WWE reports record 2020 results and 2021 business outlook

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WWE issued the next:

WWE® Stories Document 2020 Outcomes and 2021 Enterprise Outlook

02/04/2021

Fourth Quarter 2020 Highlights*

* (All comparisons are versus the prior yr interval until said in any other case)

Income was $238.2 million, a lower of 26% or $84.6 million, reflecting the absence of the Firm’s large-scale occasion in Saudi Arabia and ticketed stay occasions

Working earnings was $36.2 million, a lower of 64% or $63.6 million

Adjusted OIBDA1 was $51.2 million, a lower of 52% or $56.four million

WWE transitioned Uncooked and SmackDown to Tropicana Subject in Tampa Bay (December 11), and continued to ship a spectacular interactive expertise, WWE ThunderDome, to followers

WWE Community common paid subscribers2 have been 1.5 million, a rise of 6%

Full Yr 2020 Highlights*

* (All comparisons are versus the prior yr interval until said in any other case)

WWE produced stay, in-ring content material with out interruption all year long, demonstrating the Firm’s means to adapt to COVID-19 and unprecedented trade challenges

Income was $974.2 million, a rise of 1% or $13.Eight million as the expansion in core content material rights charges was largely offset by the lack of ticket income and the absence of a large-scale worldwide occasion

Working earnings was $208.6 million, a rise of 79% or $92.1 million, pushed by the substantial rise in content material rights charges, which have a excessive incremental margin

Adjusted OIBDA reached a document $286.2 million, a rise of 59% or $106.2 million

Digital video views have been 38.zero billion, a rise of 10%, and hours consumed have been 1.four billion, a rise of 10%, throughout digital and social media platforms3

Full Yr 2021 Enterprise Outlook4

WWE entered right into a multi-year WWE NetworkU.S. licensing settlement (efficient March 18, 2021) with Peacock, NBCU’s streaming service. This strategic settlement permits WWE to achieve a bigger viewers and notice a larger financial return as in comparison with a stand-alone subscription service

WrestleMania will return to Tampa Bay on Saturday, April 10 and Sunday, April 11, 2021 at Raymond James Stadium with ticket availability and security protocols forthcoming

Administration expects restrictions associated to the unfold of COVID-19, significantly associated to the cancellation, postponement or lowered capability of ticketed stay occasions, to proceed a minimum of by the primary half of 2021. Moreover, administration anticipates a big year-over-year enhance in WWE’s expense base as a result of return of workers from furlough and continued increased bills related to the manufacturing of its weekly Uncooked and SmackDown tv content material on the WWE ThunderDome from its stadium residence. The Firm estimates it will possibly obtain 2021 Adjusted OIBDA of $270 – $305 million as income progress, pushed by the influence of the Peacock transaction, the gradual ramp-up of ticketed stay occasions, together with large-scale worldwide occasions, and the escalation of core content material rights charges, is offset by the rise in personnel and manufacturing bills. Administration estimates that the said 2021 Adjusted OIBDA steering vary can be 15% – 20% increased with out the continued influence of COVID-19, which incorporates the lack of ticket and merchandise gross sales at stay occasions and the elevated funding in manufacturing to additional fan engagement. (See 2021 Enterprise Outlook on web page 6 for additional info)

STAMFORD, Conn.–(BUSINESS WIRE)– WWE (NYSE: WWE) as we speak introduced monetary outcomes for its fourth quarter and yr ended December 31, 2020.

“Through the fourth quarter, we continued to supply stay content material in new methods, which efficiently elevated viewers interplay and engagement,” stated Vince McMahon, WWE Chairman & CEO. “As we continued to adapt our enterprise to the altering media atmosphere, we accomplished an essential settlement to license WWE Community content material to Peacock, which we anticipate will broaden the attain of our manufacturers and improve the worth of our content material.”

