WWE announces 2020 Q1 WWE financials
WWE released their 2020 Q1 WWE financials this afternoon, and here are the lead highlights and comments from Vince McMahon…
First Quarter 2020 Highlights
– Revenues increased 60% to $291.0 million as compared to the prior year quarter
– Operating income was $53.3 million as compared to a loss of $6.8 million in the prior year quarter
– Adj. OIBDA increased to $77.3 million from $12.4 million in the prior year quarter
– Announced multi-year distribution agreements with Sony Pictures Networks in India and DAZN in Germany to extend the reach of WWE content across television and digital platforms
– Digital video views increased 25% to 9.6 billion and hours consumed increased 15% to 344 million across digital and social media platforms
WrestleMania Highlights (April 4-5, 2020)
COVID-19 Actions and Outlook:
– Due to COVID-19 and related government-mandated impacts on WWE moving forward, the Company has implemented various short-term cost reductions and cash flow improvement actions. These precautionary measures include reducing executive and board member compensation, decreasing operating expenses, cutting third-party staffing, consulting and talent costs, and reducing employee headcount by way of furlough
– To enhance liquidity, management deferred spending on the Company’s new headquarters (reducing 2020 capital expenditures by $140 million), temporarily suspended the repurchase of stock under its $500 million program, and drew $200 million from its revolving credit facility after quarter-end
-Management continues to believe the Company’s growth prospects remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
Vince McMahon: “Our first quarter financial performance was strong and largely unimpacted by the COVID-19 outbreak,” said Vince McMahon, WWE Chairman & CEO. “Now we are in the midst of unprecedented times, which require us to be especially nimble, creative and efficient in order to ensure the long-term value of WWE. We are taking precautions to protect the health and safety of our performers and staff as we produce content in new ways, engage fans with a much-needed diversion and operate effectively in this evolving environment.”
