Endeavor FY24 results: Net loss totals $782.4m despite 29.5% revenue increase
Growth in costs and expenses outweighed growth in revenue, causing the operator to report a net loss.
Key points:
– Revenue for the year was up 29.5%, but was outpaced by expenses growth of 40%
– The operator reported a FY24 loss of $782.4m, despite last year’s income of $356.5m
Endeavor has released its financial results for Q4 2024 and FY24. For the year, revenue came to $7.11bn, up 29.5% year-on-year, with Q4 revenue accounting for $1.57bn, up 6.7% year-on-year.
Q4 results
Of its $1.62bn revenue, $670.4m came from owned sports properties, up 4.3%, while events, experiences and rights made $411.9m, down slightly from last year’s $414.5m. Representation revenue was also up, with the highest growth rate of any segment at 17.4%, totalling $501.6m.
Adjusted EBITDA totalled $237.2m, up slightly from last year’s $224.7m.
However, operating expenses came out higher than revenue in Q4 2024, totalling $1.62bn, up 9.2%. As such, operating loss from continued operations came to $51.8m for the quarter – up a sizeable 256% from last year’s $14.6m.
Further losses for the quarter include a loss from continuing operations before income taxes and equity (losses) earnings of affiliates of $196.8m, compared to a loss of $24.4m in Q3 2023, and a loss from continuing operations before equity (losses) earnings of affiliates of $237.8m, compared to a loss of $37.8m last year.
In total, net loss attributable to Endeavor Group came to $165.9m for the quarter – a notable departure from the $14.5m net income reported in Q4 2023.
FY24 results
For the full-year, revenue totalled $7.11bn, up 29.5% year-on-year. However, much like Q4, expenses were higher than revenue, coming to $7.26bn (up 40% year-on-year) – resulting in an operating loss of $152.9m. This is in contrast to the $303.6m operating income reported this time last year, meaning that despite rates of growth, Endeavor has been unable to keep up with rising costs.
Looking at the distribution of FY24 revenue, owned sports properties made $3bn, up 64.4% year-on-year. The second highest earning segment was events, experiences and rights, making $2.53bn, up 16.4% year-on-year, while representation made $1.69bn, up 9.3%.
Adjusted EBITDA for the year totalled $1.27bn, up a sizeable 54.1%. This is in spite of increased net losses for the year, with net loss attributable to Endeavor Group coming to $782.4m. Again, this is in stark contrast to the net income reported this time last year, which totalled $356.5m.
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