Kristina Salen, WWE Chief Monetary Officer, added “For the yr, we achieved document income and Adjusted OIBDA, which was on the excessive finish of our rescinded steering. Adjusted OIBDA elevated almost 60% reflecting the complete yr influence of our new content material distribution agreements within the U.S. and complete efforts to comprise prices in difficult occasions. In 2021, we anticipate Adjusted OIBDA of $270 million to $305 million, reflecting the rising monetization of our content material tempered by the continued influence of COVID-19.”

Fourth-Quarter Consolidated Outcomes*

* (All comparisons are versus the prior yr interval until said in any other case)

Income was $238.2 million, a lower of 26% or $84.6 million, primarily as a result of absence of the Firm’s large-scale occasion in Saudi Arabia in addition to the absence of ticket and merchandise gross sales, all ensuing from the cancellation, postponement and relocation of stay occasions on account of public well being considerations associated to COVID-19.

Working Revenue was $36.2 million, a lower of 64% or $63.6 million, primarily pushed by the absence of occasions (as described above) and, to a lesser extent, a $7.zero million enhance in administration incentive compensation and a $6.zero million enhance in inventory compensation expense associated to forfeitures within the prior yr interval. The Firm’s Working earnings margin decreased to 15.2% from 30.9%.

Adjusted OIBDA (which excludes inventory compensation) was $51.2 million, a lower of 52% or $56.four million. The Firm’s Adjusted OIBDA margin decreased to 21.5% from 33.three%.

Web Revenue was $13.6 million, or $zero.16 per diluted share, a lower from $69.three million, or $zero.78 per diluted share, within the fourth quarter 2019, primarily reflecting decrease working efficiency. Present interval outcomes additionally mirrored an after-tax lack of $5.Eight million associated to sure fairness investments and $1.zero million in after-tax severance expense ensuing from a discount in drive on account of COVID-19. Excluding this stuff, Adjusted Web Income5 was $20.four million, or $zero.24 per diluted share.

Money flows generated by working actions have been $62.four million, a lower from $119.four million, pushed by decrease working efficiency.

Free Money Circulate was $56.2 million, a lower from $106.6 million, primarily as a result of change in working money circulate.6

Return of Capital to Shareholders

The Firm paid $9.three million in dividends to shareholders throughout the fourth quarter 2020. There have been no share repurchases below the Firm’s current share repurchase program throughout the fourth quarter 2020.

Full Yr 2020 Consolidated Outcomes*

* (All comparisons are versus the prior yr interval until said in any other case)

Income was $974.2 million, a rise of 1% or $13.Eight million, as the expansion in core content material rights charges was largely offset by the lack of stay occasion ticket and merchandise gross sales in addition to the absence of a large-scale occasion in Saudi Arabia. These losses resulted from the cancellation, postponement and relocation of stay occasions on account of public well being considerations associated to COVID-19 (starting in mid-March 2020).

Working Revenue was $208.6 million, a rise of 79% or $92.1 million, primarily pushed by the substantial enhance in core content material rights charges, which have a excessive incremental margin. The rise in working earnings was partially offset by a $10.zero million enhance in administration incentive compensation, an $Eight.5 million enhance in depreciation and amortization primarily related to the Firm’s office technique, and a $7.zero million enhance in severance expense ensuing from a discount in drive on account of COVID-19. The Firm’s Working earnings margin elevated to 21.four% from 12.1%.

Adjusted OIBDA (which excludes inventory compensation) was $286.2 million, a rise of $106.2 million or 59%. Adjusted OIBDA excludes the $7.zero million in severance expense (as described above). The Firm’s Adjusted OIBDA margin elevated to 29.four% from 18.7%.

Web Revenue was $131.Eight million, or $1.56 per diluted share, a rise from $77.1 million, or $zero.85 per diluted share, within the prior yr, primarily on account of stronger working efficiency partially offset by the influence of the finance lease that commenced in July 2019 associated to the Firm’s new headquarters. Present interval outcomes additionally mirrored an after-tax internet lack of $four.four million, pushed by impairment fees on sure fairness investments partially offset by internet realized features of marketable securities, and $5.four million in after-tax severance expense (as described above). Excluding this stuff, Adjusted Web Income5 was $141.6 million, or $1.68 per diluted share.

