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, 2024.
Highlights
- $2.032 billion in Q3 2024 revenue
- Growth across Owned Sports Properties driven by strong revenue
performance at WWE, as well as increases in media rights at
Professional Bull Riders (“PBR”)
- Strength within Representation segment driven by growth in
WME’s music and talent groups, reflecting continued consumer demand
for live music and ongoing recovery following resolution of the WGA
and SAG-AFTRA strikes
Q3 2024 Consolidated Financial Results
- Revenue: $2.032 billion
- Net loss: $420.4 million
- Adjusted EBITDA: $277.6 million
“During the quarter, our owned sports and representation
segments delivered solid results driven by continued consumer
demand for live events and content,” said Ariel Emanuel, CEO,
Endeavor. “As we work toward the close of our take-private
transaction with Silver Lake, we remain focused on delivering for
our clients, partners, and shareholders, maintaining momentum
throughout our business, and completing the sale of PBR, On
Location and IMG to TKO.”
Segment Operating Results
- Owned Sports Properties segment revenue was $735.2
million for the quarter, up $255.5 million, or 53.2%, compared to
the third quarter of 2023. The increase was primarily attributed to
the acquisition of WWE in September 2023, which contributed $275
million of the increase during the third quarter, partially offset
by decreases at UFC due to holding fewer events compared to the
prior year period. Segment results also benefited from growth at
PBR driven by increases in media rights as well as increases in
ticket sales and PBR Teams-related revenue from the addition of two
teams. The segment’s Adjusted EBITDA was $315.5 million, up $78.1
million, or 32.9%, year-over-year.
- Events, Experiences & Rights segment revenue was
$899.8 million for the quarter, up $532.7 million, or 145.1%,
compared to the third quarter of 2023. The increase was driven
primarily by the Paris 2024 Olympic and Paralympic Games, for which
On Location served as exclusive hospitality provider. The segment’s
Adjusted EBITDA was $(68.0) million for the quarter, down $97.8
million year-over-year.
- Representation segment revenue was $429.2 million for
the quarter, up $43.6 million, or 11.3%, compared to the third
quarter of 2023. The increase in revenue is primarily attributed to
growth in WME’s talent and music divisions, partially offset by
decreases in the nonscripted content production business. Adjusted
EBITDA was $124.9 million for the quarter, up $28.6 million, or
29.7%, year-over-year.
Sports Data & Technology Segment
In the second quarter, we began to actively market the
businesses comprising the Sports Data & Technology segment,
OpenBet and IMG ARENA. As such, for financial reporting purposes,
these businesses are considered Held for Sale and the Sports Data
& Technology segment is presented as discontinued operations in
the Q3 2024 consolidated interim financial statements.
Balance Sheet and Liquidity
At September 30, 2024, cash and cash equivalents totaled $1.004
billion, compared to $697.7 million at June 30, 2024. Total debt
was $5.228 billion at September 30, 2024, compared to $5.073
billion at June 30, 2024.
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.
Recent Updates
On October 24, 2024, the Company announced a definitive
agreement with TKO Group Holdings, Inc. (NYSE: TKO) to acquire
Endeavor assets including PBR, On Location, and IMG in an
all-equity transaction valued at $3.25 billion. Following the close
of the transaction, expected in the first half of 2025, Endeavor is
expected to own approximately 59% of TKO. The transaction is
subject to the satisfaction of customary closing conditions and
required regulatory approvals. The acquisition of IMG does not
include businesses associated with the IMG brand in licensing,
models, and tennis representation, nor IMG’s full events
portfolio.
Also on October 24, 2024, the Company announced it has commenced
a review and potential sale of certain events within its IMG
portfolio, including but not limited to the Miami Open and Madrid
Open tennis tournaments and art platform Frieze. No definitive
timetable has been set for completion of this review process, and
there is no assurance that the review will result in any specific
action.
On November 5, 2024, On Location and the NFL announced a
multi-year extension of their global hospitality partnership. With
the extension, On Location will continue as NFL’s Official
Hospitality Provider through 2036, covering all premier NFL events
including the Super Bowl, NFL Draft, Pro Football Hall of Fame, Pro
Bowl Games and Scouting Combine. Additionally, On Location’s rights
to sell and market International Games has been expanded to include
all international markets.
