Endeavor Content Group shows positive results before IPO

IMG’s parent company Endeavor Content Group has announced a substantial increase in revenue during the second quarter of 2019. The sports and entertainment company has also reported a fall in the losses for the three-month period ending on June 30.

Endeavor’s entertainment and sports division, according to the documents filed with the US Securities and Exchange Commission, has generated a revenue of $1.33 billion during the first half of 2019.

Net revenues, according to reports referring to the documents filed with the USEC, have grown 33% year-over-year from $780.7 million to $1.04 billion during the April-June three-month period. Net losses have dropped from $328.7 million in the corresponding period last year to $67.7 million. Adjusted EBITDA is up from $113 million to $165.7 million. Adjusted net income has emerged from the loss of $40.3 million to swing into a gain of $47 million.

The filing has attributed approximately $352 million of the 46.4% year-on-year increase to the sale of media rights. IMG’s international distribution deals like Italian Serie A, Spanish La Liga and England’s FA Cup have made significant contribution in improving the company’s financial health. Each of those three agreements, for which Endeavor started accounting revenue in Q3 of 2018, came into effect at the start of last season.

The reduction in losses is attributed to lower income taxes and lower costs related to its compensation packages for executives

Endeavor had acquired IMG Global in 2014 and world’s most premiere mixed martial arts organization in 2016.

The latest financial results will come as a shot in the arm for the company that is preparing for an initial public offering. The company is planning its IPO in next 6 months.

However, the company is still carrying considerable $4.6 billion long term debt and another $7.2 billion in liabilities. The cash-in-hand is reported at $830.9 million. The debt decreased slightly and the cash-on-hand increased by $63 million in the time since Endeavor most recently shared financial data.

Launched in 1898 as the William Morris Agency (WMA) in New York City, the company is longest-running talent management agency in the World, which has managed icons like Charlie Chaplin and Marilyn Monroe.

The company’s portfolio of services includes talent representation, event management, marketing and licensing, content development, content distribution and sales and direct-to-consumer offerings.