Q4 2021 World Wrestling Entertainment Inc Earnings Call
Speaker 1: You can do that.
Hum.
We began by.
40.
Speaker 2: Hello and welcome to WWE's fourth quarter earnings call. Please use the question mark icon in the upper right hand corner of your web console for technical assistance.
Hello, and welcome to Wwe's fourth quarter earnings call.
Please use the question Mark icon in the upper right hand corner of your web console for technical assistance Today's conference is being recorded.
Speaker 2: Today's conference is being recorded. I would now like to turn the call over to Seth Zaslow, Senior Vice President, Investor Relations.
Now I'd like to turn the call over to Seth Zaslow Senior Vice President Investor Relations.
Please go ahead Sir.
Thank you.
Speaker 3: Good afternoon, everyone. Welcome to WWE's fourth quarter 2021 earnings conference.
Good afternoon, everyone welcome to Wwe's fourth quarter 2021 earnings conference call.
Speaker 3: Reading today's discussion are Vince McMahon, WWE's Chairman and CEO , Nick Khan, WWE's President and Chief Revenue Officer, Stephanie McMahon, WWE's Chief Brand Officer, and Frank Riddick, WWE's Chief Financial and Administrative Officer. There are marks will-
Leading todays discussion are Vince Mcmahon, Wwe's, chairman and CEO , Nick Con Wwe's, President and Chief revenue Officer, Stephanie Mcmahon Wwe's, Chief brand Officer, and Frank Riddick, Wwe's, Chief financial and administrative officer.
Our remarks will be followed by a Q&A session.
Speaker 3: We issued our fourth quarter earnings release earlier this afternoon, and I posted the release our earnings presentation and other supporting materials on our web.
We issued our fourth quarter earnings release earlier, this afternoon and posted the release our earnings presentation and other supporting materials on our website.
Speaker 3: Today's discussion will include forward-looking statements. These statements reflect our current views, are based on various assumptions, and are subject to risks and uncertainties disclosed in our SEC file.
Today's discussion will include forward looking statements. These statements reflect our current views are based on various assumptions and are subject to risks and uncertainties disclosed in our SEC filings.
Speaker 3: Actual results may differ materially, and undue reliance should not be placed on that.
Actual results may differ materially and undue reliance should not be placed on them.
Speaker 3: Additionally, the matters we will be discussing today may include non-GAAP financial measures.
Additionally, the matters, we will be discussing today may include non-GAAP financial measures.
Speaker 3: Reconciliations of non-GAAP to GAAP information are set forth in our earnings release and presentation which are available on our website.
<unk> of non-GAAP to GAAP information are set forth in our earnings release and presentation, which are available on our website.
Speaker 3: Finally, as a reminder, today's conference call is being recorded and the replay will be available on our website later today. At this time, it is my privilege to turn...
Finally, as a reminder, today's conference call is being recorded and a replay will be available on our website later today.
At this time it is my privilege to turn the call over to Vince.
Speaker 4: Welcome everyone. As you know, we've generated a considerable increase in profit and revenue. I would revenue.
From everyone.
We generated considerable increase in profit and revenue.
Over $1 billion, which is similar to the mark for us during the course of the year, we re imagine our business and re imagine their business something by the way we do it.
Speaker 4: one billion which is somewhat of a mark for us during the course of the year we reimagined our business and reimagining our business is something by the way we do used to buy every month. If not every week around here we're very very flexible and they can staff are going to be talking about many of the key achievements that we've made and that we obviously remain focused on our upcoming year of 2022 is well
It's about every month.
It's not every week around here.
Flexible staffing are we talking about.
Key achievements.
And then we obviously remain focused.
Our upcoming year of 2022 as well as <unk>.
Years to come.
Speaker 4: working toward record revenue again, as well as adjusted with the, and what have you. So our performance, we think, pretty much speaks for itself and speaks for the longevity of that for so many years, the opportunities there are there for us, and to grow exponentially.
Working toward record revenue again.
As well as adjusted.
So our performance, we think pretty much speaks for itself.
It speaks to the longevity for so many years the opportunities are there for us to grow exponentially.
