World Wrestling Entertainment (WWE) 26 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Michael Weitz	SVP, Financial Planning and Investor Relations
Vince McMahon	Chairman and Chief Executive Officer
George Barrios	Chief Strategy and Financial Officer
Michelle Wilson	Chief Revenue and Marketing Officer
Brandon Ross	BTIG
Evan Wingren	Keybanc Capital Markets
Daniel Moore	CJS Securities
Eric Handler	MKM Partners
Eric Katz	Wells Fargo
Curry Baker	Guggenheim Securities
Jason Bazinet	Citi
Laura Martin	Needham
Mike Hickey	Benchmark Company

Call transcript

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Operator

Hello and welcome to the webcast entitled WWE Third Quarter Earnings.

We have just a few announcements before we begin. [Operator Instructions] I will now turn the call over to Michael Weitz, SVP, Financial Planning and Investor Relations. Please go ahead, Michael.

Michael Weitz

Thank you, and good morning, everyone. quarter conference third WWE’s to XXXX call. earnings Welcome Marketing McMahon, and and CEO; today’s Revenue Officer; discussion Barrios, Chairman Vince are and Chief our Strategy Leading George our our Michelle Wilson, Officer. and Financial Chief We issued morning posted website, supporting release, the corporate.wwe.com/investors. other earlier earnings and on and presentation have our materials earnings our release this our discussion include Today’s will forward-looking statements. filings. and are and are These assumptions uncertainties in statements various disclosed reflect based our on our SEC current to risks views, subject reliance should Actual be differ results and undue may them. on not materially placed

Additionally, financial we website. in our which will is to include the presentation, be matters on forth discussing measures. GAAP may today our set non-GAAP and available non-GAAP earnings release Reconciliation of are information

will time, be At on later a today. my to call website it’s available today’s Finally, is as being replay reminder, our this to call Vince. over conference turn privilege the recorded the and

Vince McMahon

everyone. morning, Good

you two of of that on of XX years growth in As with WWE have went in week, may looking forward which We East, that’s and numbers launched in America. revenue is or with subscribers [Inaudible]. we Mexico consistent language have of India in concerned that is increased as PPTV, in in things and already highlights far and the pretty language obviously minutes well OIBDA the in OSN to and much a Mexico as in nature. [Inaudible] we’re in sort our are a Network’s the Central what a are Middle things things week retail view records months which of a partners paid as it’s we and XX%. much that high And language, to as we’re network review in as obviously, and pretty the but for and on probably our What of our WWE nature, – guidance far the this helps lot paper that’s markets, up. successful we’re China doing back of go doing live all-time and our with launch that well to and doing an these, us lot have very hour come. there a Network this in as in

that So more help different Middle from that’s India we else, first think we’re moving other There East and color then? us I more talents going signed to – way, first are so where to we really some areas. many female in up and think

Michael Weitz

East, Middle Yes, Jordan.

Vince McMahon

to want you And tell those names? us

Michael Weitz

I word cannot to sorry. from the I’m Kavita Devi how remember India pronounce and Jordan, from

Vince McMahon

a right, anyway of maybe guess information. that lot creates All take we’ll But of [Inaudible] that. a

in were there, female out the extraordinarily one look – one. events that’s superstars States India speaking a athletic. of as branch to Delhi, for well announced together, obviously that who of over moving which in very Indian on is two this live and well successful obviously in going X, X and the We December producing we talent to forward and back very Here successful and as put [Inaudible] as way our and terms

ways from revenue as is crucial followers XX%. XX.X of of different strings overall we surpassed And WWE. derive topics here the can course, them. favorite of nine which my so awareness and media social it range And digital first one long digital revenue and the million, months short fan many or in to is to Some well videos obviously, but this up a range is views different XX% areas, reached many so medial video and success, social obviously XXX of billion

is secured XX the important terms advertisers new of in us. One of the to we which [Inaudible] NBCU

as much part where so and another where at years past year and that’s anticipate that and can is just you revenue and we XXXX three that’s trend the [Inaudible] over profits, of see generally concerned, record pretty about in advertisers XXX am. We’re continued I going. now, obviously XX growth And

