WWE has unveiled its financial performance for the second quarter of 2023, revealing impressive growth with a revenue of $410.3 million, marking a significant 25% increase and setting a new record for quarterly earnings. In an official press release, the company highlights notable achievements, including a substantial rise in viewership for WWE SmackDown and Raw among the P18-49 demographic, which saw a respective increase of 26% and 19%.
- Liv Morgan Injury Update
- BREAKING – Katsuhiko Nakajima set to Terminate his NOAH contract!
- DDT Pro “ULTIMATE PARTY 2023” First matches Announced.
- Chris Jericho Set To Appear For DDT Pro!
- Major Update On Wardlow’s Future With AEW
The release further details that WWE’s premium live events, including WrestleMania, Backlash, and Night of Champions, achieved remarkable milestones by setting new global unique viewership records. These events recorded substantial year-over-year growth rates, with WrestleMania garnering a 29% increase, Backlash soaring by 34%, and Night of Champions experiencing an impressive 45% surge in viewership.
The financial report also highlights the live events sector’s robust performance, showcasing a remarkable 51% growth in revenue when compared to the corresponding period in the prior year.
WWE’s second quarter results underscore its continued success and popularity, as evident by both financial gains and viewership milestones across various platforms and events.
WWE Reports Record 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, WWEand 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 Outlook
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.–(BUSINESS WIRE)– 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 Income increased 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 remained flat at 21%.
- Adjusted OIBDA increased 54%, or $49.2 million, to $140.7 million. The Company’s Adjusted OIBDA margin increased to 34% from 28%.
- Net Income was $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 Flow3 was $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 investments were $523.8 million as of June 30, 2023. The Company currently estimates debt capacity under its revolving line of credit of $200 million.