WWE Reports Strong Second Quarter 2020 Results Driven By Sustained Cost Savings

WWE Reports Strong Second Quarter 2020 Results Driven By Sustained Cost Savings

In a press release shared by WWE, it's revealed that not holding live shows has saved the company quite a bit of money, leading many to wonder why they found it necessary to release all those Superstars.

WWE has issued the following:

Second Quarter 2020 Highlights

Revenues were $223.4 million as compared to $268.9 million in the prior year quarter reflecting the timing of the Company’s large-scale event in Saudi Arabia; Revenues reached a record $514.4 million year-to-date, representing 14% growth from the prior year period

Operating income was $55.7 million as compared to $17.1 million in the prior year quarter

Adj. OIBDA1 increased to $73.5 million from $34.6 million in the prior year quarter

Free Version of WWE Network was announced on June 1, unlocking a portion of WWE’s content library to expand reach and engagement of its direct-to-consumer streaming service for all fans

WWE Network average paid subscribers2 declined 1.5% to 1.66 million while ending paid subscribers increased 6% to 1.69 million

Digital video views increased 10% to a record 9.9 billion and hours consumed increased 15% to a record 374 million across digital and social media platforms3

eCommerce revenues nearly doubled to $12.6 million, substantially offsetting the loss of venue merchandise sales with 76 fewer events in the quarter

COVID-19 Actions and Business Outlook

Due to COVID-19 and related government-mandated impacts on WWE, the Company continued its various short-term cost reductions and cash flow improvement actions. (See first quarter 2020 earnings release). These actions contributed to WWE’s enhanced liquidity, which reached $548 million in cash and short-term investments as of June 30, 2020

The Company is continuing to adapt its business to the changing environment with a focus on enhancing the production of content and furthering fan engagement

Management may resume its opportunistic acquisition of stock under the Company’s $500 million share repurchase program, subject to WWE’s business outlook and liquidity as well as whether share repurchases compare favorably to other capital allocation alternatives

Management continues to believe the Company’s growth prospects remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.

To see the full report from WWE, head to corporate.wwe.com/investors

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