Endeavor Group Holdings, Inc.

Good afternoon. Thank you for attending today's Endeavor four-year and fourth quarter 2022 results conference call. My name is Alicia, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to your host, James Marsh, Head of Investor Relations with Endeavor, You may now proceed.

Good afternoon, and welcome to Endeavor's fourth quarter and full year 2022 earnings call. A short while ago, we issued a press release, which you can view on our investor relations website, investor.endeavorco.com. A recording of this call will also be available via that site for at least 30 days. Today, you will hear from Endeavor's CEO, Ari Emanuel, and CFO, Jason Lublin, before we open for questions. The purpose of this call is to provide you with the information regarding our fourth quarter and full year 2022 performance, in addition to our financial outlook for 2023. I do want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions, as well as described in the risk factor section of our filings with the Securities and Exchange Commission, including our 10 Qs and 10 Ks. If these risks or uncertainties ever materialize or any assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements and projections. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update them publicly in light of new information or future events, except as legally required. Our commentary today will also include non-GAAP financial measures. which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends, this measure should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issued today as well as in the non-GAAP financial information posted on our IR website. With that, I'll turn it over to our CEO, Ari Emanuel.

Thanks, James. Closing out our first full year as a public company, we are encouraged by our performance in 2022. We saw strong growth across our segments. Our business has proven resilient despite ongoing macroeconomic headwinds. We continue to execute on our long-term strategy. And as 2023 comes into focus, the IP, content, talent, experiences, and brands that tap into the Endeavor flywheel are more valuable than ever. At Endeavor, we have built a global sports and entertainment company unlike any other. We own valuable sports IP. We supply content to a robust group of media, tech, and streaming platforms, all of which continue investing in premium sports and entertainment content to attract customers and keep them engaged. We help the leading talent and brands we represent commercialize their art, expand their reach, and tell their stories. Our diverse live events and experiences portfolio continues to capitalize on consumer demand for unique dynamic ways to engage with the sports and cultural experiences they love. And in 2022, we enhanced our betting technology offering to better serve the global sports betting industry. The strength and consistency of our financial performance is a direct result of our unique portfolio, which provides multiple lanes for growth and helps insulate us from volatility in any one area. As just one example, Revenue from WME's three largest SVOD buyers in the aggregate represented only approximately 2% of overall company revenue in 2022. We remain well positioned even as distributor strategies evolve. Today, I'll spend a few minutes sharing how we have delivered shareholder value in line with our stated goals for the year. Then I'll turn it over to Jason, who will share more details on our results for the fourth quarter and full year 2022. He will also discuss our outlook for 2023. Reflecting on last year, we grew both revenue and profitability by double digits in our own sports property segment. Years ago, we made the strategic decision to move further into ownership of events and premium IP that can benefit from the Endeavor flywheel. Our businesses, including UFC and PBR, are proving the model. Both organizations recorded record revenue last year. All 21 UFC events with live audiences sold out, continuing a 29-event sellout streak since returning from the pandemic. UFC posted its best sponsorship year ever in 2022, unlocking new categories and inventory to reach a fan base that grew double digits over 2021 in the US. It also continues to be an industry leader in digital engagement. UFC's social media accounts now have more than 220 million followers combined. TikTok followers alone grew 55% year over year. And professional bull riders' newly launched team series finished a strong first season, drawing nearly 200,000 attendees and delivering record setting attendance in multiple markets. Given its early success, we are planning to expand from eight to 10 teams this year. We anticipate selling those two additional teams at a starting price of $20 million each. In our representation segment, WME delivered solid financial results with growth from bookings across virtually all the mediums we touch. We secured key talent deals for more than 310 scripted series on broadcast cable and streaming channels. And our clients wrote and or directed five of the top 10 films at the domestic box office. Beyond TV and film, WME closed deals for more than 200 new books, including 57 New York Times bestsellers and signed deals for 300 books to be adapted into movies and TV shows. Our music team booked more than 40,000 engagements in 2022, And our comedy touring segment also had a huge year with Bill Burr at Fenway Park, becoming the highest grossing solo stand-up comedy show of all time. WME Sports continues to make its mark representing the world's leading tennis players and delivering some of 2022's biggest sports broadcasting deals. The rise of WME Sports is clear to the market. The agency jumped up 10 spots in Forbes' most valuable sports agency list. Our events, experiences, and rights segment also saw strong revenue and profitability growth in 2022. One of our premier events, Hyde Park Winter Wonderland, celebrated its 15th anniversary by breaking its consumer revenue record, up double digits over 2021. 2022 also marked On Location's single largest hospitality event of all time with Super Bowl 56. And the Madrid Open hosted a record 300,000 attendees in its first year as part of our portfolio. We also continue to benefit from continued competition for domestic and international sports media rights. Ampere's latest data shows the global market for streaming sports rights will rise 64% in 2023 to $8.5 billion. In 2022, IMG Media advised the Big Ten Conference on deals worth more than $8 billion over seven years and closed new EuroLeague deals with significant increases in key markets, including France and Germany. We also helped deliver a record-breaking set of deals for Cricket South Africa, as well as multiple new sizable deals for UFC, Wimbledon, and the Big 12 Conference, among others. 2022 was also a standout year for our IMG Academy business, where we had record enrollment across the boarding school, summer camps, and online college recruiting services, further establishing its position as a leading sports and education brand. We also strengthened our sports betting and data offering. closing our acquisition of OpenBet, a leading business-to-business sports betting technology company. Paired with our IMG Arena business, we're now able to offer a true end-to-end solution for sportsbooks and rights holders, creating complementary offerings that enhance demand and engagement. With this business built out, we've created a fourth segment, sports data and technology. On the balance sheet, we continue to execute with financial prudence. We promised last year we would get our net leverage below 4x by year end. We delivered on that promise, closing out 22, having paid down half a billion dollars of debt, and we will continue to pay down debt in 2023. Looking ahead, we believe in the strength of our portfolio and the durability of our long-term strategy. We are focused on owning, managing, and operating the best sports and entertainment assets in this experience economy. Our unique flywheel capabilities and insights position us as a first mover in identifying trends, making connections across our ecosystem of talent, brands, and assets, and generating growth opportunities while diligently managing our capital. This puts us in a great position to continue delivering on our strategy in 2023. With that, I'll hand it over to Jason to talk more about the fourth quarter and the full year 2022, as well as our outlook for 2023.