{"id":92839,"date":"2020-02-06T22:51:52","date_gmt":"2020-02-07T04:51:52","guid":{"rendered":"https:\/\/www.pwtorch.com\/site\/?p=92839"},"modified":"2020-02-06T23:29:06","modified_gmt":"2020-02-07T05:29:06","slug":"wwe-touts-2019-q4-revenue-and-full-year-2019-revenue-is-highest-in-company-history-20-percent-grown-in-smackdown-viewership-but-network-subs-down","status":"publish","type":"post","link":"https:\/\/www.pwtorch.com\/site\/2020\/02\/06\/wwe-touts-2019-q4-revenue-and-full-year-2019-revenue-is-highest-in-company-history-20-percent-grown-in-smackdown-viewership-but-network-subs-down\/","title":{"rendered":"WWE touts 2019 Q4 revenue and full year 2019 revenue is highest in company history, 20 percent growth in Smackdown viewership, but Network subs down"},"content":{"rendered":"<div id=\"pwtor-1483358793\" class=\"pwtor-before-content pwtor-entity-placement\"><hr \/><b>SPOTLIGHTED PODCAST ALERT (YOUR ARTICLE BEGINS A FEW INCHES DOWN)... <\/b>\r\n\r\n<iframe src=\"https:\/\/widget.spreaker.com\/player?show_id=3076978&theme=light&playlist=false&playlist-continuous=false&autoplay=false&live-autoplay=false&chapters-image=true&episode_image_position=right&hide-logo=false&hide-likes=false&hide-comments=false&hide-sharing=false&hide-download=true\" width=\"100%\" height=\"140px\" frameborder=\"0\"><\/iframe>\r\n<hr \/><\/div><p>WWE today released their 2019 fourth quarter and compete 2019 financial information, headlining with record revenue in both Q4 and in total in 2019. They also touted Smackdown transitioning to Fox broadcast network with 20 percent growth over the prior year, plus new distributiuon deals in various international regions. They also touted digital engagement growth.<\/p>\n<p>They did not highlight WWE Network subscriptions (which dropped 10 percent to 1.42 million, with a drop in total revenue from 199.3 million in 2018 to 184.6 million in 2019), live event revenue (which dropped from 105.4 million in 2018 to 93.8 million in 2019), consumer products (which dropped from 102.6 million 2018 to 91.7 million in 2019), and other key metrics that weren&#8217;t worth bragging about. They were basically saved from a disastrous 2019 by the new TV deals, which are largely disconnected from consumer satisfaction.<\/p>\n<p>The indicators of consumer satisfaction &#8211; TV ratings (excluding the inherent jump by moving Smackdown from USA cable to Fox broadcast), live event revenue, and Network subscribers &#8211; were all down. Average attendance up, although that&#8217;s largely a result of cutting back on live events that weren&#8217;t likely to draw well (56 fewer events in 2019, 14 fewer in Q4 2019).<\/p>\n<p>The following is their press release with additional information&#8230;<\/p>\n<hr \/>\n<h3><strong>Fourth Quarter 2019 Highlights<\/strong><\/h3>\n<ul>\n<li>Revenues increased 18% to $322.8 million, which was the highest quarterly revenue in WWE history<\/li>\n<li>Operating income increased 87% to $99.8 million<\/li>\n<li>Adjusted OIBDA<sup>1<\/sup>\u00a0increased 67% to a quarterly record of $107.6 million<\/li>\n<\/ul>\n<h3><strong>Full Year 2019 Highlights<\/strong><\/h3>\n<ul>\n<li>Revenues reached $960.4 million, the highest in the Company\u2019s history<\/li>\n<li>Operating income was $116.5 million<\/li>\n<li>Adjusted OIBDA of $180.0 million represented record performance for the third consecutive year<\/li>\n<li><em>SmackDown<\/em>\u00a0successfully transitioned to Fox Broadcast, where viewership increased by 20% over the prior year fourth quarter,<sup>2<\/sup>\u00a0and\u00a0<em>NXT<\/em>\u00a0extended its reach, airing live on USA Network for the first time<\/li>\n<li>WWE completed content distribution agreements with BT Sport and ViacomCBS\u2019 Channel 5 in the U.K., Fox Sports in Latin America, PP Sports in China and SuperSport in Africa, providing strong platforms for reaching WWE audiences in these regions<\/li>\n<li>Digital engagement continued to grow with video views up 10% to 34.5 billion and hours consumed up 7% to nearly 1.3 billion across digital and social media platforms<sup>3<\/sup><\/li>\n<li>Return of capital to shareholders totaled a record $120.8 million in 2019<\/li>\n<\/ul>\n<h3><strong>Full Year 2020 Business Outlook<\/strong><\/h3>\n<p>Management believes that WWE is well positioned to take advantage of significant growth opportunities. The Company is pursuing several strategic initiatives that could increase the monetization of its content in 2020 and\/ or subsequent years. These include distribution of content in the Middle East and India as well as the evaluation of strategic alternatives for the Company\u2019s direct-to-consumer service,\u00a0<em>WWE Network<\/em>. At this time, the outcome of these initiatives is subject to considerable uncertainty. Excluding the potential impact of these initiatives, the Company estimates it can achieve 2020 Adjusted OIBDA of $250 &#8211; $300 million.<sup>4<\/sup>\u00a0Management believes it has the potential to exceed this range, but is unable to provide additional guidance at this time.