WWE - Earnings call transcript Q3 2021 | World Wrestling Entertainment, LLC

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, everyone, 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 Weitz

to quarter and earnings good the shareholders and third WWE's call. you, have our investors on Thank I'm very glad to welcome everyone. Leading and Stephanie McMahon, Khan, Officer; today's WWE's Chairman WWE's Salen, and Vince discussion Chief CEO; and Financial Kristina WWE's Chief WWE's McMahon, President Officer; Revenue Chief Brand are Officer. Nick by Q&A will remarks Their a be followed session. our have supporting our release, and other posted materials third our earnings earnings earlier release quarter issued the We this and website. on afternoon presentation include will Today's forward-looking statements. discussion are based to views, various These assumptions disclosed subject statements current reflect are on risks in and our our uncertainties and SEC filings. materially, undue them. differ may results placed be should on Actual and reliance not

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

note year are that otherwise comparisons quarter, unless all should versus ago You the described.

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

Vincent McMahon

afternoon, Good everyone.

alive guidance, X unlike lack This see, the then I We notwithstanding, the WWE end our And COVID have of X our with entertainment. we pretty comes other and I'll think we're is guidance, ways the the XXXX Riyadh. even as as minute. it, lot strong of so event our eyes -- with have a are And of That's strong get the in going in solid the to raising WWE, which positive saw of in really results of raise evolution to sports many And of company. which Normally many take the of a indication, a at result Because to good. trends, the opened a Stephanie or financial result can live touring, to respects. is to over year. different we're it's IP strong we're Nick. can all that going event guidance. we to basically X. that's media we pretty return but But demand a including recovery, turn advantage is nonetheless, it which of will -- more our global where you our things any situation, brand As

Nick Khan

Thank very again. calling all you, and much, It's to Vince, you speak thank in. you everyone, nice with for

I'd run perspective on put quarter, our segment, first This the position our as deals ones. opportunities revenue on as an rights. premium WWE a of the through to will live that of for and in I have over a to value we offer that both After on on hitting well number Media continues marketplace like update existing new media, closed near-term quarter increased long-term a past streams created

opportunities. near-term media Looking rights first at

for key sites two negotiations We value have drive that company. in will our our

The expire the our half Raw rights back first is RIA of in for on Hulu, which XXXX.

direct-to-consumer both The already WWE have A initiatives. second we of which has in markets, international the landscape competitive licensing is previously. formed Network, our discussed around service,

Hulu XXXX a is be all rights, media the terms in from viewing watch was Hulu's know. circumstances, will stake exigent program delayed the a deal NBCU audience all the now was In different, the Hulu, that landscape passive dream. an a know is When active valuation. out we owner by closed We world, Hulu. was nascent as barring quite XXXX NBCU via Raw XXXX, owner and and there a on that and Disney Peacock of substantial just bought the know RIA we of recurring in at we Hulu NBCU's data who week-to-week

all know. Let's keep in we mind what

years percentage, ownership ago. of of Hulu Fox's a large stake Disney's acquisition with to initial picked X-plus majority ownership Disney's up Hulu addition FOX In Disney in

and be in that we and Peacock, rights We that will addition platforms Hulu RIA battle for all the also other to resonates Raw's recently saw believe intense looking programming for executive that fun. to from event shifts

international Regarding we optimize WWE Network, continue to across our a strategy on markets. execute to value

that model responding are a have to. buyers We

look that go As many of a up our companies it international us overnight, course U.S.-based of seen global competitive none careers. the sets to so over have landscape

that We original continue live to programming continuing those great media of we believe expand to will results. garner tied slate. our are rights, our Outside deals to

expand relationships and establish debuted generate quarter, project Escape weight that returning our an help our WWE's content diverse. units of pipeline. of slew media interactive these soon announce our companies We WWE WWE with announced recently X a place, they company, area unscripted streamer for the a This us. Superstars. on season. demonstrates remains Netflix, making is and into while also in but October, programming economic NBCU for be us sure and not Mrs only and a would meaningful innovative children's show with the merged ago, Miz X priority This content featuring to third be continue Earlier Media. and We a scripted will young a completed our Undertaker brand that months scripted that programming we we that animation productions an myriad returns for recognize will

next negotiations. All U.S. related is of this directly rights our to

we SmackDown. those a the year prior AAV and a increase from when We negotiations, rights Raw went XXX on AAV as U.S. the year in were million we XXX are for an which bullish to saw now into as million

