WWE reports earnings up by 25% in second quarter

Pro-wrestling media organisation World Wrestling Entertainment (WWE) had an impressive second quarter of 2023 with revenue increased by 25% in 2022, from $81.1 million to $410.3 million, according to its Q2 financial earning results.

Operating income went up by 26% to $87.3 million, with adjusted operating income before depreciation and amortisation (OIBDA) up by 54%, to $140.7 million.

WWE noted the increase in revenue was partially offset by an increase in operating expenses which was due to an increase in content creation costs, including the timing of its large-scale international event, and the impact of certain costs related to the Company’s strategic alternatives review and recently announced sale to Endeavor.

The LA-based talent group bought WWE as part of a deal to create a $21bn “live sports and entertainment powerhouse” which combines WWE and the Ultimate Fighting Championship (UFC).

Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest. The transaction values  WWE at $9.3bn, with the sports giant to be led by Endeavor CEO Ari Emanuel.

Net Income rose from $49.0 million to $52.0 million in the second quarter, a cash flow of $77.0 million from last year’s $56.9 million. The company highlighted the increase in cash flow was primarily due to higher net income and lower working capital requirements.

“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