Fourth Quarter 2022 Highlights

• Revenue was $325.3 million an increase of 5%; Operating income was $62.7 million a decrease of 22%; and Adjusted OIBDA¹ was $90.2 million a decrease of 4%
• Returned $8.9 million of capital to shareholders through dividend payments
• Crown Jewel was the most viewed international event in WWE’s history. Domestic unique viewership on Peacock increased 70% over the prior year event
• Each WWE domestic premium live event (Extreme Rules and Survivor Series) was the most viewed event in its history with year-over-year increases of 36% and 46% respectively in domestic unique viewership
• WWE announced a multi-year extension of its partnership with MultiChoice to expand the distribution of the Company’s content in Sub-Saharan Africa
• In January 2023 WWE held Royal Rumble at the Alamodome in San Antonio TX. The event was the most viewed Royal Rumble in WWE’s history with a 52% year-over-year increase in domestic unique viewership and generated the highest gate in the event’s history

Full Year 2022 Highlights

• Revenue increased 18% to $1.3 billion the highest in the Company’s history
• Operating income increased 11% to a record $283.3 million
• Adjusted OIBDA increased 19% to a record $384.6 million
• Returned $75.7 million of capital to shareholders including share repurchases and dividends paid

2023 Business Outlook²

• The Company is targeting Adjusted OIBDA of $395 to $410 million for the full year 2023 which would be an all-time record. The Company also expects to generate an all-time record for revenue in 2023.

STAMFORD Conn. February 2 2023 - WWE (NYSE: WWE) today announced financial results for its fourth quarter and year ended December 31 2022.

“2022 was another strong year for WWE. We generated record financial results and our business continued to perform well due to the strength of our content and brand which drove audience engagement and monetization across multiple platforms ” said Nick Khan WWE Chief Executive Officer. “In 2023 we’re focused on continuing to execute on our key operational initiatives such as the domestic licensing of our flagship programs Raw and SmackDown as well as the international licensing of our content in key markets. At the same time we’re focused on the review of strategic alternatives that we announced earlier this year with the goal of maximizing value for all shareholders.”

Frank Riddick WWE President & Chief Financial Officer added “For the year we achieved record revenue and Adjusted OIBDA which was at the very high end of our upwardly revised guidance range. In 2022 Adjusted OIBDA increased 19% reflecting 18% revenue growth. Our financial performance was primarily driven by the return to a full year of ticketed live events including the staging of two large-scale international events as well as the contractual escalation of rights fees for our flagship weekly programming and premium live events. In 2023 we anticipate Adjusted OIBDA of $395 to $410 million reflecting continued revenue growth and relatively flat operating expenses.”

Fourth-Quarter Consolidated Results

Revenue increased 5% to $325.3 million primarily due to an increase in network revenues related to the timing of premium live events as well as higher monetization of third-party original programming. These increases were partially offset by a decline in consumer products licensing and eCommerce revenue. Results also included the staging of a large-scale international event in both the current and prior year periods.

Operating Income decreased 22% or $17.9 million to $62.7 million as the increase in revenue was offset by an increase in operating expenses. The increase in operating expenses was primarily driven by higher costs to support the creation of content. To a lesser extent costs associated with the Special Committee investigation and related matters as well as higher stock compensation expense also contributed to the increase in operating expenses. (See the “Special Committee Investigation and Related Matters” discussion for further details.) The Company’s operating income margin decreased to 19% from 26%.

Adjusted OIBDA decreased 4% to $90.2 million. The Company’s Adjusted OIBDA margin decreased to 28% from 30%.

Net Income was $38.8 million or $0.45 per diluted share a decrease from $60.9 million or $0.73 per diluted share primarily reflecting the decrease in operating performance.

Cash flows generated by operating activities were $120.3 million an increase from $46.6 million as lower net income was more than offset by the favorable timing of collections associated with the Company’s large-scale international events.

Free Cash Flow³was $43.0 million an increase from $31.8 million as the increase in cash flow generated by operating activities was partially offset by an increase in capital expenditures. For the three months ended December 31 2022 the Company incurred $71.7 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 December 31 2022 was $114.7 million.

Return of Capital to Shareholders

The Company returned $8.9 million of capital to shareholders in dividends in the fourth quarter of 2022. There were no share repurchases under the Company’s existing stock repurchase program.

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