WWE Beats Q2 Revenue Expectations With $410.3 Million
WWE reported mixed quarterly results for the second quarter of 2023 with net income of $52 million, or 67 cents per share, on revenue of $410.3 million. Analysts surveyed by Zacks Investment Research were expecting earnings of 93 cents per share on revenue of $398.5 million.
Total revenue in the media division grew 32% year over year to $320.3 million, including $80.1 million in network revenue, $154.8 million in core content rights fees, $18.9 million in advertising and sponsorship revenue and $66.5 million in “other” media revenue.
The live events segment’s total revenue increased 51% year over year to $62 million. There were 53 total ticketed live events in the current quarter, consisting of 43 events in North America and 10 events in international markets. Average attendance at the Company’s North America events was approximately 9,900.
The consumer product segment’s revenue fell 37% year over year to $28 million, primarily reflecting a decrease in licensing and ecommerce revenue. Licensing revenue came in at $15.6 million, while ecommerce revenue was $4.6 million and venue merchandise revenue was $7.8 million.
Operating income increased 26% year over year to $87.3 million, while adjusted OIBDA grew 54% year over year to $140.7 million.
The latest quarterly results come as WWE has entered into an agreement with Endeavor Group Holdings to form a $21.4 billion entertainment giant. The deal, which values UFC at $12.1 billion and WWE at $9.3 billion, is expected to close in the second half of 2023. Upon close, Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest in the new company.
In June, the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired. In addition, all required foreign regulatory approvals were obtained during the second quarter.
WWE recorded $18.8 million and 24.5 million of expenses for the three-month and six-month periods ending June 30, related to the strategic alternatives review and agreement with Endeavor.
It also incurred $5.3 million and 7.1 million of expenses for the three-month and six-month periods, related to costs in connection with or arising from an investigation into alleged sexual misconduct by executive chairman Vince McMahon.
“Mr. McMahon has agreed to review in good faith and reimburse the Company for all reasonable costs incurred in connection with and/or arising from the investigation conducted by the Special Committee, related revisions to the Company’s financial statements and other related matters,” the company said in a statement. “To date, Mr. McMahon has paid approximately $17.4 million to reimburse the Company for costs that have been incurred and paid by the Company.”
More to come…
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