George Barrios

management Thanks, our of performance, business Vince. review There key financial initiatives progress the are several of our strategic key include today. we’d and like topics, discussion outlook. which to These

strengths generated For reported the platforms in an engage pay-television growth at our digital record predominant it’s television these to of strategy the the exceed during of to medial network objective successful global third and including increase content more this this put our our from that path execution to content, on us reflected increase segments These quarter, also the of audience, the we established strategy our and to than create start quarter Demonstrating It OIBDA our year. we This content revenue OIBDA execution enabled XX% an million, $XX the results and the across monetization and platforms. a businesses. efficacy us all-time direct-to-consumer social for compelling the the financial leverage network source deliver of our OIBDA. across of of to original core division three was quarter. our

third of the increase new our X.XX averaged release. shown original over is As last in programming programming page representing the to quarter $X.X our from with was the over timing from expenses network anticipated primarily growth X% OIBDA more guidance, segment due million year. revenue which WWE network subscription in quarter subscribers paid increased network of six line on a the presentation, and it

to content network including paper viewer our views, original series and Importantly drive engagement. specials continue

hours featured Women’s the first to original programming, than XX packed Summerslam, including During we the added Mae our Young contents Classic. the quarter, action network’s Tournament, of more

over on-demand now results We also an more library XXX than added content, hours at archival of of quarter-end. X,XXX hours which in

revenue transformation, higher profits Pay million continue TV the of also OIBDA and direct-to-consumer our Pay providers platform. distribution content, increased our to from key the agreements. this increased licensing and drive realize right $X.X from TV fees we As we reflecting

also Our earnings contributed business consumer growth. products to

Supercard, our eight, date. driven most WWE our including business by successful licensing to by on higher $X.X mobile video shown page mobile title As in OIBDA games, increased sales generated million

investments segments structure provide in paid prior real nine as I’d In of turn million million improved the our terms like million and approximately enhances property $XX Page on performance, elements the $X in this ability just revolving our cash in another to capital business approximately material of of believe structure. At impact and described flow call execute have $XXX growth to the results. capital the of shows Company’s additional under performance long-term free consolidated short-term the presentation $XXX our We the cash in the the perspective. quarter, in in of the credit our year capacity debt facility. selected Year-to-date a part building Michelle estate over I approximately overall held on nearly driven didn’t some to WWE had increased changes by strategy. period. million, operating to purchase end

Michelle Wilson

All right, George. thanks

global the our center represents WWE first Smack Central participants in we localized we in our strategy WWE WWE’s in Our Mexico live Network base. the upon region matches platforms, China produced localized launched in reached audience, The success our original and in which of launched XXX platform our Sports East initiatives subscribers and that building our coverage, the reflected to Completing we our essentially progress executing ability After a Suning of with content, our at content our quarter a optimize ability George world-class deliver both with documentaries meaningful increase partners and Mexico Dubai, performance enhance and weekly female series, with continue homes Network talent described. to value in and our features our India of from of TV Media on night fans holding our Strengthening major The PPTV’s to trials talent across program third with market. Fox to the International show diversify roster engage million over our on our mentioned, our India. PPTV, America. Middle content, the of Middle global Orlando. talent OSN expands To Saturday two the the as in engagement Sony. and XX% with in service we localized WWE highlights now Spanish Raw Company. as recently classic from athletes Down. brings Vince lineup digital events, hired East

brands earnings level broad sponsors. platforms of a mentioned on of the reach I As quarter, our audience attracted has record multiple our a call on power global last to

as nearly New XXX secured deals to partners and months contributed first the the WWE Also NBCUs past advertisers XX in the programming a over revenue Blue sponsorship content, has global This mentioned upfront, gaming advertisers advertisers Vince demonstrating for XX the our over have three Chip nine and value year. with our of WWE XX% brings to new companies increased increase shows. of roster in in years. the NBCU added XXXX for

of a months to Our the has across and continued billion key of YouTube, to XX% operating the content Consumption views views through path nearly nine metrics increased WWE video to XX.X and wwe.com, past year. grow billion by we’re yearend. on XX video Facebook brand reaching and

our WWE of Additionally, XX% attendance, health demonstrate on it’s of over are George growth. all subscribers network or I all capitalize discuss I’ll drive products growth diverse to back provide content you exceed delivering how unique metrics prove expectations. consumed, XXX followers the of Regardless turn a media we hours total brand to points to described and the on content the to million. call activity of our they that long-term increased strengths, social choose, And whether that robust our WWE brand.

