Investing.com -- TKO Group (NYSE:TKO) shares fell 2.4% after the company provided margin guidance during a presentation at a UBS conference that appeared to fall short of analyst expectations.
During the latter part of the presentation, TKO executives stated they expect margins "in excess of 35%" next year. This outlook appears to be below the Bloomberg consensus estimate, which shows fiscal 2026 adjusted EBITDA margin expectations of 37.46%.
The company also addressed its M&A strategy, noting it’s "not hunting for new properties at the moment," suggesting a pause in expansion efforts through acquisitions.
TKO further discussed an upcoming high-profile UFC event scheduled to take place at the White House on June 14. Executives described the event as "a spectacle on steroids" compared to previous productions at venues like the Sphere. However, they acknowledged that "there will be no ticket sales," which "will hurt us financially."
President Donald Trump, speaking to reporters at the Kennedy Center Honors on December 8, indicated the White House event will feature eight or nine championship fights. "The biggest fights they’ve ever had," Trump said. "Every one’s a championship fight. And every one’s a legendary type of fight."
The stock’s decline suggests investors may be concerned about both the margin outlook and potential revenue impact from the ticketless White House event.
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