WWE quarterly revenue falls on delay in key event

WORLD Wrestling Entertainment (WWE) on Wednesday (May 3) reported a drop in first-quarter revenue and operating income due to a delay in a key event but maintained its full-year earnings forecast.

The sports entertainment company said it continues to target “record revenue” and adjusted operating income before depreciation and amortisation (OIBDA) of US$395 million to US$410 million this year, sending its share up about 2 per cent.

Revenue at WWE, which is in the process of merging with Endeavor Group-owned Ultimate Fighting Championship (UFC) franchise, declined 11 per cent to US$297.6 million in the quarter ended Mar 31.

The company said revenue fell mainly due to the shifting of a large-scale international event, which occurred in the first quarter of 2022, but this year is expected to occur in the second quarter.

Operating income slumped 43 per cent to US$53.1 million dragged by the decrease in revenue. Net income dropped to US$36.7 million, or US$0.43 per diluted share, from US$66.1 million, or US$0.77 per diluted share.

Last month, WWE and Endeavor Group signed a deal to combine the wrestling company and mixed martial arts franchise UFC to form a new publicly listed entertainment giant valued at about US$21 billion.

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As part of the deal, which is expected to close in the second half of this year, Endeavor will own a 51 per cent stake in the resultant company, while WWE investors will own the rest. REUTERS