Financials

Third Quarter 2016 Highlights

  • Revenue of $164.2 million was on par with a record third quarter in 2015, which benefited from the WWE series, Tough Enough and Total Divas; 2016 revenue-to-date increased 8% from 2015 to $534.3 million
  • Q3 2016 OIBDA of $24.5 million and Operating income of $18.3 million were in line with the Company’s guidance1
  • WWE Network subscribers increased 24% from the third quarter 2015 to 1.46 million average paid subscribers over the third quarter 2016, consistent with the Company’s guidance
  • WWE Network’s Net Promoter Score ranked second among major U.S. OTT services, behind only Netflix, according to research by Parks and Associates (Hulu and MLB.TV ranked 3rd and 4th)
  • The Company completed a content distribution deal in Germany (ProSieben) to grow WWE’s international audience
  • Through the first nine months of 2016, digital engagement continued to grow with video views up 71% to 11.5 billion and social media engagements up 43% to 873 million from the prior year
  • NBCU secured 50 new blue chip advertisers for WWE programming in a two-year period

Second Quarter 2016 Highlights

  • Revenue increased 32% (13% excluding the timing impact of WrestleMania1) to a record $199.0 million  as WWE’s Live Event and Network segments achieved their highest quarterly revenue in Company history
  • OIBDA2 of $7.5 million was in line with the Company’s guidance
  • WWE Network reached a record of 1.52 million average paid subscribers over the second quarter 2016, which represented a 25% increase from the second quarter 2015
  • SmackDown transitioned to a live format on USA Network. Starting July 25, 2016 WWE’s flagship programs, Monday Night Raw and SmackDown, began to feature unique talent and storylines
  • Through the first six months of the year, digital engagement metrics continued to grow with video views up over 100% to nearly 8 billion and social media engagements up 39% to 570 million versus the prior year
  • The Company announced a multi-year content distribution deal in China with PPTV, the return of a WWE live event to Shanghai in September and the signing of the first-ever Chinese talent

First Quarter 2016 Highlights

  • Revenue increased 13% on a pro-forma basis to $171.1 from $151.3 million in the prior year quarter, excluding the timing impact of WrestleMania (which occurred in Q2 2016 vs. Q1 2015)
  • OIBDA increased 31% to $27.6 million from the prior year quarter (29% on a pro-forma basis)
  • WWE Network averaged 1.29 million paid subscribers over the first quarter 2016, which represented a 39% increase from the first quarter 2015, and reached 1.47 million total subscribers at quarter-end
  • WWE’s YouTube channel reached 11 million subscribers and achieved Diamond Play Button status joining Taylor Swift and Justin Bieber; WWE content garnered 10 billion YouTube views over the last 12 months
  • Announced new series spin-off, Total Bellas, to debut on E! in Fall 2016 along with the sixth season of Total Divas. Continued to develop exciting new content for WWE Network, including Camp WWE (May), Swerved Season 2 (June) and Holy Foley! (August)

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.