TKO Group Holdings, Inc.

Good afternoon. Thank you for attending today's TKO Q1 2025 earnings call. My name is Cole and I'll be the 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'd like to queue for a question, you can do so by pressing star one on your telephone keypad. I'd now like to hand it over to Seth Zaslow, head of investor relations. Please go ahead.

Good afternoon, and welcome to TKO's first quarter 2025 earnings call. A short while ago, we issued a press release, which you can view on our investor relations website. A recording of this call will also be available via our website for at least 30 days. After prepared remarks from Ari Emanuel, TKO's executive chair and chief executive officer, and Andrew Schweimer, TKO's chief financial officer, we'll open the call for questions. Mark Shapiro, our President and Chief Operating Officer, and Andrew will be handling the Q&A. The purpose of this call is to provide you with information regarding our first quarter 2025 performance. I want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions. Please see our filings with the Securities and Exchange Commission for further detail. If these risks or uncertainties were to materialize or any assumptions prove incorrect, our results may differ materially from those expressed or implied on this call. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them 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. These measures 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 can be found in our press release issued today, as well as the information posted on our IR website. With that, I'll now turn the call over to Ari.

Thanks, Seth. We are off to a good start in 2025, driven by continued momentum at UFC and WWE. Our first quarter revenue and profitability beat our internal expectations, and as a result, we are raising our guidance for the full year. During Q1, we also completed our acquisition of industry-leading assets IMG on location in PBR, and we're now hard at work on integrating the properties into our flywheel, and identifying synergies to drive top line growth and cut costs. Andrew will share more on our updated outlook for 2025 inclusive of these businesses. Turning to the UFC, live events and global partnerships continue to deliver solid performance and drive meaningful growth. Live events set new records in Q1, including our fight night in London, delivering the highest grossing fight night in company history, and UFC 312 in Sydney setting the record for Australia's highest-grossing indoor arena event. Global demand for our live events further underscores our conviction in the Site C model. Evidence of the potential here was seen in the announcement of our partnership with the Western Australian government to host five major UFC and WWE events in Perth through 2026. Our global partnerships team also secured several major innovative deals, as leading brands continue to see value in UFC's worldwide and highly engaged fan base. We renewed our longstanding partnership with Monster Energy in a multi-year agreement that is the largest sponsorship deal in company history. We also entered into a groundbreaking multi-year partnership with Meta, designed to bring UFC content to life in immersive new ways. from AI-enhanced fighter rankings to next-gen in-arena experiences and exclusive content across Meta's platforms. At WWE, the year started with the spectacle debut of our Netflix partnership, which will put our content in front of the streamer's 300 million global subscribers each week. Raw is now a mainstay on the global top 10, and we're seeing significant engagement and viewership increases internationally for weekly WWE programming and premium live events on Netflix, especially in Mexico, the UK, Australia, and Brazil. As global territories roll off existing rights deals, WWE's international footprint on Netflix will continue to expand. In fact, India has now joined the Netflix WWE family and brings with it one of the world's most passionate and engaged fan bases. Overall, WWE's live events similarly outperformed with 35 individual market records for ticket sales and 17 sold out events in the quarter. Elimination Chamber in Toronto became WWE's highest-grossing event in Canada. Royal Rumble set a new milestone as the highest-grossing non-WrestleMania event in company history, and the Road to WrestleMania Tour achieved gate records at each of its 12 European events and drew over 116,000 fans collectively. That charge culminated in a record-breaking WrestleMania 41 in Las Vegas last month. Allegiant Stadium welcomed 124,000 fans across two nights, And WrestleMania 41 became WWE's most successful event ever, breaking all-time records in gate, premium hospitality, viewership, sponsorship, merchandise, and social engagement. Turning now to some highlights from IMG, On Location, and PBR. IMG announced several major renewals that underscore their unmatched capabilities, expertise, and global reach in sports. We renewed our partnership with CONMEBOL, the South American Football Confederation, covering sponsorship and media rights through 2030. We extended our strategic partnership with EuroLeague Basketball through the 2035-36 season, building on a successful joint venture that has driven significant growth in media rights value and production quality since 2016. And we renewed and expanded our partnership with Major League Soccer to deliver live match and studio coverage of more than 600 games each year on Apple TV. all produced from WWE's state-of-the-art studio facilities in Stanford, Connecticut. And at On Location, our partnership with the NFL, the leading sports and entertainment property across the U.S., delivered more than 32,000 fan experiences, including at Super Bowl 59 in New Orleans, a tremendous result in the very first year of a new contract extension with the league that runs through 2036. I should mention that in terms of trends, WrestleMania 41, held just a few weeks ago, was no different. On location, hospitality package revenues surged 75% over WrestleMania 40. Having this experiential hospitality capability now in-house at TKO bodes well for not only the growth of our owned assets, but the partnership opportunities across the 200 global sports league and team clients served by IMG. Finally, PBR's Unleash the Beast and Velocity tours stretch the live events demand we are witnessing with a strong showing in the quarter, drawing 640,000 fans to their 40 events and selling out more than 30. Almost right out of the gate, we are capitalizing on the strengths and capabilities of these new TKO businesses to accelerate value creation across UFC and WWE. The TKO Takeover, as we call it, last month in Kansas City, marked the first time all three businesses appeared in the same arena and city over a single weekend, showcasing our unified live event strategy and seamless coordination across scheduling, ticketing, and the fan experience. Our conviction in our businesses is as strong as ever. We remain focused on creating value for shareholders through integrating and driving synergies across our newly expanded sports portfolio, delivering a media rights deal for UFC, that positions the brand and the business for long-term audience and financial success and executing our capital return programs. With that, I'll turn the call over to Andrew.