George Barrios

Thanks, Michelle.

back transforming and business results over driving operating our our financial model. and Looking to continue our the quarter, innovation reflect

quarter of plus Looking we project to ahead subscribers paid X%. Network the or $X.XX WWE for million fourth average

continued more of million our subscribers estimate basis to Network include increase well fixed and cost of expected also the $XX year-over-year WWE fees, This continuation as We saw the a TV in favorable we year-over-year third to growth base. primarily rights range contractual quarter of quarter. million. fourth the as the These of an growth subscribers OIBDA comparisons on escalation approximately in the $XX adjusted XXXX represents due year-over-year

Based WWE a OIBDA continued For our financial of to to $XXX the representing project raising X%. to average expectation approximately year-over-year we million, our million XXXX year paid subscribers performance, growth of of Network record range for XXXX, million. we’re $XXX full of strong guidance on X.XX adjusted

Looking long-term for model. greatest have believe We another $XXX record with platforms, of achieve to of shareholder believe results growth our areas. at OIBDA data by target all-time we In achieve record. represent content significant strengthening licensing the million WWE, we our another coming would value. the partners business infrastructure world, We our continuing our expect in record content further range and throughout ahead long-term South global to monetization Australia, is long-term year ability in to of enable balances which least key of XXXX, completed to the is and content and to in a across and investments to delivering include Pay adjusted these TV Japan, a opportunities investing the growth fundamental initiatives wide audience, maximize there countries key our element targeted us markets moving and XXXX, Africa, In will and revenue technology year, XXXX develop of strategic engage OIBDA agreements potential. Canada. with with new as such The France initiatives help all

As between XXXX. distribution in expire of the a September as agreements on December share our expires distribution We sometime will to of television expire you significant the representing which the September will on know, plan our expect Smack US in India programs UK for Down licensing XX, These Raw well US certain Smack and XXXX, in and include currently premier which rights May revenue and Raw our XXXX. Down XXXX. and announce XXXX XX, as

of also for and plan distribution in to announce XXXX. XXXX our the India distribution UK plan half We second of the half our expect first in

to Michael. these the which represents of call. referenced, year. plans our subject the believe future are periods most occur the that or I’ll now do to either next announcements the that negotiations dates we to for I concludes likely back Our Well before And communication. That are begin it could portion after expected this just ranges turn

Michael Weitz

lines Tiffany, questions. for Please the George. you, we’re open Thank ready.

Operator

[Operator ahead. first Please with go Ross to Brandon go Instructions] We’ll BTIG.

Brandon Ross

you the color – US, are the about for and with deals. Hi, curious, talking the in third-parties? your taking an into opened press release the window currently are just also But locked okay. to NBC TV on to thanks exclusive And in for when Thanks you questions. then if distribution so,

are currently… You

George Barrios

– to the going the talking the of agreement. we’re Look, mechanics about on not

make next we’ve year. – we will in a sure world think So fairly potential we’ll strategy, talking buyers world of the sometime understand public which around and be will it’s ours. understand the the the of cohort to middle given folks dates to their they And just is small

Brandon Ross

to selling versus market digital. digital all player breaking breaking those up globally by or there? you a think talk between you breaking TV to – up folks, how to up, terms of And is as in and up the to involved or are your market single want thinking rights conclusions and your yet you together them Do any TV package going rights split

George Barrios

fans talked grow And we WWE. we’ve us direct so we in to of more, our monetization the and we’re always balancing current giving subscription or where trying or Brandon, do licensing engage look, do to our all order key it about a fan how promote to content monetization content platform the the base, of Yeah, through how the it. of objectives, all second kind goes advertising four one of in get of time,

us but geographies, what of market-by-market the is to account, I you So, flexible forward. look and Pay kind that when into TV as move you think different digital and see all take being tailoring we you’ll approach got at versus

Brandon Ross

and Okay, next to your some talk and finally, of data of that? investment you’ve sort about Can for year. then mentioned you infrastructure Thanks. your technology plans for

George Barrios

with we who the data said directly This includes people tickets go but of include our to to the have just described. integrating. promotions to of promotions is lot each to on they’re it e-commerce, faces tailored on scale have Around and that, doing currently basis. consuming generated areas puts fans who been Yeah, includes we so for over deep lets of content, which Today automated buy might people It ultimately an people have we ticket products buy I time we our consumer users network, on vision a to now inactive able on into their it accounts. we’re it significant kind pretty user a fan. job have from complete that, it number mean a – how network, the direct includes I smiles of for millions us, subscribers of be that us doing our registered accounts really have a of connection do are dot to user it’s the us tailor online, what a we understanding that out through most better buyers com, active and the before, and

of pretty we already towards we’re an that, head millions start building all accounts So we those a it’s good arduous of but journey that because have have.

Brandon Ross

Thank you.

