WWE Q2 Financials report

[Chris]

As they continue down their road to a merger with Endeavor's UFC, WWE announced on Wednesday a quarterly record of $410.3 million for the second quarter of 2023.

That is a 25% increase ($82.1 million) year-over-year (YOY), powered by the revenue from May's Night of Champions in Saudi Arabia in addition in increased media rights fees and live event revenue.

The company also set quarterly records in operating income and adjusted OIBDA (operating income before depreciation and amortization).

The latest on Vince McMahon

The company continues to experience financial fallout from the Executive Chairman's alleged hush money payouts that were exposed last summer.

From their filings:

"During the three and six months ended June 30, 2023, the Company incurred $5.3 million and $7.1 million, respectively, of expenses related to costs incurred in connection with and/or arising from the investigation conducted by the Special Committee of members of the Company’s Board of Directors, related revisions to the Company’s financial statements and other related matters."

They noted that McMahon has continued to reimburse WWE for "all reasonable costs" related to the investigation and has paid approximately $17.4 million in reimbursements to date.

Also revealed in their filings:

"On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations.

Additionally from the The Company has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters."

Nick Khan declined to comment on this matter on Wednesday's investors call. He did confirm that McMahon had spinal surgery and is on medical leave, adding they will respect his privacy about his health during this time.

Inside The Numbers

For the quarter, the aforementioned media rights finished at $320.3 million (up from $243 million YOY) while live event revenue finished at $62 million (up from $41 million YOY). However, consumer products dipped to $28 million, down from $44.1 million in last year's Q2, due to a decrease in licensing and ecommerce revenue as they transitioned to Fanatics.

To give an idea of the continued Saudi Arabia positive financial impact, the Other category increased to $66.5 million, up from $9.7 million YOY.

The company held 53 ticketed events this past quarter (43 domestic and 10 international) with average domestic attendance of 9900. In comparison to last year, they held 59 ticketed events (55 domestic and 4 international) with domestic attendance of approximately 6800.

Khan said it was their highest-grossing live event quarter of all time and they see no slowdown coming.

Endeavor deal

There was no news related to the specific timeline for closing the Endeavor/UFC merger. WWE did disclose some costs related to the potential merger, reporting that "For the three and six months ended June 30, 2023, the Company’s consolidated pre-tax results included $18.8 million and $25.4 million, respectively, of expenses related to the strategic alternatives review and agreement with Endeavor."

Khan said on the investors call that the process hasn't been easy, but it also hasn't been difficult. He did not give a specific month in which they expect the deal to be approved by regulators.

Media rights

There is still no further news on domestic media rights for Raw, SmackDown and NXT other than Khan saying they are continuing to talk to various players, including in the OTT (over the top) streamer space in addition to traditional companies.

When asked why the process is taking longer than last time, Khan said it's due to the larger starting price for rights. He is confident in where they will end up, citing "significant interest" and that things are "progressing well."

When asked about potentially splitting up how their broadcasts are aired between linear and streaming, he said that will be up to whoever owns the rights, citing the NFL and how their partners make content available to viewers.

PPV/PLE viewership increases

All three of the PPVs/PLEs that fell in the Q2 timeframe saw significant increases in "global unique viewership." They didn't break out Peacock as they have in past quarterly updates.

• WrestleMania: up 29% year-over-year
• Backlash: up 34% year-over-year
• Night of Champions: up 45% year-over-year

Other notes:

• Khan said they have already set a record in booked sponsorship dollars for the year.
• Khan said their ad share deal with Twitch pays WWE talent more than if they were on their own. He expects bigger things out of that partnership as time goes on and after the Endeavor deal closes.

 

[Dale]

That attendance increase though

 

[Chris]

That attendance increase though

Easily the most impressive stat to me and the one that's resulted in the most noticeable improvement just as a viewer, the TV crowds look big af and are hotter most weeks than they've been in awhile

 

[Dale]

Just gonna stick this in here
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WWE and Slim Jim return to the ring with a record-breaking partnership ahead of SummerSlam

WWE and Slim Jim today announced a multi-layered partnership that will begin with Slim Jim serving as the Presenting Sponsor of a marquee match at SummerSlam on Saturday, Aug. 5 at Ford Field in Detroit. This partnership between the two iconic brands pays homage to their shared, savage past and marks the largest sponsorship deal in WWE history.

WWE and Slim Jim first crossed paths thirty years ago with a series of explosive, in-your-face Slim Jim commercials, featuring “Macho Man” Randy Savage debuting the famous tagline “Snap Into a Slim Jim!” that has remained a hallmark of the Slim Jim brand ever since. The two global brands will tap into that rich history with a reenergized, multi-platform campaign which begins with “The SummerSlam Battle Royal Presented by Slim Jim,” the first of several custom integrations at WWE’s Premium Live Events. As part of the pact, Slim Jim will also activate at Survivor Series in November, in addition to Royal Rumble and WrestleMania 40 in 2024.

“Alongside our partners at Slim Jim and Conagra Brands, WWE is excited to renew one of the most memorable collaborations in sports entertainment history and there’s no better way to kick off the partnership than a 20-man Battle Royal at SummerSlam,” said Craig Stimmel, WWE SVP, Head of Global Sales and Partnerships.

“Slim Jim has always been about crushing boredom and doing the unexpected, which is also the cornerstone of WWE and their memorable lineup of bold, in-your-face Superstars,” said Spencer Fivelson, VP & General Manager of Snacks at Conagra Brands. “We’re thrilled to be back in the ring with WWE to build on our shared history and celebrate the savage energy of today’s WWE Superstars.”

In addition to the live event integrations, the WWE and Slim Jim partnership will include custom content and social media executions with Superstar talent, online sweepstakes to drive fan engagement, in-store activations and more.​

 

[Swamps]

Slim Jim and WWE is the ultimate tag team reunion!

Miss those Macho Man commercials in the 1990s.