TKO (TKO) 8-K Historical Financial Information - Basis of Presentation

Exhibit 99.1

November 1, 2023

HISTORICAL FINANCIAL INFORMATION - BASIS OF PRESENTATION

TKO Transaction

On September 12, 2023, World Wrestling Entertainment, Inc. (“WWE”) and Endeavor Group Holdings, Inc. (“Endeavor”) consummated the combination of the Ultimate Fighting Championship (“UFC”) and WWE businesses (the “business combination”) under the newly formed company, TKO Group Holdings, Inc. (the “Company”).

Purpose of Historical Financial Information

The presentation of the historical information herein is for illustrative purposes only and is intended to facilitate an understanding of UFC’s and WWE’s historical operating results prior to the consummation of the business combination.

The financial information herein is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the business combination had occurred on January 1, 2022, nor is it indicative of future results of the combined Company. The financial information does not include any pro forma or other adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the business combination.

Reporting Segments

In conjunction with the combination of UFC and WWE, the Company evaluated its segment presentation and, beginning with the fiscal period as of and for the quarter ended September 30, 2023, the Company intends to report under two business segments (UFC and WWE). In addition, the Company intends to report the results for the “Corporate” group.

• UFC

The UFC segment reflects the business operations of UFC, a premium global sports brand, media content company and the largest Pay-Per-View (PPV) event provider in the world. Revenue principally consists of media rights fees associated with the distribution of its programming content; ticket sales associated with the business’s global live events; sponsorships; and consumer product licensing agreements of UFC branded products.

• WWE

The WWE segment reflects the business operations of WWE, an integrated media organization and the recognized global leader in sports entertainment. Revenue principally consists of media rights fees associated with the distribution of its programming content; ticket sales associated with the business’s global live events; sponsorships; and consumer product licensing agreements of WWE branded products.

• Corporate

Corporate reflects operations not allocated to the UFC or WWE segments and primarily consists of general and administrative expenses. These expenses relate largely to corporate activities, including information technology, facilities, legal, human resources, finance, accounting, treasury, investor relations, corporate communications, community relations and compensation to TKO’s management and board of directors, which support both reportable segments. Corporate expenses also include management fees paid by the Company to Endeavor under a services agreement.

Rounding

Information presented herein may not sum down or across due to minor rounding differences.

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TKO Group Holdings, Inc. ⁽¹⁾

REVENUES - BUSINESS SEGMENT DETAIL

($ in millions; Unaudited)

	2022								2023						Full Year
	Q1		Q2		Q3		Q4		Q1			Q2			2022
Revenues:
UFC
Media rights and content	$	186.7	$	199.3	$	235.5	$	172.9	$	224.1		$	211.7		$	794.4
Live events		23.2		17.4		39.2		45.5		31.4			32.4			125.3
Sponsorship		36.3		39.0		51.6		39.9		38.0			46.2			166.8
Consumer product licensing		13.4		12.4		14.4		13.4		13.2			14.9			53.6
Total UFC	$	259.6	$	268.1	$	340.7	$	271.7	$	306.7		$	305.2		$	1,140.1
Growth % (y/y)										18	%		14	%
WWE (2)
Media rights and content	$	208.0	$	225.2	$	219.8	$	219.1	$	210.1		$	249.8		$	872.1
Live events		77.5		39.6		34.1		72.3		31.8			109.3			223.5
Sponsorship		15.9		19.3		14.3		12.3		16.4			23.4			61.8
Consumer product licensing		32.0		44.1		36.4		21.6		39.3			27.8			134.1
Total WWE	$	333.4	$	328.2	$	304.6	$	325.3	$	297.6		$	410.3		$	1,291.5
Growth % (y/y)										(11	%)		25	%

Notes:

(1) The information herein is for illustrative purposes based on the historical financial information of UFC and WWE.

(2) Under the legacy business segment financial reporting for WWE, revenue associated with certain large-scale international events was allocated principally to the Media segment. Within the Media segment, revenue was recorded within Other and, to a lesser extent, within Advertising and Sponsorship. The Company has reclassified this revenue to Live Events. This reclassification has no impact on total revenue for the WWE segment.

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TKO Group Holdings, Inc. ⁽¹⁾

ADJUSTED EBITDA - SEGMENT DETAIL

($ in millions; Unaudited)

	2022												2023						Full Year
	Q1			Q2			Q3			Q4			Q1			Q2			2022
Adjusted EBITDA(2):
UFC	$	161.7		$	160.3		$	204.5		$	154.1		$	186.3		$	188.2		$	680.6
WWE		142.9			121.0			122.5			126.1			117.0			173.1			512.5
Corporate		(43.1	)		(42.1	)		(45.3	)		(49.3	)		(46.5	)		(47.0	)		(179.8	)

Notes:

(1) The information herein is for illustrative purposes based on the historical financial information of UFC and WWE.

(2) Following the business combination, the performance of our segments is evaluated primarily based on Adjusted EBITDA. The Company defines Adjusted EBITDA as net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes depreciation and amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization, as well as amortization of right-to-use assets related to finance leases of equipment used to produce and broadcast the Company’s live events.

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