Endeavor Group Holdings, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $2,031.8 million, marking a 66.5% increase from $1,219.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenue reached $5,542.7 million, up 37.8% from $4,021.2 million in the prior year. The growth was driven by strong performances in the Owned Sports Properties and Events, Experiences & Rights segments, with notable contributions from WWE and events related to the Paris Olympics.

Despite the revenue increase, Endeavor reported a net loss of $420.4 million for the third quarter, compared to a loss of $116.0 million in the same period last year. The net loss attributable to Endeavor Group Holdings, Inc. was $264.7 million, up from $69.2 million in Q3 2023. For the nine-month period, the net loss was $977.6 million, a stark contrast to a net income of $586.8 million in the same timeframe last year. This decline in profitability was attributed to substantial write-downs in the Sports Data & Technology segment, which has been classified as discontinued operations.

Total operating expenses for the third quarter increased to $2,024.8 million, up from $1,197.4 million in Q3 2023. Direct operating costs surged by 154.6% to $1,097.6 million, largely due to the acquisition of WWE. Selling, general, and administrative expenses also rose by 17.9% to $791.7 million. Adjusted EBITDA for the quarter was $277.6 million, slightly down from $286.1 million in the previous year.

Endeavor's total assets decreased to $20.8 billion as of September 30, 2024, from $21.5 billion at the end of 2023. Current liabilities surged significantly to $5.3 billion, up from $2.8 billion, contributing to an increased accumulated deficit of $788.5 million. The company’s total liabilities rose to $10.3 billion, while total shareholders' equity decreased to $10.3 billion.

Strategically, Endeavor entered a Merger Agreement with Silver Lake in April 2024, with an expected closing by Q1 2025. The agreement includes a requirement for quarterly dividends of $0.06 per share prior to closing. Additionally, the company is evaluating plans to secure additional liquidity, including refinancing existing debt and potential asset sales. The completion of the TKO Asset Acquisition, involving the purchase of Professional Bull Riders and certain IMG businesses for $3.25 billion, is anticipated to close in H1 2025.