EDR - Earnings call transcript Q2 2022 | Endeavor Group Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for your patience and thank you for attending today’s Endeavor Second Quarter 2022 Earnings Conference Call. My name is Amber and I will be your moderator for today’s call. All lines have been muted during the presentation portion of the call, with an opportunity for questions-and-answers at the end. [Operator Instructions]. It is now my pleasure to hand the conference over to our host, James Marsh, SVP, Head of Investor Relations. proceed. please James,

James Marsh

investor.endeavorco.com. our provide forward-looking Jason welcome A regarding outlook remind and release, Second XXXX via Relations Quarter Factors you will risks statements Today that of any involve filings statements open this correct, Good those do Commission, the for as we Securities for be XX-K. also while differ to ago second materially The Call. available the site, purpose Investor our XX short view of site for from press risks, performance, want uncertainties to forward-looking recording implied financial and CEO, we including Earnings of can everyone year. Exchange expressed as Risk or information to materialize projections. and before the call afternoon, the that ever at on Endeavour's assumptions, described days. in A from or issued I these in which least include information Ariel and/or our with that by and assumptions Lublin Endeavour's results well call you is uncertainties may section such projections quarter XX-Qs XXXX to this hear If balance will our and our you'll the our proven Emanuel; with of or discussed and CFO, addition questions. a

required. in no future of of or as to new only speak they legally publicly made, except we statements date light as events, obligation Forward-looking are and update them the undertake information

on for to and reconciliations accordance in additional well turn information to results measures, measures in between With that, which release in today, not our our be I’ll trends. tool be metrics from a with evaluating non-GAAP ongoing reported as issued GAAP. GAAP it today commentary for as believe our we can financial the in substitute results in IR as Reconciliations posted Our provide or also site. non-GAAP These isolation for and considered financial should operating include an use found investors over will press prepared Ariel.

Ariel Emanuel

Thanks James.

showcase benefiting entertainment the secular an within of various that content occupies company from tailwinds position We're premium to and landscape. and the built are having rights constantly overcome. ranging to fact many live that continues challenges from withstand sports incredible to are to we quarter This our events, other companies the also to unique sports

complementary We have but highly a highly portfolio. diverse,

sit relates a category deep content, the scale the growing across we supply no to matter side global of equation, benefit the to And these have on demand expertise from end as user. We and the us it secular trends. allowing

year-over-year. our result a up and As XX% second our quarter performance EBITDA is strong up segments, adjusted nearly position our continued of unique across XX%, revenue

Endeavor the offering and we sight performance, Jason results, benefit you our ‘XX. Given trends minutes the secular few specifics of these the quarter remainder first a into second through to how we've line will walk built. raised the on against stands EBITDA year, of our adjusted drove of index spend our to for and what I'll unique but due the guidance we've

strong also This rights for properties. own all-time we of for hundreds at both is both deal paying market our entering rights the and high. First, into more retain as been competition, XX portfolio We're buyers never benefits worth or value sports the seeing there rights, to and that’s have whether an or sports represent. for represented Apple it internationally demand FX $X.X for relates sports to Disney greater high demand U.S. billion owned The MLS. growing a a properties year our premium and

year new clients deal side, the with for America a XX one like client [inaudible] completely sport. Football and recently deals, in lucrative Latin Rugby we reimagine continue the the League signed to On struck to the broker having

also to strategies exceed since tracking aggregate to fan is we the UFC, markets. deals free-to-air will we international of prospects for at market of the in and of partnering distributor continues UFC a and of evaluating of recently where too the January. distribution annual athletes FIGHT XX% started Brazil TV As particularly, shared We services. value that in PASS on presented that certain you we the we with launch home opportunity UFCs average Brazil look UFC last the largest when that fans of one DXC year. in the fact roster. our strong announced and XXX% week to a pass in outside previously going the second one Brazil opportunistic up, base international an bodes an of watch streaming be This would estimated largest U.S. through percentage the It's quarter

largest partnership digital powered TV that Beyond be Brazil one networks will in TV the are that launch free-to-air comprehensive of endeavor the is works. platform, by partnership with which OTT streaming, the introducing of in we