Silver Lake Transaction
On April 2, 2024, Endeavor announced that it entered into a
definitive agreement to be acquired by Silver Lake, the global
leader in technology investing, in partnership with the Endeavor
management team and additional anchor investors. Under the terms of
the agreement, Silver Lake will acquire 100% of the outstanding
shares it does not already own, other than rolled interests.
Endeavor stockholders will receive $27.50 per share in cash. The
merger agreement requires the Company to, in each calendar quarter
prior to the closing, declare and pay a dividend in respect of each
issued and outstanding share of the Company’s Class A common stock
at a price equal to $0.06 per share. The transaction is subject to
the satisfaction of customary closing conditions and required
regulatory approvals. No other stockholder approval is required.
The transaction is expected to close by the end of the first
quarter of 2025.
Webcast Details
Following the prior announcement of Endeavor’s definitive
agreement to be acquired by Silver Lake, the Company will not be
hosting an earnings conference call this quarter.
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, without limitation, the Company’s business strategy, the
expected take-private of the Company by Silver Lake; the payment to
be made to the Company’s stockholders; the expected timing of the
closing of the take-private transaction; the announced acquisition
of PBR, On Location and IMG by TKO, the potential sale of certain
events within the Company’s IMG portfolio, and the potential sale
of the businesses comprising the Company’s Sports Data &
Technology segment. 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: risks related to the Company’s potential transaction
with Silver Lake; changes in public and consumer tastes and
preferences and industry trends; impacts from changes in
discretionary and corporate spending on entertainment and sports
events due to factors beyond our control, such as adverse economic
conditions, on our operations; Endeavor’s ability to adapt to or
manage new content distribution platforms or changes in consumer
behavior resulting from new technologies; Endeavor’s reliance on
its professional reputation and brand name; Endeavor’s dependence
on the relationships of its management, agents, and other key
personnel with clients; Endeavor’s dependence on key relationships
with television and cable networks, satellite providers, digital
streaming partners, corporate sponsors, and other distribution
partners; Endeavor’s ability to effectively manage the integration
of and recognize economic benefits from businesses acquired, its
operations at its current size, and any future growth; failure to
protect the Company’s IT systems and confidential information
against breakdowns, security breaches, and other cybersecurity
risks; 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, 2023, 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 period ended September 30, 2024,
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 (NYSE: EDR) 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 OpenBet. Endeavor is also the
majority owner of TKO Group Holdings (NYSE: TKO), a premium sports
and entertainment company comprising UFC and WWE.
Website Disclosure
Investors and others should note that we announce material
financial and operational information to our investors using press
releases, SEC filings and public conference calls and webcasts, as
well as our Investor Relations site at investor.endeavorco.com. We
may also use 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 EndedSeptember 30, Nine Months
EndedSeptember 30,
2024
2023
2024
2023
Revenue
$
2,031,790
$
1,219,547
$
5,542,708
$
4,021,173
Operating expenses: Direct operating costs
1,097,631
431,076
2,630,435
1,618,563
Selling, general and administrative expenses
791,650
671,505
2,596,795
1,884,568
Depreciation and amortization
135,524
66,602
416,556
171,715
Impairment charges
—
28,196
—
28,196
Total operating expenses
2,024,805
1,197,379
5,643,786
3,703,042
Operating income (loss) from continuing operations
6,985
22,168
(101,078
)
318,131
Other (expense) income: Interest expense, net
(108,134
)
(82,271
)
(302,531
)
(257,811
)
Tax receivable agreement liability adjustment
(16
)
(20,297
)
(2,460
)
(7,779
)
Other income (expense), net
33,846
(12,989
)
32,574
753,544
(Loss) income from continuing operations before income taxes and
equity losses of affiliates
(67,319
)
(93,389
)
(373,495
)
806,085
Provision for (benefit from) income taxes
113,774
20,853
(93,129
)
195,521
(Loss) income from continuing operations before equity losses of
affiliates
(181,093
)
(114,242
)
(280,366
)
610,564
Equity losses of affiliates, net of tax
(5,219
)
(2,748
)
(10,315
)
(22,291
)
(Loss) income from continuing operations, net of tax
(186,312
)
(116,990
)
(290,681
)
588,273
Discontinued operations: (Loss) income from discontinued operations
(442,279
)
10,148
(710,886
)
8,918
(Benefit for) provision for income taxes
(208,229
)
9,142
(23,962
)
10,385
(Loss) income from discontinued operations, net of tax
(234,050
)
1,006
(686,924
)
(1,467
)
Net (loss) income
(420,362
)
(115,984
)
(977,605
)
586,806
Less: Net (loss) income attributable to non-controlling interests
(155,693
)
(46,776
)
(361,078
)
244,809
Net (loss) income attributable to Endeavor Group Holdings, Inc.