SEC, drawing interest and previously coming renewal up continued deals rise are These that is those La expected Major in trend for from also rights demonstrate We meaningful the media of live. the the Media recently negotiated to further value the Liga are Baseball, NHL, Wimbledon. that included which new buyers, for numerous increases of NFL, rights. for rights have discussed League the

build is rights, combination process average to part an buyers to Yesterday, and closed over is and excess of their earnings X ESPN its multiyear live XXXX and year for a U.S. quickly million the paid for know looking announced next XXXX They're As versus soccer to for of be currently buyers of matches, dedicated English Disney by European portion highly NBCU. bidding a they all in bases. UEFA and the That its Amazon, up League looking which for like to due annual traditional $XXX in $XXX it. rights pays new Championships we a in deal that expected call large currently Peacock. X,XXX with on fans get Premier example, Plus subscriber package annually the doubling million year with a Fox its value competitive,

and sort deal. are Fox to us, that migrate Sarandos to virtual Ticket complete content expressed a build TV read tonnage, has all while of of Sunday One their with publicly MVPD be NFL buy With sports Fubo, package. to Amazon of would partnership made we the Apple to of program. to than streamers. have and that Both smart. linear success to dominate Survive Drive referring considered and the Ted continue this partnering seemed scripted off Live other properties. have rumors run creative coming the rather for been sense runners Netflix We Formula to front seeing He to this on rights helping platforms, continues

our and of with this you us. of Giant are until which produced Speaking early acclaimed is of Simmons, amazing. out Vince cuts WWE multipart see Andre who Netflix, The cuts executive Bill we documentary Vince world, the Netflix upcoming by seen have Wait McMahon it. did documentary, the

talent intellectual expertise Spotify us that SummerSlam relates and and like confident father, was listeners. it audio WWE podcasts as I Bill fans of exclusive alongside have The with subscribers. Las That millions the while and also Ringer to at pod this an closed audio we product some allowing jump become to to for As you. also Simmons, hosted with some reach this network in of of The the new resources to WWE. the of for starts live past leverage and content excites would discuss fans announced of XXX quarter, when with to Spotify that to Ringer us the all-important Spotify or shows existing its our space introducing referred partnership past Spotify deliver while our partnership business that library we million We're who August godfather in will Vegas. the deal The this property our the Spotify's

further key for surrounding a we've results focus strategic a revenue value an more the our only are that we business extracting adjustments that all all is streams value enhance last special our content, from of had One of We've that new believe will in each each parts active things We've not on event. area of businesses new business. year expand by into revenue its wheel, us. establishing we looked examining the in and IP of As all but lines and drives brand making creating existing approach to is spent that increasing quarter making pay-per-view event our pay-per-views. WWE's

recently we calendar quarter, pay-per-view last promised venues. announced dates, the As cities, for our XXXX,

first stadiums the least our history, States. nights the we're in For in X in at pay-per-view hosting time United

is week First, on the in Rumble Dome sports Royal competitive Louis, Pro Center weekend. at St. later the a XX Royal Bowl America's have where during real night, we Rumble January done no on at calendar. Saturday a there programming Typically,

of year's not times the value gate off with SummerSlam as However, as where this far, bringing the NBCU events a year, major Winter our a the support we go we sign of to the up tracking Olympics. venues to against charts, up X of this ended partners tentpole clear and are ticket wanted gate our night. sales the Thus right on well XXXX, SummerSlam,

