The new Moody's Credit Opinion for Zuffa, LLC was released last week and reveals a marked improvement in their finances for 2015 compared to what was reported for 2014.
According to Moody's, for the last twelve months for the period ending 9/30/2015, Zuffa's revenues were $535 million. In the first nine months of last year, the company saw its earnings before interest, taxes, depreciation, and amortization (EBITDA) increase 64% on the back of a 104% increase in pay-per-view revenue from the prior year.
Since this doesn't include the last 3 months of the year, which included the two biggest events of 2015 - UFC 193 and UFC 194 - the final numbers for year ending December 31 should be even better. In fact, Lorenzo Fertita has said publicly that revenues will top $600 million.
Moody's also reported that as of the third Quarter for 2015, the debt-to-EBITDA ratio was 3.53X with the amount currently outstanding on the long term loan standing at $467 million and nothing having been drawn from the $60 million revolving credit facility. Based on these figures, this should translate to an EBITDA of $132 million for the first nine months of 2015.
The UFC's increased fortunes in 2015 were credited to a turnaround in pay-per-view events. "Pay per view revenue," Moody's wrote, "benefited from one additional event held compared to the prior year (10 events YTD through Q3 2015), more marquee events with fewer injuries to key fighters, and an increase in the price of pay per view content." UFC revenues also benefited from a growth in number of tickets sold to live events, higher ticket prices, growth in the UFC Fight Pass, and an increase in both domestic and international TV rights fees.
LINK: UFC Finances: Moody's reports a big 2015 for Zuffa