Operator

by with up Capital So, Please the Keybanc next ahead. Markets. Evan go Wingren

Evan Wingren

at I’m midpoint of this distributors guidance the from me think in a your and TV in George, next but you’ve XXXX. you year if $XX is of your Hey increases million Thanks. I I $XXX outlined minimum wrong, contractual got think $XXX Correct year. major million million

you or your is those outside actually outlined, investments that you’re of purely guess there the I is, next make? the looking initial outlook there the that part potential the any to So delta question you business in maybe think investments of year could decline is

George Barrios

where that things investment Otherwise as mentioned, opportunity. contract future. the for big guidance a it’s another secularly we Vince next say really including decline of would way, our only look just about we can remarks, see we you the along I hit that hiccup bump as in it by combination internal generally like that as speed business doesn’t a home A the business prepared entertainment. in It the balancing is and my forecast yeah, secular Michelle if for in on seven looks line decline. secularly, mean lot but you long-term escalation a is top that is well have of the revenue, look the one Yeah, or forward say mentioned mentioned, the year talked

leverage same ’XX at and to drive in for the beyond. trying time, to position but take sure we’re of ’XX, making OIBDA expansion we so ourselves and it And opportunities ’XX,

So balance it’s a of that.

Evan Wingren

contribution expecting specifically WWE since Okay. as you that called are to strength, And this modest. maybe continue on any potential game although of you Do XK? area and incremental then of year’s you expect version that kind strength from of

George Barrios

has we the with have together Yeah, our before, that energy on the add work building continue map. of quarter. to the touched the look, – it the into and we’ll to core around with work Take-Two them of fans, game, game our spend a so to Michelle insight portfolio road we of development lot continue we a we’ve on mobile of on in And games, lot we

we with about building We’re too had overtime. of projecting And the we’re a going much excited. in the keep before on mentioned into it, mobile know, again broader to performance game good space performance you it’s but portfolio future just especially that we but in having the so really a that we’re quarter Supercard

Evan Wingren

then And coming more verticals? give XX three us that is could bit or on on bit new then trying XX some much. base are been and color you gain of advertisers have all where past word then maybe how on terms hop out. replacements little those The that the outlined, the Just in the one changed. you’ve there from I’ll over of more potential a the to just very color you mentioned in a that years, additive thanks there? total is And And overall

Michelle Wilson

coming that was bit tremendous key again that. we diversified knew to WWE on little studios beyond programming to our were past relying on primarily the games so to and categories, that take part the and to to added hundred last gone three that and been first, from over additive, your we’ve so has question so have years almost all the color incremental made progress. needed literally XX last been a and which XXX So advertisers, the incremental. we In verticals, we’ve add of whatever theatrical we WWE And really

the and automotive, retail, were we have And wireless, successful we’ve so pharmaceutical, insurance. package that verticals really add, goods, focus been the XX advertisers that

these past, Sprint, so add really Craft, not very Toyota, on Cricket progress we’ve to in made blue Nationwide, chip the very Wireless, brands about that good the verticals So we’re we’re – we were feeling Pfizer, companies and are like attracting front. that starting

Evan Wingren

George, thanks thanks Michelle. Okay,

Operator

next to Daniel with go CJS We’ll Moore Securities.

Daniel Moore

just obviously solid taking Good to negotiations. – rate upcoming congrats a as thanks rates pending for there little questions. bit, and relates on Wanted morning, really results follow-up the it or

of you just making make headway clearly related terms digital. of a and new in You’re as verticals lot tremendous stride

to is the flip is and costs. side, sports for been losing is which about paying quick sports of terms all overall NFL for a that at has concern of the contents all just much on in – of the landscape the ratings. live Talk Now how halo follow-up a that you Thanks. entertainment

George Barrios

and the in Yeah, I it mentioned either in to things through directly how sat that in the of we us was audience. eight Vince bring we’re to platform global about us now levels. was think our how ago around one sitting remarks ability of had talked important of or monetize of been the advertising variety terms social on his and content and a direct-to-consumer our Similarly or digital kind for discussions to And engaging seven important room own all years in subscription. has

monetize advertising that be these and allows to of next we done subscription. we these There Raw be pretty we and we’ve but powerful bundles different think proven we’re year, believe discussion, may have still don’t Smack market in TV having Down engagement know. like they’ll what think and is tools We the through platforms. created platform, really partner exist. exist. that, So We’ll we see our powerful will Pay to the bundlers

eyeballs. – the see we’ll go aggregator India US and in are to down Smack of like likes ratings nobody but speaking, that other the markets in relatively And the market means So powerful what see. specifically, were place Down Raw