April Sunday, for had April fans X-night terms in Saturday, XXXX of XXX,XXX events, WrestleMania WrestleMania. Stadium, in Stadium in a AT&T and stadium attendance X. X over at Next, Dallas, In AT&T we at

week. X our on see Bowl. nights Tickets go for Super Let's sale brings what next

in after into Over on the Money to weekend Fourth. Vegas to pay-per-views, the X, event weekend expected Bank, stadium be travel celebrate people July our to back of at Vegas. Our Allegiant the that Las in going Stadium are Las another big XXX,XXX that, will X

at We expect July of in later, in on again Bank. to Stadium Saturday, the see month a a at SummerSlam Nissan Nashville, many Money About XX. them

and to in was past from of ticket on SummerSlam not not who If XX,XXX it's in Nashville are it. with X summer weekend, booming we X. purchased from plus you've we attended, Tennessee, been SummerSlam What this the and growing the Vegas, growing, found a Las

cities pay-per-view ticket One on between X a item into weekends to weekends, many our other between on and highlight market the tap and with. much X us for relating robust to So similarities buying in grow crossover to those events. each the cities those not

Farm For we're the Atlanta. event State of night Year's New holding from in Day Arena an first time, the on

on in we a to go the college As people new Saturday Year's college games football late with regular a in season this is the and New is season, are Both Saturdays the that Sunday regular no NFL playoff and Friday. Atlanta Eve over football longer NFL's season are once XXX,XXX will discussed the New That Friday. over. Year's is previously, upcoming weekend. Usually expected that on happening XX-week schedule for

the and have with Saturday, again, With of removal NFL the January there the it visitors, we might night, packed thought an be X. event smart next to competition city

expect night all entertainment We of guests for New eve. looking to after weakened benefit those Year's the from

matches NBA like September, Trae seeing may that You Atlanta Young for in more Atlanta all All-Star Garden product. Madison at of our strategy. in integration recall Look interfere our Hawks our part one Square across of

with in an Panini. effort we've our grow new partner, to business where trading area card is strategically pivoted further Another a

-- number with this card competing sports As trading those partner now card Panini, financial in previous the all step us We from right a The from multiple be deals our for market with international is trading best of booming and companies up deal of the a space. domestic top received knowledge, considerable the properties. of bids to out their doggedness companies. expertise, with is know, select considered for handful and is a deal. you proved

senior multiyear agreement out together. think work marketplace existing spend launch we've to We executive able coming Fox digital pandemic, with in-person is with partner NFT an time to of to collectibles. in licensed and obviously new to ways U.S. for team also SmackDown. WWE recently And Fox considerable additional Fox's been announced of the for our a tokens the

WrestleMania and Murdoch, all this yesterday CEO, my immense busy to the focus relating and catalog This activities including it. Fox new Stephanie Fox's time, entrepreneurial and spirit and Lachlan events significant moments, most will NFT to advantage the our WWE's businesses of streams. and with iconic we earnings As space, world Executive said Thanks NFTs deal on a growth creative wholly drive and legendary and and surrounding existing Forbes. Chairman over well in WWE have that call of new showcases will other NFTs their strengthening to the new including together on like of our establishing type premier recently a McMahon, in digital She of call the colleague, as year. by With a collaboration revenue the the business competitive popularity our executive It's in quarter leverage intellectual property, a authentic superstars ability assets, such to marketing trading create very as our SummerSlam. sustained cards cover turn will collectibles. much. in items, this past #X named as been I'd in At over sponsorship the number influential the of owned

Stephanie McMahon

XX, make seen He have on The his eliminated And was to WWE ABC, Miz both awareness nearly Miz everyone, Dancing to and WWE. million for the was the this unfortunately, did top raising With week. X Thank with by Superstar Nick. appearance I from you, news. start bad it weekly and some Stars viewers

mentioned, As arena-based we touring of tentpole all allowing to touring an business our model a key Nick from events. are better changing lines stadium-based model, around us to align

