- WWE completes strategic licensing agreement with NBCU’s Peacock
service
- The Company expects to report record 2020 Operating Income of
$209 million and record 2020 Adjusted OIBDA1 of $286 million
- WWE issues 2021 Adjusted OIBDA Guidance Range of $270 - $305
million2
- Fourth Quarter and Full Year 2020 Earnings Call Date Set for
February 4, 2021
WWE (NYSE: WWE) today announced expectations for its 2020
financial results and outlined guidance for 2021. The announcements
were made in conjunction with the communication of a new agreement
to license WWE’s premium content to NBCU’s Peacock service, which
will become the sole streaming distributor in the U.S. of WWE’s
first-run premium content.
Throughout the 2020 year, WWE managed a challenging environment
particularly for producers of live content. WWE never went off the
air. Because of that, combined with the implementation of extensive
short-term cost reductions, COVID-19 had an estimated net neutral
impact on WWE’s 2020 Adjusted OIBDA. Accordingly, the Company
estimates its full year 2020 Adjusted OIBDA (unaudited) to be
approximately $286 million, which would be a record, up nearly 60%
from the prior year.3 A reconciliation of estimated 2020 Adjusted
OIBDA to Operating Income can be found in the supplemental schedule
on page 5 of this release.
Management expects restrictions related to the spread of
COVID-19, particularly related to the cancellation, postponement or
reduced capacity of ticketed live events, to continue at least
through the first half of 2021. Additionally, management
anticipates a significant year-over-year increase in WWE’s expense
base due to the full return of employees from furlough and
continued higher expenses associated with the production of its
weekly Raw and SmackDown television content at the WWE ThunderDome
from its stadium residence at Tropicana Field. The Company
estimates it can achieve 2021 Adjusted OIBDA of $270 - $305 million
as revenue growth, driven by the impact of the Peacock transaction,
the gradual ramp-up of ticketed live events, including large-scale
international events, and the escalation of core content rights
fees, is offset by the increase in personnel and production
expenses.
Management estimates that the stated 2021 Adjusted OIBDA
guidance range would be 15% - 20% higher without the ongoing impact
of COVID-19, which includes the loss of ticket and merchandise
sales at live events and the increased investment in production to
further fan engagement. Estimates of future performance beyond 2021
will be impacted by the return of these businesses and various
other factors.
WWE is unable to provide a reconciliation of full year 2021
guidance to GAAP measures as, at this time, WWE cannot accurately
determine all of the adjustments that would be required.
Notes
- The definition of Adjusted OIBDA can be found in the Non-GAAP
Measures section below
- The Company’s business model and expected results will continue
to be subject to significant execution and other risks, including
risks relating to the impact of the COVID-19 outbreak on WWE’s
business, results of operations and financial condition, entering,
maintaining and renewing major distribution agreements,
uncertainties associated with international markets and risks
inherent in large live events, and other risk factors previously
disclosed in our annual report on Form 10-K for the year ended
December 31, 2019 and supplemented in our Current Report on Form
8-K filed with the SEC on March 17, 2020 and further supplemented
in Part II, Item 1A, Risk Factors, in our quarterly report on Form
10-Q for the period ended September 30, 2020 filed with the SEC on
October 29, 2020
- WWE has not completed preparation of its financial statements
for the full year 2020. Financial results presented herein for the
full year ended December 31, 2020 are preliminary and unaudited and
thus inherently uncertain and subject to change. The Company is in
the process of completing its year-end close and there can be no
assurance that the Company’s final audited results for this period
will not differ from the preliminary results presented herein
Non-GAAP Measures
The Company defines Adjusted OIBDA as operating income
excluding depreciation and amortization, stock-based compensation
expense, certain impairment charges and other non-recurring
material items that otherwise would impact the comparability of
results between periods. Adjusted OIBDA includes amortization and
depreciation expenses directly related to the Company's revenue
generating activities, including feature film and television
production asset amortization, amortization of costs related to
content delivery and technology assets utilized for the WWE
Network, as well as amortization of right-of-use assets related to
finance leases of equipment used to produce and broadcast our live
events. The Company believes the presentation of Adjusted OIBDA is
relevant and useful for investors because it allows them to view
the Company’s segment performance in the same manner as the primary
method used by management to evaluate segment performance and to
make decisions regarding the allocation of resources. Additionally,
the Company believes that Adjusted OIBDA is a primary measure used
by media investors, analysts and peers for comparative
purposes.
Adjusted OIBDA is a non-GAAP financial measure and may be
different than similarly-titled non-GAAP financial measures used by
other companies. WWE views operating income as the most directly
comparable GAAP measure. Adjusted OIBDA (and other non-GAAP
measures such as Adjusted Operating Income, Adjusted Net Income and
Adjusted EPS presented to exclude certain material items that
impact the comparability between periods) should not be considered
in isolation from, or as a substitute for, operating income or
other GAAP measures, such as net income or operating cash flow, as
an indicator of operating performance or liquidity.
