Home > Finance > Quarterly results > Endeavor hit by sports data and tech revenue decline in Q1

Endeavor hit by sports data and tech revenue decline in Q1

| By Robert Fletcher
Endeavor posted a 10.1% year-on-year drop in sports data and technology revenue to $90.7m (£72.5m/€84.2m) in Q1, although its wider business reported some growth.
Endeavor Q1

The group’s Sports Data and Technology business includes OpenBet, acquired in September 2022 for $800.0m. However, the loss of certain data rights at IMG Arena in Q1 led to a drop in revenue within the segment.

Incidentally Q1 also saw Endeavor announce it was to integrate OpenBet and IMG Arena, which it also owns, under the OpenBet banner. Also part of this business is Leap Gaming, which IMG Arena  acquired last April and won media rights to 85 of the Confederation of African Football’s territories in December.

In terms of adjusted EBITDA for the segment, this slipped to a loss of $9.5m in Q1. This is in contrast to the $4.5m positive figure reported in the same period last year. 

Wider growth for Endeavor 

The Sports Data and Technology segment was one of three areas at Endeavor to post lower revenue in Q1. The group also noted declines across Events, Experiences and Rights and Representation.

Owned Sports Properties was the only area of growth, with revenue here almost doubling year-on-year to $685.4m. This pushed overall group revenue up 15.8% to $1.85bn.

However, higher operating expenses more than offset this growth, leading to a net loss of $137.3m, in contrast to an $8.0m profit in 2023. There was better news for adjusted EBITDA, with this rising 22.1% to $374.1m.

“This quarter, Endeavor benefited from brisk demand for our sports and entertainment content, live events and premium experiences,” Endeavor CEO Ariel Emanuel said.

Silver Lake to take Endeavor private

Away from financial results and the major development at Endeavor in recent weeks is the news that technology investment company Silver Lake will take the business private. The deal is valued at $13.00bn.

Silver Lake will acquire 100% of the outstanding shares in Endeavor that it does not already own. This is with the exception of rolled interests. 

Endeavor shareholders will receive $27.50 in cash per share, a premium of 55% on the $17.72 per share seen at market close on 25 October 2023. 

This date was selected as on the following day,, Endeavor initiated a strategic review. This was to examine the potential of taking the business private. At the time, Silver Lake expressed its interest in taking Endeavor private.

“We remain focused on maintaining our momentum through the year while working toward the close of our take-private transaction with Silver Lake,” Emanuel said.

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