Notes from WWE’s 2022 Fiscal 4th Quarter & Fiscal Year Report

WWE held an investor’s meeting on Thursday discussing the results from their fiscal 2022 fourth quarter and year reports.

In regards to revenues, WWE generated $325.3 million in net revenues for the fiscal quarter, up 5% compared last year’s fiscal fourth quarter. Operating income for the fiscal quarter was $62.7 million, down 22% compared to last year’s fiscal fourth quarter.

For the fiscal year, WWE generated $1.3 billion in net revenues, up 18% compared to last year’s fiscal year and broke the record for highest ever fiscal year revenues in company history. WWE’s operating income was $283.3 million, up 11% compared to their 2021 fiscal year.

WWE generated a net income of $38.8 million for the fiscal quarter, which was down compared to last year’s fiscal fourth quarter of $60.9 million, and $195.6 million for the fiscal year, which was up compared to their 2021 fiscal year of $177.4 million.

In regards to other financial areas, WWE’s Adjusted OIBDA for the fiscal quarter was $90.2 million, down 4% compared to last year’s fiscal fourth quarter and for the fiscal year was $60.5 million, up 19% compared to their 2021 fiscal year. WWE’s events revenue for the fiscal quarter was $62.7 million, down compared to last year’s fiscal fourth quarter of $80.6 million, and for the fiscal year was $325.3 million, up compared to their 2021 fiscal year of $310.3 million. WWE’s consumer revenue for the fiscal quarter was $21.8 million, down compared to last year’s fiscal fourth quarter of $32.6 million, and for the fiscal year was $54.4 million, up compared to their 2021 fiscal year of $33.8 million.

In regards to this past November’s Crown Jewel 2022 event, it was announced that this was the most viewed international WWE event in company history with domestic unique viewership up 70% on Peacock compared to last year’s event.

In regards to this past October’s Extreme Rules 2022 and this past November’s Survivor Series 2022 events, it was announced that both events were the most viewed events on Peacock in their respective series histories. Extreme Rules 2022 was up 36% compared to last year’s event and Survivor Series WarGames was up 46% compared to last year’s event in terms of domestic unique viewership.

In regards to this past January’s Royal Rumble 2023 event, WWE confirmed that it was the most viewed event in Royal Rumble history, up 52% compared to last year’s event in terms of domestic unique viewership.

In regards to 2023 fiscal year expectations, WWE announced that they current are expecting to generate around $395 to $410 million in Adjusted OIBDA, which would be a new all-time record, and also are expecting to generate their highest ever revenue in company history.

WWE’s fiscal report for both the 2022 fiscal fourth quarter and year also noted that there were added expenses of $2.3 million (3Q) and $21.7 million (year) that was “associated with certain costs” related to the company’s investigation into Vince McMahon’s sexual misconduct and abuse allegations and secret settlement payments. It was also noted that an additional $7.4 million in expenses “related to certain payments to be made by the Company’s controlling stockholder”, which is McMahon.

Other notable highlights from WWE’s investor’s meeting:

• WWE CEO Nick Khan stated that while the company is currently exploring sale options following Vince McMahon’s recent return to the company, there is no guarantee that a sale will happen in the future and will make no further statements until an appropriate time.
• Khan also praised former WWE co-CEO Stephanie McMahon for her work in the company prior to her departure this past January.
• In regards to WWE’s television shows, Khan stated that the company broke their all-time records for gates in 20 cities over this past year for their RAW and SmackDown shows. Khan also stated that WWE RAW saw big gains in their 18-34 key demographic viewership during their 2022 fiscal fourth quarter compared to the declines in the general television industry.
• WWE Chief Content Officer Paul “Triple H” Levesque praised WWE’s talent and writing team for being the reason behind the company’s record setting numbers this past fiscal quarter and year. Levesque also praised Rhea Ripley, Pat McAfee, Logan Paul, and Cody Rhodes for their work at this past January’s Royal Rumble 2023 event.
• In regards to Vince McMahon’s recent return as Executive Chairman of WWE, Levesque stated “I want to reiterate just how excited I am and how much fun I am having in my role as chief content officer. I also want to add that having Vince around has been great. I will tell you this: it has allowed me, and allow me to speak for our entire creative team, but we’re standing on the shoulders of giants. So having him back and involved, even at just the Board level, comes with his incredible insight. He is a tremendous asset to this company. This is the best time of the year. We’ve kicked off the road to WrestleMania. It’s an amazing moment for WWE, and I look forward to continuing to build the business alongside this leadership team for the long term.”
• On the topic of McMahon’s future in WWE, Khan stated that McMahon has informed WWE’s Board that he will step down from the company after its sale if it is in the best interest of WWE shareholders. Khan stated “Yes. Without question. He’s declared it to the board. He’s declared it to us in management. It’s all about shareholder value. Obviously, he is a shareholder. So it’s not about what role he’ll have. It’s about maximizing that value opportunity.”
• Khan also stated what WWE is currently seeking for a new potential owner. Khan stated “A partner that has more than simply deep pockets. So a partner that understands the media business, that’s in the media business, that understands how to further monetize the media business. [Also, a partner] that certainly understands our product, our intellectual property, what we’re doing with it, what can be done with it. Media rights, both domestically and internationally. We see the international growth opportunity is huge. So these are folks, in terms of choosing the right partner, these are all things that we’re going to be looking at in terms of who can accelerate our business. Again, what’s the best value for our shareholders?.”
• In regards to potential new revenue streams, Khan stated that the company is currently considering the idea of monetizing their ring canvas, ring posts, and elsewhere with sponsorship logos.
• In regards to why WWE is looking at a potential sale now instead of waiting until after their next television deals, Khan stated that the main reason is due to not wanting to keep potential buyers away from the company for a set number of years had focused on signing new tv deals first.
• In regards to WWE’s existing TV deals, Khan stated that any potential buyer would need to respect WWE’s current television rights deals and partnerships with NBC and FOX. Khan stated that the company wants to continue their good relationships with both companies.
• In regards to WWE’s current plans to hold a new event in India, Khan stated “In terms of India, allow me to tell you, from our perspective, what’s going on there and what will go on there. We’re waiting for the Zee-Sony India merger to be approved by the regulatory authorities. The hope is in April. Keep in mind what you already know. COVID stunted our growth opportunities in India and a number of places, but in India specifically, where I would say it was almost impossible to travel in and out of. We couldn’t do local events there. So as soon as we have a sense of when the regulatory approval happens on Zee and Sony India, look for a big live event in India. The best way to grow viewership, and I think we’re seeing it proven out with our UK shows, with the upcoming Montreal show, and in other markets, is to have live events there. It’s a much easier sale for our partners with their partners. It’s a much easier sale for us with potential partners, when they’ve been to the show, and they see the power of it. It’s just a smoother path. So as soon as that transaction is approved, look for us to be there in short order and to start continuing to build that empire in India.”
• Khan also stated that the company is currently considering plans to expand the monetization of their talent IPs to grow that revenue stream.

Sources: PWInsider.com 1 & 2, FWOnline.com 1 & 2, Fightful.com 1 & 2