SummerSlam fans and held For at stadium, was the example, a SummerSlam record in XX,XXX ever attracting has Allegiant record NFL drawing an a gate. been first Stadium, time held

than As strategic return on in a watched video of and became video Cena Summer appearances increased other of return off audiences, his help youth events by also increase storylines Instagram during more and our at Raw to The one Nick and John Xx the networks for live watched Instagram with XX. XXXX. finish top-selling that for X the WWE's the XX% by up SmackDown. Man, kick was And views. with a An of we new SummerSlam native history, Becky first-ever return Life Pure ratings Lynch, of the audiences first-ever million began The merchandise, XX Cena to over people X.X Blue and XX% biggest beer use Cena, broke XX% most and mentioned, on and SummerSlam revenues Summer record Beast any the our XX Incarnate, SummerSlam Brock's with water sponsorship up WWE Peacock brand. XXXX. X.X with and to to to move greater XX% than SummerSlam viewership SummerSlam superstars surprising featuring came more XXXX, beer Brock Cena's July SummerSlam, Cena Merchandise of with he across with for especially Victoria year-over-year marked XXX% held featuring fans year-over-year Instagram and from to and WWE in than Sales talent The Lesner. audience were official end of with XX our our became official an began while million. our at Triton's Constellation's XX% and last

CX categories array of wireless, and Cellucor XK, gaming, We across credit with and an Credit had Cricket Wireless, also sponsors betting, card energy One. DraftKings,

strategy number pivoting to sales has from deals X-figure XXXX, In have sponsorship and the deals. Just WWE's of nearly to XX%. business increased these our multiyear transactional XX% as we contractual, overall is shifted contractual,

spend integrations, XX% excluding partnership client has XXXX sponsorship content of across with returning allocation. increased perspective, In our the over gross international. social sales year-over-year areas are help digital, growth quarter, are bonus and and over key YouTube Additionally, superstar there sponsorship: X give partners. brands, XX%, a and payment up To sales XX%

social zombies all scripted can Pure Or branded into as down a down? Patrick a Life of have Soaker with like we relevant Night Stadium celebration? produced offensive same game in introduced across views like with see audience Spice. and that for Spice we ever media pieces XX% Kansas you XX leverage we replace content they My can new Arrowhead WWE We City digital did P&G's great have fans ways we Life in new that and you would memorable integration, our part are a have content content that a creative integrations the and their our and is in action Old Pure spray of Super those terms a Or write X.X when In truck Superstar create touchdown are of to a billion with live the million and teams no. drive exciting XX fun WWE saying audience with over as partners. the is the platform, but media can customized delivered of we to Old and movie, scent, because X that guess for and our take action line would impressions Panther. name the towards original writing But Mahomes of

is just of franchise being some Superstar Superhero with the think each In individual our has dates best own which their Each can I Superheroes. to of Superstars, story. terms and own Disney's their back brand of unlock IP, with Marvel incredible is comparison their begun own generations WWE

series sales gaming A&E the Becky Xavier own more or localized cover getting on another. a bat Woods' show YouTube are Miz few just biography international And Our of example. is are with his content. examples. focus X UpUpDownDown channel The to up is just Golden creating we with reality Lynch Crisp as on

XX% Additionally, emerging year-over-year. XX.X video and to viewing COVID-XX-related our had with as views platforms more younger competition continue record of both to a live television be Digital SmackDown engagement the for year Snapchat strong on our and tough in video with billion producing up to million quarterly And of to XX%, emphasis respectively, on Raw hours, prior ratings for increased renewed slight compared consumption for period metrics sports. XX% and and WWE, trends. return audiences, XXX are increase from and a from despite views that a increased benefited content TikTok

are sports million TikTok with TikTok, over NBA XX.X followers. it race, is #X the brand we on while the of Speaking tight a

was if Snapchat's Slatoff how at would division, with said the it recently I partners launch of we didn't X XXXX. earnings our interactivity, continuing game Karl and console launch will of recognize augmented are experiences be President call, On to yesterday's as AR launch will focus biggest in X I be the for March new XK which fun be XK WWE on fans date. announced unexpected remiss XX excited events. we Arcadia, in the WWE And Take-Two With innovation upcoming and for reality creating

drive with our CFO, value our a now our to to over partners business We ability strategic quarter, our turn highlighting performance audience are in I'll Kristina pleased captivate the Salen. for call on the deliver initiatives, shareholders. and and And overall passionate