$
(264,669
)
$
(69,208
)
$
(616,527
)
$
341,997
(Loss) earnings per share of Class A common stock: Basic
from continuing operations
$
(0.44
)
$
(0.22
)
$
(0.60
)
$
1.15
Basic from discontinued operations
(0.42
)
(0.01
)
(1.42
)
(0.01
)
Basic
$
(0.86
)
$
(0.23
)
$
(2.02
)
$
1.14
Diluted from continuing operations
$
(0.44
)
$
(0.24
)
$
(0.60
)
$
1.13
Diluted from discontinued operations
(0.42
)
(0.01
)
(1.42
)
(0.01
)
Diluted
$
(0.86
)
$
(0.25
)
$
(2.02
)
$
1.12
Weighted average number of shares used in computing (loss)
earnings per share: Basic
306,992,963
301,876,322
303,893,880
298,311,200
Diluted(1)
306,992,963
300,640,142
303,893,880
301,305,267
(1) The diluted weighted average
number of shares of 306,992,963 and 303,893,880 for the three and
nine months ended September 30, 2024, respectively, did not include
any additional shares from securities which had an anti-dilutive
impact on the calculation of (loss) earnings per share.
Securities that are anti-dilutive
for the three and nine months ended September 30, 2024, are
additional shares based on an assumed exchange of Endeavor Manager
Units and Endeavor Operating Units into 145,050,978 shares,
additional shares based on an assumed exchange of Endeavor Profits
Units into shares of the Company’s Class A common stock, as well as
additional shares from Stock Options, RSUs and Phantom Units.
Segment Results
(Unaudited)
(In thousands)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30,
2024
2023
2024
2023
Revenue: Owned Sports Properties
$
735,205
$
479,748
$
2,314,691
$
1,173,125
Events, Experiences & Rights
899,761
367,064
2,116,879
1,758,928
Representation
429,207
385,619
1,185,964
1,117,008
Eliminations
(32,383
)
(12,884
)
(74,826
)
(27,888
)
Total Revenue
$
2,031,790
$
1,219,547
$
5,542,708
$
4,021,173
Adjusted EBITDA: Owned Sports Properties
$
315,474
$
237,417
$
1,037,273
$
602,322
Events, Experiences & Rights
(67,970
)
29,846
(40,804
)
214,420
Representation
124,917
96,325
297,502
287,680
Corporate and other
(94,823
)
(77,448
)
(255,054
)
(230,195
)
Consolidated Balance
Sheets
(Unaudited)
(In thousands, except share
data)
September 30, December 31,
2024
2023
ASSETS Current Assets: Cash and cash equivalents
$
1,004,129
$
1,166,526
Restricted cash
325,147
278,456
Accounts receivable (net of allowance for doubtful accounts of
$50,250 and $58,026, respectively)
1,029,559
810,857
Deferred costs
250,051
606,207
Other current assets
515,068
432,042
Current assets of discontinued operations
220,883
170,459
Total current assets
3,344,837
3,464,547
Property and equipment, net
842,623
914,645
Operating lease right-of-use assets
405,237
309,704
Intangible assets, net
4,558,531
4,812,284
Goodwill
9,519,126
9,517,143
Investments
404,693
394,179
Deferred income taxes
448,992
430,339
Other assets
737,894
599,765
Long-term assets of discontinued operations
515,991
1,102,167
Total assets
$
20,777,924
$
21,544,773
LIABILITIES, REDEEMABLE INTERESTS AND SHAREHOLDERS'
EQUITY Current Liabilities: Accounts payable
$
541,431
$
462,361
Accrued liabilities
1,132,911
684,390
Current portion of long-term debt
2,323,825
58,894
Current portion of operating lease liabilities
67,705
73,899
Deferred revenue
509,754
802,344
Deposits received on behalf of clients
311,880
262,436
Current portion of tax receivable agreement liability
124,015
156,155
Other current liabilities
51,223
97,190
Current liabilities of discontinued operations
208,384
199,276
Total current liabilities
5,271,128
2,796,945
Long-term debt
2,904,272
4,969,417
Long-term operating lease liabilities
378,953
