WWE has always claimed to have the ability to adapt to whatever calamity may fall upon them. Looking at the in-ring concept, it is easy to believe the validity of their claim: they sure survived WCW, drug allegations, and a lot of competitions and troubles that came in their way.
In the business aspect, WWE yet again proves to be an adaptable organization, with profits during the Covid-19 pandemic exceeding estimates from analysts.
“Our second-quarter financial performance was strong and demonstrated our ability to respond to the challenges posed by COVID-19. We continue to adapt our business to the changing environment, focusing on the development of new content for global distribution platforms and increasing audience engagement to drive growth and value for our shareholders,” WWE CEO Vince McMahon said.
“In the quarter, we delivered revenue of $223 million and Adjusted OIBDA of $73.5 million as we continued to offset the impact of cancelled events by reducing costs. Our cash flow remains strong, and we believe we have the capital resources to deliver on our strategic initiatives and growth opportunities.” Frank Riddick, Interim Chief Financial Officer of the company, added.
Reduction Led To Profit for WWE
The skyrocketing profits are not a result of net income gain, which has actually decreased. It is the result of a massive cut in operating expense, which included the controversial release of a horde of superstars and backstage employees and a complete suspension of House Show system, among other changes.
The controversy in their profit-driven way does not concern WWE, who are proud of their ability to host events in a pandemic situation: “WWE displayed its creativity throughout the quarter as the Company adapted its business model to continue to safely stage in-ring performances. Supporting this achievement, the Company established extensive safety measures to protect the health and well-being of its talent and employees. As a result, WWE was among the very few major sports properties to hold live performances and produce new content throughout the quarter, including its flagship programs, Raw and SmackDown, and its premier annual event, WrestleMania.”
About E-Commerce, they said: “E-Commerce revenues nearly doubled to $12.6 million, substantially offsetting the loss of venue merchandise sales with 76 fewer events in the quarter”
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