Sports entertainment powerhouse WWE reported higher second-quarter earnings and record revenue, exceeding Wall Street expectations. The strong performance was driven by a record-breaking WrestleMania event, higher viewership, and increased ticket sales for live events.
WWE’s WrestleMania 39, which took place in Los Angeles on April 1 and 2, broke various records and became the highest-grossing WrestleMania in WWE history. Gate revenue exceeded $21.6 million, sponsorship revenue exceeded $20 million, and merchandise sales were up by 20 percent compared to the previous year’s record.
The company stated that each of its premium live events in the quarter, including WrestleMania, Backlash, and Night of Champions, set global unique viewership records with significant year-over-year increases. This contributed to a 51 percent jump in live events revenue, reflecting strong demand for domestic and international events.
WWE also highlighted its ratings trends, showcasing a 26 percent increase in viewership for its weekly flagship programs, SmackDown and Raw, in the coveted 18-49 demographic. This outperformed overall broadcast and cable television, which experienced a 12 percent decline in viewership.
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In terms of financials, WWE’s second-quarter revenue reached $410.3 million, a 25 percent increase compared to the same period in 2022. Operating income rose 26 percent to $87.3 million, while adjusted operating income before depreciation and amortization (OIBDA) jumped 54 percent to $140.7 million, both marking quarterly records. Net income also increased to $52.0 million from $49.0 million, resulting in an earnings gain from 58 cents to 67 cents per share.
WWE CEO Nick Khan expressed satisfaction with the company’s strong financial results and emphasized the success of WrestleMania and other premium live events. He highlighted the double-digit growth in viewership for Raw, SmackDown, and NXT, which significantly outpaced the overall industry performance.
Looking ahead, WWE reaffirmed its expectations for 2023 adjusted OIBDA in the range of $395-$410 million, aiming for an all-time company record result. The company also maintained its projection to generate record revenue in 2023.
Earlier this year, WWE witnessed the return of co-founder Vince McMahon as executive chairman after his retirement in 2022. McMahon rejoined the boardroom following a misconduct probe, including alleged hush money payments to former employees. WWE incurred expenses related to the investigation and revisions to its financial statements, with McMahon agreeing to reimburse the company for the reasonable costs incurred.
Following WrestleMania, WWE announced a merger with mixed martial arts company UFC. The merger will result in Endeavor controlling 51 percent of the combined company, while WWE shareholders will own 49 percent. The partners anticipate closing the deal in the second half of 2023.
WWE’s financial results for the three and six months ended June 30 included expenses related to the strategic alternatives review and agreement with Endeavor, amounting to $18.8 million and $25.4 million, respectively.
Overall, WWE’s strong second-quarter performance, driven by WrestleMania’s success and increased viewership, reflects the company’s successful execution of its strategy. The merger with UFC and the expected record-breaking financial results for 2023 further highlight WWE’s position as a dominant force in sports entertainment.
