WWE Reports Q3 2016 Financial Results

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WWE Reports Q3 2016 Financial Results

December 9, 2020 | News | No Comments

Third Quarter 2016 Highlights

  • Revenue of $164.2 million was on par with a record third quarter in 2015, which benefited from the WWE series, Tough Enough and Total Divas; 2016 revenue-to-date increased 8% from 2015 to $534.3 million
  • Q3 2016 OIBDA of $24.5 million and Operating income of $18.3 million were in line with the Company’s guidance1
  • WWE Network subscribers increased 24% from the third quarter 2015 to 1.46 million average paid subscribers over the third quarter 2016, consistent with the Company’s guidance
  • WWE Network’s Net Promoter Score ranked second among major U.S. OTT services, behind only Netflix, according to research by Parks and Associates(Hulu and MLB.TV ranked 3rd and 4th)
  • The Company completed a content distribution deal in Germany (ProSieben) to grow WWE’s international audience
  • Through the first nine months of 2016, digital engagement continued to grow with video views up 71% to 11.5 billion and social media engagements up 43% to 873 million from the prior year
  • NBCU secured 50 new blue chip advertisers for WWE programming in a two-year period

2017 Outlook

  • The Company outlines management expectations for 2017, which include continued WWE Network subscriber growth, record revenue, targeted Adjusted OIBDA of $100 millionand Operating income of $70 million2

STAMFORD, Conn.–(BUSINESS WIRE)– WWE (NYSE:WWE) today announced financial results for its third quarter 2016. The Company reported Net income of $11.1 million, or $0.14per diluted share, as compared to Net income of $10.4 million, or $0.14 per diluted share, in the prior year quarter.

“During the quarter, we continued to effectively execute our content strategy, which has resulted in record revenues to-date in 2016 and increased consumption across our media platforms,” said WWE Chairman & CEO Vince McMahon. “This growth illustrates meaningful progress against our long-term strategic plan and provides the foundation for achieving our 2017 financial objectives.”

George Barrios, WWE Chief Strategy & Financial Officer, stated “We achieved a 24% increase in average paid subscribers to WWE Network and generated profits that were within the range of our guidance. We expect continued year-over-year growth in subscribers and profits for the fourth quarter resulting in strong full year performance that is in-line with our previous business outlook.”

Fourth Quarter and Full Year 2016 Business Outlook

The Company projects fourth quarter Adjusted OIBDA of approximately $20 million to $24 million (Operating income of $12 million to $16 million) and average paid subscribers to WWE Network of 1.40 million (+/- 2%). The fourth quarter subscriber forecast represents an approximate 4% sequential decline from the third quarter 2016 and a 13% increase from the fourth quarter 2015. The Company also projects 2016 Adjusted OIBDA of $80 million to $84 million (Operating income of $54 million to $58 million) and average paid subscribers to WWE Network of approximately 1.42 million representing growth of 25% for the full year.3

2017 Outlook

In 2017, WWE management expects the Company to achieve another year of record revenue and has targeted Adjusted OIBDA of $100 million, which would also be an all-time record (up approximately 20% from projected 2016 Adjusted OIBDA of $80 million to $84 million), and Operating income of $70 million. Supporting the continued growth in the Company’s revenue and profits, management anticipates contractual increases in television rights fees from key distribution agreements and expects the level of WWE Networksubscribers will continue to increase, albeit at a lower rate, on a year-over-year basis. As management believes there is a significant long term growth opportunity for WWE, the company plans to continue to invest in key areas to optimize WWE’s long-term performance while driving strong bottom line performance.

Providing perspective on the growth of WWE Network and the company’s targeted profit expansion, Mr. Barrios commented, “Given the current scale and leverage of WWE Network, increases in its subscribers have the potential to drive meaningful growth in revenue and profit; therefore, we define success by the achievement of sustained year-over-year increases in this measure. Based on anticipated subscriber growth, we believe we can achieve our targeted record financial results in 2017. Moreover, the continued growth of WWE Network would enable us to deliver a wider range of content, strengthening our engagement with a broadening audience of ardent fans. In addition to supporting our 2017 financial objective, growth of WWE Network would provide us with greater flexibility as the media landscape continues to evolve.”2

For detailed financial results, click here.

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