WWE® Reports Second Quarter 2023 Results
Second Quarter 2023 Highlights
- Revenue was $410.3 million an increase of 25% and a quarterly record; Operating income was $87.3 million an increase of 26%; and Adjusted OIBDA1 was $140.7 million an increase of 54% and a quarterly record
- Returned $9.8 million of capital to shareholders through dividend payments
- Viewership for WWE’s weekly flagship programs SmackDown and Raw increased 26% and 19% respectively in the P18-49 demo significantly outperforming overall broadcast and cable television which both declined 12%
- Each WWE premium live event (WrestleMania Backlash and Night of Champions) set global unique viewership records with year-over-year increases of 29% 34% and 45% respectively
- Live Events revenue increased 51% over the prior year period reflecting continued strong demand for domestic and international events. North American Live Event average attendance was 9 870 an increase of 45% and a quarterly record
- In July Money in the Bank was held at The O2 in London. Money in the Bank was WWE’s highest- grossing arena event in company history. Money in the Bank also set new records for viewership sponsorship revenue merchandise revenue and social media activity
WWE and Endeavor Transaction Highlights
- As previously disclosed on April 3 2023 WWE and Endeavor announced an agreement to combine WWE and UFC to form a new publicly listed company. The new company will be named “TKO Group Holdings Inc.”
- As previously disclosed in June 2023 the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as amended expired. In addition all required foreign regulatory approvals were obtained during the second quarter
- The transaction is expected to close in the second half of 2023. The transaction is subject to the satisfaction of customary closing conditions
2023 Business Outlook2
- The Company reaffirms its expectations for 2023 which target record revenue and an Adjusted OIBDA range of $395 to $410 million which would be an all-time record
STAMFORD Conn. August 1 2023 – WWE (NYSE: WWE) today announced financial results for its second quarter ended June 30 2023.
“We generated strong financial results in the quarter highlighted by record quarterly revenue and Adjusted OIBDA. Operationally we continue to effectively execute our strategy including staging the most successful WrestleMania of all time in early April. WrestleMania as well as our other premium live events such as Backlash Night of Champions and Money in the Bank all delivered record viewership. Our weekly flagship programs Raw SmackDown and NXT delivered strong double-digit growth in viewership significantly outpacing overall industry performance ” said Nick Khan WWE Chief Executive Officer. “Strategically in early April we entered into a historic agreement with Endeavor to combine WWE with UFC to create a one-of-a-kind global sports and entertainment company. We believe that bringing these two iconic and highly complementary brands together will allow us to create incremental value for our shareholders.”
Frank Riddick WWE President & Chief Financial Officer added “In the quarter we exceeded the high end of our guidance. Adjusted OIBDA was $141 million on revenue of $410 million. Our financial performance was favorably impacted by a shift in the timing of the staging of a large-scale international event. Our results in the quarter also reflected strong consumer demand for our live events which benefited performance across our various lines of business.”
Second-Quarter Consolidated Results
Revenue increased 25% or $82.1 million to $410.3 million primarily due to the timing of the staging of a large-scale international event an increase in revenue related to the media rights fees for the Company’s premium live events and flagship weekly programming and higher live events revenue.
Operating Incomeincreased 26% or $18.0 million to $87.3 million reflecting the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in content creation costs including the timing of a large-scale international event and the impact of certain costs related to the Company’s strategic alternatives review and recently announced agreement with Endeavor. (See the “WWE and Endeavor Transaction” discussion for further details.) The Company’s operating income margin increased to 22% from 21%.
Adjusted OIBDAincreased 54% or $49.2 million to $140.7 million. The Company’s Adjusted OIBDA margin increased to 34% from 28%.
Net Incomewas $52.0 million or $0.67 per diluted share an increase from $49.0 million or $0.58 per diluted share primarily reflecting the increase in operating performance partially offset by an increase in the Company’s effective tax rate.
Cash flows generated by operating activities were $77.0 million an increase from $56.9 million primarily due to higher net income and lower working capital requirements.
Free Cash Flow3was $31.1 million an increase of $21.7 million from $9.4 million primarily due to the increase in cash flows generated by operating activities. For the three months ended June 30 2023 the Company incurred $31.7 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 June 30 2023 was $62.8 million.
Cash cash equivalents and short-term investmentswere $523.8 million as of June 30 2023. The Company currently estimates debt capacity under its revolving line of credit of $200 million.
Click here to view full Press Release