Endeavor released its financials for the first quarter of 2021 ending March 31, 2021. In its first disclosure of financial results as a publicly traded company, its clear that the UFC is a heavy hitter in its basket of assets.
The UFC revenue rose during the quarter while the company saw its sales slip during the first quarter of 2021. Overall revenue for the company was $1.07 billion compared to $1.19 billion in the first quarter of 2020 prior to the pandemic. Operating Income rose from $94.5 million compared to $53.8 million in the first quarter of 2020. Adjusted EBITDA and Adjusted Net Income increased to $199.5 million and $58.1 million compared to $176.2 million and $43.8 million in the first quarter of 2020.
The company’s sports properties which includes the UFC, Professional Bull Riders and a half interest in Euroleague basketball increased 22.1% to $283.5 million in the first quarter of 2021 from the first quarter in 2020. The sports segment was the only to see sales rise in 2021. With lingering affects of the pandemic, live events declined 15% year-to-year.
According to an analyst opinion from Credit Suisse, the UFC is the “crown jewel” of Endeavor. The opinion lauded the UFC for reaching about 1 billion households annually and is a main part of ESPN+. UFC’s Fight Pass grew subscribers 40% in 2020.
Payout Perspective:
It’s clear that the UFC would be a big reason why Endeavor would succeed at the beginning of its time being a publicly-traded stock. The UFC’s ability to continue events during the pandemic as well as keep costs down. It held many events on its own property at the UFC Apex and were subsidized with help from Abu Dhabi when it traveled to Fight Island. In addition, its sponsorship deals have attractive more brands looking to penetrate the young demo the company holds a firm grip on. It also has maintained its status quo with fighter pay. Its success on ESPN and ESPN+ has made the MMA company a mainstream success.
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