Fourth-Quarter 2015 Highlights
- Revenue increased 18% to $166.2 million driving a $6.0 million increase in Adjusted OIBDA1 to $11.1 million
- WWE Network had 1.22 million ending paid subscribers, representing a 49% increase from the fourth quarter 2014; WWE Network hit an all-time high of 1.24 million average paid subscribers for the quarter
- WWE Network was recognized as the fifth largest direct-to-consumer (“OTT”) subscription service in the U.S. according to Parks Associates, ranking alongside Netflix, Amazon Video, Hulu and MLB.TV
- WWE was added to the S&P SmallCap 600 Index (effective January 20, 2016)
Full Year 2015 Highlights
- Revenue increased 21% to $658.8 million, the highest in the Company’s history, including record levels of revenue from WWE’s Network, Television, Live event, Venue Merchandise, and WWE Shop businesses
- Total international revenue increased by 46% to a record $169.8 million
- Adjusted OIBDA1 reached $68.7 million, representing an $80.3 million increase from 2014
- Network segment generated revenue of $159.4 million and OIBDA1 of $48.4 million that nearly doubled the average annual revenue of the Company’s pay-per-view business before network launch
- WWE Network subscribers watched an estimated total of 256 million hours of content, representing an average of 188 hours per household placing it among the top cable and broadcast networks
- WWE content garnered more than 8 billion views on YouTube; WWE was the most followed sports channel on YouTube and the second most followed sports brand on Facebook
- WWE generated 790 million social media fan engagements in 20152; Sprinklr’s Social Business Index ranked WWE as the 6th most social brand worldwide, alongside Disney, Time Warner and Google
Total revenues for the year ended December 31, 2015 were $659 million as compared to $543 million in the prior year. Revenues increased 21% with growth from most of the Company’s business segments and from all major geographic regions; the Network and Television segments accounted for nearly $100 million, or 85%, of the overall revenue growth. North American revenues increased 15% driven by the contractual escalation of television rights fees and the expansion of WWE Network as reflected in the Company’s Media Division, higher average ticket prices for the Company’s live events, and higher video game sales as reflected in the Consumer Products Division. These growth drivers were partially offset by a reduction in Home Entertainment revenue. Revenues from outside North America increased 46% driven by the increased monetization of content as reflected in the Company’s Media Division, across the EMEA and Asia Pacific regions. Revenue in the current period was impacted by approximately $6.9 million due to adverse changes in foreign exchange rates. For the full year, the Company reported net income of $24 million, or $0.32 per share, compared to a net loss of $30 million, or $0.40 loss per share, in the prior year. Excluding items affecting comparability, Adjusted OIBDA increased to $69 million from an Adjusted OIBDA loss of $12 million and Adjusted net income was $29 million, or $0.38 per share, as compared to an Adjusted net loss of $23 million, or $0.31 loss per share, in the prior year.
(1) Reconciliation of Operating Income to Adjusted OIBDA can be found in the Supplemental Information in the Company’s earnings release dated February 11, 2016.
(2) Social media fan engagements are defined as the cumulative fan response to WWE content measured by the number of “likes”, “follows”, “shares”, “mentions”, and “retweets” across social media platforms such as Facebook, Twitter, YouTube, Instagram and Tumblr.