279,042
Long-term tax receivable agreement liability
744,948
834,298
Deferred tax liabilities
448,618
446,861
Other long-term liabilities
439,364
393,322
Long-term liabilities of discontinued operations
101,711
102,377
Total liabilities
10,288,994
9,822,262
Commitments and contingencies Redeemable
non-controlling interests
226,731
215,458
Shareholders' Equity: Class A common stock, $0.00001 par
value; 5,000,000,000 shares authorized; 307,864,479 and 298,698,490
shares issued and outstanding as of September 30, 2024 and December
31, 2023, respectively
3
3
Class B common stock, $0.00001 par value; 5,000,000,000 shares
authorized; none issued and outstanding as of September 30, 2024
and December 31, 2023
—
—
Class C common stock, $0.00001 par value; 5,000,000,000 shares
authorized; none issued and outstanding as of September 30, 2024
and December 31, 2023
—
—
Class X common stock, $0.00001 par value; 4,967,940,840 and
4,983,448,411 shares authorized; 160,244,257 and 166,569,908 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively
1
1
Class Y common stock, $0.00001 par value; 987,806,109 and
989,681,838 shares authorized; 216,020,232 and 225,960,405 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively
2
2
Additional paid-in capital
5,000,001
4,901,922
Accumulated deficit
(788,454
)
(117,065
)
Accumulated other comprehensive loss
13,283
(157
)
Total Endeavor Group Holdings, Inc. shareholders' equity
4,224,836
4,784,706
Nonredeemable non-controlling interests
6,037,363
6,722,347
Total shareholders' equity
10,262,199
11,507,053
Total liabilities, redeemable interests and shareholders' equity
$
20,777,924
$
21,544,773
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 the results of discontinued
operations, income taxes, net interest expense, depreciation and
amortization, equity-based compensation, merger, acquisition and
earn-out costs, certain legal costs and settlements, restructuring,
severance and impairment charges, certain non-cash fair value
adjustments, certain equity earnings (losses), net gains on sales
of businesses, tax receivable agreement (“TRA”) 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 TRA, 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 EndedSeptember 30, Six Months
EndedSeptember 30,
2024
2023
2024
2023
Net (loss) income
$
(420,362
)
$
(115,984
)
$
(977,605
)
$
586,806
Loss (income) from discontinued operations, net of tax
234,050
(1,006
)
686,924
1,467
(Benefit from) provision for income taxes
113,774
20,853
(93,129
)
195,521
Interest expense, net
108,134
82,271
302,531
257,811
Depreciation and amortization
135,524
66,602
416,556
171,715
Equity-based compensation expense (1)
50,831
61,441
162,559
200,984
Merger, acquisition and earn-out costs (2)
33,849
76,032
91,031
105,770
Certain legal costs (3)
6,790
8,322
26,622
12,233
Legal settlement (4)
40,000
—
375,000
—
Restructuring, severance and impairment (5)
5,362
48,852
65,776
70,788
Fair value adjustment - equity investments (6)
63
(148
)
(37
)
(929
)
Equity method losses - Fifth Season (7)
3,456
4,594
10,784
19,697
Net gain on sale of the Academy business (8)
—
—
—
(736,978
)
Tax receivable agreement liability adjustment (9)
16
20,297
2,460
7,779
Other (10)
(33,889
)
14,014
(30,555
)
(18,437
)
Adjusted EBITDA
$
277,598
$
286,140
$
1,038,917
$
874,227
Net (loss) income margin
(20.7
%)
(9.5
%)
(17.6
%)
14.6
%
Adjusted EBITDA margin
13.7
%
23.5
%
18.7
%
21.7
%
______________
(1)
Equity-based compensation
represents primarily non-cash compensation expense associated with
our equity-based compensation plans.
