You can check out some highlights from the TKO Q3 Earnings Call below:
* Ari Emanuel started the call by talking about the Smackdown NXT media rights fees and how they’re trying to open up long-term value for the shareholders. He also talked about the UFC’s expansion into the Middle East through their new Saudi Arabia deal, saying that it builds on WWE’s relationship with the Kingdom and how they are looking at eight-figure site fees from the region.
* WWE’s new international PPVs (Bash in Berlin and and Elimination Chamber: Perth) have been announced, noting that Elimination Chamber in Australia will be largest site fee ever.
* Emanuel announced the WWE NXT TV deal, noting that it will be a 70% increase in media fee rights. He said there are multiple conversations behind had with possible broadcast and streaming partners for Raw, and they aren’t in any rush to lock things in there. He highlighted the new NBC primetime specials as part of the new Smackdown deal as well.
* It was discussed how they are moving to save $50 million to $100 million in costs through their merging of parts of the two companies (WWE and UFC) that can help each other, as well as budgetary and personnel cuts. They are still in the process on this.
* All of the numbers from the earnings report were run down.
* They began to take calls, and the first asked about the process of merging UFC and WWE. It was said that once they’re done with their cost-savings process, they’ll be in a good position and expect an update on the next earnings call, when they’ll be giving guidance for 2024. They believe that the stock is currently undervalued and they’re focused on return of capital to their shareholders. They will have their full plan in February.
* The next call asked about how the state of sports rights impacts their strategies for Raw and in general, and they said that viewership is up across key demographics despite ratings in general being down across broadcast and cable. They have no churn in content and are creators year-round. They’re happy with the 40% increase for the Smackdown TV rights as well as the NBC specials, and said they’ll be live across the board now as opposed to where they weren’t on FOX in 40% of the company. It was added that CW, where NXT will be, is a major network with reach across 100% of the company and NXT is important to WWE’s health going forward. They’re going to be patient and calculated with their Raw talks and are handling it the way they did with UFC rights.
* It was also noted that regarding sports rights, the the NASCAR Xfinity Series went to the CW for a “monster” number. The NBA’s rights are getting everyone lined up and Netflix is starting to dip their toes into sports. They noted Raw has a lot of equity and brand awareness and they can move to a new partner overnight if needed. It was noted that WrestleMania and UFC are triggers that cause people to sign up for Peacock or ESPN+, thus meaning that they drive subscriptions.
* The company is happy with how the WWE and UFC teams are coming together and they expect they can partner with UFC and WWE events in international markets. China was named as a potential destination.
* Asked about more sponsorships on WWE programming, it was noted that Vince McMahon is open to having more sponsorship inventories as compared to before when they kept things like the arena and ring mat relatively clean. It was noted that they won’t be revealing their hands on deals and give potential partnerships away.
* Asked about potential “super weekends’ of WWE programming, it was said they were looking at possible Saturday and Monday “event weekends” for the WWE and UFC.
