WWE reveals record revenue in Q2 2017, updated Network subscribers

Network subscribers

WWE released updated WWE Network subscribers as part of the company’s Q2 2017 financial figures in a press release on Thursday morning.

The big story was the company seeing another big growth in revenue in what was touted as the “highest quarterly revenue” in company history, while the WWE Network averaged more than 1.63 million subscribers to date.

Here is a breakdown of the financial figures released on Thursday.

* WWE’s live event and Network segments achieved its highest quarterly revenue to date seeing an 8% increase in overall revenue ($214.6 million).

* Operating income was listed at $10.7 million with an adjusted OIBDA1 of $18.1 million.

* WWE Network averaged 1.63 million subscribers, an 8% increase from last year. However, this is down from the 1.949 million subscribers reported back in April.

* Based on new multi-year television agreements, “WWE programming will be broadcast live for the first time in more than 50 countries.”

* Video views were up 18% (9.1 billion), while social media grew by 19% (800 million).

* Global sponsorship was up 25% based on driven by new deals with KFC, Nestle, AT&T, Psyonix, Square Enix and Activision.

* According to WWE, WrestleMania 33 in Orlando drew 75,245 fans and reached a “record 1.95 million global households” on the WWE Network streaming service making it the most watched WrestleMania in history.

WWE’s Q3 2017 outlook:

“For the third quarter 2017, the Company projects average paid subscribers to WWE Network of 1.54 million (+/- 2%). The Company also estimates third quarter 2017 Adjusted OIBDA of approximately $31 million to $35 million.2 This range represents an expected year-over-year increase from $24.5 million in the third quarter 2016 primarily due to the contractual escalation of television rights fees and continued growth of WWE Network subscribers. WWE is unable to provide a reconciliation of third quarter guidance to GAAP measures as, at this time, WWE cannot accurately determine all of the adjustments that would be required.”

2017 Perspective:

“WWE management continues to expect the Company to achieve another year of record revenue and has targeted Adjusted OIBDA of $100 million, which would be an all-time record (up approximately 25% from 2016 Adjusted OIBDA of $80.1 million).2   Given that the Company generated Adjusted OIBDA of $36.7 million in the first half of 2017 and projects Adjusted OIBDA of $31 million to $35 million for the third quarter, reaching the full year target indicates a range of fourth quarter results of at least $28 million to $32 million. Estimates for the third and fourth quarter 2017 represent significant year-over-year growth, which is based on sustained revenue growth and more favorable year-over-year comparisons in the Company’s fixed cost base.”