Endeavor Announces Q3 2024 Cash Dividend

Rhea-AI Summary

Endeavor Group Holdings (NYSE: EDR), a global sports and entertainment company, has announced a Q3 2024 cash dividend of approximately $27 million. Class A common stockholders will receive $0.06 per share, payable on September 30, 2024, to shareholders of record as of September 16, 2024. The company notes that future dividend declarations are subject to various factors, including financial conditions, market conditions, and legal requirements. Additionally, Endeavor mentions a merger agreement with Silver Lake that requires quarterly dividend payments of $0.06 per share for each outstanding Class A common stock prior to closing.

Positive

• Declared quarterly cash dividend of $0.06 per share for Q3 2024
• Total dividend amount of approximately $27 million

Negative

• None.

Insights

Financial Analyst

Endeavor's announcement of a $27 million quarterly cash dividend, equating to $0.06 per share for Class A common stockholders, is a positive signal for investors. This consistent dividend payout demonstrates the company's financial stability and commitment to shareholder returns. However, it's important to note that the 2.4% annual yield (based on the current stock price) is relatively modest compared to industry standards. The dividend's sustainability is tied to Endeavor's financial performance and various factors, including debt obligations and merger agreement requirements with Silver Lake. Investors should monitor these aspects closely, as they may impact future dividend declarations.

Market Research Analyst

Endeavor's dividend announcement reflects its position in the competitive sports and entertainment industry. The company's ability to maintain a steady dividend despite market fluctuations suggests strong cash flow generation from its diverse portfolio, which includes representation, sports properties and events. This dividend policy may attract income-focused investors, potentially broadening Endeavor's shareholder base. However, the relatively low yield might not be sufficient to significantly influence stock price movements. Investors should consider this dividend in the context of Endeavor's overall growth strategy and its ability to capitalize on emerging trends in the evolving media and entertainment landscape.

Legal Expert

The dividend announcement highlights important legal considerations for Endeavor and its investors. The company's explicit mention of the merger agreement with Silver Lake, requiring quarterly dividends of $0.06 per share, underscores the contractual obligations influencing its financial decisions. This transparency is commendable from a corporate governance perspective. However, investors should be aware that such agreements may limit Endeavor's flexibility in capital allocation. The company's cautionary language regarding future dividend declarations also serves as a legal safeguard, reminding shareholders that dividends are not guaranteed and are subject to various factors and board discretion.

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 September 30, 2024 to Class A common stockholders of record as of September 16, 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 June 30, 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/20240828149035/en/

Investors: investor@endeavorco.com

Press: press@endeavorco.com

Source: Endeavor Group Holdings

FAQ

What is the amount of Endeavor's Q3 2024 dividend per share (EDR)?

Endeavor (EDR) has declared a Q3 2024 dividend of $0.06 per share for Class A common stockholders.

When will Endeavor (EDR) pay its Q3 2024 dividend?

Endeavor (EDR) will pay its Q3 2024 dividend on September 30, 2024, to Class A common stockholders of record as of September 16, 2024.

What is the total amount of Endeavor's Q3 2024 cash dividend (EDR)?

Endeavor (EDR) has declared a total Q3 2024 cash dividend of approximately $27 million.

How does the merger agreement with Silver Lake affect Endeavor's dividend policy (EDR)?

The merger agreement with Silver Lake requires Endeavor (EDR) to declare and pay a quarterly dividend of $0.06 per share for each outstanding Class A common stock prior to closing.