Daniel Moore

biggest of either for What And XX% on base, network Thanks mentioned and very talk down the what’s you helpful. in or maybe cost the organization? bringing there fixed the side color. George, cost changes across despite about were SG&A that your increase down revenue. just Thanks, X% the driving the

George Barrios

the international well includes to our development, know both like team, sales as unallocated organization. other cost things corporate our Dan like and G&A across marketing that more costs, direct and things Yeah, brand our what business as as you and it’s are segment really lines, that, talent

favorable So, throughout timing some direct we really OpEx first the regardless knew we elements of of deploy But the of elements. the timing related it’s that half just G&A. as to just both how year, pure the costs what that we in chose unallocated some mentioned year with in the back more year, comps part that’s because you’re so have we with seeing,

Daniel Moore

it, Got thanks Appreciate it. again.

George Barrios

Yeah.

Operator

go to We’ll Partners. with MKM Eric next Handler

Eric Handler

Yes, thanks for taking my question.

do And things have think the it a services about you competition second. peering. you is about There want results? you about WWE WWE measured efforts, look direct-to-consumer pace of also And months go happened First where versus you data, but like can at development. over [Inaudible] UK, possible of been move for your pace the understanding competition that XX a of the seem does all, the monthly. that more between let’s And how internationally of increase localization from at for to talk the increasing last think has measure some lot do talk and a your probably the you discussion like that here Network about and how year, this does

George Barrios

Network it on entertainment platform other when our digital continues you’ve seen the on mentioned And to and couple AVOD network us to the Vince or about general in on network localization of entertainment all well the our platforms, do as localizing TV those part, and and over general so last know platforms. the a passionate as given is those fans, Yes, platforms content superstar years competing more a on broader across that. first more The really early success this, competition WWE Netflix reminder you with and with not HBO. networks Pay the space, talk is the about a the you like just efforts,

about look the about probably two multiple in our And least it that element is competition, the is different it’s timing. it of balancing it the is one earnings that’s versus investing growth types timing, it. I think with peers I you what that said back goes in language, think allows now around like, the in to has it and if network at what’s consumers less years that probably coming, from the of driving into so but to discussions really additional experience

Eric Handler

and then… Great,

Michelle Wilson

just the predominate the the obviously are to And – localization our paper the which network, a localization drive of to to add – part our viewership. just events predominately on add on views to live

We are those which providing about languages in eight started ago. livewire month a we just

our that, local is as about provided we important So through most and locally a that so to is content languages well driver getting of out we’re already on multiple as that that that, good in market ahead we’re key were viewership. kind of testing feeling

Eric Handler

Great, thanks. quarter brand. And a follow-up, an just grow a signed to your as international you’ve deal ago licensing

how deals seeing Just going we those are that? efforts to curious signed because and of are get see any

Michelle Wilson

Yes, meetings signed again of and last you the yet marketplace to brands that you’re and so the lot have a to report just we’ve in yet. so partnership but to we based positive nothing a started [Inaudible] presence, we are nothing US secured are the out I will referring our in selling report of that tell with the process, but deal with quarter, global lot think so I that the discussions

Eric Handler

much. Thank you very

Operator

We’ll with Fargo. Wells take question Katz Eric next from our

Eric Katz

your leverage diverse if take I much and the looking morning. deals insight for I these to evolving at today perspective. so licensing and with how so into give from approach last cycle quickly? more hoping was swing learned you a good ecosystem another some backward what to Thanks, TV wanted your you the maybe

George Barrios

has learning, I it’s point I it’s changed just think much sure not internally. are think so I’m the pretty there changes Yeah, lot of dramatically, your world

small of transforming brand and social think BXB on it it’s I describe digital success might the be So WWE. to has, the too not

in and digital, the and peers, change. your big I us the a think direct-to-consumer among repositioned industry think that’s so social has media I

absolute that the manifestation transformation that. of on think talked about, roster a I Smack Michelle that’s and Raw Down advertising the and

to fact that of the a happening of like featuring make covering is coverage, places content we another and well And as ways just know could potentially for for because sure, externally, as internal – WWE world for a ESPN again now the find of argue, what’s where greater the I think that’s are our dramatic part even change. is of aggregate we’ll our get eyeball. that there discussions example us our of are part lot think where I social of to challenges that out could their think content I proliferation you so. digital rest in demand Don’t been the whom at, able is but at live is

Eric Katz

Okay. we oversees. of presence you of that a and social views maybe marketing the those on come that Is And side? some content, large kick something to a transition really your differently besides you becoming anything subs. know the do share start can are media views, things What there from video of people between do paid

