• Old School Wrestling Veteran Celebrates His Birthday
Old School Wrestling Veteran Johnny Ace (Real name: John Laurinaitis) celebrates his 58th birthday today.
Johnny Ace worked for several promotions during the 80s & 90s, but most famously wrestled for Jim Crockett Promotions and All Japan Pro Wrestling.
Most Old School Wrestling fans remember him as the flagbearer for The Sheepherders (later known as The Bushwhackers) and teaming with Shane Douglas as “The Dynamic Dudes”.
John is the brother of Road Warrior Animal (The Legion of Doom) & Fury (The Wrecking Crew), as well as the step-father of The Bella Twins, Nikki & Brie.
HAPPY BIRTHDAY JOHNNY ACE!
• Vince McMahon Reacts To WWE Making A Huge Profit During Q2
During the 2020 Second Quarter financial results that WWE released, it was revealed that they made a profit of $43.8 million.
Dave Meltzer wrote the following about it:
“WWE profits for the quarter blew past analyst expectations. They figured $11.5 million to $12 million. Actual was $43.8 million. Lots of factors, but they saved tons in producing at PC and multiple shows together.
Last year’s Q2 profits were $10.4 million. So they quadrupled profits and this doesn’t factor in the talent layoffs because they were still being paid through July 17.”
Vince McMahon issued the following statement regarding this:
“Our second quarter financial performance was strong and demonstrated our ability to respond to the challenges posed by COVID-19. We continue to adapt our business to the changing environment, focusing on the development of new content for global distribution platforms and increasing audience engagement to drive growth and value for our shareholders.”
You can read the complete press release below:
WWE® Reports Strong Second Quarter 2020 Results
Driven by Sustained Cost Savings
Second Quarter 2020 Highlights
* Revenues were $223.4 million as compared to $268.9 million in the prior year quarter reflecting the timing of the Company’s large-scale event in Saudi Arabia; Revenues reached a record $514.4 million year-to-date, representing 14% growth from the prior year period
* Operating income was $55.7 million as compared to $17.1 million in the prior year quarter
* Adj. OIBDA increased to $73.5 million from $34.6 million in the prior year quarter
* Free Version of WWE Network was announced on June 1, unlocking a portion of WWE’s content library to expand reach and engagement of its direct-to-consumer streaming service for all fans
* WWE Network average paid subscribers declined 1.5% to 1.66 million while ending paid subscribers increased 6% to 1.69 million
* Digital video views increased 10% to a record 9.9 billion and hours consumed increased 15% to a record 374 million across digital and social media platforms
* eCommerce revenues nearly doubled to $12.6 million, substantially offsetting the loss of venue merchandise sales with 76 fewer events in the quarter
COVID-19 Actions and Business Outlook
* Due to COVID-19 and related government-mandated impacts on WWE, the Company continued its various short-term cost reductions and cash flow improvement actions. (See first quarter 2020 earnings release). These actions contributed to WWE’s enhanced liquidity, which reached $548 million in cash and short-term investments as of June 30, 2020
* The Company is continuing to adapt its business to the changing environment with a focus on enhancing the production of content and furthering fan engagement
* Management may resume its opportunistic acquisition of stock under the Company’s $500 million share repurchase program, subject to WWE’s business outlook and liquidity as well as whether share repurchases compare favorably to other capital allocation alternatives
* Management continues to believe the Company’s growth prospects remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term (See COVID-19 Actions and Business Outlook on page 7)
STAMFORD, Conn., July 30, 2020 – WWE (NYSE: WWE) today announced financial results for its second quarter ended June 30, 2020.
“Our second quarter financial performance was strong and demonstrated our ability to respond to the challenges posed by COVID-19,” said Vince McMahon, WWE Chairman & CEO. “We continue to adapt our business to the changing environment, focusing on the development of new content for global distribution platforms and increasing audience engagement to drive growth and value for our shareholders.”
Frank Riddick, interim Chief Financial Officer, added “In the quarter, we delivered revenue of $223 million and Adjusted OIBDA of $73.5 million as we continued to offset the impact of cancelled events by reducing costs. Our cash flow remains strong, and we believe we have the capital resources to deliver on our strategic initiatives and growth opportunities.”
Second-Quarter Consolidated Results
Revenues decreased 17% to $223.4 million from $268.9 million in the prior year quarter primarily driven by decreased sales of tickets and merchandise that resulted from the cancellation, postponement and relocation of live events due to public health concerns related to the COVID-19 outbreak. Media segment revenue increased modestly as the escalation of core content rights fees was substantially offset by the unfavorable timing of the Company’s large-scale event in Saudi Arabia (held in February 2020 vs. June 2019).
Operating Income was $55.7 million as compared to $17.1 million in the prior year quarter, primarily due to a decline in operating expenses that reflected lower content-related production and event costs, short-term cost reductions implemented as a result of the COVID-19 outbreak and, to a lesser extent, a year-over-year reduction in accrued management incentive compensation. The decline in operating expenses was partially offset by a decrease in revenue (as described above). The Company’s Operating income margin increased to 25% from 6% in the prior year quarter.
Adjusted OIBDA (which excludes stock compensation) increased to $73.5 million from $34.6 million in the prior year quarter. The Company’s Adjusted OIBDA margin increased to 33% from 13%.
Net Income reached $43.8 million, or $0.52 per diluted share, from $10.4 million, or $0.11 per diluted share, in the second quarter 2019, primarily reflecting improved operating performance. Current period results also included $7.7 million in an unrealized gain related to a certain equity investment as well as a lower effective tax rate, which were partially offset by the impact of the finance lease that commenced in July 2019 related to the Company’s new headquarters. Excluding the impact of an unrealized gain on a certain equity investment, Adjusted Net Income4 was $37.7 million, or $0.45 per diluted share.
Effective Tax Rate decreased to 20% from 25% in the prior year quarter, primarily driven by increased deductibility of foreign derived intangible income.
Cash flows generated by operating activities reached $74.8 million as compared to $7.6 million of cash used in operating activities in the prior year quarter driven by stronger operating performance as well as improved working capital reflecting the timing of collections in the prior year quarter.
Free Cash Flow totaled $67.7 million as compared to a $27.5 million use of cash in the second quarter 2019 primarily due to the change in operating cash flow and, to a lesser extent, a reduction in capital expenditures.5
Cash, cash equivalents and short-term investments were $548 million as of June 30, 2020, which includes $200 million in cash the Company borrowed under its revolving line of credit during the second quarter 2020.
Return of Capital to Shareholders
For the second quarter 2020, the Company paid $9.3 million in dividends to shareholders.
Management may resume the Company’s $500 million share repurchase program, which was temporarily suspended in April 2020. WWE share repurchases under the program will be executed opportunistically, i.e., when the repurchase price is below WWE’s intrinsic value as conservatively estimated by management. Any repurchase activity will be subject to WWE’s business outlook and liquidity as well as whether share repurchases compare favorably to other capital allocation alternatives.
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