WWE records most profitable quarter ever

[Jmare007]

Financials

• 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

WWE Records Most Profitable Quarter Ever

WWE exceeded expectations in the 2nd quarter of 2020. The company recorded $223.4 million in revenue generated resulting in $43.8 million in total profits. They had been expected to generate approximately $231 million in revenue and $12 million in profit. Even though WWE generated less revenue than expected, they earned more profit due to decreased operating expenses.

“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,” reads a WWE report on their financials this quarter.

In comparison, quarter 2 for 2019 saw the company bring in $268.9 million in revenue and $10.4 million in profit.

WWE Records Record Profits
WWE has saved money by producing television shows from the Performance Center and taping multiple episodes in a row. This has led to an increase in profits even with the decline in revenue.

The company has also seen an increase in subscribers to the WWE Network. There are currently 195,000 more subscribers to the Network than what had been projected for this time.

“Our second quarter financial performance was strong and demonstrated our ability to respond to the challenges posed by COVID-19,” said Vince McMahon, WWE Chairman & CEO. “We continue to adapt our business to the changing environment, focusing on the development of new content for global distribution platforms and increasing audience engagement to drive growth and value for our shareholders.”

It should also be noted that WWE’s financials this quarter were unaffected by the talent releases in April. WWE continued paying main roster talent until mid-July, meaning they were all still being paid throughout Quarter 2. Some have been critical of WWE for cutting talent during a pandemic at a time when they were on pace for record profits.

On an investors call yesterday, Vince McMahon noted that profits will likely be down once the company starts touring again. With social distancing guidelines in place, it will make running live shows a more financially risky situation.

Saving a few pennies with that 'deavor season when they are making bank by not having house shows, traveling and the costs of doing TV in different places each week

Cokeboy gonna scrap house shows and just record some shyt on the PC and charge 5 bucks for it


No matter how much they screw up on the "wrestling business" side, they keep getting away with it like Walter White

 

[Bryan Danielson]

Would’ve made even more money if they cuts guys they paying but ain’t using right now and probably not for awhile like Brock and Cena

Also I bet they still paying Hunter 2 contracts cuz it once came out he’s a paid Talent and Executive.

How bout just cut his Talent contract

 

[jackswstd]

This proves that an off-season or reduced live event schedule wouldn’t be detrimental to business.

 

[John Reena]

“WwE Is iN troUble!”

“AEw iS tHe sUpEriOr pRodUcT!”

“RAtInGs”

 

[Playaz Eyez]

This proves that an off-season or reduced live event schedule wouldn’t be detrimental to business.

Yep. Everybody that said and thought other wise was absolutely wrong

 

[Beautiful Bobby Eatin]

Them books must be well done by now. They may never book areanas again

 

[THE 101]

Ain't this mostly down to the TV money?

That money is gonna keep their books looking nice for the next few years but they're steadily losing viewers every year, their audience is old as fukk, young people don't fukk with the product at all so whether they continue to get them bags from Fox and USA remains to be seen.

They probably will, at least from USA but if things don't change I think they've got problems in the long term.

 

[DanielAlfredsson]

Makes them firing so many people during this time even more shameful.

Also probably means Vince won't do any major restructuring to how they do things. He likely thinks things are going great.

 

[dogavi]

Outside of like, college football and some NHL teams, most sports are getting the lions share of their money from their TV dealS. Salary caps go up and CBA’s revenue splits usually get based on that. Guess that applies to fake sports too.

 

[Rell84shots]

Ain't this mostly down to the TV money?

That money is gonna keep their books looking nice for the next few years but they're steadily losing viewers every year, their audience is old as fukk, young people don't fukk with the product at all so whether they continue to get them bags from Fox and USA remains to be seen.

They probably will, at least from USA but if things don't change I think they've got problems in the long term.

The only reason the NFL & NBA are pushing through with their seasons is because of their TV contracts. As for their audience bring old, I think have let this stupid 18-49 demo talk cloud their brains. They still get a high number in that regard, but even before the pandemic their crowds were filled with younger fans.

 

[Tryna Makit]

And they did it without me. Proving that my statement that "wrestling is dead" is false



I just cant get into it anymore

 

[Canon]

house shows should have been scrapped a long time ago

 

[Breh the HitMang]

“WwE Is iN troUble!”

“AEw iS tHe sUpEriOr pRodUcT!”

“RAtInGs”

im sure no one ever said WWE was in any financial trouble, your an idiot if you think so.

 

[Jmare007]

Ain't this mostly down to the TV money?

That money is gonna keep their books looking nice for the next few years but they're steadily losing viewers every year, their audience is old as fukk, young people don't fukk with the product at all so whether they continue to get them bags from Fox and USA remains to be seen.

They probably will, at least from USA but if things don't change I think they've got problems in the long term.

TV is their main source of income. And yes, WWE doing everything wrong regarding their product and how they treat their talent can't be sustainable.

BUT, they've done everthyng wrong with their product for years now. They've been losing their core audience for a while now too. And yet they've found ways to not only keep their business steady but actually keep growing

Biggest reason for this quarter's profit was how much they saved by not doing what they always do in terms of traveling for House shows, renting Arenas and taping shows.

Any other wrestling company would be in a dire situación or already closed if they did what WWE did in terms of their product this past decade. But these fukkers keep getting away with it and not only that, they winning more money

 

[Thavoiceofthevoiceless]

TV is their main source of income. And yes, WWE doing everything wrong regarding their product and how they treat their talent can't be sustainable.

BUT, they've done everthyng wrong with their product for years now. They've been losing their core audience for a while now too. And yet they've found ways to not only keep their business steady but actually keep growing

Biggest reason for this quarter's profit was how much they saved by not doing what they always do in terms of traveling for House shows, renting Arenas and taping shows.

Any other wrestling company would be in a dire situación or already closed if they did what WWE did in terms of their product this past decade. But these fukkers keep getting away with it and not only that, they winning more money

The TV money can only hide their problems for so long especially considering that no one really knows what the TV contracts say or if there is an out clause in them.

They don’t seem to have any long term plans of how to fix the ratings and even if it did, it likely wouldn’t help. Wrestling is dying in the mainstream audience and FOX didn’t realize it before they made the TV deal.