One Championship parent eyes profitable 2024 as broadcasting deals pump numbers

Group One Holdings helped put Asian mixed martial arts talent on the map when it first launched in 2011. The One Championship operator claims to have grown to be the “world’s largest martial arts organization” since then.

While Group One has yet to turn a profit, it managed to narrow losses in 2022. Co-founder and group president Teh Hua Fung tells Tech in Asia that the sports media company’s on track to hit positive cash flow by the end of this year.

However, under half of the US$49 million reduction in losses in 2022 was attributed to a US$23 million “contract breakage fee,” which is not a recurring form of income.

Also co-founded by Chatri Sityodtong, Group One broadcasts its content to over 190 countries through its platforms One Championship and One Esports.

While the company said it was unable to comment on the details of commercial arrangements, a break fee is typically paid by an entity that breaks an agreement with its potential partner and is usually included in deals for mergers and acquisitions, as well as lease agreements.

If the US$23 million were taken out of the picture, the company’s total losses in 2022 would still shrink – by almost 24% – compared to 2021.

The firm grew its revenue by 25% in 2022, with broadcasting remaining its biggest contributor. Teh says that the growth of its martial arts product, coupled with the rising interest in combat sports globally that year, had positioned the company to score more media rights deals.

Chief among these deals is its partnership with Amazon Prime Video in the US. According to Group One’s brand tracker study with market research firm GWI, this entry into the US with Amazon’s video streaming service helped the former boost its audience count in the country by 46% between December 2022 and May 2023.

Group One’s other partners include Sky Sports, Seven Network, and Disney+ Hotstar.

Teh also shares that his company’s revenue grew 50% year on year in 2023, which would place it at around US$127 million for the year.

He expects this progress to continue this year, “underpinned by 60 live events and record-high viewership metrics.”

While broadcast revenues remain Group One’s biggest revenue stream, Teh says that the company saw “strong growth” in its live events and sponsorship revenues.

He adds that Group One has a steady stream of growth initiatives lined up in 2024 and beyond. These include an expanding calendar of live events in Asia, the US, and the Middle East, as well as regional sponsorship deals.

Photo credit: Group One

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