I’ve gotta be honest here. I never really got the whole WWE or UFC thing. Heck, I might’ve even poked fun at my brother-in-law for his die-hard, cult-like devotion to watching grown men wrestle for a predetermined result (at least UFC is real). But I’ll always give credit where credit’s due.

When TKO Group Holdings was born from the merger of WWE and UFC under Endeavor’s banner, I dismissed it as another business play. Meanwhile, as everyone else argued about whether wrestling is “real” or if UFC is too brutal, TKO was busy pulling off a real combo move where it really matters: the stock market.

Let's dive headfirst into the spreadsheets because TKO isn't just flexing its muscles for show—it's literally stacking profits like Simone Biles stacks gold medals (except for this year). In 2Q, TKO reported a record-breaking $851.2 million in revenue (up 179% from 2Q 2023), leaving analysts' expectations of $773.8 million eating rubber. This powerhouse combo of WWE and UFC is on track to hit $2.67 to $2.745 billion in revenue for 2024, up from the previous forecast. If you're keeping score, that's a potential revenue increase that even The Rock would applaud.

Remember, WWE and UFC are more than entertainment powerhouses; they’re setting new benchmarks. WWE, the land of suplexes and surprise returns, pulled in a cool $456.8 million last quarter, while UFC, the octagon of broken noses and tap-outs, brought in $394.4 million. Even if you’re not a fan of either, numbers don't lie. Oh, and did we mention that WWE's SummerSlam sponsorship revenue jumped 60% from last year, hitting $7 million? Ok, they're winning me over… I can be a fan of those kinds of numbers.

(Source: Forbes)

On a negative note, the UFC is involved in two lawsuits with former fighters that could cost them upwards of $300 Million. This looks to me like it will only be a small blip on the radar. It just seems like all eyes are on the octagon lately, not only to see the fights, but also to see who’s in attendance. Even Mark Zuckerberg wants to step into the UFC octagon, swapping out his hoodie for a pair of gloves.

Here’s where it gets even better. WWE signed a $5 billion media rights deal with Netflix this year. Yeah, Netflix. The one you binge watch Stranger Things on every weekend. In April alone, WrestleMania saw a 41% spike in viewership, and merch sales climbed 20%. Meanwhile, WWE is closing the sponsorship gap with UFC, even securing a prime (pun intended) center-ring logo deal with Logan Paul’s energy drink. When you have a combo like that, it’s no wonder TKO's shares are up more than 46% YTD..

(Source: CNN)

But it’s not just about the live-action punches and piledrivers. The entire live sports industry is hot right now. With eyeballs glued to the screen, companies like TKO are cashing in on those viewers. Just look at the NBA, which recently inked three massive media deals worth $77 billion. Or take a look at the Paris Olympics ratings, which soared 79% higher than the Tokyo Games. Premium sports content demands premium prices, and TKO is riding that wave all the way to the bank.

So, what's the bottom line? TKO Group Holdings isn't just some overhyped creation of wrestling and fighting fanatics. It's a money-making machine that's turning every punch, kick, and body slam into more sponsorship and viewing deals. We all better start paying attention because they are taking center stage.

(Source: Daily Sabah)

Stocks.News holds positions in TKO Group Holdings and Netflix.