So Nick takeaway.
Speaker 5: Thanks very much, Vent, and thanks everyone for calling in. Before we jump into a bit of the future outlook for our business and what we make of the recent moves in the marketplace, we'd like to discuss some of the moves WWE has made over the last few months.
Thanks, very much Vince and thanks, everyone for calling in.
Before we jump into a bit of the future outlook for our business and what we make of the recent moves in the marketplace, we'd like to discuss some of the moves WWE has made over the last few months.
Speaker 5: Almost a year ago on a prior earnings call, we share the news of our deal to licensed WWE Network and its premium live events in library in the US to NBCU and PCCOP.
Almost a year ago on our prior earnings call. We shared the news of our deals are licensed WWE network and its premium live events and library in the U S to NBC Peacock.
Speaker 5: Some results to share with you from that deal regarding viewership.
Some results to share with you from that deal regarding viewership.
Speaker 5: All of the 2021 peacock numbers I'm going to mention here are compared to the pre-pandemic 2019 numbers.
All of the 2021 Peacock numbers I'm going to mention here are compared to the pre pandemic 2019 numbers on what was our Standalone service WWE network.
Speaker 5: on what was our standalone service WWE Network.
Speaker 5: For our July 2021 premium live event, Money in the Bank, with the return of live fans, viewership on PCOT was 25% higher than Money in the Bank on WWE Network in 2019.
For our July 2021 premium live event money in the bank with the return of live viewership on Peacock was 25% higher the money in the bank on WWE network in 2019.
Speaker 5: For August 2021 premium live event Summerslam, viewership on peacock was over 30% higher than Summerslam in 2019.
Our August 2021 premium live events summer Slam viewership on Peacock was over 30% higher than summer Slam in 2019.
Speaker 5: For our 2021 events in September , extreme rules, viewership on peacock was 20% higher than extreme rules in 2019.
For our 2021 events in September extreme rules.
Your ship on Peacock was 20% higher than extreme rules in 2019.
Speaker 5: In October 2021, we hosted our first international premium live event of the year from Riyadh, where we saw a viewership on peacock up 75% over our 2019 event.
In October 2021, we hosted our first international premium live event of the year from Ria, where we saw viewership on peacock up 75% over our 2019 event there.
Speaker 5: And lastly, for our November 2021 premium live event survivor series, your ship on peacock was almost 25% higher than survivor series in 29.
And lastly for our November 2021 premium live event Survivor series viewership on Peacock was almost 25% higher than survivor series in 2019.
Speaker 5: In terms of subs, over 3.5 million fully paid T-Cock subscribers have watched WWE content since we moved our product over last month.
In terms of subs over $3 5 million fully paid peacock subscribers have watch WWE content since we moved our product over last March.
Speaker 5: As you recall, WWE Network had 1.1 million subscribers in the US when we closed the PCock.
As you recall WWE network had $1 1 million subscribers in the U S. When we close the Peacock deal and.
Speaker 5: an expanded audience and viewership led by a strong in-ring product. And the right partner and platform has created wins for all parties.
An expanded audience viewership led by a strong and bring product and the right partner and platform has created wins for all parties.
Speaker 5: More people are watching WWE Premium Live events than ever before.
More people are watching WWE premium live events than ever before.
Speaker 5: Our deal with Peacock also marked the strategic pivot for our company to fully focus on our wholly owned intellectual property and the completely unique content that Vince and WWE have created for the past 35 plus years.
Our deal with Peacock also marked the strategic pivot for our company to fully focus on our wholly owned intellectual property and a completely unique content that Vince and WWE have created over the past 35 plus years.
Speaker 5: It's evident that the marketplace puts considerable value on our IP, which has allowed us to drive more value for existing partnerships and enter into a number of new categories.
It is evident that the marketplace puts considerable value on our IP, which has allowed us to drive more value for existing partnerships and enter into a number of new categories.
Speaker 5: Currently, have over a dozen scripted and unscripted projects sold. Case on our eyes.
We currently have over a dozen scripted and unscripted projects sold based on our IP.