Kristina Salen

WWE Stephanie, will WWE's financial you, Thank and performance. hello to I Today, shareholders. discuss

event As vending X% sales a efficiency reminder, let's income in associated review $XXX.X production all financial comparisons In focused operating turn by of revenue declined otherwise. adjusted higher return more our television in ticket WWE performance I the results to OIBDA WWE production. as more and expenses. presentation, content as and on the contribution revenue, SummerSlam. engagement million third generated was revenue and are segments. driving versus than was to unless live event-related the merchandise increasing to with quarter, by the year touring, we by ago an optimizing our to shows return the touring, detail, offset OIBDA fan To solid $XX.X quarter higher in driven Total live Adjusted including XX%, event X growth million, of which Slide and our third say quarter, increase

which arenas offset contractual primarily of WWE's associated segment facility distribution WWE XX%, producing described. fees driven the third WWE revenue timing a were content quarter. our in quarter and $XX.X in experience the television transitioned fees established prior training expense. are decline was Adjusted of delivery That reflected touring year were of from production the quarter of in million, our production performance in in Bay prior content OIBDA were the our WWE part year by as latter These of venue license as compared of Orlando with a the the I our of barebones the XXXX, cost Media in that network SmackDown the increased production of The Tampa to center to Peacock Yuengling the that the of Media Raw recognition the rights Center was televised primary the until at ThunderDome revenue. quarter. producing and to stadiums changes a lower in just in mid-July, by of decrease model. from we in the increase and expenses, increase the escalation to core In from XXXX. pay-per-view production subscription in year-over-year due Looking the revenue partially the of Recall of slightly out in part for content determinant we late Network August segment. our increase much we

quarter, X or OIBDA of WWE's due event Now than $XX.X revenue a that of Events the to fare. live no Live SummerSlam. XXx including adjusted business million an event the on let's live live increase the the Slide $X.X staged turn staging presentation. increase million, touring, to in in of to Recall Xx was we more with ticketed ago return year or events

As said, event live touring. return thrilled to by are we the we

attendance average par continue significantly above ticket demand quarter, demand XXXX. least our is XX was live quarter, that the heightened third events on North consumer our with reflecting per at events. for XXXX, fourth event and we for And in America anticipate profit to the During for

segment Slide adjusted to In was merchandise with Consumer new venues, Products $X.X the and OIBDA higher presentation, on products evolving in align our WWE's our cards live at we've consumer in Consumer due event space event. NFTs, Earlier, sales SummerSlam preferences, our partnership described business, X record-breaking of continued the and develop newly to with formed memorabilia. NFT as our interest the and FOX Panini. we growing trading at Looking including tremendous Nick partnerships of XX%, million, Products including

global toy our a products Mattel, other toy with figures of popular agreement licensing Importantly, share a meaningful revenue. our whose partner licensing action extended comprise WWE he also master and

on to Slide turn let's overall of cash as Now shown the generation, WWE's X presentation.

million increase associated of million quarter $XX international in prior the third XX% including repurchases of quarter, with the events $XXX of and to $XX million date, $XXX to returned During dividends in To $X under in paid. a our and of stock, the authorization in generated quarter, cash approximately the shareholders, approximately timing capital lesser share extent, due WWE we've year repurchased to approximately collections our expenditures. WWE repurchase declining free an the representing million $XX approximately in million primarily third $XX during capital Notably, large-scale million flow, million program.

of convertible and credit adjusted In million $XXX its WWE XX, of full $XXX cash million Debt issued held million, finally, short-term capacity including word notes. approximately September of WWE's totaled business line company of has And associated XXXX. approximately As WWE's WWE million The to with $XXX XXXX, and in $XXX million. for investments. $XXX estimates guidance year no related debt a under revolving on January, outlook. the amounts million OIBDA outstanding $XXX

