Endeavor Announces Q2 2024 Cash Dividend

Rhea-AI Summary

Endeavor Group Holdings (NYSE: EDR), a global sports and entertainment company, has announced a quarterly cash dividend of approximately $27 million.

Class A common stockholders will receive $0.06 per share, with the dividend payable on June 28, 2024, to those on record as of June 14, 2024.

Future dividends will be determined by Endeavor's board based on various factors, including financial performance and market conditions.

The declaration aligns with the merger agreement with Silver Lake, requiring quarterly dividends of $0.06 per share before closing.

Positive

• Quarterly cash dividend of approximately $27 million announced.
• Dividend of $0.06 per share for Class A common stockholders.
• Payment date set for June 28, 2024.
• Record date established as June 14, 2024.
• Declaration aligns with merger agreement with Silver Lake.
• Potential positive impact on investor sentiment due to regular dividend payouts.

Negative

• Dividend payments are subject to various financial and market condition assessments.
• Future dividends not guaranteed; dependent on Endeavor's financial health.
• Dividend declaration influenced by restrictions in debt agreements.

Insights

Financial Analyst

Endeavor Group Holdings' announcement of a quarterly cash dividend of $27 million or $0.06 per share is indicative of the company's current financial health and its confidence in future performance. Dividends are often perceived positively by shareholders as they provide a direct return on investment. However, it's essential to consider the implications for the company's cash flow and reinvestment strategy.

Key Considerations:

Short-Term Implications: This dividend payout can attract income-focused investors looking for steady returns. For retail investors, the $0.06 per share dividend translates to a tangible benefit. However, it's a relatively modest amount which might not significantly impact individual investor returns.

Long-Term Implications: Regular dividends suggest a stable revenue stream and management's confidence in sustaining profits. However, frequent dividend payouts can limit the company's ability to reinvest profits into growth opportunities or new ventures. Investors should assess whether the dividend strategy aligns with their investment goals.

The firm’s ability to maintain dividend payments could be influenced by several factors, including operational results, market conditions and debt obligations. Investors should monitor these aspects to gauge the potential sustainability of future dividends.

BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor” or the “Company”), a global sports and entertainment company, today announced that it has declared a quarterly cash dividend in an aggregate amount of approximately $27 million. The dividend to Endeavor’s Class A common stockholders, following the distribution from Endeavor Operating Company to the Company, will be $0.06 per share. The dividend will be paid on June 28, 2024 to Class A common stockholders of record as of June 14, 2024.

Future declarations of quarterly dividends are subject to the determination and discretion of Endeavor based on its consideration of various factors, such as its results of operations, financial condition, market conditions, earnings, cash flow requirements, restrictions in our debt agreements and legal requirements and other factors that Endeavor deems relevant, as well as requirements under the merger agreement with Silver Lake to declare and pay a dividend each calendar quarter prior to closing in respect of each issued and outstanding share of the Company’s Class A common stock at a price equal to $0.06 per share.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including the expected dividend payment date and timing thereof. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to those factors discussed in Part I, Item 1A “Risk Factors” in Endeavor’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as any such factors may be updated from time to time in the Company’s other filings with the SEC, including without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, accessible on the SEC’s website at www.sec.gov and Endeavor’s Investor Relations site at investor.endeavorco.com. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, Endeavor undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Endeavor

Endeavor (NYSE: EDR) is a global sports and entertainment company, home to many of the world’s most dynamic and engaging storytellers, brands, live events, and experiences. The Endeavor network specializes in talent representation through entertainment agency WME; sports operations and advisory, event management, media production and distribution, and brand licensing through IMG; live event experiences and hospitality through On Location; full-service marketing through global cultural marketing agency 160over90; and sports data and technology through OpenBet. Endeavor is also the majority owner of TKO Group Holdings, Inc. (NYSE: TKO), a premium sports and entertainment company comprising UFC and WWE.

Website Disclosure

Investors and others should note that Endeavor announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its Investor Relations site at investor.endeavorco.com. Endeavor may also use its website as a distribution channel of material Company information. In addition, you may automatically receive email alerts and other information about Endeavor when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.endeavorco.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530023933/en/

Investors: investor@endeavorco.com

Press: press@endeavorco.com

Source: Endeavor Group Holdings

FAQ

What is the dividend amount declared by Endeavor (EDR) for Q2 2024?

Endeavor (EDR) has declared a quarterly cash dividend of $0.06 per share.

When is the record date for Endeavor's (EDR) Q2 2024 dividend?

The record date for Endeavor's (EDR) Q2 2024 dividend is June 14, 2024.

When will the Q2 2024 dividend be paid to Endeavor (EDR) shareholders?

The Q2 2024 dividend will be paid on June 28, 2024.

How much is the total quarterly cash dividend announced by Endeavor (EDR) for Q2 2024?

The total quarterly cash dividend announced by Endeavor (EDR) for Q2 2024 is approximately $27 million.

What factors will influence future dividend declarations by Endeavor (EDR)?

Future dividend declarations by Endeavor (EDR) will be influenced by operational results, financial condition, market conditions, earnings, cash flow requirements, debt agreement restrictions, and other relevant factors.