World Wrestling Entertainment Inc WWE reported second-quarter FY23 sales growth of 25% year-on-year to $410.30 million, beating the analyst consensus of $398.54 million.
The revenue increase was primarily due to the timing of the staging of a large-scale international event, an increase in revenue related to the media rights fees for premium live events and flagship weekly programming, and higher live events revenue.
Operating expenses for the quarter climbed 16.4% to $229.2 million. Operating margin was 21.3%, and operating income for the quarter increased 26% to $87.3 million.
The company held $523.8 million in cash and equivalents as of June 30, 2023. Operating cash flow for the quarter totaled $77 million, and the free cash flow was $31.1 million.
Adjusted OIBDA increased 54% Y/Y to $140.7 million, and the margin expanded to 34% from 28%.
Adjusted EPS for the quarter was $0.91, missing the consensus of $0.93.
WWE Board had declared a regular quarterly dividend of $0.12 per share for all Class A and B shares of common stock. The record date for the dividend will be September 15, 2023, and the payment date will be September 25, 2023.
Outlook: World Wrestling reaffirms its expectations for 2023, which target record revenue and an Adjusted OIBDA range of $395 million-$410 million.
For Q3, the company expects Adjusted OIBDA of $75 million-$85 million.
WWE anticipates its Q3 results to reflect a year-over-year decrease in revenue, primarily reflecting an expected decline in revenue in the Consumer Products segment and a decline in third-party original programming revenue due to the timing of the production of premium WWE-themed series.
During the three and six months ended June 30, 2023, the company incurred $5.3 million and $7.1 million, respectively, of expenses related to costs incurred in connection with and/or arising from the investigation conducted by the Special Committee of members of Board of Directors, related revisions to financial statements and other related matters. Vincent K. McMahon, the company's Executive Chairman and shareholder with a controlling interest, has agreed to reimburse and has paid approximately $17.4 million to compensate for costs.
Related: Vince McMahon Returns To WWE Board Despite Sexual Abuse Allegations: Here's Why
Price Action: WWE shares traded lower by 0.22% at $103.83 on the last check Wednesday.
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