UFC and WWE parent TKO Group has boosted its dividend by 100% after clinching a series of high-profile rights deals, with the next cash payout on Sept. 30 set at 76 cents per share.
In August, UFC inked a seven year, $7.7 billion U.S. media rights pact with David Ellison’s Paramount in that company’s first big move after merging with Skydance. Also last month, WWE signed a five-year deal worth $1.6 billion with ESPN to broadcast premium live events.
TKO shares popped and are trading up 1% at $187 on the dividend news. It will be paid to Class A common stockholders of record as of the close of business on September 15. The pro rata share is part of an aggregate distribution of about $150 million.
“On the heels of our UFC and WWE U.S. domestic media rights renewals and the strong earnings and cash flow profile they provide, alongside the continued strength and momentum in our underlying business, we are proud to double TKO’s quarterly cash dividend,” said president and CEO Mark Shapiro.
“The increased dividend, together with our share repurchase program that we expect to commence within the third quarter, reflects our ongoing commitment to a robust capital return strategy and delivering sustainable long-term value for our shareholders,” he said.
TKO posted record financial results at UFC and WWE for the June quarter.
The company plans to fund quarterly dividends with cash flow from operations and/or cash on hand. It also said this mornig that it has concurrently launched a potential upsize of its existing credit facility by up to $1 billion.
