Endeavor will pay up to $25 million in cash dividends and buy back up to $300 million in shares beginning in the third quarter, with an improved cash position thanks to major asset sales, and in anticipation of a planned UFC-WWE merger. are planning Pay off another $50 million in debt.
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The company’s revenue rose to $1.6 billion in the March quarter, up from $1.47 billion a year earlier. Increased expenses and the sale of Endeavor Content in January 2022 reduced the company’s net income from $517 million to $36 million.
Since then, the company has made several asset acquisitions and disposals, announcing two major deals in April. The first is the merger of UFC and WWE, creating a new publicly traded company. Second, the sale of IMG Academy for an enterprise value of $1.25 billion is expected to close soon.
This is the first dividend since Endeavor went public in April 2021. No dividend per share was specified. In a difficult time for the media industry last week, Paramount Global announced it would cut its dividend by 80%. This will save the company $500 million annually.
The UFC and WWE wrestling extravaganzas are currently seeking approval from the relevant authorities, with the parties hoping to close a deal within the fourth quarter. Endeavor will own half of the new company.
WWE Chief Operating Officer Nick Karn He said the strike, which began a week ago, would not affect the league because the league does not use WGA lighters.
“We continued our strong performance in the quarter, setting numerous financial and attendance records across our owned sports facilities and prestigious events,” Emmanuel said in the earnings call. “Our agreement to sell IMG Academy, together with our share repurchase plan and quarterly dividend announced today, is a strong example of our commitment to maximizing returns for our shareholders. We are excited about the unique opportunities presented by WWE’s combined offerings and will continue to focus on sustainable growth as we continue to execute on our winning strategy in content and experience.”
With the addition of OpenBet, which Endeavor acquired in September 2022, and development at IMG Arena, Endeavor first unveiled a new fourth division known as Sports Data & Technology, with revenue up 124% to $101 million reached. Costs associated with IMG Arena reduced operating income by 31% to $4.5 million.
Emmanuel will take over as CEO following the merger of UFC and WWE. Since taking over his father’s business and restarting in the 1980s, Vince McMahon has been a business director and ring host for decades. He will serve as executive chairman of the board of directors of the new company and will be instrumental in its founding. UFC President Dana White will remain in her position.
Both McMahon and White have come under intense scrutiny over the past year. McMahon stepped down as WWE’s executive chairman in January after resigning from WWE during an investigation into various allegations of sexual misconduct. White and his wife got into an argument, which was caught on camera.
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