Endeavor CEO Ari Emanuel has suggested that the US actors and writers strikes involve “real issues to work through” and will take “months not days” to be resolved.
And Endeavor, the talent representation, sports and media production group that owns major Hollywood agency WME, is estimating that the stoppages will cost it around $25m a month in revenue.
Speaking on the group’s second quarter conference call, Emanuel said that while the strikes are in effect “we continue to stand with our clients, advocate on their behalf and push for a resolution that protects their creative and commercial interests.”
Endeavor chief financial officer Jason Lublin offered the estimate that “the strikes will adversely affect our revenue by approximately $25m per month, on average.”
Group president and chief operating officer Mark Shapiro, however, suggested that Endeavor’s business will benefit once the strikes are resolved and production activity resumes. “We look forward to this getting wrapped up,” he said, “our clients having better economics with each of their deals, us prospering from a return to normal business with better economics in 2024.”
The comments came after Endeavor reported year-on-year growth in all four of its business segments: sports properties, events, representation (including WME) and sports data.
The group’s revenue for the quarter was $1.436bn, up from $1.313bn for the second quarter of last year. Net income was $666.5m, up from $42.2m, and adjusted EBITDA was $304.9m, compared to $306.4m for the previous year’s quarter.
Revenue in Endeavor’s representation segment was up 6.5% to $381.1m, with growth in the group’s non-scripted content production business being partially offset by the impact of the writers strike on WME.
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