$XXX to third full production year for revised performance we to is our to demonstrated media on impact growth in $XX the fourth projected which million positive raising million to outperformance of factors X of operating by staging OIBDA expectations live increases and to touring. now trends, in offset live international year-over-year X contractual event million and quarter, events, revenue to fourth These unable guidance. date of large-scale staging million The for key large-scale as and realize with stage heightened the international expenses. are to partially to million year, events higher be Adjusted were last full expected and we this of the year, an the of OIBDA The in continue adjusted reflects quarter the revised efficiencies. from a increase expected profits During guidance metrics demand quarter and better-than-expected $XX.X are implies return $XXX rights we in compared within XXXX. $XX television range quarter of event. the Based fourth

construction WWE's has expenditures, the XXXX, capital our Turning to about capital $XX infrastructure months in WWE to primarily the of our million incurred technology expenditures. headquarters. and support X new first Through of restart

the capital to of continue to the anticipate these increased we than fourth during previously also expenditures the initiatives, remainder lower spending year in support estimated. we While quarter anticipate

generated to consumption strength million back does our range some year highlights In that the For full OIBDA increased range The potential within our disruption value the are demand of previous our and content remarks, results. programming total belief turn That $XX and of quarter, lower timing-related revised incorporate and better-than-expected enhance platforms of changes the spending. XXXX, continued revenue robust reinforces in expenditures to be million, million I'll chain innovation for a expected $XX third the of capital brand our million. The than $XX associated guidance supply WWE to and potential to Michael. it adjusted and across products. can events our and concludes the our now $XXX

Michael Weitz

you, Christie, Kristina. for questions. please the lines Thank open

Operator

Instructions]. [Operator

go we'll to First, Eric Partners. MKM Handler with

Eric Handler

for questions Two you.

done when you by? and have exhibitive then I follow-up. to those day you'd First, a for have International Nick, mentioned on Raw the you X deals the rights since And frame DTC Lights network, do have like time a

Nick Khan

couple Thanks, of A Eric. things.

the latter rights, up X day XXXX. half the was of On deal

it's is would sooner. have sped obviously of slowed but what of process, certainly, by couple ability quicker the down lack the to been international So perhaps up has that now process over going last a done rights, months, And then, be on to which the travel, up. freed

come to you confident back we're in going we're with So news short to order.

Eric Handler

events? Is then a of type programming for What's all question, a changing of of rather the Great. that TV second guess sort And programming. model I WWE you with these Are you, behind this of profitability now? economic was some at model? for looking lot Nick. the cost-plus productions, also Historically negligible

Nick Khan

about content last had I remember and asked you as call, unscripted in well. the scripted

few you ago. years for thank that from So question. It's model a of flip the total a

sequels space. the self-financing and and our content property of films in about intellectual So films, and to it's instead licensing unscripted scripted

great So means us us. television paid a It's and paid mediocre no by success and space, know, means profit. risk, streaming investment great as obviously, you profit, there's still in the success project, no to

either lot in we've okay. going lot of will announce, that out should announced a scenario, that got work it on, So deals a and closed haven't we yet we

Operator

Needham. to next, Laura Martin And from go we'll

Laura Martin

wondering revenue whether was has out media a on for consequence drama A upgrade I XX.X you. XX% your that of by increase to were and coming iOS the talked YouTube and couple. you if Snap, you Maybe, lot ad and stream? of you're Snap. My the affected about seeing of on exposure media of revenue social Kristina, is advertising social guys negative recollection the your

Kristina Salen

Laura, impact to quick our question. negative. from coming we no, we affected, and the you thank for answer weren't social seen revenues is haven't advertising The on

revenue to In from continue social nicely. fact, very streams our grow

Laura Martin

guys then had And Great. mentioned a you is X my Okay. other times. NFTs couple

to actually and size think of feel -- And metaverse? world. us -- that you about leaving going meta But a bigger within going live think really could in -- world, live do you like metaverse you metaverse? of how the be -- NFTs of of work So generally, guys for that the you the NFTs a you you the context, about the is is more do be going digital that big new as the how world? deal online physical are do how do sort feel and part be the sort to that And could into role this

Nick Khan

to even more it's to We stay. perhaps think continue it's evolve to think and robust, robust and we going think it's here now. become We

Operator

Ross LightShed Partners. next, Brandon And from we'll to go

Brandon Ross

at So over Can the talk been quarters, of it some there's additional achieve then have what a seems and/or goals turnover several trying about from took changes leaner perspective? And extent if restructuring a new management. to organization mid- onetime to And of you I upper lot blood? are with you're you organizational charges. like we should expect? past are that the to severance follow-up. And levels become the a a cost to trying you're what there And

Nick Khan

Nick. Brandon, Sounds it's good.

