WWE - Earnings call transcript Q2 2018 | World Wrestling Entertainment, LLC

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Operator

Hello and welcome to the webcast entitled WWE second quarter earnings.

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

Michael Weitz

Thank you and good morning everyone. quarter conference second WWE’s to XXXX call. earnings Welcome McMahon and and CEO today’s Wilson discussion well Chairman Vince are Barrios Leading as our as Co-Presidents. our Michelle George by Their be a Q&A remarks followed session. will release We earnings corporate.WWE.com/investors. our other earlier issued and our this and the presentation our have on material morning supporting release, posted website earnings in will discussion view, statements, to based various on looking and are are risks statements subject filings. forward-looking Today’s these forward our uncertainties disclosed assumptions include current reflect SEC and our materially reliance undue differ be not them. on may placed results Actual and should

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

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

Vince McMahon

Thanks.

quarter. You during can strong financial and obviously we see the operating performance delivered

Of We’re our as had what raising for breaking our every two everyone guidance a full result events it’s the by annual, is in quarter. note event – way record knows largest new and WrestleMania, Greatest we – in big Jeddah, live during year. is Royal it annual terms ever Saudi of Arabia. and growth. international are backed which event was our Both Rumble, a held the the

October German we’ll and announced of ever that the the is In first with other We well new upcoming all-women be US. be content It’s and All Best in number well the some of Sports XX will featuring female other our day are the as it. women Spanish, we’re and which path achieve that announced as similar this Evolution. We That events performs. a short-form which XX. with before launching such Now is We we’re original WWE with events, the WWE AAV subscribers. Raw Young to and as around you record and take deal. USA times just pleased in are record of in what there’s Fox on know Mae our we as WWE record to held. USA pay-per-view, note planning WWE Smackdown tournament on well a of sorts languages. Arabic performances of the of of continue future adjusted call Portuguese, It’s the and new on world. Best and our and the Of and produce entitled ever announcing And George following Network X.X there revenue translated distribution OIBDA and speaking an Classic, shortly. really Now, will to of entitled from

George Barrios

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

more than quarter, second advertising our generated strong subscriptions. exceeded the the was performance world. OIBDA we success $XX fees, the sponsorship network During as rights in capitalized guidance. manifested a Particularly positive to outside These Based adjusted financial US, this increase higher content we delivered in and XX% momentum, around factors our on sales on and quarterly million. opportunities our result

the business of segment further our our review as OIBDA quarter. and X As which adjusted page discuss revenue, the to contribution let’s guidance, I’ll year income to moment. performance year turn supports But in Vince a by operating and the first, full mentioned, which quarter our presentation, raising compared shows prior in

Michelle Wilson

markets, Average content in XX% million $XX.X the quarter’s rights prior paid by The segment, quarter. was subscribers million, an advertising and WWE revenue. based starting reached the integral for million network. new with the higher of in The media monetization agreements So WWE of increased adjusted core new in significant network from distribution OIBDA on revenue. continued $XX.X increase content of driven component fees Media increasing revenue growth content or our our and X.X international growth was XX% of other

In management compensation monetization growth The in the reflected increases of offset include cost content as incentive adjusted certain in some operational revenue. terms achievements. that partially second production OIBDA, of evident important the quarter increasing in

During XXX the optimize quarter nearly opportunities across new of we distribution. worked produced content, and our hours to monetized platforms future

effective original Vince remain Extending Live & the our Tuesday on that combined viewer increased season engagement. Total secured drive and on reach series deal programming times also highly prior As with past new that MRS and average We and rated season of that on return our Fox to Smackdown the this mentioned network. this value RAW announced annual entertaining USA we eighth We program’s of Total or delivered programs third Divas. MIZ series NBCU. our with Monday premiered just night to pay-per-views X.X a AAV our Sports September the the network highest USA and Bellas. October captivating USA of service night in our US continued agreements XXXX Network successful WWE developed streaming our in On television,

ever on these of WWE included a of more versions on culminate German Vince examples in-ring which a with Through Saudi video of which and season hours of WWE. months consumption will Camp as in of Tournament Rumble of XXX the nearly increase content announcement our will in also from finale Championship Some series and million digital of the fans with plan the dramatically. we as the than content Portuguese half Arabia, billion Arabic. watch Contributing XX. again XXX our Vince to event mentioned digital Greatest Now we new WWE year. hours and new Royal also emanating of and mentioned XX% content of platforms, pay-per-view of To the exciting to content be network growth more October best tournament and six Sunday, social women’s social first representing the including UK new Spanish, programming from digital and Young On the at WWE last second WWE launch Classic, increased women’s series our the Mae Evolution a first this XX% year first our the views XX.X to the increased reproduce added

by quarter, the programs day. more global more during direct and we evidenced consumer every becoming are our digital, to As