\u00a0<strong>(See\u00a0<em>2020 Business Outlook<\/em>\u00a0discussion on page 8 for additional information)<\/strong><\/p>\n<p><strong>STAMFORD, Conn., February 6, 2020 &#8211;<\/strong>\u00a0WWE (NYSE: WWE) today announced financial results for its fourth quarter and year ended December 31, 2019.<\/p>\n<p>\u201cDuring the fourth quarter, we expanded the reach of WWE\u2019s live programming and further engaged with diverse audiences across platforms and formats,\u201d said Vince McMahon, WWE Chairman &amp; Chief Executive Officer. \u201cWe believe the value of live sports will continue to increase, particularly in today\u2019s evolving media landscape, and we are well positioned to take advantage of this trend to maximize the value of our content.\u201d<\/p>\n<p>\u201cFor the year, we achieved record revenue and Adjusted OIBDA. However, with the delay in completing a Middle East distribution agreement as well as lower business performance than anticipated, our results were at the low-end of guidance,\u201d added Frank Riddick, interim Chief Financial Officer. \u201cAs we work to strengthen engagement in 2020, we are pursuing several strategic initiatives that could increase the monetization of our content, including the distribution of content in the Middle East and India as well as strategic alternatives for our direct-to-consumer service,\u00a0<em>WWE Network<\/em>. Excluding the potential impact of these initiatives, we expect significant revenue growth based on the full year impact of our new content distribution agreements in the U.S. and anticipate Adjusted OIBDA of $250 to $300 million. Management believes it has the potential to exceed this range, but is unable to provide additional guidance at this time.\u201d<\/p><div id=\"pwtor-1089348148\" class=\"pwtor-content pwtor-entity-placement\"><div align=\"center\" data-freestar-ad=\"__336x280 __336x280\" id=\"pwtorchcom_test_300x250\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_test_300x250\", slotId: \"pwtorchcom_test_300x250\" });\r\n  <\/script>\r\n<\/div><\/div>\n<h3><strong>Fourth-Quarter Consolidated Results<\/strong><\/h3>\n<p><strong>Revenues<\/strong>\u00a0increased 18% to $322.8 million from the prior year quarter as increased revenue in the Media segment, primarily driven by the monetization of core content, was partially offset by lower revenue from the Company\u2019s Live Events segment.<\/p>\n<p><strong>Operating Income<\/strong>\u00a0increased 87% to $99.8 million driven by increased profits from the Media segment. The Company\u2019s Operating income margin increased to 31% from 20% in the prior year quarter.<\/p>\n<p><strong>Adjusted OIBDA<\/strong>\u00a0(which excludes stock compensation) increased 67% to $107.6 million as compared to $64.4 million in the prior year quarter. The Company\u2019s Adjusted OIBDA margin increased to 33% from 24% in the prior year quarter.<\/p>\n<p><strong>Net Income<\/strong>\u00a0was $69.3 million, or $0.78 per diluted share, as compared to $41.2 million, or $0.46 per diluted share, in the fourth quarter of 2018. This increase was primarily driven by improved operating performance, partially offset by the impact of the finance lease related to the Company\u2019s new headquarters.<sup>5<\/sup><\/p>\n<p><strong>Effective Tax Rate<\/strong>\u00a0increased to 26% from 23% in the prior year quarter.<\/p>\n<p><strong>Cash flows generated by operating activities<\/strong>\u00a0increased to $119.4 million as compared to $65.2 million in the prior year quarter driven by improved operating performance and the favorable timing of working capital.<\/p>\n<p><strong>Free Cash Flow<\/strong>\u00a0totaled $106.6 million as compared to $54.3 million in the fourth quarter of 2018 primarily driven by the change in operating cash flow.<sup>6<\/sup><\/p>\n<p>The Company returned $84.2 million to shareholders in the fourth quarter 2019, including $75.0 million in\u00a0<strong>share repurchases<\/strong>\u00a0and $9.2 million in\u00a0<strong>dividends paid<\/strong>. Under the Company\u2019s existing stock repurchase program nearly 1.3 million shares were repurchased at an average price of $58.78 per share.<\/p><div id=\"pwtor-2112242001\" class=\"pwtor-content-1 pwtor-entity-placement\"><!-- Tag ID: pwtorchcom_test_300x600 -->\r\n<div align=\"center\" data-freestar-ad=\"__336x280 __300x600\" id=\"pwtorchcom_test_300x600\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_test_300x600\", slotId: \"pwtorchcom_test_300x600\" });\r\n  <\/script>\r\n<\/div><\/div>\n<h3><strong>Full Year 2019 Consolidated Results<\/strong><\/h3>\n<p>For the twelve months ended December 31, 2019,\u00a0<strong>revenues<\/strong>\u00a0increased 3% to $960.4 million from $930.2 million driven primarily by the escalation of core content rights fees in the Media segment. The growth was partially offset by lower live event ticket sales (56 fewer events and lower average attendance), a decline in\u00a0<em>WWE Network<\/em>\u00a0subscription revenue, the absence of\u00a0<em>Mixed Match Challenge<\/em>\u00a0on Facebook Watch, as well as lower consumer product sales across distribution channels.