the continuously offering attract us renewal. when of available most, our first market. and across options new This blueprint fans. to owning creates for relationship to one at look all rights the to evolve growing Enabling we're what we For address the customer international up the to come markets consider fastest as time yet in want another UFC's fans

to where on betting experiences. in the enable latest close and ING rights media sports rights, OpenBet growing IMG sports live businesses forces. acquisition the to the the about adjacent of and upcoming we're completely both particular, territories Arena us a trying joining in in sports Arena U.S. OpenBet betting In surround data and this states to feel online We legalizing roster, and great client with space, the for continue add position unique to and being MLS, Beyond capitalize is headed, within internationally. data to more continues international ourselves official carving we betting investing out business its reregulating. the

in reduction a million OpenBet’s recently we purchase including cash announced, in As million $XXX price, negotiated $XXX we savings. also

on position, paying our debt. Given cash million of $XXX plan about enhanced we

turning consumer carefully and to identifying capitalize. purpose premium demand assembling and and events. experiences the on We assets for headed to early of the the were built where capabilities experience necessary Endeavor Now, economy, the

XX% On sellouts businesses becoming experiences the into resuming on-location live for a on-location with about an in events, and over Comedy into strong traveling of music quarter no of We Festivals IP. fight there's the secure total, partnerships. figures. we even to already year, which pre-pandemic audiences of WME, fees consumers, to a sales two experiential our announced more new subsidiary XX,XXX At between consecutive acquisition putting more under we in general location portfolio, premium clients U.S. as and properties. have site identifying dates the Endeavor live in us number our pay-per-view are great the experience strong and XX also events asset the of We've businesses for sales offering broadly events state. foster Endeavor. the NFL and seen from represent a look UFC becomes into our the of were own to expanding there's the Premium flipping Car us average, Company into Barrett-Jackson. XX% saw space prime a future. high-end further the annual than to experience singular and greater nearly Broadway, our coming have of collaboration in festival evaluating to consumers. this It's elevate resumed. has our and and event to leadership. dropped combined wholly owned new on that us slow increasing brands when clear out brands than Live including headliners been Tours, Barrett-Jackson ownership from built touring of indicator category, out its with stake rebound IP Endeavor heels create will Today Endeavor half typical and Its strengthen is we’ve admission Concerts, are On and and Across our content, since we UFC of quarter-over-quarter. recently to and of way At across fans the our a Collectible Great of for What one-of-a-kind most for categories pandemic, flywheel. of we Events XXX% Auction event looking experiences, events bookend better company a This up doubled to that clients the fans replacement more offerings. have potential both enable of at the on-locations thoroughprocess Fan the marketing to economy, growing We're Meanwhile, We've and helpful UFC's the and the no fandom Experience and from

see quality unique of no to position for enduring premium turning of the all content. value talent the in suppliers. largest of We content from high to and top benefit demand Finally, one forms as our spend talent, we slow-down continue and

best spectrum We perform deal and continue continue Hulu premiere XXXX Disney+ streaming of Obi-Wan of to across for became multi-faceted X Handmaid's deals Shane multi-year like our since of Season Kenobi the watched platforms. its The Jr., closing for Meanwhile, to weekend. major and slate films current Things gave the Robert projects develop across to-date, content debuts and original season Candy biggest Downey most and client's Stranger significant for became Netflix’s Black series Tale. projects television a Amazon. our filmmaker creators

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constantly to assembled continue we're with industry capabilities and feel consumer. collection macroeconomic and us we the that about assets diverse certainly grow, enabling we've not the of to While immune the evolve to great conditions, and

our quarter’s our consecutive and this With EBITDA end and the raised performance, I'll to over the deliver adjusted of to properties, ability it continuing guidance the line clients driving strong strong Given turn value of our to Jason. year sight and to fifth continue we've that, our own look quarter for to results. in our confidence forward our through