We the want that produces couple content most of possible. a possible. the efficient high-end of best model amount things. business So

the to So people right having about to those us, it's jobs. place in do

profitability guidance doing while big events. was event terms the year at all focused eyes, seems over be and the So change, the think last in seeing international of to we've things. and the based sure collectively it's on the X the make right that It brains right looked We working guidance the right raising it only you're on international across here. board X when

happy going, I it's So with the it we're hope and way continues.

question, had You a you second said?

Brandon Ross

little the felt like some last wanted or And were of I about because you I wanted see to whether the on achieving goals think, and you to the how you a yes. felt so. definitely then the And focus over, I revamp. you progress Great. changes made NXT month

Nick Khan

wanted all think We that we starting the way it's start. it to

So younger, a approach. have we we wanted We fresher, in-ring it. think

from some be already main You've new the that. NXT roster. the There's more to elevated talent going of seen to

and of at which here, efforts, Paul can through spearheaded on are by time, in fruition Levesque may way, later building. NXT who we be moment a right the Prichard number already we those all this in will at will in folks the recruiting and and athletes results "wrestling that to which come the And Our Bruce it's think go young not, other focused are space." of a date, way continue

Operator

And next, from Stanley. Swinburne we'll go Morgan to Benjamin

Unidentified Analyst

for on Marianne It's Ben.

questions on two my end. Just

and your ink the is territories larger you can talk your, it that as like maybe expectations, you strategy relates the distribution India will of in content context for possibility a to revamped First, products? MENA about the like, in deal international U.K. region your any there international well? streaming And especially as your rights

Nick Khan

India our includes for is with premium Sure. you is all-encompassing deal the rights. existing deal This Keep Nick. an the Sony mind, in Thank that question.

progress, certainly some yet, region, that remain And partner, news optimistic already conversations on currently WWE a something the NXT. on. in In territory. So our we the and bullish in Network BT, we not for There's and that's Raw, the work existing place. but We should about have is MENA to plan SmackDown deal best what soon. in that's done continue U.K., that

Unidentified Analyst

you a keeping on Got between specifically do Thinking linear? is How IP strategy. moved WWE your it. between Network on about my think kind versus trade-off follow-up And show mediums. of about that the programming both NXT general question like has

Nick Khan

over-delivering question about well. line. that we're international for partners. a in different best to and for as something territories WWE all other Peacock better to Thanks eyeballs in constant in third-party partners with our course, what is what's about sell It's that agnostically international on United on of companies. territories, and States, It's Network in fine dialogue exposure and, It's the international certain

all it, made. are a not decisions of there's lot that behind a dialogue there's the to science but certainly So

Operator

Curry Baker Guggenheim from we'll go And next, Securities. to

Curry Baker

opportunity other I looking One and on historically help years? an you strategy about maybe at the sponsorship. over Can opportunity I there? maybe know the help the the size us think undermonetized company sports maybe ultimate there area couple comps. you and has us guys get it's Can think of the to next

Stephanie McMahon

for in is of it's social hundreds we earlier next question. is There of laid This couldn't international. millions sorry, that Steph. of digital, in terms the X -- Curry. Sure, our terms X be the content, in dollars. key years, out remarks, strategy, X of to talent, you the And why really no I the my the in Thank in reason buckets the and

Curry Baker

And then Kristina. a No, helpful quick for maybe X framing. Okay. for that's

On for -- million the year, the if where look last fourth EBITDA. you quarter, at obviously guide have quarter you we were $XX fourth

Saudi the quarter? number Can escalators us events the contracts. and help got a event, maybe You've incremental cost fourth also expenses then of on positives, live in about you the think

Kristina Salen

mean? Incremental from you third quarter, the

Curry Baker

exactly. Yes, Yes.

