While it hasn’t been a great Q2 for many streaming entities, we continue to see the top agencies thrive. With strong results from their sports and live eventing categories, Endeavor has brought in $1.3B revenue as well as a net income of $42.2M for its second quarter. It also announced that it expects to repay a quarter million in debt by the end of Q3. Entertainment lawyer Brandon Blake, with Blake & Wang P.A. breaks these earnings down further.
Adjusting EBITDA Upward
Unlike many entertainment companies this quarter, we’ve also seen them adjust their EBITDA guidance upward a little, despite the wider economic climate.
As to their representation segment, now inclusive of WME, there was $358M in revenue, a 9& year-on-year growth. Their events and rights arm doubled that, at 19% year on year, with the return of in-person music and sports festivals to their calendar.
Massive Sports Growth
It’s worth revisiting that sports section in a little more depth. With their sports properties including the UFC, we saw a massive 28% boost. The sports segment took home $331.9M for Q2. We’ve recently seen a lot of the top talent agencies look to broaden their overall holdings, especially now that in-house packaging is off the table in the entertainment industry, and Endeavour’s lean into the sporting arena is certainly paying dividends for them. They will, however, be selling Diamond Baseball Holdings to the private equity firm Silver Lake, which has a stake in Endeavour itself, too. They will instead be focusing on the MLB Players’ Association. This transaction should close by the end of the year. They have also acquired a share in Barrett-Jackson, the collector’s car auction company.
It’s an interesting balance sheet with solid growth for the quarter, and quite a difference to some of the other’s we’ve recently seen.