Jason Lublin

around of I’ll you good D Thanks through comparisons will everyone. color by what the second All also be start the I’ll segments. we're quarter. in for quarter provide second to some our seeing financial impacted Ariel XXXX. each of walking operating results afternoon and COVI our

generated quarter the we XXXX million, billion or the $XXX.X XX%. was Adjusted XX%. up for June quarter ended up or in For $XXX consolidated million revenue, XX, $X.XXX million EBITDA $XXX

second adjusted EBITDA segment's million the million, XX%, or sports segment quarter, own $XX while up $XX.X generated of nearly was property Our million $XXX.X in revenue XX%. million $XXX.X or the up

increase an Baseball and as by Our strong segment driven the inclusion growth licensing media at PBR and revenues this in right revenue partnership and at Holdings. fees higher Diamond events, as of products in consumer primarily was live and UFC, well

at in to Phoenix Singapore. have gate four in sold continue live the record breaking and record UFC XXX at XXX attendance our live out UFC event. events We and set we quarter and All

Additionally, the pandemic. ever. our fight in June since highest U.S. consecutive XX UFC capacity had sell-outs grossing Austin To-date our Fight following restarting became full has night Night events

we announced new UFC media BT quarter the and for multiyear with During U.K. also the Sport rights a Ireland. in deal

week PASS Silver XXX% the QX of mentioned, direct-to-consumer to Brazil. in we continue last opportunities Lake since of our announced to as this $XXX Holdings on have exceeded we international has FIGHT new Ariel approximately increase Baseball in and we Diamond Earlier tracking aggregate started million. the year, explore sale with for appeals As we by AAZ

that expect deal quarter. We to fourth the in close

return revenue XX% Now, a the at of recorded by unprofitable acquisitions $XX.X and festivals, this certain in masters Growth segment The primarily Revenue events NCAA Open the contracts. and disclosed our Four, media as $XXX.X Madrid at of of turning previously up was up million and the increased live enrollment events of without Final experience in restrictions, segment $XXX.X by million and expiration to the driven offset including or quarter, as at million well was the NTSA, music Academy. or IMG the adjusted million $XX.X EBITDA XXX%. rights.

XX%. clients. matter cash open $X.X was cash. portion we year this rate Endeavor value million across representation swaps the XXXoverXX and increased year. growth outstanding fixed interest billion Agency our increase year The to environment, music by debt we be purchase along an saw of a including our debt. already or to the comedy prudence revenue uptake rate which down within sub-X enhanced Talent expected end driven below from third remain we We where reduced categories, quarter. an approximately the saw Recently in as proceeds by of our Core this of with million intend in aggregate business. Finally, $X.XX debt segment, of strong January was well as end. prior corporate billion We volatile financial following and the XX% quarter rate our the our the the marketing billion position sold our from well $XXX.X spending of billion as pay we million our target X%, The $X.X business ended touring on DBH, in up while time adjusted revenue on our $XXX increased Based as the reporting restricted from in bring EBITDA We $XX board, price, Performance in in to as of at of Content our new $XX.X $X.X million track place, debt notional million, best segment of included a with was or $XXX million leverage the of swaps. approximately swaps, a or total of fixed existing $XX.X

free defined months. cash long target for next flow less us remain committed of Our cash free cash of flow conversion XX%. CapEx We of EBITDA anticipate our conversion XX% to activities over adjusted operating XX% the We XX was over QX conversion approximately year. XX to the term to from

from mid-point, billion, XXXX $X.XX mid-point to $XX EBITDA the of of million outlook, year-over-year adjusted to is raising XX%. range, Moving to billion $X.XX guidance our representing are our range the prior updated up at EBITDA growth adjusted our we billion $X.XX which

full year million. remains by $XX driven estimated Our the primarily guidance revenue of exchange impact unchanged, approximately foreign

end the expect following incorporates previously which Our mentioned updated The guidance acquisition we XXXX have Barrett-Jackson events, timing to to Diamond related impacts our third close increased sponsorships of impact E&R also revised which adjusted shift at marketing Golf IOC restrictions location on notably by in the full now contribution and the negative EBITDA the the and the in the the quarter of driven cancellation the WGC HSBC which to a of revenue will we investment the quarter, Events. and of of expect initiatives the in FX, COVID and to the for both technology of expect revenue Holdings fourth spends, their China, in Baseball clients, which the EBITDA, close reduced disposition resulting we year, of and due most impact adjusted on the incremental event of timing segment, considerations. primarily OpenBet’s

for turn Given which our revenue significant year high the degree James. that, contracted, into our of I'll year, over rest of of in remain confident it portion increased visibility to guidance. the we full already a With our is