George Barrios

of the other Looking Ticket from adjusted sales Show-Down quarter and in segments, decline WrestleMania staging successful were on sales American to Royal will production we Greatest in the the an consumer unchanged events Building a $X at our meant products the staging highlighted record roster million large two year to reduction was due impacted in WWE prior Super Rumble. execution were these events five average breaking announced and events, events in be increase live quarter. by the the our of cost. quarter scale the declined the from of feature and essentially held by superstars the that OIBDA Australia North events fewer of held WWE attendance. appear to and Live largest at OIBDA Adjusted of events presentation X% from in as country. in X in that ticket shown primarily page on

to games. to our partnerships children. Contributing we the new continued among of we increase this quarter continue licensing mobile expand the to result, to WWE and penetration During develop the presence of

short-term WWE installs. at more end newest million Mayhem Super cash WWE presentation we XX Car, XXX of which and in cash XX, XXXX million game and recently across have installs investments. As held Champions portfolio of game whereas we structure our elements surpassed selected Page million led our of WWE XX and shows than our quarter X approximately by June

growth. generated estimate we the prior year WWE facility. cash this we And capital and that Additionally, discussed expenditures $XXX build strong flows a capital. working under production has in XXXX infrastructure Earlier million out to free to debt approximately our million timing period growth X.X year, compared in in step in to XX.X capacity in primarily in revolving the with due support million video to credit operating company’s performance up the company’s

historical the decided this god approximately have million Therefore, plans revenue. further our time. of $XX finalize XXXX, and that expect as anticipate do provide of delay referenced later for bill line our that capital with our we for roughly now that average We of year to is expenditures to I XX continue million, to plans $XX in to will spending We evolve.

As our distribution complete June perspective we long-term XX, WWE’s additional to after in remaining in call goals during regarding we provide our we expect financial plan markets. our strategic, indicated operating and

results. based This to OIBDA the UK first we’ve we and the we the half a flat adjusted of As the half In to of XXXX XXXX, target a distribution projected guidance reminder rise all-time Based half million actual XXXX second projected cost, incentive would relatively expect guidance to to million. in OIBDA million agreement our by on core first OIBDA fourth includes expected over XXXX the for which an million fixed record $XXX of adjusted and XXXX increases second revenue, our performance, $XXX OIBDA for now compensation and our to performance. course and range previous of $XXX least continued we’re million. remain year of reach increase in then the strong of XXXX. million, quarter adjusted $XX.X management half This on in to $XX year-over-year. quarter at of be assumes adjusted India of third in investments to In XX% higher $XX additional achieved and regarding XXXX, exceed in end in raising strategic

year items, these various quarter X.XX third we increase reflected subscribers projected average of approximately an approximate initiatives. of results to also the XX% prior paid also impact the In In representing estimate addition quarter third timing from quarter. million

growth Finally, timing implementation fees, in which revenue revenue escalation based discussed. of of previously licensing we anticipate new the the rights with associated fans we standard, the meaningful on of fourth quarter content favorable

growing fans the goals growth. this RAW investing in deepen the business, significant over to that we global content These of escalating will and companies the technology class the markets. said around plans digitization We strategy in us. front across driving predicated and global social key before all direct and moat and the the is consumer, Smackdown, several remainder the on believe before, ongoing trends digital us middle branded important. all part engage in in our distribution of include our ever consumption live our WWE in engagement developing Finalizing by opportunities focus and the platforms, As global By key I content unchanged. on premium opportunities this ways media and international very demand had this for video enabling of remain to strategic for strengthening across product are our than platforms, primarily more creating of year increasing the data new

long-term call our Michael. and this of Our in I’ll execution value. shareholder foundation portion turn trends; the concludes back and growth increases sustainable now with to create these for coupled it That

Michael Weitz

we’re Lisa, the open questions. ready. line for Please

Operator

first our with Guggenheim take from We’ll Thank you, Instructions] sir. question Curry [Operator Securities. Baker

