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WWE - World Wrestling Entertainment, Inc.
$100.10
-1.43(-1.41%)8:00:01 PM 5/26/2023
World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It operates through three segments: Media, Live Events, and Consumer Products. The Media segment engages in the production and monetization of long-form and short-form media content across various platforms, including WWE Network, pay television, and digital and social media, as well as filmed entertainment. The Live Events segment is involved in the sale of tickets, including primary and secondary distribution; provision of event services; and sale of travel packages related to its live events. The Consumer Products segment engages in merchandising of WWE branded products, such as video games, toys, apparels, and books through licensing arrangements and direct-to-consumer sales, as well as through e-commerce platforms. The company was founded in 1980 and is headquartered in Stamford, Connecticut.

Financials

Quarterly financials
(USD)Mar 2023Q/Q
Revenue297.6MM-9%
Operating Income53.1MM-15%
Operating Expenses244.4MM-
Net Income36.7MM-6%
G&A43.5MM-7%
Marketing16.4MM-20%
Amortization9MM+1%
Interest Expense4.3MM-11%

Highlights of Management Discussion and Risk Factors in 10-K/10-Q filling

Positive
1.
The $142.7 million increase in the current year was primarily driven by the timing of collections associated with our large-scale international events and WWE Network revenues, and, to a lesser extent, improved operating performance.
2.
This increase was driven by an increase in consumer product licensing revenues of $25.5 million, or 49%, primarily due to $16.9 million of incremental revenues associated with our licensed collectibles, primarily driven by the revenue recognition for certain agreements with minimum guarantees, as well as higher sales associated with our trading cards.
3.
Additionally, revenues in 2022 include additional consumer product licensing revenues of $25.5 million primarily driven by the recognition of minimum guarantees related to the Company’s licensed collectibles and higher sales of the Company’s licensed video games.
4.
Venue merchandise revenues increased by $13.7 million, or 136%, primarily driven by the impact of a full year of merchandise sales at our ticketed events.
5.
Revenues from our ticket sales increased by $59.1 million due to the impact of the full year return of ticketed events in 2022, including a return to full capacity attendance for our annual WrestleMania events, as well as other domestic and international premium live events.
6.
Consumer product licensing revenues in 2022 also include $6.3 million of higher sales of the Company’s licensed video games, including our franchise game WWE 2K22.
7.
2022 also includes $7.5 million of certain variable costs within our Consumer Products segment driven by higher sales of our licensed products and merchandise.
8.
Other revenues within the Media segment increased by $75.0 million, driven primarily by the timing of our large-scale international events, coupled with $31.0 million of incremental revenues related to the timing of delivery associated with third-party original programming.
9.
This increase was driven by increased revenues, as discussed above, partially offset by an increase in certain variable costs primarily driven by the impact of higher sales associated with our licensed products.
10.
Revenues in 2022 also include $32.1 million in incremental revenues primarily associated with the contractual escalations of our key domestic distribution agreements for our flagship programs, as well as $31.0 million of additional revenues driven by the delivery of third-party original programming.
11.
This increase was driven by $72.8 million of incremental ticket and merchandise sales due to the return of ticketed audiences at our live events for a full year, coupled with the timing of our large-scale international events.
12.
During 2022, the Company also received tax credits of $4.3 million relating to our infrastructure improvements in conjunction with prior year qualified capital projects to support our increased content production efforts.
13.
Our core content rights fees 25Table of Contents increased by $30.6 million, or 5%, driven primarily by the contractual escalations of our key domestic distribution agreements for our flagship programs, RAW and SmackDown.
14.
Operating expenses in 2022 included higher staff-related costs, including management incentive compensation costs, resulting from the benefit associated with the combination of WWE’s television, digital and studios teams into one organization in 2021.
Negative
1.
Our eCommerce revenues declined by $5.9 million, or 15%, primarily driven by the impact of the July 2022 transition of our digital retail platform from direct-to-consumer to a third-party partner as they ramp up their operations.
2.
Our debt balance totaled $235.4 million and $222.8 million as of December 31, 2022 and 2021, respectively, and includes the carrying value of $214.1 and $201.1 million related to our convertible senior notes due December 15, 2023 as of December 31, 2022 and 2021, respectively.COVID-19 has negatively impacted the global economy, disrupted business operations and created significant volatility and disruption to financial markets.
3.
Depending on the severity and persistence of these inflationary pressures, we could see in the future a negative impact on our customers’ demand, or ability to pay (including an impact on the collectability of our accounts receivable), for our goods and services.
4.
Significant uncertainty remains as to COVID-19.
5.
While restrictions have lessened and we have resumed our domestic and international live event touring schedules, the extent and duration of the pandemic could continue to disrupt global markets and may affect our ability to generate cash from operations.
6.
27Table of Contents Corporate Adjusted OIBDA decreased by $18.3 million, or 17%, in 2022 as compared to 2021.
7.
Changes in the financial condition or operations of our distributors, customers or licensees may result in delayed payments or non-payments which would adversely impact our cash flows from operating activities and/or our results of operations.
8.
These forward-looking statements are subject to uncertainties relating to, without limitation, the impact of actions by Mr. McMahon (who has a controlling interest in the Company due to his ownership of a substantial majority of our Class B common stock and whose interests could conflict with those of our Class A common stockholders) which could have adverse financial and operational impacts.
The management discussion contents above are extracted from this specific SEC Edgar 10-K filling, with report date as 2022-12-31 and filed on 2023-02-02. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.
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Stock news

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    05/18/2023WWE
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    05/15/2023WWE
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