WWE announces Q2 financials: Network subs, attendance, revenue

[cero2k]

Source: f4wonline.com

Prior to their investors' call Thursday morning, WWE released their 2019 Q2 numbers, showing a year-over-year decrease in revenue to $268.9 million and 1.69 million average paid WWE Network subscribers.

They attributed the 5% year over year decrease from $281.6 million to declines in their media, live events, and consumer products divisions.

WWE highlighted the following quarterly highlights in their release:

- $17.1 million operating income, down from $21.2 million in last year's Q2.

- $34.6 million adjusted OBIDA (operating income before depreciation and amortization) which was higher than they previously forecasted for.

- They are sticking by their full year guidance of a record $200 million adjusted OBIDA and full year revenue of $1 billion, assuming a "second large scale international event" and a media rights deal in the Middle East/North Africa region with the Saudi General Sports Authority, both of which they have agreements in principle on.

- Network subscribers were down 6% and they expect a further drop in Q3 to 1.53 million average paid subscribers, saying they do not expect a record number of subscribers this year.

- A 17% increase in digital video views to 9 billion and a 22% increase in consumed hours to 324 million hours across digital platforms. Those are assumed to include YouTube and other social media platforms and not just WWE Network.

- A 10% increase in social media followers.

- New content distribution deals with BT Sport, Fox Sports Latin America, and China's PP Sports.

- They pointed to June for improvements in year over year decline of both Raw/SmackDown TV ratings and live attendance.

- They held 76 events (not including NXT) in Q2 with 53 shows in North America and 23 internationally, down from 90 the previous year. While North American ticket sale revenue were virtually the same from 2018's Q2, the average price was up by 16%.

- Average North American attendance was 5800, down 2%. Average international attendance was 4900, a 14% decrease.

- Merchandise sales were down 13% year over year to $23.1 million, attributed to lower online sales, lower toy product royalties, and less live events to sell merchandise at.

We'll have more from the financial call at 11 AM Eastern.