Money flows generated by working actions have been $319.9 million, a rise from $121.7 million, primarily on account of modifications in working capital and stronger working efficiency.

Free Money Circulate was $292.three million, a rise from $52.6 million, primarily pushed by the rise in working money circulate and, to a lesser extent, a lower in capital expenditures.6

Money, money equivalents and short-term investments have been $593 million as of December 31, 2020, which incorporates $100 million borrowed below the Firm’s revolving line of credit score. Of the $200 million borrowed throughout the second quarter 2020, $100 million was repaid within the fourth quarter 2020 and the rest was repaid in January 2021. Consequently, the Firm presently estimates debt capability below its revolving line of credit score of $200 million.

Return of Capital to Shareholders

The Firm paid $37.2 million in dividends to shareholders in 2020. There have been no share repurchases below the Firm’s current share repurchase program throughout 2020.

Foundation of Presentation

For the fourth quarter of 2020, the Firm’s consolidated pre-tax outcomes included the influence of an $Eight.6 million loss on investments, primarily associated to $four.four million of impairment fees coupled with $four.2 million in honest market worth changes of marketable securities previous to their sale, and $1.5 million in severance expense ensuing from a discount in drive on account of COVID-19. For the twelve-month interval ended December 31, 2020, the Firm’s consolidated pre-tax outcomes included $13.four million of incremental prices associated to the finance lease for the Firm’s new headquarters, $7.zero million in severance expense ensuing from a discount in drive on account of COVID-19, and a internet lack of $5.7 million associated to sure fairness investments, which included $15.9 million of impairment fees partially offset by $10.2 million in honest market worth changes of marketable securities previous to their sale. A reconciliation of Web Revenue to Adjusted Web Revenue for the three and twelve-month intervals ended December 31, 2020 and 2019 will be discovered within the supplemental schedule on web page 15 of this launch.

Outcomes by Working Phase*

* (All comparisons are versus the prior yr interval until said in any other case)

Media

Fourth-Quarter 2020

Income was $210.5 million, a lower of 20% or $54.1 million, primarily pushed by the absence of the Firm’s large-scale occasion in Saudi Arabia and, to a lesser extent, decreased gross sales of promoting and

sponsorship. These components have been partially offset by progress in WWE Community subscription income.

WWE Community’s common paid subscribers have been 1.5 million, a rise of 6%.

Working earnings was $67.1 million, a lower of 41% or $47.5 million, primarily on account of a lower in income (as described above), partially offset by a corresponding discount in event-related and content material creation bills.

Adjusted OIBDA was $73.zero million, representing a lower of 37% or $43.6 million.

Full Yr 2020

Income was $868.2 million, a rise of 17% or $125.1 million, primarily pushed by the expansion of home core content material rights charges for the Firm’s flagship applications Uncooked and SmackDown, partially offset by the absence of a large-scale worldwide occasion in Saudi Arabia.

WWE Community’s common paid subscribers have been 1.6 million (flat on a year-over-year foundation).

Working earnings was $332.5 million, a rise of 74% or $141.7 million, primarily on account of a rise in income (as described above) and, to a lesser extent, a discount in working bills.

Adjusted OIBDA was $367.Eight million, representing a rise of 64% or $143.7 million.

Dwell Occasions

Fourth-Quarter 2020

Income was $zero.7 million, a lower of 97% or $26.7 million, ensuing from the absence of stay occasions and a corresponding decline in ticket gross sales in North American and worldwide markets. (The fourth quarter 2019 had 50 occasions in North America and 20 occasions in worldwide markets.)

Working earnings mirrored a lack of $7.zero million, a lower of $6.zero million, because the decline in North America and worldwide ticket gross sales (as described above) was partially offset by a discount in event-related bills.

Adjusted OIBDA mirrored a lack of $6.7 million, representing a lower of $four.9 million.