James Marsh

questions. you all thank I’ll and Jason to for us our joining Thanks today. hop

many that in question. questions. please lines questions So With to to through one ask order as like as for can I'd get the possible, open yourself Amber, to to you you limit

Operator

Instructions]. [Operator Of you. course, thank

Ben Swinburne now from Morgan open. line question is with your Our comes first Stanley. Ben,

Ben Swinburne

already that Talk it, a and certainly end curious anyway, that about to content theatrical it something back for about night, know it the trend, is hearing the I in highlighted, that Warner. I'm for afternoon. seems but at the is talent maybe Warner you if shift the we've of to impacts businesses. because you this movies, the slowing to bit which a guys! pipeline ask visibility month have you. back Brothers you earnings Netflix, but last be towards spend the outlook little and if got been Good Disney Thank Ariel cash had going Hey all

and As different. or you good better distribution about shifting think models,

Ariel Emanuel

keep AVOD, on streaming services. putting that and could on point new all services. movies one here look at traditional question, to potentially players the it services you I At streaming was just side, streaming be the buy SVOD strategy was or all linear players on they The added it the taking but their evolving. we’re if going the the from and written have whether side that have Well. now

going bought everybody theatrical; Amazon’s shifting go they MGM, are and Now to changing.

success subs doesn't metrics by to measuring or put forward subs, whether really them. the guys matter. doesn't any of are by that they the matter it us their you by For other it Also revenue

the need is are Our – going you I to situation. have last in to this our say on digit this a of us. times conversation. representation to been change premium we’re business equation content talent double for multiple grower have strategy through has the that They in would been going consistent. just to that come supply and the has They side They decade.

positioned more our to matter the platform the There's how from and we're think the But a to perspective benefit I years. changing spend take few going and strategies shifting we’re they early over of next lot of no many happen. days. in course

feel sit. we to they side go to users no to deals and our to they the So If have changing. to positioned and are going of is change it, to us AVOD how they change other deals, end we're so to distribution benefit we there, where we're good very matter have their benefit about the with and so platform strategy come on going

think from Warners, now all with on I what's theatrically they they Netflix, that were happening are like that Disney’s, the but see released. movies are are you because better performing released Sony like the

you was So last is, all from we’ll thing a of this going spending we're is, content. on didn't constant the there billion know player on the austerity but supply say I be to I'd all again benefit them. say and is the change, I’d of to equation $XX side it the And largest

very feel supply position side. So about on we good the our

Ben Swinburne

you a been down, a but It’s the the you just me can Congratulations while open is James how out since follow-up the one us XX Have you is I performing? how feeling if if you for got ask about months here? or when let you for sense knocked your announced outlook getting if business it, announced you on laid bet. the business deal. on And is or the any price strategy ago know are performing evolved expectation will

James Marsh

let take that one. I’ll thanks. Arie Yeah,

Ariel Emanuel

distribution same, the is about in arena, There we IMG that force is is the feel strategy On us supply and important We a with the is it timing that of end Our that incredible. sit. of there's the with that a is the of incredible. in deal. Jordan the the was model, are us from business, side change, well. we combining the that side performing and portions our that Arena, business doing gives incredible lot is where business the again, Longe business, issue most the of where renegotiate combination combination enabled side their with now fields so the space, in right of Levin unbelievable, Freddie to is no

parties It going we all well. we just it's So are with Both of we're it. deal, and the had took really forward. happy going renegotiate to the was advantage ability it

Ben Swinburne

Thank you.

Ariel Emanuel

Amber, next Ben. please. question the Thanks

Operator

you. Thank

question next John from line Hodulik your John, Our comes is with now UBS. open.

