Raises Full Year 2022 Outlook
Second Quarter 2022 Highlights
- Revenue was $328.2 million, an increase of 24%; Operating Income was $69.3 million, an increase of 50%; and Adjusted OIBDA1 was $91.5 million, an increase of 34%
- Returned capital to shareholders totaling $19.1 million, including share repurchases and dividends paid
- Each WWE premium live event (WrestleMania, WrestleMania Backlash and Hell in a Cell) was the most viewed event in its history with year-over-year increases of 60%, 49% and 45%, respectively, in domestic unique viewership on Peacock
- WWE, in connection with Fox’s Blockchain Creative Labs, launched its inaugural NFT sale on Moonsault, the Company’s official NFT marketplace. The limited-edition collection, which was tied to the Hell in a Cell event, sold out within 24 hours
- WWE announced its second “Next In Line” class of 15 college athletes, further enhancing the Company’s talent development program
- In July, WWE launched a new, enhanced digital platform for e-commerce and licensed merchandise in connection with its long-term partnership with Fanatics
2022 Business Outlook2
- In February, the Company issued Adjusted OIBDA guidance of $360 – $375 million for the full year 2022. Based on outperformance through the first six months of the year as well as management’s current expectations for the second half of the year, the Company is raising its guidance and now expects full year 2022 Adjusted OIBDA within a range of $370 – $385 million
STAMFORD, Conn., August 16, 2022 – WWE (NYSE: WWE) today announced financial results for its second quarter ended June 30, 2022.
“We generated strong financial results in the quarter, highlighted by record revenue and Adjusted OIBDA for a second quarter,” said Stephanie McMahon and Nick Khan, WWE co-Chief Executive Officers. “We continued to effectively execute our strategy, including staging a record-setting WrestleMania in early April. WrestleMania, as well as our other premium live events (“PLEs”) including WrestleMania Backlash, Hell in a Cell, Money in the Bank and SummerSlam all delivered record viewership for their respective events. These PLEs, along with strong ratings for our flagship programs, Raw and SmackDown, continued to expand the reach of our brands and enhance the value of our content. We’re excited about the recently announced management structure, including the appointment of Paul Levesque as head of WWE creative and talent, as we look to continue to increase the monetization of our IP across various platforms through our media rights agreements, both domestically and abroad, as well as our inaugural NFT drops on Moonsault, WWE’s official NFT marketplace, and the recent launch of our new, enhanced e-commerce digital platform in connection with our partnership with Fanatics.”
Frank Riddick, WWE Chief Financial and Administrative Officer, added “In the quarter, we exceeded the high end of our guidance. Adjusted OIBDA increased 34% reflecting 24% revenue growth. Our strong financial performance was primarily driven by our return to a full live event schedule and our consumer products business. These items more than offset an increase in production, content-related, and other expenses. For 2022, we are raising our full year Adjusted OIBDA guidance to a range of $370 to $385 million.”
Second-Quarter Consolidated Results
Revenue increased 24% to $328.2 million, primarily due to an increase in ticket sales at our live events and, to a lesser extent, higher sales of the Company’s licensed products, including video games and trading cards. An increase in media rights fees related to the Company’s flagship programs and premium live events also contributed to the increase in revenue.
Operating Income increased 50%, or $23.0 million, to $69.3 million, driven by the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses was primarily driven by higher event-related costs associated with the resumption of live event touring as well as increased production costs associated with the creation of the Company’s premium live events, including our annual WrestleMania events. The Company’s operating income margin increased to 21% from 17%.
Adjusted OIBDA (which excludes stock compensation) increased 34%, or $23.4 million, to $91.5 million. The Company’s adjusted OIBDA margin increased to 28% from 26%.
Net Income was $49.0 million, or $0.58 per diluted share, an increase from $29.2 million, or $0.34 per diluted share in the second quarter of 2021, primarily reflecting higher operating performance.
Cash flows generated by operating activities were $56.9 million, an increase from $19.5 million, primarily due to higher net income.
Free Cash Flow3 was $9.5 million, a decrease from $13.3 million, primarily due to an increase in capital expenditures, partially offset by the change in operating cash flow. For the three months ended June 30, 2022, the Company incurred $40.8 million of capital expenditures related to its new headquarter facility. Excluding the capital expenditures related to the new headquarter facility, Free Cash Flow for the three months ended June 30, 2022 was $50.3 million.
Return of Capital to Shareholders
The Company returned $19.1 million to shareholders in the second quarter of 2022, consisting of $10.0 million in share repurchases and $9.1 million in dividends paid. Approximately 170,000 shares were repurchased at an average price of $58.70 per share during the second quarter. As of June 30, 2022, the Company had $210.9 million available under its existing $500 million stock repurchase authorization.