George Barrios

product that is of of that Network today is the which Well US anyone the gets the outside because XX% I I think know all beauty available from so world, of the that it US, to that element, localization the ourselves to a us mean, in you internet we know, gets WWE great.

fan and Middle time matter a localization base And But the America across will eventually, on. a eventually I the the the desire be of and more we was back or all larger growth and Eric’s as will our growth content, internationally the that real East so invest for commerce to that India come good balancing in think as especially – elements more I think well drive the future. some growth developing pretty to know Latin markets through that question, where it’s localization. or in of

Michelle Wilson

add and we the we’re directly outside not and US, ticket have from US we using of we more all in as to us not buys but believe add infrastructure marketing the will we’re direct front, marketing, about to And a of I I event, we could that the think just overtime fan the that George able technology data the be customizing one-to-one effectively a that our perspective, do do just terms social about if subscription. a infrastructure are network as when to And will talked data optimize messaging you of – it I help the level analytics live on we’re that around driving that, building data outside a building overtime. when the the think to what think digital

So forward effectively do us drive help more the well. that will data I as believe that moving and marketing

Eric Katz

for last willing provide you with there XXXX, some to didn’t see guys at anything is growth on if anything like to year. year least subs what following could you’re Last Okay, I’m update We soft not did question. that guidance look for sure today? the

George Barrios

we consistent say like to I keep growing. was expected this, think last we to just pretty year

the previous guidance, record we subs like said, that’s the set any expect at in year year, next year to next the next think some giving. we expect record point, we OIBDA, this we’re all growing guidance adjusted soft again I keep year, revenues gave expect so we to and Vince but

Eric Katz

you. thank Great,

Operator

Curry question comes The Guggenheim next from Baker with Securities.

Curry Baker

guys. Hey, question the thanks for

is any of And the ground guess in WWE what the You I you indication in more years or you’ve lot content interest China. China China? broadly over since in of engagement opportunity and in and aggregate there seeing you WWE done the level launched the Network version on launch? seeing a us China and mid-August. what just past you’re update guys see the of the Thanks. give the in ultimate, Can there long-term for I you’re know

Michelle Wilson

services early for days it’s for and and SVOD us you know early days early China. again days So, in there as

in point we’ll it’s we’ve pleased, to say beyond that board definitely couple grow again continues come the subscribers that play but What think in market have longer nothing market. activation been on pleased early too first that to a SVOD that and market that disclose this I our in a of months, the play really, So as place. in been is seen we’ve long the partners but tell, will at the again I

at local early think grow But language, the live As you on front. a obviously Smack it’s feel the again, continue a that engagement, far digital we there overtime. as as have days. ultimate engagement Down know, Raw delivering in We are there network healthy we so team levels wide growth the ground of on to will which and and the the around pace social

Curry Baker

that. for thanks Okay,

Operator

next to Bazinet Jason Citi. with go We’ll

Jason Bazinet

Thanks. your you negotiations maybe the fair and was out we fees. go lot just to those there’d what sort value way in sort guys have Are If preparing I’ve that what at is thinking is use terms looking and stick of shoes in fair I If back so value of because is. unique that then go of is I you in externally there of for your number in that right, by viewership another the can the But mind for could of you’d about there would content be to something variables right analogs. globally there difficult benchmark? that analogs, advertisers

George Barrios

Yeah, well, the we tend to what – for. competing we metric and that’s time ultimate is think everybody is

against Hastings quotes favor from of competes Reed he was my One sleep because…

Jason Bazinet

Yeah.

George Barrios

we’re for way that And of the all that’s time your ..that’s to what attention. doing, time. we’re spend competing and

that time is, the we value market we much of on have to measure So And guess tend we what then how that attention content of particular we’ll based we see just – time I through see we piece each just a platform. that make or of and how kind we also we decisions what on compare could subscriptions could monetize all three think our that. and we advertising directly

Jason Bazinet

Okay, thank you.

Operator

Our Laura Needham. from with Martin next question comes

Laura Martin

Hi.

got conversation get couple here, questions I’ve Let’s to Vince Vince. to programming the try a

you’re on the thought markets a a ago, always US couldn’t we is they’re and spending markets? get good have the change outside that’s having But outside years wrestlers we there this big be is good about get doing local I and US. something international lot XX now, idea. I wrestling I a is new The money international the that because language So, of idea

WWE now I why doing earlier is them weren’t Vince? those making this like we investors or it the Network international mean monetize are just who lot to a So,

