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TKO (TKO Group Holdings) Operating Income : $283 Mil (TTM As of Dec. 2024)


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What is TKO Group Holdings Operating Income?

TKO Group Holdings's Operating Income for the three months ended in Dec. 2024 was $102 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $283 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. TKO Group Holdings's Operating Income for the three months ended in Dec. 2024 was $102 Mil. TKO Group Holdings's Revenue for the three months ended in Dec. 2024 was $642 Mil. Therefore, TKO Group Holdings's Operating Margin % for the quarter that ended in Dec. 2024 was 15.87%.

TKO Group Holdings's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. TKO Group Holdings's annualized ROC % for the quarter that ended in Dec. 2024 was 3.87%. TKO Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was 50.31%.


TKO Group Holdings Operating Income Historical Data

The historical data trend for TKO Group Holdings's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TKO Group Holdings Operating Income Chart

TKO Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
314.13 391.14 544.39 446.66 282.90

TKO Group Holdings Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.88 -210.35 254.95 136.37 101.93

TKO Group Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $283 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


TKO Group Holdings  (NYSE:TKO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

TKO Group Holdings's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=407.704 * ( 1 - -13.8% )/( (11994.915 + 11992.247)/ 2 )
=463.967152/11993.581
=3.87 %

where

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12770.403 - 645.104 - ( 457.41 - max(0, 763.433 - 893.817+457.41))
=11994.915

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=12699.936 - 508.779 - ( 525.556 - max(0, 670.657 - 869.567+525.556))
=11992.247

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

TKO Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=402.416/( ( (794.771 + max(-324.965, 0)) + (805.02 + max(-319.703, 0)) )/ 2 )
=402.416/( ( 794.771 + 805.02 )/ 2 )
=402.416/799.8955
=50.31 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(250.585 + 0 + 151.446) - (645.104 + 67.707 + 14.185)
=-324.965

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(184.056 + 0 + 122.602) - (508.779 + 101.237 + 16.345)
=-319.703

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

TKO Group Holdings's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=101.926/642.196
=15.87 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


TKO Group Holdings Operating Income Related Terms

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TKO Group Holdings Business Description

Traded in Other Exchanges
N/A
Address
200 fifth Avenue, 7th Floor, New York, NY, USA, 10010
TKO Group Holdings Inc is a sports and sports entertainment company that operates combat sport and sports entertainment companies. It owns and manages valuable sports and entertainment intellectual property. The company distributes content and monetizes its intellectual property through four principal activities: Media Rights and Content, Live Events, Sponsorship, and Consumer Products Licensing. The company has two reportable segments, UFC and WWE. The company generates the majority of its revenue from the UFC segment. The UFC segment revenue consists of media rights fees associated with the distribution of its programming content, ticket sales, and site fees associated with the business's global live events, sponsorship, and consumer products licensing agreements of UFC-branded products.
Executives
Sonya E Medina director P.O. BOX 99900, LOUISVILLE KY 40269
Jonathan Kraft director C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Silver Lake West Holdco, L.p. 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Patrick Whitesell 10 percent owner 11601 WILSHIRE BOULEVARD, SUITE 1600, LOS ANGELES CA 90025
Ariel Emanuel director, 10 percent owner, officer: Chief Executive Officer C/O SOURCE INTERLINK COMPANIES, INC., 27500 RIVERVIEW CENTER BLVD, SUITE 400, BONITA SPRINGS FL 34134
Shane Kapral officer: Chief Accounting Officer C/O ENDEAVOR GROUP HOLDINGS, INC., 9601 WILSHIRE BOULEVARD, 3RD FLOOR, BEVERLY HILLS CA 90210
Andrew M Schleimer officer: Chief Financial Officer C/O SIX FLAGS, INC., 11501 NORTHEAST EXPRESSWAY, OKLAHOMA CITY OK 73131
Seth D Krauss officer: Chief Legal Officer C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 222 BROADWAY, NEW YORK NY 10012
Mark S Shapiro director, officer: See Remarks C/O RED ZONE LLC, 21300 REDSKIN PARK DRIVE, ASHBURN VA 20147
Nick Khan director 1241 EAST MAIN STREET, STAMFORD CT 06902
Vincent K Mcmahon director, 10 percent owner C/O WORLD WRESTLING ENTERTAINMENT INC, 1241 EAST MAIN STREET, STAMFORD CT 06902
Steven R Koonin director 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Carrie Wheeler director 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
Bynoe Peter C B director 203 NORTH LASALLE STREET, SUITE 1900, CHICAGO IL 60601
Egon Durban director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025