Rights
29,846
45,506
214,420
264,070
Representation
96,325
132,923
287,680
345,849
Sports Data & Technology
23,994
4,162
42,203
26,198
Corporate
(75,965
)
(75,258
)
(223,699
)
(217,991
)
Consolidated Balance
Sheets
(Unaudited)
(In thousands, except share
data)
September 30, December 31,
2023
2022
ASSETS Current Assets: Cash and cash equivalents
$
1,337,665
$
767,828
Restricted cash
310,667
278,165
Accounts receivable (net of allowance for doubtful accounts of
$54,286 and $54,766, respectively)
1,083,125
917,000
Deferred costs
512,164
268,524
Assets held for sale
7,500
12,013
Other current assets
436,016
293,206
Total current assets
3,687,137
2,536,736
Property and equipment, net
891,323
696,302
Operating lease right-of-use assets
330,429
346,550
Intangible assets, net
5,342,618
2,205,583
Goodwill
10,119,121
5,284,697
Investments
386,994
336,973
Deferred income taxes
569,065
771,382
Other assets
574,938
325,619
Total assets
$
21,901,625
$
12,503,842
LIABILITIES, REDEEMABLE INTERESTS AND SHAREHOLDERS'
EQUITY Current Liabilities: Accounts payable
$
590,078
$
600,605
Accrued liabilities
707,219
525,239
Current portion of long-term debt
63,013
88,309
Current portion of operating lease liabilities
73,293
65,381
Deferred revenue
751,313
716,147
Deposits received on behalf of clients
293,304
258,414
Liabilities held for sale
—
2,672
Current portion of tax receivable agreement liability
156,514
50,098
Other current liabilities
288,084
107,675
Total current liabilities
2,922,818
2,414,540
Long-term debt
4,983,404
5,080,237
Long-term operating lease liabilities
301,101
327,888
Long-term tax receivable agreement liability
871,922
961,623
Deferred tax liabilities
561,250
171,571
Other long-term liabilities
391,407
241,411
Total liabilities
10,031,902
9,197,270
Commitments and contingencies Redeemable
non-controlling interests
223,514
253,079
Shareholders' Equity: Class A common stock, $0.00001 par
value; 5,000,000,000 shares authorized; 300,309,972 and 290,541,729
shares issued and outstanding as of September 30, 2023 and December
31, 2022, respectively
3
2
Class B common stock, $0.00001 par value; 5,000,000,000 shares
authorized; none issued and outstanding as of September 30, 2023
and December 31, 2022
—
—
Class C common stock, $0.00001 par value; 5,000,000,000 shares
authorized; none issued and outstanding as of September 30, 2023
and December 31, 2022
—
—
Class X common stock, $0.00001 par value; 4,983,448,411 and
4,987,036,068 shares authorized; 171,330,617 and 182,077,479 shares
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively
1
1
Class Y common stock, $0.00001 par value; 989,681,838 and
997,261,325 shares authorized; 226,211,475 and 227,836,134 shares
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively
2
2
Additional paid-in capital
4,849,404
2,120,794
Accumulated deficit
(52,235
)
(216,219
)
Accumulated other comprehensive loss
(34,100
)
(23,736
)
Total Endeavor Group Holdings, Inc. shareholders' equity
4,763,075
1,880,844
Nonredeemable non-controlling interests
6,883,134
1,172,649
Total shareholders' equity
11,646,209
3,053,493
Total liabilities, redeemable interests and shareholders' equity
$
21,901,625
$
12,503,842
Note Regarding Non-GAAP Financial Measures
This press release includes financial measures that are not
calculated in accordance with United States generally accepted
accounting principles (“GAAP”), including Adjusted EBITDA and
Adjusted EBITDA Margin.
Adjusted EBITDA is a non-GAAP financial measure and is defined
as net income (loss), excluding income taxes, net interest expense,
depreciation and amortization, equity-based compensation, merger,
acquisition and earn-out costs, certain legal costs, restructuring,
severance and impairment charges, certain non-cash fair value
adjustments, certain equity earnings, net gains on the sale of
businesses, tax receivable agreement liability adjustment, and
certain other items, when applicable. Adjusted EBITDA margin is a
non-GAAP financial measure defined as Adjusted EBITDA divided by
Revenue.
Management believes that Adjusted EBITDA is useful to investors
as it eliminates the significant level of non-cash depreciation and
amortization expense that results from our capital investments and
intangible assets recognized in business combinations, and improves
comparability by eliminating the significant level of interest
expense associated with our debt facilities, as well as income
taxes and the tax receivable agreement, which may not be comparable
with other companies based on our tax and corporate structure.
Adjusted EBITDA and Adjusted EBITDA margin are used as the
primary bases to evaluate our consolidated operating
performance.