The decrease for the three and
nine months ended September 30, 2024 as compared to the three and
nine months ended September 30, 2023 was primarily due to awards
granted at the IPO under the Endeavor Group Holdings, Inc.'s 2021
Incentive Award Plan becoming fully vested partially offset by
awards granted under the new TKO equity plan and the WWE plan
assumed in connection with the TKO Transactions. Equity-based
compensation was recognized in all segments and Corporate for three
and nine months ended September 30, 2024 and 2023.
(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, 2024 primarily related to professional advisor
costs, and includes approximately $26 million of costs related to
our execution of strategic alternatives, and related to our
Representation and Owned Sports Properties segments and
Corporate.
Such costs for the three months
ended September 30, 2023 primarily related to professional advisor
costs, which were approximately $74 million and primarily related
to our Owned Sports Properties segment. Fair value adjustments for
contingent consideration liabilities related to acquired businesses
and acquisition earn-out adjustments were approximately $2 million,
which primarily related to our Representation segment.
Such costs for the nine months
ended September 30, 2024 primarily related to professional advisor
costs, which were approximately $87 million and includes
approximately $62 million of costs related to our evaluation and
execution of strategic alternatives, and related to our
Representation and Owned Sports Properties segments and Corporate.
Fair value adjustments for contingent consideration liabilities
related to acquired businesses and acquisition earn-out adjustments
were approximately $4 million, which primarily related to our
Representation and Events, Experiences & Rights segments.
Such costs for the nine months
ended September 30, 2023 primarily related to professional advisor
costs, which were approximately $99 million and primarily related
to our Owned Sports Properties segment and Corporate. Fair value
adjustments for contingent consideration liabilities related to
acquired businesses and acquisition earn-out adjustments were
approximately $7 million, which primarily related to our
Representation and Events, Experiences & Rights segments.
(3)
Includes costs related to certain
litigation or regulatory matters in our Owned Sports Properties and
Events, Experiences & Rights segments and Corporate.
(4)
Relates to a legal settlement in
our Owned Sports Properties segment.
(5)
Includes certain costs related to
our restructuring activities and non-cash impairment charges.
Such costs for the three months
ended September 30, 2024 primarily related to restructuring
expenses in all of our segments and Corporate.
Such costs for the three and nine
months ended September 30, 2023 primarily related 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 all
of our segments and Corporate.
Such costs for the nine months
ended September 30, 2024 primarily related to an estimated loss of
$26 million on certain assets held for sale in our Owned Sports
Properties segment, the restructuring expenses in all of our
segments and the impairment of an asset in our Events, Experiences
& Rights segment.
Such costs for the nine months
ended September 30, 2023 primarily related 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 all of our segments
and Corporate.
(6)
Includes the net change in fair
value for certain equity investments with and without readily
determinable fair values, based on observable price changes.
(7)
Relates to our share of losses
for our investment in Fifth Season.
(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, 2024 and 2023, the adjustment for the tax
receivable agreement liability related to a change in estimates of
future TRA payments.
(10)
For the three months ended
September 30, 2024, other was comprised primarily of gains of
approximately $22 million on foreign currency exchange
transactions, which related to all of our segments and Corporate,
gains of approximately $6 million on the sales of investments,
which relates to our Events, Experiences & Rights and
Representation segments, a gain of approximately $3 million related
to change in the fair value of forward foreign exchange contracts,
which related to our Events, Experiences & Rights segment and
Corporate, and a gain of approximately $1 million related to
non-cash fair value adjustments of embedded foreign currency
derivatives, which related to our Events, Experiences & Rights
segment.
For the three months ended
September 30, 2023, other was comprised primarily of losses of
approximately $14 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 nine months ended
September 30, 2024, other was comprised primarily of gains of
approximately $16 million on foreign currency exchange
transactions, which related to all of our segments and Corporate,
gains of approximately $7 million on the sales of investments,
which relates to all of our segments and Corporate, a gain of
approximately $3 million related to non-cash fair value adjustments
of embedded foreign currency derivatives, which related to our
Events, Experiences & Rights segment, and a gain of
approximately $2 million related to change in the fair value of
forward foreign exchange contracts, which related to our Events,
Experiences & Rights segment and Corporate.
For the nine months ended
September 30, 2023, other was comprised primarily of 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20241106630810/en/
Investors: investor@endeavorco.com Press:
press@endeavorco.com
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