WWE exceeded expectations in the 2nd quarter of 2020. The company recorded $223.4 million in revenue generated resulting in $43.8 million in total profits. They had been expected to generate approximately $231 million in revenue and $12 million in profit. Even though WWE generated less revenue than expected, they earned more profit due to decreased operating expenses.
“Revenues were $223.4 million as compared to $268.9 million in the prior year quarter reflecting the timing of the Company’s large-scale event in Saudi Arabia; Revenues reached a record $514.4 million year-to-date, representing 14% growth from the prior year period,” reads a WWE report on their financials this quarter.
In comparison, quarter 2 for 2019 saw the company bring in $268.9 million in revenue and $10.4 million in profit.
WWE Records Record Profits
WWE has saved money by producing television shows from the Performance Center and taping multiple episodes in a row. This has led to an increase in profits even with the decline in revenue.
The company has also seen an increase in subscribers to the WWE Network. There are currently 195,000 more subscribers to the Network than what had been projected for this time.
“Our second quarter financial performance was strong and demonstrated our ability to respond to the challenges posed by COVID-19,” said Vince McMahon, WWE Chairman & CEO. “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.”
It should also be noted that WWE’s financials this quarter were unaffected by the talent releases in April. WWE continued paying main roster talent until mid-July, meaning they were all still being paid throughout Quarter 2. Some have been critical of WWE for cutting talent during a pandemic at a time when they were on pace for record profits.
On an investors call yesterday, Vince McMahon noted that profits will likely be down once the company starts touring again. With social distancing guidelines in place, it will make running live shows a more financially risky situation.
WWE’s Corporate website has more information on this quarter’s financials available here.