\u00a0<strong>Operating income<\/strong>\u00a0increased to $116.5 million from $114.5 million as the growth in revenue and reduced management incentive compensation associated with the Company\u2019s full year performance was partially offset by increases in other fixed costs, including the impact of certain strategic investments to support content creation.<\/p>\n<p><strong>Adjusted OIBDA<\/strong>\u00a0(which excludes stock compensation) increased to $180.0 million.<\/p>\n<p><strong>Net income<\/strong>\u00a0decreased to $77.1 million ($0.85 per diluted share) from $99.6 million ($1.12 per diluted share) in the prior year primarily due to the impact of the finance lease related to the Company\u2019s new headquarters, as well as a higher effective tax rate in the current year.<\/p>\n<p><strong>Effective Tax Rate<\/strong>\u00a0increased to 19% from 6% in the prior year, where the current year reflected $9.4 million of excess tax benefits related to the Company\u2019s share-based compensation awards at vesting, as compared to a $22.5 million of benefits in the prior year. This tax benefit is driven by the increase in the Company\u2019s stock price between the original grant date of the awards and their subsequent vesting date in the third quarter of the respective year. Excluding this discrete tax item, our effective tax rate was 29% in the current year as compared to 27% in the prior year.<\/p>\n<p><strong>Cash flows generated by operating activities<\/strong>\u00a0were $121.7 million as compared to $186.7 million in the prior year driven by unfavorable changes in working capital primarily related to our fourth quarter event in Saudi Arabia and the payment of the prior year\u2019s accrued management incentive compensation.<\/p>\n<p><strong>Free Cash Flow<\/strong>\u00a0totaled $52.6 million as compared to $154.4 million in the prior year period driven by the change in operating cash flow and an increase in capital expenditures primarily associated with the Company\u2019s workspace plan.<sup>5,6<\/sup><\/p>\n<p><strong>Cash, cash equivalents and short-term investments<\/strong>\u00a0were approximately $250 million as of December 31, 2019, and the Company estimates\u00a0<strong>debt capacity<\/strong>\u00a0under its revolving line of credit of approximately $200 million.<\/p>\n<p>The Company returned $120.8 million to shareholders in 2019, including $83.4 million in\u00a0<strong>share repurchases<\/strong>\u00a0and $37.4 million in\u00a0<strong>dividends paid<\/strong>. Under the Company\u2019s existing stock repurchase program nearly 1.4 million shares were repurchased at an average price of $59.67 per share.<\/p>\n<p><a href=\"https:\/\/corporate.wwe.com\/news\/company-news\/2020\/02-06-2020\">MORE DETAILED BREAKDOWN AT WWE&#8217;S CORPORATE WEBPAGE<\/a><\/p>\n<div class=\"pwtor-end-article-groups pwtor-entity-placement\" id=\"pwtor-2488664368\"><div id=\"pwtor-1717234430\"><div align=\"center\" data-freestar-ad=\"__336x280\" id=\"pwtorchcom_medrec_3\">\r\n  <script data-cfasync=\"false\" type=\"text\/javascript\">\r\n    freestar.config.enabled_slots.push({ placementName: \"pwtorchcom_medrec_3\", slotId: \"pwtorchcom_medrec_3\" });\r\n  <\/script>\r\n<\/div>\r\n\r\nTHANK YOU FOR VISITING<\/div><\/div>","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>WWE today released their 2019 fourth quarter and compete 2019 financial information, headlining with record revenue in both Q4 and in total in 2019. They also touted Smackdown transitioning to Fox broadcast network with 20 <a class=\"mh-excerpt-more\" href=\"https:\/\/www.pwtorch.com\/site\/2020\/02\/06\/wwe-touts-2019-q4-revenue-and-full-year-2019-revenue-is-highest-in-company-history-20-percent-grown-in-smackdown-viewership-but-network-subs-down\/\" title=\"WWE touts 2019 Q4 revenue and full year 2019 revenue is highest in company history, 20 percent growth in Smackdown viewership, but Network subs down\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":76837,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-92839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-prowrestlingnews","category-news_wwe"],"jetpack_featured_media_url":"https:\/\/www.pwtorch.com\/site\/wp-content\/uploads\/post\/2019\/03\/WWEheadquarters-TitanTower_3x2_600.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/92839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/comments?post=92839"}],"version-history":[{"count":2,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/92839\/revisions"}],"predecessor-version":[{"id":92853,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/posts\/92839\/revisions\/92853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/media\/76837"}],"wp:attachment":[{"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/media?parent=92839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/categories?post=92839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pwtorch.com\/site\/wp-json\/wp\/v2\/tags?post=92839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}