WWE went through many changes in the last 12 months, with Vince McMahon retiring and returning and Stephanie McMahon leaving, returning and then leaving again. However, after their quarterly and year-end earnings call, it is clear that those changes did not affect the company’s bottom line too badly.
Chief Executive Officer, Nick Khan, started the call by letting everyone know that the company’s quarterly sales rose 5% to $325 million.
“We’re seeing our product reach more people on more screens, both domestically and internationally. We believe we are well positioned as we go forward,” said Khan.
While consumer products licensing and e-commerce revenue took a hit, higher TV and premium live event profits made up for those drops.
Net profit dipped to $38.8 million, or 45 cents a share, from $60.9 million, or 73 cents.
Khan explained that the WWE earned $110 million on 231 events and that all three premium live events in Q4 saw double digit increases in viewership from 2021, and Khan reminded everyone that this was during football season. Khan gave credit to Peacock with these viewership increases.
“Two years into our partnership with Peacock, we could not be more pleased. Our premium live events are driving subs, keeping users coming back to the service month after month, and serving as tentpole events.”
Both Extreme Rules and Survivor Series in Q4 set in-venue merchandise revenue records at these events. WWE Shop also was up almost 25% year over year in the 2022 holiday season.
He also said WWE is looking to monetize ring assets like ring aprons, turnbuckles, and ring mats.
In response to the controversial Vince McMahon being back with WWE, Khan said he is leading the strategic alternatives process, meaning the sale of the business.
When looking for potential buyers, Khan said they want a partner that knows the business and has the ability to grow it. He also said that with WWE also looking to establish a media deal, if they close that before a potential sale, they could lose a lot of potential buyers.
Khan insisted that McMahon would step away from the company once a sale was complete.
Paul Levesque (Triple H) WWE’s Chief Content Officer, was next to speak and he touched on the company’s rise on all social platforms. WWE set records on YouTube and TikTok, on top of having the most video views of a sports league across all social apps.
Triple H then threw it over to Frank Riddick, who reiterated what was earlier said by Khan. He added that network revenue increased due to an added premium live event compared to 2021 and all other increases in revenue was majorly due to third-party original programing, like the partnership with A&E.
It was revealed that the WWE’s TV deals end next year but that the deal Peacock has with WWE ends in 2026.
Riddick also said WWE faced higher operating expenses than in the past, and he mentioned that there was an extra fee of $2.3 million in Q4. This extra money was for the investigation into Vince McMahon and a past employee that he chose not to name, this investigation was the reason Vince took a leave. The incidents with McMahon also included an additional $7.4 million on top of the 2.3 in expenses, in regards to the claims that Riddick said have been settled. McMahon will be paying that sum from his personal account.
Triple H had some kind words about his father-in-law, Vince, for everyone present.
“Having Vince around has been great and I will tell you this, it has allowed me and it’ll allow me to speak for our entire creative team. 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, and he is a tremendous asset to this company,” said Triple H.
Over the past several years WWE has made deep cuts especially when it comes to their stable of wrestlers and executive staff. Last year alone, the WWE laid off approximately 44 wrestlers. In 2021, they released over 100.