Full Yr 2020

Income was $19.9 million, a lower of 84% or $105.7 million, ensuing from the absence of stay occasions and a corresponding decline in ticket gross sales in North American and worldwide markets starting in mid-March 2020. (310 occasions have been held in 2019 in comparison with 42 occasions held in 2020.)

Working earnings mirrored a lack of $19.1 million, a lower of $26.Eight million, because the decline in North America and worldwide ticket gross sales (as described above) was partially offset by a discount in event-related bills.

Adjusted OIBDA mirrored a lack of $17.6 million, representing a lower of $27.zero million.

Client Merchandise

Fourth-Quarter 2020

Income was $27.zero million, a lower of 12% or $three.Eight million, primarily on account of decrease online game royalties, pushed by the absence of a 2021 launch of the Firm’s franchise console sport, in addition to the decline in venue merchandise gross sales ensuing from the absence of ticketed stay occasions within the quarter (as described above). These components have been partially offset by a rise in eCommerce merchandise gross sales.

Working earnings was $Eight.9 million, a lower of 30% or $three.9 million, reflecting a decline in income (as described above).

Adjusted OIBDA was $9.1 million, representing a lower of 26% or $three.2 million.

Full Yr 2020

Income was $86.1 million, a lower of 6% or $5.6 million, primarily pushed by decrease venue merchandise gross sales ensuing from the absence of ticketed-audience occasions starting in mid-March 2020, partially offset by elevated eCommerce gross sales.

Working earnings was $24.Eight million, a lower of 6% or $1.6 million, reflecting a decline in income (as described above) partially offset by decrease working bills.

Adjusted OIBDA was $26.6 million, representing a lower of seven% or $1.9 million.

2021 Enterprise Outlook4

On January 25, 2021, WWE issued steering for 2021 Adjusted OIBDA. As beforehand indicated, administration expects restrictions associated to COVID-19, significantly associated to the cancellation, postponement or lowered capability of ticketed stay occasions, to proceed a minimum of by the primary half of 2021. Moreover, administration anticipates a big year-over-year enhance in WWE’s expense base as a result of return of workers from furlough and continued increased bills related to the manufacturing of its weekly Uncooked and SmackDown tv content material on the WWE ThunderDome from its stadium residence at Tropicana Subject. The Firm estimates it will possibly obtain 2021 Adjusted OIBDA of $270 – $305 million as income progress, pushed by the influence of the Peacock transaction, the gradual ramp-up of ticketed stay occasions, together with large-scale worldwide occasions, and the escalation of core content material rights charges, is offset by the rise in personnel and manufacturing bills.

Administration estimates that the said 2021 Adjusted OIBDA steering vary can be 15% – 20% increased with out the continued influence of COVID-19, which incorporates the lack of ticket and merchandise gross sales at stay occasions and the elevated funding in manufacturing to additional fan engagement. Estimates of future efficiency past 2021 can be impacted by the return of those companies and numerous different components.

Though the Firm continues to adapt its enterprise to the altering atmosphere, the timing and charge of returning ticket audiences to its stay occasions stays topic to important uncertainty, and as such administration is just not reinstating quarterly steering presently.

Administration continues to imagine that WWE has important long-term alternatives and is effectively positioned, significantly given its substantial money and liquidity, to ship on its strategic initiatives and to drive long-term shareholder worth.

Notes

(1)

The definition of Adjusted OIBDA will be discovered within the Non-GAAP Measures part of the discharge on pages 7-Eight. A reconciliation of three and twelve months ended December 31, 2020 and 2019 Working Revenue to Adjusted OIBDA will be discovered within the Supplemental Data on this launch on web page 16

(2)

Common paid subscribers are calculated primarily based on the arithmetic day by day imply over the related interval, and should differ considerably from paid subscribers on the finish of any interval as a result of timing of paid subscriber additions and losses

(three)

