WWE announced today that they are expecting record 2020 financial results. They also issued their 2021 Adjusted OIBDA (Operating Income Before Depreciation and Amortization) Guidance Range of $270 million – $305 million.
WWE expects to report record 2020 operating income of $209 million and a record 2020 adjusted OIBDA of $286 million on Thursday, February 4 when they issue the 4Q and full 2020 earnings.
Today’s announcement was made in conjunction with the new WWE Network – Peacock deal, which you can read here. It was noted at this link that the multi-year deal is reportedly worth more than $1 Billion.
WWE noted that they made it through a 2020 that was challenging for live content producers, due to the COVID-19 pandemic, and they did that while never going off the air. Because of that, and with the implementation of extensive short-term cost reductions, the COVID-19 pandemic had an estimated net neutral impact on WWE’s 2020 adjusted OIBDA. WWE estimates its full year 2020 adjusted OIBDA to be a record $286 million, which is up nearly 60% from the previous year.
The release also said WWE expects restrictions related to the spread of COVID-19, particularly related to the cancellation, postponement or reduced capacity of ticketed live events, to last at least through the first half of this year. WWE also expects a significant year-over-year increase in their expense base due to the full return of employees who were furloughed in April 2020, and continued higher expenses associated with the production of RAW, SmackDown and pay-per-view events from the ThunderDome at Tropicana Field. WWE estimates it can achieve 2021 adjusted OIBDA of $270 – $305 million as revenue growth is offset by the increase in personnel and production expenses. The revenue growth is expected to be driven by the impact of the new Peacock deal with NBCU, the gradual ramp-up of ticketed live events, including large-scale international shows, and the escalation of core content rights fees.
WWE also estimates that the stated 2021 adjusted OIBDA guidance range would be 15% – 20% higher if it weren’t for the ongoing impact of COVID-19, which includes the loss of ticket and merchandise sales from live events, and the increased investment in production to further fan engagement.
You can click here to full the full press release on the WWE Corporate website.
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