Curry Baker

Good I morning everyone. questions. two. for have the Thanks

The Jeddah on some have forward appear and financial this quarter, your the maybe thus can with Saudi during going what’s event the on give the about more partnership? think I guess results satisfaction quarter, on there that partnership impact ultimate the color first us to partnership impact the far color next the around is opportunity Arabia to and and a especially share some about big Saudi horizon the the maybe for how what’s you

George Barrios

give we broader them video years the been so video we’ve consumers will in first we’re especially earnings investing in it’s is and remarks, our We’ve prepared all talking in all and for here in more an last ground lot to of the investments increase agreements in release able whether the to of and markets, on us while in the opportunity. fans any the framework, or ways we about people our and we’ve all we working not in the have of did, international a our for ways speak talked specifics data new people through. the digital platforms in year going we understand characterize mentioned unique timing kind major of better. include we��re we sometimes and still of focus Yeah, talk return on in to a to based about confidentiality monetize ten making the XX the event our within conceptual investing the sometimes which of will in a that or on across of And brand, and Saudi clauses queue. platforms Arabia part social investing I of were about our a we’re produce see amount and also the that like as Because it we’re the partnership the being the with functions the across its I on focused just partnership, one GSA those. as so

Curry Baker

unfavorable walk third what forecast, as business can maybe was maybe is thanks than quarter? us the in the flagged in Okay, had on that and drag outlook we driving you secondly the are initiatives and quarter through OIBDA you the detail softer what third timing a

George Barrios

I cost important year-over-year think, I for to mentioned, in think core at mentioned, think look which we Yeah, the total, half relatively as fixed we I flat the it’s those reasons back met last is because year fourth wanted a costs growth the the sure comp, to has quarter we’ve we targets for year-over-year we themselves ourselves year. last reduced tough make in

So you’re a core normal fixed seeing just to kind cost back of level. get

continue fourth some made on we quarter in year in long with the routing differences the that going some moved of invest We’re up specifically the timing, had in moved the and to are things term. third timing quarter we a there that events. and third for to on the investments we then business we year-over-year initiative on basis And from fourth quarter the that to forward last the

growth. a between softer there’s fourth show two again and quarters that the a significant to quarter things So be the quarter of to little the couple third causes

detail talk when in more So about report. we��ll we

Curry Baker

George. thanks Okay,

Operator

Stanley. question We’ll from Ben ahead. Swinburne Please our with go Morgan take next

Ben Swinburne

out and of hours is, during you’re you increase you there the good quarter, much ramp guys year viewed the demand revenue to had maybe understand scaled Know big revenue in on around other global content that kind million your content help supply last one XX% million organization into morning production and if question and have flows on think financials? could you interesting there should sort two recognition I you to in time not to you Do business last year. it think the least statistics. million the content. of these systems ramp agreements we and when meet more and this produce contracts, I I not the see seeing growth us your is how Thanks, and George in how digital do was dynamic guess are do this in other just perspective questions, a of works or XX whether the any views, look to through quarter about details which kind of I is that – then lot next up just you’re you tied about in driving increase starting is in specific think the revenues of at you demand to about infrastructure XX% opportunity from media because demand? as producing as what from a going for are asking hopefully, XX policies talked thinking of one a or given as benefit realize it, And so that sort you you’re an demand be color people to I do those as going over a recurring XX global curious that up presume guys terms I’m what you’re money certainly

George Barrios

the can for make that that and create the we’re broad open But but we amount the Yeah, to business that WWE you numbers, of limit down a we do platforms, We when more we consumption time, a more of locally investments hours languages, billion can at entertain fans, put the for engagement no the model. know not networks we’ll broader drive. When think billion nowhere all think the we can fighting of well putting model there’s still above the we give to want content time Ben, and network. of around we’re think look to discussion amount and of we it, other a take. there going time That it, to including can closer you number is engage a the you the we perspective across reaching this more a so can with keep of keep content we’re do can contents. them consumer doubt that for about content, the you’re at the the the near more is ways more achieve, we localizing is with and the direct the on block enormous items all growing as that can and growing produced to digital when we new as right returns a fight just we’re of some opportunity put we time kind later we going we

this to think plus So resources, yeah, do XX the year a invest we we far long-term, continue we have going is –and the for we’re runway. as