Ariel Emanuel

John! Hey

John Hodulik

guys. Great! maybe – the get in give other market Brazil. guys! more sort deal the us of decision lastly, of that the as could Maybe just we you down direct the not Brazil. Arie, or the confidence know be on UFC. go for of there's drill Thanks. terms to in whether a and major audience. set in you whether markets looked Thanks you’ll in build this sort And video what then terms the up of transition the sort phases of you Can dealership or question the used can Hey for the and any your for like model on color us stage

Ariel Emanuel

put the the I best to the constantly would following. long term We're position our say listen, success. for market by ourselves evaluating in Well options

and of annual the listen, our in stated, markets. quarter relationship and fans sports. online million international identified estimated UFC second the own second them in for tracking than that, I most are In of fan so likely of growing via Brazil. biggest a aggregate TV they The we to started internationally specifically, watch services, It's other streaming to of fans has looked in As Brazil. sport our – and unique rights fastest average XX Brazil of ‘XX. we UFC There's the fast the at as fans an XXX% is the those rights. more exceeded value in it – sports watching we Brazil one opportunity XX% customer compared

fans launched partnership band. a going PASS are. TV with we're FIGHT We So the to where width free-to-air

We're largest of TV in One networks the there to marketplace. going digital partnership the announce in also the the ecosystem.

kind just wheel of of I fly think it’s really the Endeavor. important in

whole any and over thing we streaming they times smartphones years. and their powering the more nearly spent other XX% built spend country, Endeavor on We’re in this with than which last few Brazil

as we internationally of other and So yeah, for it we us of was what pay to of creates big blueprint the because situation, people to value go can those options there are in market we to available unique directly a consider look across depending any this a negotiations, the if property, huge think on in territories. kind a territories gains don't our want place. But such it's

Jason Lublin

UFC digital a three-day there, from today a the have already and some for content add know have digital of that this there and product transition, It's live just conversion live XX to in events platform that, pricing the substantial have the you place we’re with we're do Telco on know would you price-to-value first a regarding more to we’ll to partner, market. we we in XXX% robust going conversion on access right a year do ecosystem one. today our And negotiations currently some built-in current than that have think both partner. base we we Subscribers per our will day a of and think all event will putting platform. be digital we're really perspective, I

Ariel Emanuel

Great! Thanks John.

John Hodulik

guys. Thanks

Ariel Emanuel

Amber?

Operator

you. Thank

question Goldman now with is your Laszczyk Stephen open. Sachs. from Our line Stephen, next comes

Stephen Laszczyk

Great, thank you.

Ariel Emanuel

Hey Stephen!

Stephen Laszczyk

and opportunities you see capabilities one making maybe you to intentions guys any location. out. are needed scale partners Hey – Maybe us these your some had platform Olympics the application on an potential in built see at perhaps Could those market guys! the give to update progress you're opened one. you the once increase after just that fully a incremental the Strategic to of you building some of conversation you the of the any XXXX up on been on or strategic capabilities. up have areas Have with signaling capabilities

Ariel Emanuel

let I’ll this take again. So Jason one. Thanks

Jason Lublin

had about previously over second Olympics. talked half in the know in the the the, and increased ROE we spend of advance year of so Yeah, you

We and make post are further what spends and great in is the to QX to the the incremental this we for things over The and enhance one platform well year, building about implications going we're on-location the the further building that be from profile have Paris use location broader some are XXXX. the of QX profitability increased business digital, and will marketing, Olympics. broader to period as spend as just by will it be able

organization potential to a to view on be for us a for use the the partners asset asset great So remaining the but maximize not it's great be it'll going a other road. just and help revenue, can down

Stephen Laszczyk

you! thank Okay,

Ariel Emanuel

the we can next Amber, question Stephen. please. Thanks have

Operator

you. Thank

Our next Kutgun, RBC. question is now with Maral comes open. line your from Kutgun

