Company Reports Preliminary Second Quarter 2022
Financial Results
WWE® (NYSE: WWE) and its Board of Directors today announced the
appointment of Stephanie McMahon and Nick Khan as co-Chief
Executive Officers. Ms. McMahon has also been appointed Chairwoman
of the Board, and Mr. Khan will continue to serve as a member of
the Board. These appointments follow Vince McMahon’s retirement
announcement on Friday, July 22.
“We are grateful for the opportunity to lead WWE together with
our unmatched management team,” said Ms. McMahon and Mr. Khan. “We
recognize this is a tremendous opportunity and responsibility, and
we look forward to serving the WWE Universe.”
Additionally, WWE executive Paul Levesque will assume all
responsibilities related to WWE’s creative, in addition to his
regular duties.
Below are preliminary financial results for the second quarter
2022. Further details regarding these matters can be found in the
Form 8-K filed today by the Company with the SEC.
Preliminary Second Quarter 2022
Financial Results
Our financial statements for the quarter ended June 30, 2022 are
not yet complete. Accordingly, we are presenting preliminary
estimates of certain financial results that we expect to report for
the quarter ended June 30, 2022. The preliminary financial results
are subject to revision as we prepare our financial statements and
disclosures for the quarter ended June 30, 2022, and such revisions
may be significant. The preliminary financial results should not be
viewed as a substitute for financial statements prepared in
accordance with generally accepted accounting principles (“GAAP”).
Based on the foregoing, the Company expects revenue, operating
income and Adjusted OIBDA to be approximately $328 million, $70
million and $92 million, respectively, for the three months ended
June 30, 2022. These amounts compare to revenue, operating income
and Adjusted OIBDA of $266 million, $46 million and $68 million,
respectively, for the three months ended June 30, 2021. Adjusted
OIBDA for the three months ended June 30, 2022 is above the high
end of the Company’s guidance range of $80 - $90 million.
Non-GAAP Measures
Adjusted OIBDA is a non-GAAP financial measure and may be
different from similarly titled non-GAAP financial measures used by
other companies. WWE views operating income as the most directly
comparable GAAP measure. 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
supporting the operations of our segments, including content
production asset amortization, depreciation and 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.
The reconciliation of Adjusted OIBDA to Operating Income, the
most directly comparable GAAP financial measure to Adjusted OIBDA,
follows (in millions):
Three Months Ended June
30,
2022
(Preliminary)
2021
Adjusted OIBDA
$
92.0
$
68.1
Depreciation & amortization
(9.5
)
(10.9
)
Stock-based compensation
(11.0
)
(2.8
)
Other operating income items
(1.7
)
(8.1
)
Operating income (U.S. GAAP
Basis)
$
69.8
$
46.3
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, premium live events, digital media, and publishing
platforms. WWE’s TV-PG programming can be seen in more than 1
billion homes worldwide in 30 languages through world-class
distribution partners including NBCUniversal, FOX Sports, BT Sport,
Sony India, and Rogers. The award-winning WWE Network includes all
premium live events, scheduled programming and a massive
video-on-demand library and is currently available in more than 180
countries. In the United States, NBCUniversal’s streaming service,
Peacock, is the exclusive home to WWE Network.
Additional information on WWE can be found at wwe.com and
corporate.wwe.com.
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: The
Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for certain statements that are forward-looking and are not
based on historical facts. Statements in this press release that
include the words “may,” “will,” “could,” “anticipate,” “plan,”
“continue,” “project,” “intend,” “estimate,” “believe,” “expect,”
“outlook,” “target,” “goal” and similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such words. These statements
relate to our future plans, objectives, expectations and intentions
and are not historical facts and accordingly involve known and
unknown risks and uncertainties and other factors that may cause
the actual results or the performance by us to be materially
different from future results or performance expressed or implied
by such forward-looking statements. The forward-looking statements
in this press release are subject to uncertainties relating to the
management changes, including the departure of Vince McMahon from
the Company and the appointment of Stephanie McMahon and Nick Khan
as Co-Chief Executive Officers and our expected financial results
for the quarter ended June 30, 2022, including our conclusions
regarding the appropriate accounting treatment for the Unrecorded
Expenses and our internal control over financial reporting..
Forward-looking statements made by WWE speak only as of the date
made, are subject to change without any obligation on the part of
WWE to update or revise them, and undue reliance should not be
placed on these statements. For more information about risks and
uncertainties associated with WWE’s business, please refer to the
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and “Risk Factors” sections of WWE’s SEC
filings, including, but not limited to, our annual report on Form
10-K and quarterly reports on Form 10-Q.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220725005475/en/
Media: Chris Legentil 203-352-8793
Chris.Legentil@wwecorp.com
Investors: Seth Zaslow
203-352-1026 Seth.Zaslow@wwecorp.com
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