the in the what in believe some believe future, is keep you those driven XX investment in the but size now then the believe investments today make be you – similar from we’ll over again. last ten see we that is success in made we’re those put by we seeing years doing going success we And to we’ll If we’ll we are because to the if think think mentioned, in of we investments years, the going investments trends again today. global you the we’re point to

view So we that’s world. how the

one, direct the I less think is Saudi the deal on Arabia unique. in the question interesting

economics event mentioned live across segment segment, sponsorship what media as in see other. the rightfully presented in the and advertisings, you we So as the categorize you

also related those non-RAW includes essence of because revenue other Saudi Smackdown that’s includes Arabian includes Now, Divas, rates in we it’s to what agreement. to event kind Bellas, are to in addition characterize, and unique

is a The recurring, it timing, be predominant Arabia red the of again and the say predominant how will the a triggers it going of talk its the for the and in part, in across quarter. determined so because for that the recurring. year Saudi to timing delays deal not event when the we’re aXX but mentioned be much. year is will items wrecks, rev I the wreck are the second with amount that event most so other, economics of is So the some what line those about happen will right It some all the I’d in

Ben Swinburne

That’s very Thank helpful. you, George.

Operator

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

Eric Katz

type big size Good morning, Australia, another mentioned this you deal, Saudi guess question looking I’m to largest similar superstars of country. of the just wondering point? the a type at rest the you amount following in of Is just world appear pursue mentioned on throughout in – that potentially you Saudi are up to everyone. wise kind the this I event of deals

George Barrios

the think I on pursue we to – look Yeah, type – Saudi are looking deals.

looking it’s you’re a for others that market the be got different a brand, to what time, of it that the going and clear We’re going by ways is and we’re think I if some do is market, ways find to path you we win battle surprised. monetize in to

the first opportunities battle monetization time The the is and present win thing think will we for themselves.

Australian deal absolutely the event, is going fans, won’t to on but again, economics. very to Australian SA thrill but we’re Specifically we incredibly our than deal different get the we’re the excited, specific the

Eric Katz

pull more Okay to on to. be and plan any to bit have spending, short-term your I’m maybe growth would if not decision describe you’re helpful that does willing a back expectations on sure CapEx there maybe the then original and on impacts

George Barrios

of you’ve that video. the because building footprint I actually to Eric, think today Stamford some Yeah, we I have had cases temporary we video the needed city spread I mean, mean around seen capacity. the the facility the Stamford here and in we we’re our near produce facilities current purchased production mentioned

planned front delayed portion because So out this facility evaluating year. for we’re plans the the of us incredible. to happen We those that significant of are opportunities going to build that has do obviously in it we’re a been not

next profile the of As of company the fourth in the starting will Ben change casual mentioned, year. quarter

just we that trying and to back drives term with think those we’re two best come long- for So up us. marry a plan value

at of about revenue year. in – at or of we’ve the here but revenue terms can a the done those X% range at it’s the year by historically high beginning about end of XX% operating, to alone, writing upper end be we the or So probably revenue of if you on of it it, would year I’d point around to end and we then of actually two that we’ll had going have to be about We the be hopefully X% expect solidify or XX% CapEx, plans middle the X% in talk of range the at said we’ve range. upper some in the a of we the of future the the going average will of we’re

Eric Katz

and remind impact Saudi another us Sure you I can don’t you QX? last, boring guess again if on one just one Thank of you. mind, the

George Barrios

business the partners If essence the recognition with remember revenue which from our about you from from used to happening two. record licensing we in like a the when statement we’re lag take transactions talking on were our

would Now was will happening, in we’re hitting period that consumer estimates talked last transaction the during OIBDA. when revenue million so and $X impact primary the be QX year of making about that in is seen have you QX QX, the this around year consumer I licensing we

Eric Katz

thanks. Okay,

Operator

question comes with Karnovsky David next Our JPMorgan. from

David Karnovsky

Pretty the the your how can NXT Hi, you you’re introduce brand about all, there about is at you. with the UK, to television does in why time region that country? impact the distribution and of thank the this right into thinking expansion talk rollout NXT now within

Michelle Wilson

take So one that David. I’ll l

a know the right and think year results. information So we on we put actually call the tremendous and I earnings from ago UK out the UK Tournament that higher we now, previously Tournament saw did had you we