Consumption contains movies considered on third social gathering (Fb, YouTube, Twitter, Instagram, Snapchat, TikTok, Twitch, and many others.) and WWE platforms (WWE.com and WWE App, together with the Free Model of WWE Community)

(four)

The Firm’s enterprise mannequin and anticipated outcomes will proceed to be topic to important execution and different dangers, together with dangers referring to the influence of COVID-19 on WWE’s enterprise, outcomes of operations and monetary situation;coming into, sustaining and renewing main distribution agreements; WWE Community; uncertainties related to worldwide markets and dangers inherent in massive stay occasions, and different danger components disclosed in our annual report on Kind 10-Ok for the yr ended December 31, 2020

(5)

A reconciliation of three and twelve months ended December 31, 2020 and 2019 Web Revenue to Adjusted Web Revenue will be discovered within the Supplemental Data on this launch on web page 15

(6)

A reconciliation of three and twelve months ended December 31, 2020 and 2019 Free Money Circulate to Web money offered by working actions will be discovered within the Supplemental Data on this launch on web page 17

Non-GAAP Measures

The Firm defines Adjusted OIBDA as working earnings excluding depreciation and amortization, stock-based compensation expense, sure impairment fees and different non-recurring materials gadgets that in any other case would influence the comparability of outcomes between intervals. Adjusted OIBDA contains amortization and depreciation bills instantly associated to supporting the operations of our segments, together with content material manufacturing asset amortization, depreciation and amortization of prices associated to content material supply and expertise property utilized for the WWE Community, in addition to amortization of right-of-use property associated to finance leases of apparatus used to supply and broadcast our stay occasions. The Firm believes the presentation of Adjusted OIBDA is related and helpful for buyers as a result of it permits them to view the Firm’s section efficiency in the identical method as the first technique utilized by administration to judge section efficiency and to make choices concerning the allocation of assets. Moreover, the Firm believes that Adjusted OIBDA is a major measure utilized by media buyers, analysts and friends for comparative functions.

Adjusted OIBDA is a non-GAAP monetary measure and could also be totally different than equally titled non-GAAP monetary measures utilized by different firms. WWE views working earnings as probably the most instantly comparable GAAP measure. Adjusted OIBDA (and different non-GAAP measures akin to Adjusted Working Revenue, Adjusted Web Revenue and Adjusted EPS that are outlined because the GAAP measures excluding sure nonrecurring, materials gadgets that influence the comparability between intervals) shouldn’t be thought of in isolation from, or as an alternative to, working earnings, internet earnings, EPS or different GAAP measures, akin to working money circulate, as an indicator of working efficiency or liquidity.

The Firm defines Free Money Circulate as internet money offered by working actions much less money used for capital expenditures. WWE views internet money offered by working actions as probably the most instantly comparable GAAP measure. Though it isn’t a acknowledged measure of liquidity below U.S. GAAP, Free Money Circulate offers helpful info concerning the amount of money WWE’s persevering with enterprise generates after capital expenditures and is offered for reinvesting within the enterprise, debt service, and cost of dividends.

Extra Data

Extra enterprise metrics are made obtainable to buyers on the company web site – company.wwe.com/buyers. Observe: As beforehand introduced WWE will host a convention name at 5:00 p.m. ET on February four, 2021 to debate the Firm’s earnings outcomes for the fourth quarter and full yr ended 2020. All events are welcome to hearken to a stay net solid that can be hosted by the Firm’s web site at company.wwe.com/buyers. Members can entry the convention name by dialing 1-855-200-4993 (toll free) or 1-323-794-2092 from exterior the U.S. (convention ID for each strains: 3809873). Please reserve a line 5-10 minutes previous to the beginning time of the convention name.

The earnings presentation referenced throughout the name can be made obtainable on February four, 2021 at company.wwe.com/buyers. A replay of the decision can be obtainable roughly two hours after the convention name concludes and will be accessed on the Firm’s web site.