Speaker 5: Look for an announcement on each and every one of those in the not too distant future.
Look for an announcement on each and every one of those in the not too distant future.
Speaker 5: Those are with existing content partners in the US in addition to new buyers, networks, and streamers.
Those are with existing content partners in the U S. In addition to new buyers networks and streamers.
Speaker 5: This passcourt, we also executed and announced a number of new deals that drew further value from our IP.
This past quarter, we also executed and announced a number of new deals that drew further value from our IP.
Speaker 5: We moved to a new trading card partner, Panini, and saw a major increase in that deal.
We moved to a new trading card partner Panini and saw a major increase in that deal.
Speaker 5: Following the success of our first NFT launch with the undertaker, we struck a deal with Fox's bento box creative labs to launch an NFT marketplace. Initial art has come in.
Following the success of our first NFC launch with the Undertaker, we struck a deal with Fox is Bento box creative labs to launch an NFC marketplace.
Initial art has come in for the first.
Few drops.
Speaker 5: It's a mix of new and legendary superstars and we'll excite fans across generations.
It's a mix of new and legendary superstars and will excite fans across generations.
Speaker 5: look for an announcement on the launch date for that marketplace soon.
Look for an announcement on the launch date for that marketplace soon.
Speaker 5: We also announced our first deal in the lottery space with IGP, one of the preeminent gaming companies.
We also announced our first deal in the lottery space with IGT.
One of the preeminent Jamie companies.
Speaker 5: Look for WWE branded lottery tickets to start rolling out in a number of states later this year.
For WWE branded lottery tickets to start rolling out a number of states later this year.
Speaker 5: Additionally, we extended our global deal with Mattel. That partnership is driven by WWE action figures and action figure accessories. This deal with Mattel...
Additionally, we extended our global deal with Mattel that partnership is driven by WWE action figures and action figure accessories.
This deal with Mattel goes back over a decade.
Speaker 5: Mattel's distribution channels and the reach WWE has results in our action figures in stores and on shelves in over 50 global markets.
Hotels distribution channels and the reached WWE has resulted in our action figures in stores and on shelves and over 50 global markets.
Speaker 5: This new deal has driven a substantial increase from the toy sector and the extension will result in even more growth.
This new deal has driven a substantial increase from the toy sector.
That lease extension will result in even more growth.
This is a further recognition of the value of our IP.
Speaker 5: As we closed our book of business in 2021, we quickly got back to work as our 2022 kicked off with our new premium live event day one in primetime on New Year's Day from Atlanta.
As we closed our book of business in 2021, we quickly got back to work as our 2022 kicked off with our new premium live event day, one in prime time on new year's day from Atlanta.
Speaker 5: We added this new event to our schedule in place of our typical mid-December premium live event, with the belief that a holiday date would attract more viewers and drive ticket sales and merchandise revenue at State Farm Arena in Atlanta as an attraction for both holiday travelers and locals. This belief proved to be correct. Not only was it a great event, but it was also a great way for us to show our appreciation
We added this new event to our schedule in place of our typical mid December premium live event with the belief that a holiday date would attract more viewers and drive ticket sales and merchandise revenue at state Farm Arena in Atlanta is an attraction for both holiday travelers and locals.
This belief prove to be correct.
Not only was day one sold out.
Speaker 5: It was also one of our highest viewed premium live events on Peacock ever, with viewership 60% greater than any December premium live event in WWE history.
Also one of our highest viewed premium live events on peacock ever with viewership, 60% greater than any December premium live event in WWE history.
Speaker 5: Last week, we kicked off our road to WrestleMania with Royal Rumble from the Dome at America's Center in St. Louis.
Last week, we kicked off our road to Russell Mania with Royal Rumble from the dome at Americas Center in St. Louis.
Speaker 5: With more than 44,000 in attendance, the event produced the strongest merchandise sales and second largest gate in Royal Rumble history.
With more than 44000 in attendance the event produced the strongest merchandise sales and second largest gate and Royal Rumble history.
Speaker 5: On peacock, your ship was almost 45% higher than the pre-pandemic Royal Rumble in 2020.
