WWE Fourth Quarter 2018 Earnings Call Report: Vince Blames Low Attendance On Injuries, NXT Highly Valued
Welcome to Fightful’s live coverage of the WWE fourth quarter financial call. WWE Chairman and CEO Vince McMahon, Co-President George Barrios, Co-President Michelle Wilson and SVP Financial Planning & Investor Relations Michael Weitz are hosting the call. You can view the press release announcing fourth quarter financials here. You can listen to the call here.
Opening statement. Vince McMahon says they achieved record revenue in 2018. “We know what we’re doing.” pic.twitter.com/BHBKgDs8uB
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Vince going through the following slide: pic.twitter.com/FPFOcwB7N1
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Moving on, a look at the 2018 financial highlights: pic.twitter.com/zuwKggekRR
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Looking at WWE media in 2018, including Network subscribers, which is at nearly 1.6 million. pic.twitter.com/UbJY2J7wLl
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Looking at consumer products. WWE merchandise sales are down. pic.twitter.com/ucffECspd5
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Live event attendance. North American attendance down. pic.twitter.com/U3mtmdFKMW
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Additional North American attendance information: pic.twitter.com/Ladhipxqe6
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Capital Structure and more information on the stock repurchase program: pic.twitter.com/dpO7z8Eufv
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2019 outlook. WWE expects $1 billion in revenue next year. pic.twitter.com/jSAZt3xMYR
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First quarter 2019 outlook. No more day after WrestleMania calls announcing Network subscribers. pic.twitter.com/f2DHcdiQwa
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Call is now open to questions. Barrios says they will continue to invest in digital products. They continue to work on international deals including Latin America and Middle East.
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Barrios on UK TV deal: “I think it’s fair to say all the agreements will be made by the middle of the year”
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Wilson was pleased with Mixed Match Challenge and says they learned a lot. Barrios discusses the “sixth hour,” which is the hour of content following SmackDown. They are evaluating that hour but haven’t made a decision on what to do. 205 Live currently occupies that spot.
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Barrios is confident they can invest in talent despite “a new promotion” opening up and competing for talent. Still believes WWE is the premiere organization.
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WWE continues to localize content including delivering Raw and SmackDown in Mandarin.
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“In the next 5-10 years, our ability to develop global content could be as valuable as our Western content.” – Barrios. Says UK is the “light scale” of localization if Orlando is the “heavy scale.”
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“WWE has become a media company” – Barrios. Asked about NXT on Fox, says it depends on where the content fits best. Praise for Halftime Heat and how well it trended.
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Barrios called NXT the “second most valuable unit’ behind PPV.
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“Ronda is one of the brightest people we’ve ever done business with” – Vince.
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Vince discussing all the injuries and how WWE has had to adapt. “You have to change the storyline.” Believes losing all the superstars to injuries is a reason why ratings/attendance have dropped.
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Vince believes attendance will be up when everyone gets healthy.
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Barrios praises WWE Network but thinks they can do better. They will start rolling out “the next iteration” throughout the year and have a big reveal planned.
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