So from engagement it’s a an success network, us. was it great repeated we the not surprising that on that for perspective

network, our helping at we subscribers. with attracting opportunity as that new Mae retention similarly all-women’s obviously tournament. as the Classic, and driving Young engagement an tournaments look the Those are with So on

world create mentioned our there ability demand. are UK talked really absolutely the that to our as se example that the local UK we manifestation blue see content talk localized us plan, marketplace Tournament. long-term within content ability engagement and to as a When our is of into the opportunity that the not localized I’ll as repeat for per to and we Tournament as What So so around about of is George those again this, believe to that continuing continue interest it’s far a just out we we tap talent and the just with coming or a and view long-term fans. deepens about we perfect that say on and

again and So that more of first moving we kind expect Tournament. step do forward terms a to that’s just of in UK the of

is our So overall Vince and creating mentioned that again time we’ll continue for to mentioned to opportunities us next strategy, again market. so what question? for part years do do on George language, so be international that we’re the to your ten continue of of now some is there’s I’m to the our short-form content sorry that more part was that, local for in opportunity content great second is as the just globalized

David Karnovsky

for that renewal. It impacts distribution the thinking all UK about you’re NXT how the television was just at whether there rollout of

Michelle Wilson

necessarily. Not

David Karnovsky

see you I the comfortable Okay the anything the of and are end provided guide release are at in with XXXX, didn’t still you then on June. you

George Barrios

to changed. so still we put Yeah, OIBDA. anything over XXX adjusted it we’re because of hasn’t didn’t committed Yeah, million delivering

David Karnovsky

Okay, thanks.

Operator

question next Laura go Please Needham from with ahead. Our Martin comes

Laura Martin

couple Hi things. there, maybe a

churn subs, at at talk outreaching getting numbers? subs about you sure we in subs, you gotten better getting attracting your you are better good guys at happening – think do Where these projecting can you with So keeping the what’s OTT really are are and

George Barrios

are metric Obviously, business, the seasonal of as churn important retention, mean, XX any Laura, continue try number. I Vince, continues it’s of Michelle our you average kind so in say WrestleMania, happy but but it’s trailing is bumps – to improve, get most you that the because with so especially I trailing event Yeah, months, large is something. to there, I know will improve. and months we XX subscription never

but runs you but isn’t who always we’re a better. getting to XXX% improving, even business, retention retention, subscription wonder committed it keeps why anyone As the

Laura Martin

two ever WrestleMania ’XX the looking and the even the so and events of they’re largest Saudi had, quarter then on said that prominence, network. the then years. towards two live cannibalistic events following but event live live shift like which attendance with quarter it Vince you mix for was set why here last averages would Okay would you’ve just is second I’m the at or the I next first records over that early in average falling year-over-year down the over our top Is Arabia. complimentary something the be they’re network had of on top and with because the falling? But at have – thought looking live and gaining and our

George Barrios

this different work and know on so venue going depending you we mix, quarter-over-quarter venue North America in primarily well Yeah which so of mix. get venues, its bit is you’re a little to a

numbers, or include the not NXT an we it’s do. so profile consistent, and external nothing us so to trends so it’s if don’t numbers over attendance from a isn’t for different, events been the better the attendance, perspective think is has the we to look those We to our and see So it, American mix. at XX months pretty relatively frankly North very it utilization the that flat has trailing because those you it’s been average NXT profile way, attendance think include so both

from encourage I investors really and similarly strategic can perspective when it same And it look the and profile on – quarterly say more which XX we this always months nothing events, change. that is countries we changes it’s no which of kind its in and out would depending venue. So it the our country why playing tactical what year-over-year also international depends where there’s of some look watch to you trailing at at I way,

Laura Martin

home because do network helps cannibalizes a think and think that lot you people big of do same OTT do stuff. just sort performance the you watch Okay and picture, you can or stay

George Barrios

what the data we fans. absolutely we – so digitally viewing it of message DMA for US when No, marketing and network, of to of example the people we them, because are our and have the we the marketing it in market viewership kind helps in even on helps think can hone

never because the cannibalistic touring it don’t Florida, experience. launched an markets the network live NXT done and the of kind use what we viewership As we’re it’s to into. we of data think we we’re to select outside event so go should NXT definitely decide of to example trying We before market,

Laura Martin

and Okay, think growth, I’m same have as profile margin international there’s over in US do cannot profile the myself profitability the and reason the writing a international subs about the lot profile the any long-term? you