Kristina Salen

quarter, can pay-per-views part remember versus the decision move Well, X I fourth that day of fewer think is compare quarter to driver I the we'll third will little a fourth to Curry, what in to great perspective. Atlanta. if quarter made when in think we versus January X, see we in because the pay-per-view quarter, top from December And we the a to you that events live third quarter, bit our have fourth be about the line continue talk

look quarter, we of the we'll quarter X more year. next in -- first at when first the so have And pay-per-views potentially

line event said, -- perspective, per ticket OpEx pay-per-view sales as sequentially profitability. being that in at quarter least to follow fourth event remarks, both and I live XXXX all with will in be, well. our mentioned event in from my perspective live continues a of terms demand as with from But So par a at

for see we lot strength to So events. continue our live a of

thing that's Peacock and our it have partnership we as relates allocate to remember in we is pay-per-views number quarter. given any network of as Another revenue well to how sequentially directly correlated the with

is so when a fourth large-scale event, allocation, of will we relative And be SummerSlam second And reason, to course, into you'll lower a have it recall, large -- Wrestlemania if quarter international third with our but allocation. quarter, is WrestleMania get allocation we with Series have with the our Survivor and quarter for X a we that largest SummerSlam. and

takes in our those and strong year-over-year to OIBDA as fourth guidance growth are So -- third quarter guidance puts sequential from indicates move the to our fourth quarter. quarter. relative all to the coming adjusted But again, consider we

Operator

[Operator Instructions].

go David Barclays. we'll Joyce Next, to from

David Joyce

couple A questions.

there here? wanted be I due First those on licensing. replace there And year, more about this path is to given will be forward of but there? there scale shift the going Or of Was more do visibility smooth SmackDown, -- in volatility to of kind There was that a comparability license effectively? going there incremental overall to NXT? the to event going some to it of more stadium something Peacock weeklies ask it larger like are moving Raw, got volume is pull that forward? on you've What for model. any to later the Is quarter. to going to seemed earlier this then Or was that secondly, events

Nick Khan

had go consolidation. you about If Last asked in you it's good David, by reverse M&A time there. order we'll

So I time, great. which take with it this at in moment is that you're satisfied

of above our no, a times fans more on tonnage separate or appetite Those night. week. circumstance These remain year, seen on have X exigent it's just SmackDown frequency of stadium that. the We cities in NXT. Raw, a to not impact at In right events, going right the and terms XX barring have weeks or for any the beyond right the are pay-per-views time

going prove continue XXXX. Thus with is SummerSlam. in it's to out proven So based it's out the model on far, that. to We believe

Stephanie McMahon

your of the question, to just referring to the network And to you clarify licensing David, Peacock. were licensing

David Joyce

some results wondering Well, some was this quarter, there going in should just that was there. some expect there comparability we licensing -- I changes forward? were there's your line movements in volatility if

Stephanie McMahon

of I in pay-per-view that the referring to quarter. receive is revenue you're events of the the in We allocate any cash the contribution Peacock, Peacock as the based If mentioned we before, any same. on the we from given given -- licensing quarter allocate to network

So and on a Wrestlemania is so quarter and SummerSlam on. allocation, greatest the so by followed

So about that's how Peacock licensing of allocation. we think the

we the our referenced licensing with Panini. and course positive remarks, If He about that you're I Fox. number would my products of in with partner. and have Nick toy I remarks, a his on next mentioned, licensing the partnership what He generally, our of have our of over the licensing brands. example, impact for in a NFTs say our referenced Mattel, And is the things mentioned will talking year, extension

So your perspective forward. a there contribution positive a are year-over-year a going David? answer will number licensing question, that of positive Does on have impacts from that

David Joyce

Yes, yes, that's fine.

Operator

I'll Yes, with back Michael remarks. in no queue, questions it further for the to turn Weitz closing

Michael Weitz

appreciate We everyone. you, call the today. listening Thank you to

you as questions, me, hesitate to XXX-XXX-XXXX. have any If always, Michael Weitz, not do please contact

Operator

your today. call you our conclude Thank does that participation. for for And

disconnect. now may You

World Wrestling Entertainment (WWE) 5 Nov 212021 Q3 Earnings call transcript