Second-Quarter 2015 Highlights
•        OIBDA of $13.2 million increased $27.8 million from the prior year quarter

•        WWE Network total subscribers increased 75% to more than 1.2 million from the second quarter 2014;  average paid subscribers increased 31% to approximately 1.2 million from the first quarter 2015

•        Tough Enough premiered June 23 on USA Network. The Company’s reality franchises, Tough Enough and Total Divas, have expanded WWE’s weekly television audience by nearly 5 million unique viewers

•        WWE is one of the brands that will participate in an ad-supported video test on Facebook that shares revenue with content creators. WWE served more than 440 million video views on Facebook during the quarter

Year-To-Date 2015 Highlights

•        Network segment revenue reached a record of $131.0 million on a trailing 12-month basis

•        International revenue increased by 38% to $78.6 million through the first six months of 2015

•        WWE surpassed 500 million social media followers across all its global platforms, and now ranks 6th on Sprinklr’s Social Business Index, ahead of the NBA, NFL and other media properties

For the quarter, the Company reported net income of $5.1 million, or $0.07 per share, compared to a net loss of $14.5 million, or $0.19 loss per share, in the second quarter last year.

Revenues decreased 4% to $150.2 million from $156.3 million reflecting the timing impact of WrestleMania.  North American revenues decreased 13% as that event positively impacted pay-per-view, live event and merchandise revenue in 2014. Excluding the impact of WrestleMania, North American revenues increased $15.9 million, or approximately 17%, driven by the expansion of WWE Network subscribers and the escalation of television rights fees as well as increased video game sales as reflected in the Company’s Media and Consumer Products divisions, respectively.  Similarly, revenues from outside North America increased 30% as these growth factors were reflected in the Company’s Media and Consumer Products divisions, respectively.

Network revenues, which include revenue generated by WWE Network and pay-per-view, decreased 7% to $40.1 million as WrestleMania generated pay-per-view revenue of $17.8 million in the prior year quarter.

Television revenues increased 19% to $52.1 million from $43.8 million in the prior year quarter primarily due to the renegotiation of key domestic and international distribution agreements.

Live Event revenues decreased 34% to $26.4 million from $40.3 million in the prior year quarter primarily due to the timing of WrestleMania, which occurred in the first quarter of 2015 as compared to the second quarter of 2014.  Excluding the impact of WrestleMania, Live Event revenues were approximately $25.7 million in the prior year quarter.
Consumer Products revenue increased 36% to $21.8 million from $16.0 million in the prior year quarter, with growth driven by the Company’s Licensing business primarily due to increased video game revenues.

OIBDA reached $13.2 million as compared to a loss of $14.6 million in the prior year quarter.  The $27.8 million increase was driven by the expansion of WWE Network, the escalation of television rights fees and increased video game sales.  A reconciliation of OIBDA to operating income can be found in the Company’s earnings release dated July 30, 2015.
Comparability of Results

WrestleMania 31 occurred on March 29, 2015 and is included in first quarter 2015 results, whereas the comparable prior year event occurred on April 6, 2014 and was included as part of second quarter 2014 results. Given that WrestleMania impacted subscriber growth in April 2015 and April 2014, the Company believes the timing impact of WrestleMania on second quarter 2014 results is best estimated from the direct contribution of the event to ticket sales, merchandise sales, pay-per-view revenue, and pay-per-view production costs (excluding any attribution of subscription revenue from WWE Network). In aggregate, these items increased second quarter 2014 revenue by $35.0 million and increased OIBDA and EPS by $9.1 million and $0.08, respectively.  In order to facilitate an analysis of the Company’s financial results, the Company has prepared a pro forma statement, which excludes these items from reported amounts. The impact of WrestleMania is measured using a pro forma statement rather than as an adjusting item to the Company’s reported results because adjustments to the Company’s financial measures are limited by definition to items that are difficult to predict and are considered unusual or non-recurring in nature.  (See Supplemental Information – Pro Forma Income Statement & Reconciliation to GAAP Measures.)

As defined, adjusted financial measures would exclude certain material items, including but not limited to, non-cash impairments of film, intangible and fixed assets, gains and losses on asset sales, as well as material restructuring charges. In the prior year quarter, the Company recorded a $1.6 million adjustment to reduce the carrying value of the former corporate aircraft to its estimated fair value prior to its sale.  In order to facilitate an analysis of financial results on a comparable basis, where noted, the Company’s results have been adjusted to exclude these items. (See Schedule of Adjustments in Supplemental Information).

For more information on WWE financial results by fiscal year or quarter, please visit the Investor Relations section of our website.