George Barrios

you attracting we’re US the if Yeah, a I because so margin the the mean subscribers. product we’re creating right models no of there’s different there content only, really think on level profile then about and fixed

from plans. and then some the those not some subscriber Germany, so so incremental physical materially fixed material we’d but variable that to video, technology a about economic product so Hindi cost XX% US the not around cost actual both that At that same. Spanish margin the is localize we’re I German, doesn’t potentially that whether – localize you product working the or incremental slightly the country any but We the when and there’s through have there like the fixed the in still future, on and point will product localize the be margins different to different. the UK the other and sub, It’s matter. talked language, So increment comes or profile said

Laura Martin

quarter Thanks guys. helpful. much super numbers, help, for congratulations great great a on your Okay, so

Operator

Our next Karasyov question comes with Vasily Research. from Cannonball

Vasily Karasyov

good you, morning. Thank

press call international release in try markets. distributed to sort on media wanted what of in programming in if content revenue in of on this there the this up impact EBITDA the in Just and size spike you

is touched please but it recur my talk more data. for bit, in said mentioned in on that mentioned I the Thank question again already maybe is the I’m can the not XX% forward? XX%EBITDA from of what And say clear you just ways you it’s one a a events benefit Can data says had Can little second quarter, to it’s margin. year that math around investment but going you. yours you to next going areas you beyond you that like targeting ballpark? You’ve you if what what company just

George Barrios

and people the service for And to what faces, they’re than superstars create message. e-commerce it’s that’s any organization, a again that fast on it on not mentioned, makes put our merit what’s engagement direct bundles most going continue we theory the smiles throughout sense. specific have, events the opportunity, That but their are has data YouTube, them we commerce margins favoring and direct internally, consumers, of to for number both of on higher understand the on so than driving the around online people on lot flywheel. market on to consumer better mentioned. are the ones again so what business we’re higher operated. the analysis business us like, Sure, to where really a that consumer of and especially gets allows the It are one we have have video the they’re the data you own to around do purchases accounts is network, who tailor them, you products, essence around the we Facebook, us growing a the places help to to what our We also and can roll so people you the what what the first marketing of the domestically live done greater an as on direct more but to business, we consumer, because watching of then been circulated business consumer user direct get understanding monetization know the you large

Vasily Karasyov

ever party? Would you the sell third to data a

George Barrios

on use it. We put to faces data the people’s that’s smiles

to data. using what the that’s preprogramming do. on uses So we their we’re about being it, more we time platform Netflix spent can they’re consumers, what their entertain learn them, how because they that’s Similar

Vasily Karasyov

All right you very thank much

Operator

question comes with Eric next MKM Partners. from Our Handler

Eric Handler

room, a all some in the of or you build take and for out in brand? we churn in look into entering UK the A we that the talent people how curious UK WWE think the fit of two to the maybe and much are Europe, good very now more you brand before of and guys future we brand, question the morning. brand the UK network throughout that WWE build thank do out just of WWE Yes, WWE as take WWE sort it year Europe for we far we’re

Michelle Wilson

a David’s be that again I that our question mentioned in priority. think investment previously it’s I So continue great will as to a localizing question content and

how So that in priority it’s that on us, distribute more we terms forward. content, of I will in the be the get we’ll moving a continue think to timeline for going tell determine marketplace to and

building Paul from a successful of has talents if So a involve at and outside we XX% our again George everything in that we data mentioned, we’ve you of there Interestingly United job States. Levesque look talent development the very analysis, that coming center in pipeline now about tremendous have data things perspective XX% to one are the are talent. that for do talked done as the a our pipeline as Orlando the have about performance and we from

naturally we’re around only to creating within around the there you generating then content, but an the as that how content becomes us of our world content we’re pipeline question to and replicate do we’re that talent creating and going opportunity not doing is monetize. and create So for local a what region, take

So as and again will future of at plans you’ll build that what model forward. moving forward, to moving looking out that of we’re here currently hear how part something continue that and in we’re doing looking US, to we so part be that our you of we’re expect be the kind

Eric Handler

with much people are a all Okay made, and you page? with – about customization more so that away WWE to how home network you we customizable for when then what as on log far talk investments the data the all at and there’s the

George Barrios

announcements Coming soon make right to now. a we’re near theater to not any you,

