Endeavor Group Holdings, Inc. (NYSE:EDR) Q3 2023 Earnings Call Transcript

And we are, we’ve sold through one third of our goal already and the stacking of our marketing doesn’t even take place until Q1 and Q2. As you can see from NBC and their Sunday Night Football package, they just started to hit the Olympics hard and every time they hit it, that bodes well for us. So, so far, insulated healthy consumers seem strong and we’re — believe me we’ll keep an eye out for it.

Unidentified Analyst: Great. Thanks operator. Thank you both.

Operator: Thank you. Our next question comes from David Karnovsky from J.P. Morgan. David, please go ahead.

David Karnovsky: Hey, thank you. Maybe following up on the prior question, as we reach the end game on the actors strike, maybe you could provide your updated view on the demand environment for scripted kind of once we get past that initial pent up period. And then just sticking on the Rep side, I think there’s been a fair amount of investor debate about sustainability of concert touring, whether it can grow off 2023 levels. I think you mentioned 200 of your artists on the road in Q3. So I would appreciate kind of your view on sustainability, how that might look into 2024? Thanks.

Ari Emanuel: I don’t see the pent up demand ending anytime soon. You are going to be ramping. I mean the hardest thing we’re going to have to do is scheduling of people mainly on the actor side because there’s going to be so much product happening. And so I don’t think anything is going to even after the first wave slowdown in that regard, I just constant drumbeat of is content at the peak, I don’t believe that’s the case. You’re going to see this I think through 2025. They’ve already pushed a bunch of stuff into 2025. At Warner Bros. they’ve talked about it, at Disney, they’ve talked about it. So I don’t see it slowing down for a while.

Mark Shapiro: Yes just on the music side, I mean, it’s ironic we’re sitting here in Nashville at our country music office where we lead the industry in terms of music representation with a stellar leadership team here and we’re reviewing really our record bookings to date and forecasting next summer to be equally as strong. So artists want to tour, crowds want to see them and we’re seeing record attendance and record ticket per caps, frankly a lot of endorsement and sponsorship deals that are following that. So very consistent with what Live Nation’s reporting that bodes well for us. Don’t see it slowing down. The festivals that we are a part of that we have an ownership position or we book ourselves, equally, equally brisk.

David Karnovsky: Thanks.

James Marsh: Thanks. Operator, next question please?

Operator: Thank you. Our next question comes from Stephen Laszczyk from Goldman Sachs. Steve, please go ahead.

Stephen Laszczyk: Hey, guys, good morning. Maybe first on the sports strategy and ever even with the USC now over at TKO, you still have some fairly sizable sports assets at Endeavor PBR, the Miami and Madrid Tennis Opens I think being some of your biggest, they also have the bid out there for the PGA. So I was curious just if you could update us on the sports strategy at Endeavor, the extent to which you think there’s opportunity to scale that platform and how that strategy might differ from how TKO might approach an organic growth in the industry going forward? And then maybe just a quick one for Jason. Could you unpack what drove the year-over-year change in net income for us in the quarter? Thank you.