Adjusted EBITDA, and Adjusted EBITDA margin have limitations as
analytical tools, and you should not consider them in isolation or
as a substitute for analysis of our results as reported under GAAP.
Some of these limitations are:
- they do not reflect every cash expenditure, future requirements
for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest
expense or the cash requirements necessary to service interest or
principal payments on our debt;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced or require improvements in the future, and Adjusted EBITDA
and Adjusted EBITDA margin do not reflect any cash requirement for
such replacements or improvements; and
- they are not adjusted for all non-cash income or expense items
that are reflected in our statements of cash flows.
We compensate for these limitations by using Adjusted EBITDA and
Adjusted EBITDA margin along with other comparative tools, together
with GAAP measurements, to assist in the evaluation of operating
performance.
Adjusted EBITDA and Adjusted EBITDA margin should not be
considered substitutes for the reported results prepared in
accordance with GAAP and should not be considered in isolation or
as alternatives to net income (loss) as indicators of our financial
performance, as measures of discretionary cash available to us to
invest in the growth of our business or as measures of cash that
will be available to us to meet our obligations. Although we use
Adjusted EBITDA and Adjusted EBITDA margin as financial measures to
assess the performance of our business, such use is limited because
it does not include certain material costs necessary to operate our
business. Our presentation of Adjusted EBITDA and Adjusted EBITDA
margin should not be construed as indications that our future
results will be unaffected by unusual or nonrecurring items. These
non-GAAP financial measures, as determined and presented by us, may
not be comparable to related or similarly titled measures reported
by other companies. Set forth below are reconciliations of our most
directly comparable financial measures calculated in accordance
with GAAP to these non-GAAP financial measures on a consolidated
basis.
Adjusted EBITDA
(Unaudited)
(In thousands)
Three Months Ended September 30, Nine Months Ended
September 30,
2023
2022
2023
2022
Net (loss) income
$
(115,984
)
$
(12,538
)
$
586,806
$
547,348
Provision for (benefit from) income taxes
29,995
8,515
205,906
(6,020
)
Interest expense, net
81,956
75,608
257,360
197,385
Depreciation and amortization
81,207
63,571
209,036
195,177
Equity-based compensation expense (1)
62,104
48,388
202,555
159,851
Merger, acquisition and earn-out costs (2)
76,584
30,529
107,499
57,891
Certain legal costs (3)
8,322
1,604
12,233
11,204
Restructuring, severance and impairment (4)
48,852
869
70,788
2,829
Fair value adjustment - equity investments (5)
(148
)
(291
)
(929
)
(13,635
)
Equity method losses - Learfield IMG College and Endeavor Content
(6)
4,594
83,171
19,697
149,086
Net gain on sale of the restricted Endeavor Content business (7)
—
—
—
(463,641
)
Net gain on sale of the Academy business (8)
—
—
(736,978
)
—
Tax receivable agreement liability adjustment (9)
20,297
10,405
7,779
61,497
Other (10)
13,838
(6,749
)
(18,826
)
24,914
Adjusted EBITDA
$
311,617
$
303,082
$
922,926
$
923,886
Net (loss) income margin
(8.6
%)
(1.0
%)
13.4
%
13.7
%
Adjusted EBITDA margin
23.2
%
24.8
%
21.1
%
23.1
%
(1)
Equity-based compensation represents
primarily non-cash compensation expense associated with our
equity-based compensation plans. Equity-based compensation was
recognized in all segments and Corporate for three and nine months
ended September 30, 2023 and 2022.
(2)
Includes (i) certain costs of professional
advisors related to mergers, acquisitions, dispositions or joint
ventures and (ii) fair value adjustments for contingent
consideration liabilities related to acquired businesses and
compensation expense for deferred consideration associated with
selling shareholders that are required to retain our employees.
Such costs for the three months ended September 30, 2023 primarily
related to professional advisor costs and bonuses related to the
Transactions, which were approximately $74 million, and primarily
related to our Owned Sport Properties segment. The bonuses and
certain professional advisor costs were contingent on the closing
of the Transactions. Fair value adjustments for contingent
consideration liabilities related to acquired businesses and
acquisition earn-out adjustments were approximately $3 million,
which primarily related to our Representation and Sports Data &
Technology segments. Such costs for the three months ended
September 30, 2022 primarily related to professional advisor costs,
which were approximately $21 million and primarily related to our
Events, Experiences & Rights segment and Corporate. Fair value
adjustments for contingent consideration liabilities related to
acquired businesses and acquisition earn-out adjustments were
approximately $10 million, which primarily related to our
Representation segment. Such costs for the nine months ended
September 30, 2023 primarily related to professional advisor costs
and bonuses related to the Transactions, which were approximately
$98 million, and primarily related to our Owned Sport Properties
segment and Corporate. The bonuses and certain professional advisor
costs were contingent on the closing of the Transactions. Fair
value adjustments for contingent consideration liabilities related
to acquired businesses and acquisition earn-out adjustments were
approximately $9 million, which primarily related to our Events,
Experiences & Rights, Representation and Sports Data &
Technology segments. Such costs for the nine months ended September
30, 2022 primarily related to professional advisor costs of
approximately $33 million and related to all of our segments. Fair
value adjustments for contingent consideration liabilities related
to acquired businesses and acquisition earn-out adjustments were
approximately $25 million, which primarily related to our
Representation segment.