Michelle Wilson

tuned. Stay

Eric Handler

fun. very right no All you much. thank You guys have

Operator

with Daniel CJS next question Moore from Securities. comes Our

Daniel Moore

maybe financial what growth ROC we be and you following Are more what I exceptional guideline metrics, the guess investments, I XXXX considering? of morning. weren’t you going the cash Thank and as terms good is generally contract in same Thank specifics any not initiatives of inflection of investments? we obviously incremental you’re of look types it in are in and know strong the terms flow of about kind the but there toward that renewals feasible or of beyond, past in you you. numbers, talk should thinking Are and governors to

George Barrios

Yeah, old top making we ago years the some we’ve or shared material to at and make then continue in and it’s with going we’re we’re that interesting you’re eight and peak board investments probably the earning when looking do to about raising that to cash and seven the terms maybe reason and as close flow time OIBDA. that we given the XX XX people to the could million triple it business have we we profile over and million beyond go turns thought probably were out that of those estimate of double delivered. We investments that to of

to to think and kind is the the to your future, in we what same Dan opportunity once point opportunity. that’s to sight value we opportunity, bit remaining us. doing But don’t size a the look of of clear that thinking items it’s need capture what of use. think and we’ll force of we we of a the get always behind We people, then share drives more the unfair some the our have we’re have So of little kind as the size what we line lens work of where do terms shareholder go we

from we looks do and looks like country a where think think from take we years the India in therefore like ten years and You like would, India now. now GDP sector

many our numbers process pull should the that use. therefore we’re of is process much to again but the be and we all not share going on that what smiles how faces, that’s today, we’re putting people’s Given unfair think do and we That’s investing. how

the going every creating invest direct and we’re we’re opposed more invest more consumer. additional, same, do continuing and going in for those characterize our platforms. to the it products, languages of digital investments to think I As mentioned to across all more platform continue to in of heights but know across Michelle digital going to you don’t I’d to we’re content

it’s opportunity only XX the to create amazing for the local So pipeline sort, way to not local the advantage. different, increase we us actually allows content in you expanding I but of it’s XX say take to I think with some center think globally model and something can a more talent performance be like the opportunity, depth that guess year breadth same, but will an

that’s we’ll have that do much might an not So slower we’ve if probably had. to we yea at the a for of success pace do example and something had

Daniel Moore

it. Congrats, very, good is actually That I color. appreciate very

Operator

[Operator take We’ll our next Citi. Bazinet with question Instructions] from Jason

Jason Bazinet

what bit I if international, guys around of outside little outside a begin on look your about the of to coming XXXX, like question from quick about and and like but of on think from reasonable XX% lot you then yours things for US, a a came I XXXX shift had this like capita pipeline US you XX% adjust for talent per revenues not the think mix back the company Just to think When international? change. your that’s a GDP, focused a bounced

George Barrios

you Yeah, look be the the of tends per is is capita, want capita GDP per however ultimately a M&E it. way it, just – sector GDP the mean way we I said the at you to to look percentage at look

what rethink the those things you the of for help about think frankly. for you we’re the to market you getting, what market should tell as opportunity want opportunities WWE, how I think So WWE people the with US about percentage always if consumption size

do of think number sectors because but think you terms to US, in So it, India a growing China on have M&E countries M&E faster mix, think not US put XX growing. sector going if is is I the the say outside the years you now, GDP you than and I’m like and I therefore so from

then we’ve should sounds unfair do the job hard our we – is smiles it faces, get what on do do an put work. those share, is So got that but to but really trite, we is to we if it

Jason Bazinet

the Okay, robust, are is into answer or if right the you you that up where geographies? right maybe on double your markets is expand data to one more intuition answer very the follow look at quick the down consumption internationally that’s to is

George Barrios

geographies Is and into that get Do and need go a not others, hope definitely few to that you’re said if opportunities, looking there’s country broadband that need we very you social, at we’re in some invested than digital we’re we market fact deeper do new has we’re markets in these if there a to probably we big in in our but in in of so. not. yes, market. more – There’s connection if someone not

Jason Bazinet

you. thank Okay,

Operator

further there time. speakers our I are would any no back or questions additional at to over this to closing the for remarks. turn And conference like

Michael Weitz

everyone. today. you appreciate Thank you listening We

please If do not day. any Thank good us. a questions, you have you have to hesitate and contact

Operator

you participation and concludes that And for your may you presentation. now today’s Thank disconnect.

World Wrestling Entertainment (WWE) 26 Jul 182018 Q2 Earnings call transcript