April 24, 2020
Vince McMahon’s World Wrestling Entertainment (WWE) reported $62.5 million in “other” media revenue for the first quarter (ended March 31) — a category that includes disc sales. That compared to $9.4 million in revenue during the previous-year period. The revenue surge was largely due to the favorable timing of the company’s large-scale international event “Super ShowDown,” in addition to theatrical and direct-to-home video DVDs sold at Walmart, Target, Best Buy and other big-box retailers.
Separately, WWE Network, the company’s subscription streaming video platform, saw average paid subscribers decrease 8% to about 1.46 million, consistent with company’s guidance. McMahon and senior management are attempting to restructure the $9.99 monthly SVOD, including expanding distribution internationally.
McMahon said the quarter’s financial performance was largely unimpacted by the COVID-19 outbreak, but added the situation could change going forward.
“We are in the midst of unprecedented times, which require us to be especially nimble, creative and efficient in order to ensure the long-term value of WWE,” McMahon said in a statement.
Indeed, the executive earlier this month permanently shuttered his pet pro football project, the XFL, for the second time with no plans to bring the league back in 2021. Featuring former college football players and NFL rejects, the XFL lasted halfway through a 10-game season before being shut down due to concerns about COVID-19.
The WWE also relocated its annual Wrestlemania event, slated for late March, to its Orlando training center, holding matches without any crowds.
Interim CFO Frank Riddick said that ongoing uncertainties of the potential impacts of COVID-19 on the business have resulted in reduced employee, talent and other costs and delayed approximately $140 million in capital spending related to the WWE’s new headquarters.
“This was done to strengthen our financial performance going forward and to ensure we have the resources necessary to execute our value creation strategy,” Riddick said.