Kutgun Maral

FIGHT wanted follow on Great! Thanks question. the Brazil news I up for just taking the to conversation. PASS

know you financial from at one in approach partnering as guess that what streaming we more perfect January, you – Brazil. could on the launch hoping and that's sense, more the in as to but again I implications example, And the You to and in what you I again you net second, partnering know makes it of you for I'm positive, alone, shifting and it you a in I direct-to-consumer, was going market, quickly one expect service know considerations think consider should this. another bit are this TV – with last opposed how terms to just about do sorry, were with talk paid the shift Disney be a know already

you have you UFC you it I rights of the UFC blueprint a or blueprint this and terms know do your evaluating a I crown Thanks. in but think the that envision with that to when consider rights manage? scanning a You other rights. is path you Arie know that characterized jewel have, monetizing like either as

James Marsh

Sure.

in have the why So, along. about talk jump going back financial the considerations then talk implications Arie we'll the and about then I’ll don’t jump on Jason blueprint. and

Ariel Emanuel

Well, Barker to I'll Band. you side, have say is on we the all

Endeavor partners Streaming, on I side. streaming don't any have We the so need other

We it's a so technology exists. incredible partner, the have still something WWE, the NFL, that an built need I number does that over And a we've another years. that does of technology blueprint, didn't already there from NBA, it's If we know and happening ability direct there global, business, territory. has because internationally, as to the perspective, in expertise with have our have we'll what's go happens you are the that imploded. linear any

We into huge feel great January, marketing a that very and have we and where so have we plan a are a fan coming base. base market about good huge fighter

James Marsh

And Jason, maybe if you could just chime in.

Jason Lublin

be be in certainly accretive neutral you this go way know would we to but positive, to be we to to expect the the long decision term. Yes. Look, Otherwise, is this over marginally year what this I wouldn't making this upfront one say market. would we expect

James Marsh

there Kutgun. questions Any other

Kutgun Maral

I No. appreciate a guess the I just answers. follow-up,

Again, you thinking either meaningfully with that maybe consider platform. other rights and you bit the technology managed about would already Just the have expanding or have little and streaming. you more – a

Ariel Emanuel

I in – would just you that are about talking territory.

Kutgun Maral

broadly. More

Ariel Emanuel

Oh! It’s a case-by-case. I now. thought haven’t about really right it

James Marsh

Amber, Kutgun. thanks question please. can the get Great, next we

Operator

Of course.

line comes your of Our Jessica is America. Ehrlich Bank Jessica now Reif with open. next from question

Jessica Reif Ehrlich

IPL seen seems thank or concern and you. a for. now from We’ve ESPN pay away Does it walk Okay, you willing decades. Digital seems selective they are from do increasingly they’re what is but Hi! in Big up four this question, walking away rights is strategically, like to them UFC This after essential go If do up signed think bidder, auction companies? about of what saving they how a a a are in it’s years, the think highest concern? you the for if UFC more to them? to reach with the you you sign are is that couple were And they to Ten

James Marsh

I’ll let one. Ariel that take

Ariel Emanuel

no problem. Yes,

over helped have they them $X NBC look billion ESPN. ecosystem, an did now Football in basis, ESPN a and the deal for Amazon, talked Thursday unbelievable baseball, from on you On EPL just our in about opening we we direct-to-consumer at mentioned just you know a They’ve went great relationship it’s my grow rights a The kind business. - remarks. Night we have deal Apple I if general for left MLS. years how of So number. with at billion three is with current as have their $X.X

the better Formula could X ecosystem, doubled They our value $X but million. about ESPN. the million and sports the not feel relationship rights from at $XX the We space good between really Ultimate went really the good to NHL in of in the know We that our on and just be you we sit feel Fight The put relationship. us about where Fighter, ecosystem Night, Contender ABC. Series, pay-per-views, they’ve

the So confident, for up. feeling way whole very rights on the ecosystem sports we’re is but

James Marsh

else, Anything Jessica?

Jessica Reif Ehrlich

was at just it concern is that I like just companies, how about wondering, the there signed do all with you reach that? money is think or No. any about or

Ariel Emanuel

reach, about I with nervous nervous like wasn’t not really with I’m reach about it. comfortable ESPN+. I’m

Jessica Reif Ehrlich

Alright thank you. Okay.