(3)
Includes costs related to certain
litigation or regulatory matters, which related to our Owned Sports
Properties and Events, Experiences & Rights segments and
Corporate.
(4)
Includes certain costs related to our
restructuring activities and non-cash impairment charges. Such
costs for the three months ended September 30, 2023 primarily
relates to approximately $28 million due to the impairments of
intangible assets and goodwill in our Events, Experiences &
Rights segment; and approximately $21 million due to the
restructuring expenses in our Owned Sports Properties, Events,
Experiences & Rights and Representation segments and Corporate.
Such costs for the three and nine months ended September 30, 2022
primarily relates to a write off of an asset in Corporate and the
restructuring expenses in our Events, Experiences & Rights and
Representation segments. Such costs for the nine months ended
September 30, 2023 primarily relates to approximately $28 million
due to the impairments of intangible assets and goodwill in our
Events, Experiences & Rights segment; a loss of approximately
$9 million due to an other-than-temporary impairment for one of our
equity method investments, which related to our Events, Experiences
& Rights segment; and approximately $31 million due to the
restructuring expenses in our Owned Sports Properties, Events,
Experiences & Rights and Representation segments and
Corporate.
(5)
Includes the net change in fair value for
certain equity investments with and without readily determinable
fair values, based on observable price changes.
(6)
Relates to equity method losses from the
20% interest we retained in the restricted Endeavor Content
business, which we sold in January 2022. For the three and nine
months ended September 30, 2022, also related to equity method
losses from our investment in Learfield IMG College.
(7)
Relates to the gain recorded for the sale
of the restricted Endeavor Content business, net of transactions
costs of $15.0 million, which were contingent on the sale
closing.
(8)
Relates to the gain recorded for the sale
of the Academy business, net of transactions costs of $5.5 million,
which were contingent on the sale closing.
(9)
For the three and nine months ended
September 30, 2023, the adjustment for the tax receivable agreement
liability related to a change in estimates of future TRA payments.
For the three and nine months ended September 30, 2022, the
adjustment for the tax receivable agreement liability related to
the expected realization of certain tax benefits after concluding
that such TRA payments would be probable based on estimates of
future taxable income over the terms of the TRA.
(10)
For the three months ended September 30,
2023, other costs were comprised of losses of approximately $13
million on foreign currency exchange transactions, which related to
all of our segments and Corporate; a loss of approximately $3
million related to the change in the fair value of forward foreign
exchange contracts, which related primarily to our Events,
Experiences & Rights segment and Corporate; and a $3 million
release of an indemnity reserve recorded in connection with an
acquisition, which related to our Events, Experiences & Rights
segment. For the three months ended September 30, 2022, other costs
were comprised primarily of a gain of approximately $23 million
related to the sale of DBH, which related to our Owned Sports
Properties segment, losses of approximately $13 million on foreign
exchange transactions, which related to all of our segments and
Corporate, a loss of approximately $8 million related to non-cash
fair value adjustments of embedded foreign currency derivatives,
which related primarily to our Events, Experiences & Rights
segment, and losses of approximately $4 million related to foreign
exchange hedge contracts. For the nine months ended September 30,
2023, other costs were comprised primarily of gains of
approximately $2 million on foreign currency exchange transactions,
which related to all of our segments and Corporate; a gain of
approximately $3 million related to the change in the fair value of
forward foreign exchange contracts, which related to our Events,
Experiences & Rights segment and Corporate; gains of
approximately $6 million on the sales of certain businesses, which
relates to our Events, Experiences & Rights segment; a gain of
approximately $5 million from the resolution of a contingency; and
a $3 million release of an indemnity reserve recorded in connection
with an acquisition, which related to our Events, Experiences &
Rights segment. For the nine months ended September 30, 2022, other
costs were comprised primarily of losses of approximately $33
million on foreign exchange transactions, which related to all of
our segments and Corporate, a gain of approximately $23 million
related to the sale of DBH, which related to our Owned Sports
Properties segment, a loss of approximately $9 million related to
non-cash fair value adjustments of embedded foreign derivatives,
which related primarily to our Events, Experiences & Rights
segment, and losses of approximately $7 million related to foreign
exchange hedge contracts which related to our Events, Experiences
& Rights segment and Corporate.
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version on businesswire.com: https://www.businesswire.com/news/home/20231107987460/en/
Investors: investor@endeavorco.com Press:
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