Additional Information
WWE plans to release fourth quarter and full-year 2020 financial
and operating results on Thursday, February 4, 2021. The Company
will hold a conference call at 5:00 pm ET the same day to discuss
these results. All interested parties are welcome to listen to the
conference call that will be hosted through the Company’s website
at corporate.wwe.com/investors. Participants can access the
conference call by dialing 1-855-200-4993 (toll free) or
1-323-794-2092 from outside the U.S. (conference ID for both lines:
3809873). Please reserve a line 5-10 minutes prior to the start
time of the conference call.
About WWE
WWE, a publicly traded company (NYSE: WWE), is an integrated
media organization and recognized leader in global entertainment.
The Company consists of a portfolio of businesses that create and
deliver original content 52 weeks a year to a global audience. WWE
is committed to family friendly entertainment on its television
programming, pay-per-view, digital media and publishing platforms.
WWE’s TV-PG, family-friendly programming can be seen in more than
800 million homes worldwide in 28 languages. WWE Network, the
first-ever 24/7 over-the-top premium network that includes all live
pay-per-views, scheduled programming and a massive video-on-demand
library, is currently available in more than 180 countries. The
Company is headquartered in Stamford, Conn., with offices in New
York, Los Angeles, London, Mexico City, Mumbai, Shanghai,
Singapore, Dubai, Munich and Tokyo.
Additional information on WWE (NYSE: WWE) can be found at
wwe.com and corporate.wwe.com. For information on our global
activities, go to http://www.wwe.com/worldwide/.
Trademarks: All WWE programming,
talent names, images, likenesses, slogans, wrestling moves,
trademarks, logos and copyrights are the exclusive property of WWE
and its subsidiaries. All other trademarks, logos and copyrights
are the property of their respective owners.
Forward-Looking Statements: This
press release contains forward-looking statements pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of
1995, which are subject to various risks and uncertainties. These
risks and uncertainties include, without limitation, risks relating
to: the impact of the COVID-19 outbreak on our business, results of
operations and financial condition; entering, maintaining and
renewing major distribution agreements; a rapidly evolving media
landscape; WWE Network (including the risk that we are unable to
attract, retain and renew subscribers); our need to continue to
develop creative and entertaining programs and events; the
possibility of a decline in the popularity of our brand of sports
entertainment; the continued importance of key performers and the
services of Vincent K. McMahon; possible adverse changes in the
regulatory atmosphere and related private sector initiatives; the
highly competitive, rapidly changing and increasingly fragmented
nature of the markets in which we operate and greater financial
resources or marketplace presence of many of our competitors;
uncertainties associated with international markets including
possible disruptions and reputational risks; our difficulty or
inability to promote and conduct our live events and/or other
businesses if we do not comply with applicable regulations; our
dependence on our intellectual property rights, our need to protect
those rights, and the risks of our infringement of others’
intellectual property rights; the complexity of our rights
agreements across distribution mechanisms and geographical areas;
potential substantial liability in the event of accidents or
injuries occurring during our physically demanding events including
without limitation, claims alleging traumatic brain injury; large
public events as well as travel to and from such events; our
feature film business; our expansion into new or complementary
businesses and/or strategic investments; our computer systems and
online operations; privacy norms and regulations; a possible
decline in general economic conditions and disruption in financial
markets; our accounts receivable; our indebtedness including our
convertible notes; litigation; our potential failure to meet market
expectations for our financial performance, which could adversely
affect our stock; Vincent K. McMahon exercises control over our
affairs, and his interests may conflict with the holders of our
Class A common stock; a substantial number of shares are eligible
for sale by the McMahons and the sale, or the perception of
possible sales, of those shares could lower our stock price; and
the volatility of our Class A common stock. In addition, our
dividend is dependent on a number of factors, including, among
other things, our liquidity and historical and projected cash flow,
strategic plan (including alternative uses of capital), our
financial results and condition, contractual and legal restrictions
on the payment of dividends (including under our revolving credit
facility), general economic and competitive conditions and such
other factors as our Board of Directors may consider relevant.
Forward-looking statements made by the Company speak only as of the
date made and are subject to change without any obligation on the
part of the Company to update or revise them. Undue reliance should
not be placed on these statements. For more information about risks
and uncertainties associated with the Company’s business, please
refer to the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” sections of
the Company’s SEC filings, including, but not limited to, our
annual report on Form 10-K and quarterly reports on Form 10-Q.
World Wrestling Entertainment,
Inc.
Supplemental Information –
Reconciliation of Adjusted OIBDA
(In millions)
(Unaudited)
FY 2020
Adjusted OIBDA
$
286
Depreciation & amortization
(43
)
Stock-based compensation
(28
)
Other operating income items
(7
)
Operating income (U.S. GAAP
Basis)
$
209
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210125005423/en/
Investors: Michael Weitz
203-352-8642 Michael Guido, CFA 203-352-8779
Media: Matthew Altman
203-352-1177
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