Ariel Emanuel

Amber, Thanks, question please. Jessica. next

Operator

you. Thank

next Kraft line open. Bryan, Bank. Deutsche with your from Our now Bryan question is comes

Bryan Kraft

you now higher rate sheet? you commitment rising deleveraging that to there how scale Good cost about funding should there capital we you you. appetite that’s you. afternoon. M&A the for and right a and your fit, M&A guess I balance and much would your I environment? a know the of Thank ask Thank just for might high-level the think be larger sale to about just And in is this wanted How out think given question. environment,

James Marsh

the and the jump sheet. let Jason in talk side about on I’ll then strategic balance Ariel will

Ariel Emanuel

to through we As the If can can how through kind its opportunity now a identify but sure the come it we we’ll feel we We but be Barrett-Jackson. very when targets them. and always are, grow been value, on we what do like that relates relates cost past. we’re company make and things process. it it, whether long-term as greater coming value the opportunistic. goes business for that about and it done, there’s I it process think a don’t what sit of Madrid, M&A, how good the now with our generate we where we’ve goes we’ve flywheel, to is an marketplace, a lot we something into can to pursue rigorous In in economic up, curious

talk sheet? to about want You the balance

Jason Lublin

said mean have think I we’ve to committed before, – we we’re sub-Xx leverage. get look, like we into Yeah

of the end year. be We there expect to by the

that our with sure us profile, we a financial there’s on we remain certainly on revenue execute many a committed for ratio sub-X. scale M&A think fact that we making that level and a expectation equity, to ways being the public have Given go debt to large

Bryan Kraft

you. Thank

James Marsh

Thanks.

Next Bryan. question please. Thank you,

Operator

Thank you.

Joyce line now question Our comes with from David, next David your Barclays. open. is

James Marsh

Hey David!

David Joyce

of just help Thanks. basically, that, revenue you if you comes are How the ask on guys! much from the terms Madrid like that how in if seasonal versus terms cadence could into the then understand hey seasonality business – EE&R the bit understand I representation you wanted how wanted of what a this the into of I guidance go be. of broadly help touch granularly recurring. could doing? feeding the streamer in the know and events year, you. spending much if could us the to components Mutual how So would into on is you guidance also the spending? the you side, feeds Thank And more cadence of us

James Marsh

the into events of for Jason a drill and into year, just of bit back the cadence jump of then We’ll little get EE&R. guidance down. cadence the some the

Jason Lublin

Yeah.

raised much assuming its a as EBITDA contribution; to million year the our with revenues sponsorship removal continuing ranges We would the and Baseball a of a is That which to in lower segment, the I updated EBITDA; which adjusted full Barrett-Jackson beginning for adjusted timing So, XX% we our associated incorporated the and what to to some from event-related revenue say revenue being of timing EBITDA the making, primarily said, the on following: midpoint increase way adjusted be our EE&R our base QX the reiterate to in like million timing given is the of is revenues billion of a which we by $XX of adverse right and $X.XXX guidance basis. is later $X.XXX adjusted and loss-making at acquisition, The the which revenue year year guidance our of the of slightly billion, into midpoint the the and to look think is EBITDA, that QX the announced at it recently adjusted closing at exchange, impact the EBITDA are things, well, year-over-year. Holdings represents up OpenBet foreign and closing, of in reduces other shift of business the client Diamond EBITDA. balance results loss year; from the $XX events; annual inclusion among the this shifts as

profile for previously further an the And XXXX. cancellation Olympic China the in impacted year. of lastly, COVID this HSBC even - in profitability Gulf to As Event mentioned, spend cancellation of Paris enhance increase

balance forecast are So those of that into year. things going the the are revised our for all

James Marsh

David. Thanks Great!

Operator

Thank your call. you. Endeavor up second participation. Q&A the earnings session concludes Thank all and quarter for today’s This XXXX wraps you

your may You lines. now disconnect

Endeavor (EDR) 12 Aug 222022 Q2 Earnings call transcript