Market Overview

WWE® Network Hits Record 2.1 Million Subscribers

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WWE® Raises Q1 and Full Year 2018 Guidance

WWE® (NYSE:WWE) today announced that its digital streaming
service, WWE Network, reached a record 2.12 million total
subscribers following last night's WrestleMania®.1
This is a 9% increase from April 3, 2017, the day after WrestleMania last
year.

"We expect to deliver record subscriber levels, revenue and Adjusted
OIBDA in 2018," said George Barrios, WWE Co-President. "WWE Network's
continued growth along with our massive reach across traditional
television as well as digital and social platforms, reaffirms the
effectiveness of our global, multi-platform content strategy."

WWE Network Subscriber Highlights

WWE Network achieved record levels of total and total paid
subscribers as of April 9, 2018. Total paid subscribers reached 1.81
million, representing a 9% increase from April 3, 2017 – the day after WrestleMania
last year.

WWE Network total subscribers at WrestleMania 34 and WrestleMania
33
2,3:

                   

Total Subscribers
(thousands)

   

April 9th, 2018
WrestleMania
34

   

April 3rd, 2017
WrestleMania
33

    % Growth
Total (Paid + Free Trial)     2,124     1,949     9%
Total Paid     1,808     1,661     9%
           

WrestleMania Milestones

  • WrestleMania broke the record for the Mercedes-Benz Superdome's
    highest grossing entertainment event at $14.1 million, as a sold-out
    crowd of 78,133 fans from all 50 states and 67 countries attended the
    event. As part of the week-long WrestleMania celebration, WWE
    hosts five consecutive nights of events at the Superdome and the
    Smoothie King Center
  • WWE Network subscribers viewed 25.2 million hours during WrestleMania
    Week or 14 hours per subscriber during the week. This compares to 22.5
    million hours last year, a 12% year-over-year increase

WWE 2018 Perspective

Q1 2018: Based upon preliminary data, WWE
Network
attracted an average of approximately 1.56 million paid
subscribers over the first quarter 2018, representing a 5% increase from
the first-quarter 2017 average. The first quarter 2018 average was
in-line with guidance of approximately 1.53 million.3

During the first quarter 2018, the Company realized stronger than
anticipated performance. As a result, the Company expects Q1 Adjusted
OIBDA of at least $30 million (subject to the completion of its
quarterly close process), exceeding its previous guidance of $23 million
to $27 million.4

Q2 2018: If the acquisition and retention
of subscribers driven by WrestleMania is comparable to the
subscriber activity associated with the prior year event, average paid
subscribers for the second quarter 2018 would be approximately 1.77
million, representing an increase of approximately 8% from the second
quarter 2017.5 As future subscriber performance may differ
from prior activity, this range is provided for perspective rather than
as guidance.

2018: WWE management continues to expect
the Company to achieve another year of record revenue and has raised its
target for 2018 Adjusted OIBDA to at least $145 million (excluding
stock-based compensation expense), which would be an all-time record,
exceeding its previous guidance of at least $140 million.4

 

Notes

 

(1)

 

Total subscribers following WrestleMania exclude
pay-per-view buys with cable and satellite providers.

(2)

Metrics reflect subscribers who are direct customers of WWE
Network
and subscribers reported under licensed partner
agreements, which have different economic terms for the network.
The impact of these subscribers on WWE Network results is
reflected in the network's average revenue per subscriber (ARPU).

(3)

Additional information regarding WWE Network subscriber
levels can be found in the Company's website presentation at corporate.wwe.com/investors.

(4) WWE is unable to provide a reconciliation of forward looking
guidance to GAAP measures as, at this time, WWE cannot accurately
determine the adjustments that would be required. Further
information regarding such reconciliations can be found on page 5 of
this release.
(5)

Additional information regarding estimated WWE Network
subscriber levels can be found in the Company's website
presentation at corporate.wwe.com/investors.

 

Additional Information

As previously announced, WWE is hosting a conference call at 4:00 p.m.
ET (3:00 p.m. CST) today to provide an update on the growth of WWE
Network
, including the level of subscribers following WrestleMania.
All interested parties are welcome to listen to a live web cast that
will be hosted through the Company's web site at corporate.wwe.com/investors.
Participants can access the conference call by dialing 855-200-4993
(toll free) or 323-794-2092 from outside the U.S. (conference ID for
both lines: 6005057).

The presentation referenced during the call has been made available on
the Company's website at corporate.wwe.com/investors.
A replay of the call will be available approximately two hours after the
conference call concludes, and can be accessed on the Company's web site.

About WWE Network

WWE Network is the only place to stream all live WWE pay-per-view
events, including WrestleMania, at no additional cost plus 24/7
programming featuring groundbreaking original series, documentaries,
classic matches, reality shows, exclusive coverage of special events and
the most comprehensive video-on-demand library with more than 10,000
hours of content, including every WWE, WCW® and ECW® pay-per-view.

Like other digital streaming services, such as Netflix and Hulu, fans
can sign up for WWE Network online at WWENetwork.com and stream WWE
Network
through connected devices such as Sony PlayStation 3, Sony
PlayStation 4, Xbox One, Xbox 360, Amazon Fire TV, Apple TV and Roku
streaming devices as well as Smart TVs including Sony, Samsung and
Panasonic.

For a complete listing of WWE Network availability by country and
device, please click here.

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 programming reaches more
than 650 million homes worldwide in 20 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 now available in almost all international markets other than
embargoed 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: entering,
maintaining and renewing major distribution agreements, including our
principal domestic television license which currently expires in
September 2019; 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; 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 relating to CTE; 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; 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 relatively small public "float" 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 2017 Actual and 2018 Business
Outlook

(In millions; Unaudited)

 

Reconciliation of Adjusted OIBDA to Operating Income (GAAP)

 
   

Outlook as of Feb. 8, 2018

   

Outlook as of Apr. 9, 2018

    2017   Q1 2018E   2018E     Q1 2018E   2018E
   
Adjusted OIBDA(1) $136.1 $23 - $27 At least $140 At least $30 At least $145
Stock-based compensation expense(2) (24.2) - - - -
Depreciation & Amortization(2) (26.0) - - - -
Film impairments(2) (4.7) - - - -
Asset impairments(2) - - - - -
Gain (losses) on operating assets(2) - - - - -
Restructuring charges(2) - - - - -
Other operating income items(2) (5.6) - - - -
Operating Income (U.S. GAAP Basis)   $75.6  

Not estimable

 

Not estimable

    Not estimable   Not estimable
 
 

(1)

WWE 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 expenses directly
related to the Company's revenue generating activities, including
the amortization of feature film, television production and WWE
Network
programming assets.

 

The Company believes the presentation of Adjusted OIBDA is
relevant to investors because it provides a meaningful
representation of operating cash flows generated by the Company's
business segments and is a primary measure used by media
investors, analysts and peers for comparative purposes.

 
(2) Because of the nature of the footnoted items, WWE is unable to
estimate the amounts of any adjustments for these items for periods
after December 31, 2017 due to its inability to forecast if or when
such items will occur. These items, which could be significant, are
inherently unpredictable and may not be reliably quantified.
 

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