Raises Full Year 2022 Outlook

Second Quarter 2022 Highlights

• Revenue was $328.2 million an increase of 24%; Operating Income was $69.3 million an increase of 50%; and Adjusted OIBDA1 was $91.5 million an increase of 34%
• Returned capital to shareholders totaling $19.1 million including share repurchases and dividends paid
• Each WWE premium live event (WrestleMania WrestleMania Backlash and Hell in a Cell) was the most viewed event in its history with year-over-year increases of 60% 49% and 45% respectively in domestic unique viewership on Peacock
• WWE in connection with Fox’s Blockchain Creative Labs launched its inaugural NFT sale on Moonsault the Company’s official NFT marketplace. The limited-edition collection which was tied to the Hell in a Cell event sold out within 24 hours
• WWE announced its second “Next In Line” class of 15 college athletes further enhancing the Company’s talent development program
• In July WWE launched a new enhanced digital platform for e-commerce and licensed merchandise in connection with its long-term partnership with Fanatics

2022 Business Outlook²

• In February the Company issued Adjusted OIBDA guidance of $360 - $375 million for the full year 2022. Based on outperformance through the first six months of the year as well as management’s current expectations for the second half of the year the Company is raising its guidance and now expects full year 2022 Adjusted OIBDA within a range of $370 - $385 million

STAMFORD Conn. August 16 2022 - WWE (NYSE: WWE) today announced financial results for its second quarter ended June 30 2022.

“We generated strong financial results in the quarter highlighted by record revenue and Adjusted OIBDA for a second quarter ” said Stephanie McMahon and Nick Khan WWE co-Chief Executive Officers. “We continued to effectively execute our strategy including staging a record-setting WrestleMania in early April. WrestleMania as well as our other premium live events (“PLEs”) including WrestleMania Backlash Hell in a Cell Money in the Bank and SummerSlam all delivered record viewership for their respective events. These PLEs along with strong ratings for our flagship programs Raw and SmackDown continued to expand the reach of our brands and enhance the value of our content. We’re excited about the recently announced management structure including the appointment of Paul Levesque as head of WWE creative and talent as we look to continue to increase the monetization of our IP across various platforms through our media rights agreements both domestically and abroad as well as our inaugural NFT drops on Moonsault WWE’s official NFT marketplace and the recent launch of our new enhanced e-commerce digital platform in connection with our partnership with Fanatics.”

Frank Riddick WWE Chief Financial and Administrative Officer added “In the quarter we exceeded the high end of our guidance. Adjusted OIBDA increased 34% reflecting 24% revenue growth. Our strong financial performance was primarily driven by our return to a full live event schedule and our consumer products business. These items more than offset an increase in production content-related and other expenses. For 2022 we are raising our full year Adjusted OIBDA guidance to a range of $370 to $385 million.”

Second-Quarter Consolidated Results

Revenue increased 24% to $328.2 million primarily due to an increase in ticket sales at our live events and to a lesser extent higher sales of the Company’s licensed products including video games and trading cards. An increase in media rights fees related to the Company’s flagship programs and premium live events also contributed to the increase in revenue.

Operating Income increased 50% or $23.0 million to $69.3 million driven by the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses was primarily driven by higher event-related costs associated with the resumption of live event touring as well as increased production costs associated with the creation of the Company’s premium live events including our annual WrestleMania events. The Company’s operating income margin increased to 21% from 17%.

Adjusted OIBDA (which excludes stock compensation) increased 34% or $23.4 million to $91.5 million. The Company’s adjusted OIBDA margin increased to 28% from 26%.

Net Income was $49.0 million or $0.58 per diluted share an increase from $29.2 million or $0.34 per diluted share in the second quarter of 2021 primarily reflecting higher operating performance.

Cash flows generated by operating activities were $56.9 million an increase from $19.5 million primarily due to higher net income.

Free Cash Flow3 was $9.5 million a decrease from $13.3 million primarily due to an increase in capital expenditures partially offset by the change in operating cash flow. For the three months ended June 30 2022 the Company incurred $40.8 million of capital expenditures related to its new headquarter facility. Excluding the capital expenditures related to the new headquarter facility Free Cash Flow for the three months ended June 30 2022 was $50.3 million.

Return of Capital to Shareholders

The Company returned $19.1 million to shareholders in the second quarter of 2022 consisting of $10.0 million in share repurchases and $9.1 million in dividends paid. Approximately 170 000 shares were repurchased at an average price of $58.70 per share during the second quarter. As of June 30 2022 the Company had $210.9 million available under its existing $500 million stock repurchase authorization.

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