WWE revealed the company’s fourth quarter financial results for 2018 on Thursday morning, promoting “record results for fourth quarter and full year 2018.”
Q4 Highlights include:
– Revenues were $272.5 million, an overall increase of 29% from the prior year.
– Operating income doubled to $53.4 million (up from $27.0 million).
– WWE Network paid subscribers sit at 1.59 million, 7% increase from prior year.
2018 Highlights include:
– Overall revenue increased 16% to $930.2 million, highest in company history.
– Operating incoming increased 51% to a new record of $114.5 million.
– International revenue increased 58% to $317.8 million (up from $201.3 million).
– WWE touted new television licensing agreements with the USA Network (NBCU) and Fox Sports, which are effective October 1, 2019.
– New international events (Greatest Royal Rumble, Crown Jewel and Super Show-Down), first-ever all women’s Evolution PPV and launch of “Miz & Mrs.” was also touted.
– Digital engagement saw video views increase 57% to 31.4 billion. Overall hours consumed was also up 77% to 1.2 billion across digital and social media.
You can check out the full press release below.
WWE® Reports Record Results For Fourth Quarter and Full Year 2018
STAMFORD, Conn., February 7, 2019 – WWE (NYSE: WWE) today announced financial results for its fourth quarter ended December 31, 2018.
“In 2018, WWE generated the highest level of revenue and earnings in the Company’s history by leveraging our brand strength to increase the monetization of our content worldwide,” stated Vince McMahon, Chairman and Chief Executive Officer. “Our long-term growth strategy will continue to focus on content creation, digitization and international development.”
George Barrios, WWE Co-President, added “We increased revenue by nearly $130 million, and achieved a record level of Adjusted OIBDA and network subscribers. We expect to balance 2019 revenue growth with investment in strategic areas that extend the moat around our business, enabling us to continue our business transformation and maximize shareholder value.”
Fourth-Quarter Consolidated Results
Revenues increased 29% to $272.5 million from the prior year quarter primarily driven by the increased monetization of content and, to a lesser extent, an $8.1 million favorable impact on licensing revenue due to the adoption of the new FASB standard for revenue recognition (ASC Topic 606).
Operating Income nearly doubled to $53.4 million from $27.0 million in the prior year quarter driven by increased profits from the Media segment. The Company’s Operating income margin increased to 20% from 13% in the prior year quarter.
Adjusted OIBDA (which excludes stock compensation) increased 57% to $64.4 million as compared to $41.0 million in the prior year quarter. The Company’s Adjusted OIBDA margin increased to 24% from 19%.
Net Income was $41.2 million, or $0.46 per diluted share, as compared to $4.8 million, or $0.06 per diluted share, in the fourth quarter of 2017. This increase was primarily driven by improved operating performance and the impact of a one-time charge of $11.3 million in the prior year quarter due to the re-measurement of our deferred tax assets as a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), which was enacted in December 2017.
Effective Tax Rate declined to 23% from 80% in the prior year quarter, where the latter reflected the tax impact of the $11.3 million charge noted above. Additionally, the year-over-year decline in the effective tax rate reflected the impact of the Tax Act, which reduced the federal corporate income tax rate to 21% from 35%.
Cash flows generated by operating activities reached $65.2 million and Free Cash Flow totaled $54.3 million as compared to $55.6 million and $48.6 million, respectively, in the prior year quarter.4 The growth in both measures was primarily due to improved operating performance, partially offset by the timing of working capital.
Full Year 2018 Consolidated Results
For the twelve months ended December 31, 2018, revenues increased 16% to $930.2 million from $801.0 million primarily driven by growth in the Media segment. Operating income increased 51% to $114.5 million from $75.6 million, driven primarily by the growth in revenue (net of related operating expenses), which was partially offset by higher staff-related costs, including management incentive compensation and stock compensation resulting from improved operating performance and the rise in the Company’s stock price. Adjusted OIBDA increased 31% to $178.9 million from $136.1 million. Net income increased to $99.6 million ($1.12 per diluted share) from $32.6 million ($0.42 per diluted share) in the prior year period.
Cash flows generated by operating activities reached $186.7 million and Free Cash Flow totaled $154.4 million as compared to $96.6 million and $71.9 million, respectively, in the prior year period.4 The growth in both measures was primarily due to improved operating performance.
Cash, cash equivalents and short-term investments were approximately $360 million as of December 31, 2018, and the Company estimates debt capacity under its revolving line of credit of approximately $100 million.