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Home / Business / WWE reports on 2020 third-quarter results, Vince McMahon commented

WWE reports on 2020 third-quarter results, Vince McMahon commented



WWE reported its financial results for the third quarter of 2020, stating that revenue was $221.6 million, an increase of 19%, or $35.3 million.

WWE Chairman and CEO Vince McMahon said in a press release: “Our third quarter financial position was strong, reflecting our continued creativity in a challenging environment.” WWE ThunderDome The creation of is proof that we will continue to adjust our business, focusing on increasing audience interaction and participation to support the global value of our content. “

Kristina Salen, WWE’s Chief Financial Officer, added: “During the quarter, we increased the licensing fees for the company’s flagship show, achieving $221.6 million in revenue and $84.3 million in adjusted OIBDA. At the end of the quarter, cash and short-term investments were US$638 million. We believe that WWE has substantial capital resources to deal with possible challenges and realize key strategic plans.”

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Please stay tuned for the earnings report for the third quarter of 2020, and join us at 5pm Eastern Time to report on investors calling from WWE headquarters in real time.

WWE® reports strong results for the third quarter of 2020

Maintain stable performance in challenging environments

Highlights of the third quarter of 2020*
* (Unless otherwise stated, all comparisons are compared to the same period last year)
• Revenue was $221.6 million, an increase of $35.3 million, an increase of 19%
• Operating income was US$63.4 million, an increase of nearly 9 times, or US$57 million
• The adjusted OIBDA1 is US$84.3 million, which has more than doubled to US$58.9 million
• WWE ThunderDome debuted at the Amway Center in Orlando, Florida. It provides an interactive virtual experience for WWE fans and reproduces the atmosphere of the arena (since mid-March 2020, WWE has never held an event with ticket fans)
• The average paying subscriber2 of WWE Network is 1.6 million, an increase of 6%
•On digital and social media platforms, the number of digital video views was 9.2 billion, an increase of 3%, and the time spent was 342 million, an increase of 3%3
• E-commerce revenue was US$9.1 million, an increase of 60%, offsetting the loss of venue merchandise sales due to the reduction of 74 events in the quarter

Business outlook

• The company will continue to invest to increase the value of content production and further attract fans to adapt its business to the ever-changing environment, including an increase of 22 to 27 million US dollars in the fourth quarter (2012 fourth quarter and 2012 third quarter) , This is mainly related to the creation of WWE ThunderDome, which increases personnel expenses as employees take leave

• Management previously revoked guidance for the full year of 2020. Due to ongoing uncertainty related to the potential impact of COVID-19 on its business, WWE does not currently resume guidance4

• Management continues to believe that WWE has a large number of long-term opportunities and is capable of implementing its strategic plan (see COVID-19 action and business outlook on page 4)

Stamford, Connecticut, October 29, 2020 -WWE (NYSE: WWE) today announced its financial results for the third quarter ending September 30, 2020.

Vince McMahon, WWE Chairman and CEO, said: “Our strong third-quarter financial results reflect our continued creativity in a challenging environment.” The creation of WWE ThunderDome shows that, We will continue to adjust our business and focus on increasing audience interaction and participation to support the global value of our content. “

Kristina Salen, WWE’s Chief Financial Officer, added: “Due to the increase in copyright fees for the company’s flagship program, we achieved US$221.6 million in revenue and US$84.3 million in adjusted OIBDA this quarter. During the quarter, we With US$638 million in cash and short-term investments, ultimately, we believe that WWE has substantial capital resources to deal with possible challenges and realize key strategic plans.”

Consolidated results for the third quarter*

* (Unless otherwise stated, all comparisons are compared to the same period last year)

income Revenue was US$221.6 million, an increase of 19%, or US$35.3 million, mainly due to the increase in copyright fees for core content in the media sector. The increase in revenue was partially offset by the continued cancellation, postponement and rearrangement of on-site events due to public health issues related to the COVID-19 outbreak that began in mid-March 2020 and loss of ticket and merchandise sales.

Operating income Revenue was US$63.4 million, an increase of nearly 9 times, or US$57 million. This was mainly due to the increase in core content copyright fees and the decrease in event-related production costs, as well as the short-term implementation of COVID Cost reduction -19. The increase in operating income was partially offset by a severance payment of US$5.5 million due to the reduction of COVID-19 forces. The company’s operating profit margin increased to 28.6%.

Adjusted OIBDA (Excluding stock compensation) was 84.3 million US dollars, an increase of more than 2 times, or 58.9 million US dollars. The adjusted OIBDA does not include the $5.5 million severance payment (as described above). The company’s adjusted OIBDA profit margin increased to 38.0%.

Income tax provision Is 13 million US dollars, an increase of 20.1 million US dollars. The growth was due to strong operating performance and a reduction of $8.2 million in tax incentives related to vested equity incentives. The effective tax rate for the quarter was 21%.

Net income The increase from US$5.8 million (US$0.06 per diluted share) in the third quarter of 2019 to US$48.2 million (US$0.57 per diluted share) in the third quarter of 2019, mainly reflecting the improvement in operating performance, partially reduced by the above tax incentives Offset by the impact. The performance for the current period also reflects unrealized gains after tax of US$5.2 million, mainly related to the company’s DraftKings investment, but partially offset by the US$4.3 million after-tax severance payment (as described above). Excluding these items, the adjusted net income 5 was US$47.3 million, or US$0.56 per share after dilution.

Cash flow from operating activities Operating profit was US$116.8 million, an increase from US$3.2 million in the previous year. This was attributed to the increase in working capital, which reflected the timing of collections related to our large-scale international events and stronger operating performance.

Free cash flow It was US$110.8 million, an increase from US$16.4 million used in cash, mainly due to changes in operating cash flow and a decrease in capital expenditures (to a lesser extent)6.

Cash, cash equivalents and short-term investments As of September 30, 2020, total loans amounted to US$638 million, including US$200 million borrowed by the company in the second quarter of 2020 under its revolving credit line.

Click here to view the full press release on the WWE Corporate website.




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