About WWE

WWE, a publicly traded firm (NYSE: WWE), is an built-in media group and acknowledged chief in international leisure. The Firm consists of a portfolio of companies that create and ship unique content material 52 weeks a yr to a worldwide viewers. WWE is dedicated to household pleasant leisure on its tv programming, pay-per-view, digital media and publishing platforms. WWE’s TV-PG, family-friendly programming will be seen in additional than 900 million houses worldwide in 28 languages. WWE Community, the first-ever 24/7 over-the-top premium community that features all stay pay-per-views, scheduled programming and a large video-on-demand library, is presently obtainable in additional than 180 nations. The Firm is headquartered in Stamford, Conn., with workplaces in New York, Los Angeles, London, Mexico Metropolis, Mumbai, Shanghai, Singapore, Dubai, Munich and Tokyo.

Extra info on WWE (NYSE: WWE) will be discovered at wwe.com and company.wwe.com. For info on our international actions, go to http://www.wwe.com/worldwide/.

Emblems: All WWE programming, expertise names, photos, likenesses, slogans, wrestling strikes, logos, logos and copyrights are the unique property of WWE and its subsidiaries. All different logos, logos and copyrights are the property of their respective homeowners.

Ahead-Wanting Statements: This press launch accommodates forward-looking statements pursuant to the secure harbor provisions of the Securities Litigation Reform Act of 1995, that are topic to numerous dangers and uncertainties. These dangers and uncertainties embody, with out limitation, dangers referring to: the influence of the COVID-19 outbreak on our enterprise, outcomes of operations and monetary situation; coming into, sustaining and renewing main distribution agreements; a quickly evolving media panorama; WWE Community; our must proceed to develop inventive and entertaining applications and occasions; the potential for a decline within the recognition of our model of sports activities leisure; the continued significance of key performers and the providers of Vincent Ok. McMahon; potential hostile modifications within the regulatory ambiance and associated non-public sector initiatives; the extremely aggressive, quickly altering and more and more fragmented nature of the markets by which we function and larger monetary assets or market presence of lots of our rivals; uncertainties related to worldwide markets together with potential disruptions and reputational dangers; our issue or incapability to advertise and conduct our stay occasions and/or different companies if we don’t adjust to relevant rules; our dependence on our mental property rights, our want to guard these rights, and the dangers of our infringement of others’ mental property rights; the complexity of our rights agreements throughout distribution mechanisms and geographical areas; potential substantial legal responsibility within the occasion of accidents or accidents occurring throughout our bodily demanding occasions together with with out limitation, claims alleging traumatic mind damage; massive public occasions in addition to journey to and from such occasions; our characteristic movie enterprise; our growth into new or complementary companies and/or strategic investments; our laptop techniques and on-line operations; privateness norms and rules; a potential decline basically financial circumstances and disruption in monetary markets; our accounts receivable; our indebtedness together with our convertible notes; litigation; our potential failure to satisfy market expectations for our monetary efficiency, which may adversely have an effect on our inventory; Vincent Ok. McMahon workouts management over our affairs, and his pursuits could battle with the holders of our Class A standard inventory; a considerable variety of shares are eligible on the market by the McMahons and the sale, or the notion of potential gross sales, of these shares may decrease our inventory value; and the volatility of our Class A standard inventory. As well as, our dividend depends on a variety of components, together with, amongst different issues, our liquidity and historic and projected money circulate, strategic plan (together with various makes use of of capital), our monetary outcomes and situation, contractual and authorized restrictions on the cost of dividends (together with below our revolving credit score facility), common financial and aggressive circumstances and such different components as our Board of Administrators could contemplate related. Ahead-looking statements made by the Firm communicate solely as of the date made and are topic to vary with none obligation on the a part of the Firm to replace or revise them. Undue reliance shouldn’t be positioned on these statements. For extra details about dangers and uncertainties related to the Firm’s enterprise, please seek advice from the “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” and “Danger Elements” sections of the Firm’s SEC filings, together with, however not restricted to, our annual report on Kind 10-Ok and quarterly reviews on Kind 10-Q.

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