WWE Issues Second Quarter and Full Year Guidance
Attendance and television ratings are expected to be in line with those in the prior quarter. Pay-per-view buys are projected to be approximately 950,000 buys.
Selling, general, and administrative expenses are forecast to be approximately $25 million which reflects the favorable impact of the Company’s cost control programs.
Simultaneously with this release, the Company filed an 8-K which reported the settlement of its litigation and buyout of all existing contractual agreements with William Morris Agency, Inc. The Company agreed to pay $13 million of which it had previously accrued $7 million. An additional charge of $6 million will be recorded in the live and televised business segment for the quarter. During the quarter, the Company received a favorable verdict in its litigation with Nicole Bass.
Primarily as a result of the charge in the quarter, WWE will report a net loss of approximately $3 million or $(0.05) per common share.
Based upon the projected results for the first half of the year, the Company expects that full year revenues will be approximately $385 million to $390 million. Operating income is forecast to be $27 million to $29 million which includes the six month net impact of its litigation settlements of $2.5 million. EBITDA is forecast to be approximately $42.5 million to $44.5 million. Selling, general, and administrative expenses are forecast to be approximately $100 million which reflects the favorable impact of the Company’s cost control programs. Depreciation and amortization is forecast to be $13 million for the year. The Company expects to perform approximately 325 live events with attendance projected to be 2.0 million for the year. Total pay-per-view buys are projected to be about 5.4 million.
This guidance is subject to various risks and uncertainties as contained within the Company’s filings with the Securities and Exchange Commission.
World Wrestling Entertainment, Inc. (NYSE: WWE) is an integrated media and entertainment company headquartered in Stamford, Conn., with offices in New York, Los Angeles, Toronto and London and it entertainment complex, the World, in New York City’s Time Square. Additional information on the company can be found at wwe.com and corporate.wwe.com. Information on television ratings and community activities can be found at parents.wwe.com.
For More Information:
Media: Gary Davis, Vice President, Corporate Communications, (203) 353-5066
Investors: Thomas Gibbons, Vice President, Investor Relations, (203) 328-2576
Forward-Looking Statements: This news release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for live events, broadcast television, cable television, pay-per-view, Internet, food and beverage, entertainment, professional sports, and licensed merchandise; acceptance of the Company’s brands, media and merchandise within those markets; uncertainties relating to litigation; risks associated with producing live events both domestically and internationally; uncertainties associated with international markets; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated.