TKO Group Holdings suffered a net loss of $249.5 million in the first quarter of 2024, largely due to the UFC antitrust settlement.

The settlement of a pair of antitrust lawsuits against the UFC resulted in a net loss for TKO Group Holdings in the first quarter of 2024, although the company appears to be expecting to bounce back fairly quickly before the end of the year.

In a new filing with the Securities and Exchange Commission on Wednesday, TKO reported a net loss of $249.5 million for the quarter, largely due to a $335 million settlement reached to resolve a pair of antitrust lawsuits.

While the settlement still must be approved by the court, TKO expects to pay $335 million to resolve both claims and also plans to make three separate payments to the plaintiffs in the case. TKO expects to make two payments totaling $200 million in 2024, followed by another $135 million in 2025.

Although the settlement resulted in a net loss for the quarter, TKO still beat Wall Street's expectations for revenue and continued growth for the quarter. Overall, UFC revenue grew two percent year over year, with $313 million earned in the first quarter of 2024 versus $306.7 million in 2023.

“TKO is off to a strong start in 2024 with a slew of record-breaking live events, new brand partnerships and media rights deals for WWE Raw,” TKO CEO Ari Emanuel said in a press release. “Thanks to the dynamics of the first quarter and good financial results, we have increased our forecast for the whole of 2024.

“We have also reached an agreement to resolve all claims asserted in both UFC antitrust lawsuits. These positive developments, along with the strength of our core business, give us more confidence than ever in the combination of UFC and WWE, and in TKO's ability to deliver sustainable, long-term value for shareholders.”

The increase in UFC revenue was primarily driven by sponsorships and live events, with media rights revenue declining due to one fewer event being held during the quarter compared to the same period in 2023.

WWE's revenue for the quarter rose six percent to $316.7 million. TKO also announced that WWE had reached an agreement with NBCUniversal for its flagship show. Monday evening damp to remain on the USA Network until 2024 for $25 million before moving the show to Netflix starting in 2025.

Netflix paid $5 billion over 10 years to secure the rights to Raw starting from 2025.

TKO also highlighted the UFC's success with an increase in live events in the first quarter, and also called UFC 300 “one of the most successful and profitable events in UFC history.”