George Barrios

way you to Look, a think back it, there there XX someone, Laura one everything like and dramatically, it. has changed do that times. if we content years I look one years ago, in in to know, get ago, you are wanted XX moments of thing if piece was only front of The

content, does remarks, a it changes they You like limited changed directly, place infrastructure the mentioned point, of of could in we limited don’t you Vince investors limited on. one. a into things. anywhere. in find was the understand any content to today good inventory ago, so what years needed to years, investments there his was secure what and make that allowed future. now there linear different Number get That one, Michelle get couple number lot resources, it us program had partners. dynamic. it is a that your touched has the XX can number after didn’t because are or that’s a XX in Today it home WWE world space for video monetize To have lot, one, enabled most got XX of competitive also television, It’s a People it companies and broadband it piece the it’s

the combination years muscles opportunities company evolution, we ago is anything have, happens a world during because and as lot it’s We’ve years So muscle of changing that changing. XX got of and thing building a is other different didn’t XX just lot for time. of maybe that

Vince McMahon

didn’t question I answered And I Laura, good, I? the thought pretty

Laura Martin

was I hoping.

on MDA each have guess changed or historically economic women, WMDA really women then. I the $XX so so So because the million the paid viewership not have feeling of

that you’re have in part You’re with the capital just India you women’s women getting like roster, on adding tournament comfort the it’s talent announced business the the from lot like. of first women data guess women, the from Network? Is for it women to the you the with coming a return WWE the sounds I is of

George Barrios

the of see time see pure not we guess it and content, can times and we about we board, time It’s on economic social the we and data same traditional women we on a can it and, investment, to talent we are so doing it’s kind And data the data win back from see continue the – it. the to be we’re getting talked unit people and return on it, measure outside it that. seeing access can coming are a as our we’re our traction as that Nielsen have with as the to. see our know, US but so on it clean that’s on across like the digital we if TV, and spend so what the Vince may metric, performers male well well, get performers, network, you and Michelle we definition get The

Laura Martin

hours video we new so we in WWE resources, Is XX that if the total, of awesome, my is then do programming is more contents? a And added because the infrastructure physical your quarter to that Network we’re need in high content, we Okay. the XXX adding started have investments which be center number. the entertainment in given quarter recollection XX the all is that when like original like pace happening here adding hours

George Barrios

debuting a Yeah, we’ve since doing to content of XX launch. and the on been I mean quarter hours XX about network premiering kind

think have actually little more available, was to that hours referring the to which bit VOD XXX hours. I the X,XXX close is now than you’re up

[Inaudible] every library a quarter. XX Live, view, archival content, we’ll on hours that. and network it’s then And So, of quarter we the NXT, about that so move paper or content WWE, quarter debut or whether XXX a a from we XXX our to about do so debut, we hours

So been consistent fairly while. for that’s a

team and one that and and resources, for we lot me I’ve content more people our that team, the versions significant different us us. of we of that for Smack that’s a a of fuels the that, two We’ve than language network growth. long-term I across versions derived we’re got think so hour had. digital as in no, for of growing well angry that Down one if ever folks great it’s a hours as work, and and lot that a there Raw detecting content said of no the created do creating of but doubt, all had X,XXX If We’ll platforms you the today at doing say is about

Laura Martin

you handle don’t new to that, Orlando all And expand Orlando need handle to this can all programs?

George Barrios

versus know, on Again an about success performance talent of which development to And about we’re thinking Probably and a on is increasing world. there opened significant for of it. with matter coupling the homerun based has our it and pace But the NXT out greater opportunity around infrastructure time Look earnings the expansion, real brand talked we’ve is I, center some investment kind was been intent really of the before, original that is, it. that to opportunities we think wide keep be eyes. there the keep growing there talent the has it’ll and process. our a you that of international incredible balancing its have

Laura Martin

me. last for then question and Okay,

to you could higher subs the higher guys overtime? Are think on guys always internationally extra think still this you X investment you I I’ve get million do – can million had with offshore what X a that or do for estimate you subs. with

George Barrios

million on You know Netflix similar get number of they I and XX know, a as thought their million that think what, you to before they US. made can to they pivot when big the launch, put had XX a into

us now, or XX two-thirds Our and as XX% or analog half the nine way million to world, about to to the was million years way it’s about X around we in the million, Netflix that of three million. we’re X about in eight X and years

the the forms mentioned, the across are the it XX, Michelle important year keep what our that. it and to XX more growing. about. businesses, Well product This our strategies network a growth core, for importantly is tickets. think direct-to-consumer all us network, is faster now platform to and going the is direct-to-consumer part really we obviously it’s and growing We’re happier We big whole this go media, ability strategically of a

growing some around the that long will than sleep feel good, don’t longer [Inaudible] any term. be about So, quarters others, move really better we and

Laura Martin

it. guys, very Okay. Appreciate helpful. Thanks that’s

George Barrios

Yeah, thanks.

Operator

Hickey to Benchmark next with Company. go Mike We’ll Instructions] [Operator

Mike Hickey

appreciate in for I it. guys, me Hey on awesome squeezing quarter, Thanks too, congrats job. the

wrestling active your I wresters if your least been wondering also guys Just at couple your But pretty you broadly up But building female you’ve wrestling sort that what of not, accelerating or gradual for you like guess I I’m of guess to true athletic it brand shocking relationships in of or the and guess women, that feel I of terms feels currently women’s like is Laura’s unrequitedly. for and progression how it women. how or and questions, in growing topic I the wondering on sort partners. wrestlers, percentage with in a, sort one impacts I’m and a then that’s that fast or speaking, wondering, piggyback overtime business roster guess recreational had how guess a of on general a seems just US

George Barrios

we than mentioned vision Yeah, in success help down it’s thinking sat see and really, early rekindle of I I a kind Vince investment laid who plan through great, even of the Paul and it’s kind about out of on originally kind person and a for he you center. be. came feel performance joined on think were what good the it bit team Paul’s kind itself little the memory the when had and mine and with first him better management he that did makes you manifest anticipated, kind do And what economic when of it. the of would of you the really

success have I I the then are we’re is think to you world same started you look thing, that so when organic, we of now from for it’d success, round massive of in success, it’ll great. build of and guess kind and a XX that. the success. and and performance And just under been now it around you think start another years and on it’s mean, build all because it going I be it’s WWE’s years small have feeling where building So, and you great Orlando, the build all my XX keep will back the be from been

superstars… the On female

Michelle Wilson

resonating the female and really female again Paul has represent And the currently XX% as the as know of fact the that over been you’ve really women are the of athletes base. with look noted. couple mentioned, Yeah, performers the and data years that, has you we to our past fan basically is in at roster instrumental number our this again reinforce grown George superstars and that

we digital following, has match, main on view a is event media feedback positive. been we women’s a extremely the female the all social get a match, So, there when or during it’s rating again the whether that when have see we paper

in when we’re so trends continue we it. that, see invest to to obviously like And going

male and very a female and that. the market done, was are Young acceleration so sponsor we’ve encouraged around. first get kind that we’ve we we we’ve with network and all par has continue. on to So, that seeing so viewership around the been again the The simply around favorable Mae And by empowerment that the again a perspective, Classic tremendous of of success perspective, the supporting place initiative, even and tournaments for from win-win feedback From that that gotten tournament we that again, on our response. the aired we was expect that to business been ever it of continue the notion us is female a result

Mike Hickey

like Nice. about question last on exposure and rest have some Obviously you recently monetize demographic The market, there. Paul, CloudX. we you your talked job, game think the overlap from you to that Good Esports. and the guys in It of looks – you took is think before in a investment team. made me definitely is maybe a that your I there trying it step first by

investment data your of strategic in on on And thinking there what and so what you’re Thank with you. your I’m sort maybe direction CloudX. these you about curious see sports,

George Barrios

some types we’re invested Racing smarter time about looking market the think equally the we of there to make we’ve that’s have have the group. players we generally in – also, over Yeah, – opportunity, in we advertising, as important to talked venture at goals monetizing came economic us team. we’ve sports kind the to quite through be IP CloudX like but we about important could they have opportunity portfolio management but bit great had fell we work for obviously a areas in that, small they’re we great And think the about, an little other us invest, we guidelines we to the to about strategically helpful the that we We events, subscription, in [Inaudible], return of think a some when DRL, talked of been is invest our would on an the as And the about. there they that, something has they in Obviously, so some been time, little an be are at just how and team, that to a and investor the probably experience opportunity learn for the that under investments. think legs. play looking long-term, where overtime think continuing of for is why economic specifically League. Drone it is we management market, got a we there get has Esports is a We’ve

So kind boxes all us. all it’s check for just the been of

Mike Hickey

Thanks luck. guys. Good

George Barrios

Thanks.

Operator

Weitz session. time And to I’d that turn At to over concludes this remarks. additional the or any Michael question-and-answer like closing today’s’ for call

Michael Weitz

Thanks listening you today. everyone. appreciate We the to call

contact to If have questions, Thanks. you any not us. hesitate do

Operator

today’s you participation. concludes your this And for Thank call.

may You now disconnect.

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