On Peacock viewership was almost 45% higher than the pre pandemic Royal Rumble in 2020.
Speaker 5: Our creative team put on an incredible show where we saw Ronda Rousey and Bad Bunny's surprise returns, as well as Johnny Knoxville's in-ring debut.
Our creative team put on an incredible show, where we saw Ronda Rousey and bad Bunny surprise returns as well as Johnny Knoxville in ring debut.
Speaker 5: What's notable here is that neither Bad Bunny nor Johnny Knoxville were looking to check off an item from their bucket list during a slow time of the year.
What's notable here is that neither bad money, nor Johnny Knoxville, we're looking to check off an item from their bucket list during a slow time of the year.
Speaker 5: Quite the opposite. Both men are on the brink of major career moments, with Bad Bunny's sold-out world tour, The Crash Ticketmaster, the day it went on sale, which also just expanded to a series of stadium shows a few weeks ago, and the premiere of Johnny Knoxville's film, Jackass Forever.
Quite the opposite both men are on the brink of major career moments with bad Bunnies sold out World Tour that cross Ticketmaster. The day. It went on sale, which also just expanded to a series of stadium shows a few weeks ago and the Premier Johnny Knoxville, Some jackass forever.
Speaker 5: Pop culture sensations and massive artists look to partner with WWE as a way to drive their business forward.
Culture sensations and massive ortis look to partner with WWE is a way to drive their businesses.
Speaker 5: Next up for our premium live events is our first major international event this year in Jetta on Saturday, February 19th.
Next up for our premium live events is our first major international event this year and shut up on Saturday February 19th.
Speaker 5: Saturday largely clear of event programming. Now the college football has come to an end.
Saturday largely clear of event programming now that college football has come to an end.
Speaker 5: As many of you know, these large-scale international live events are key revenue drivers for our company and demonstrate WWE's global appeal.
As many of you know these large scale international live events are key revenue drivers for our company and demonstrate Wwe's global appeal.
Speaker 5: We couldn't be more pleased to get back to staging big shows internationally. Look for more on that as well in the not too distant future.
We couldnt be more pleased to get back to staging big shows internationally look for more on that as well in the not too distant future.
For further international news.
Speaker 5: Last week it was announced that Disney Plus Hot Star is the new home of WWE Network in Indonesia.
Last week, it was announced that Disney plus hop star as the new home of WWE network in Indonesia.
Speaker 5: This distribution deal follows the licensing model we use for WWE Network in the U.S.
This distribution deal follows the licensing model, we use for WWE network in the U S.
Speaker 5: partnering with a leading streamer that has a large presence in the territory.
Partnering with a leading streamer that has a large presence in the territory.
Speaker 5: Moreover, this deal deepens our relationship with Disney, as does our multi-episode series order, Rhonda's Places, with executive producer Peyton Manning, which premiered on ESPN Plus last week.
Moreover, this deal deepens our relationship with Disney as does our multi episode series Order Randa's places with executive producer Peyton Manning, which premiered on ESPN plus last week.
Speaker 5: This is Rhonda Rousey's version of Peyton's Places in the combat sports space with WWU's executive producer.
This is Rhonda Rouse's version of payments places in the combat sports space with Ww as executive producers as you know Disney is already one of our partners with our Hulu deal.
Speaker 5: Look for more in the international media rights space in the not-too-distant future as well.
Look for more in the international media rights space in the not too distant future as well.
On the topic of gaming.
Speaker 5: Last month we announced that WWE Legend Ray Mysterio will be the cover superstar for a new video game, WWE 2K22, that will be released on March 11th.
Last month, we announced that WWE legend ray material will be to cover superstar for our new video game WWE <unk> 'twenty two that will be released on March 11th.
Speaker 5: Stephanie McMahon will further discuss gaming in a moment. Before that, we wanted to share our point of view on further consolidation in the gaming
Stephanie Mcmahon will further discuss gaming at a moment before that we wanted to share our point of view on further consolidation in the gaming sector.
Speaker 5: First, like many of you, we are not surprised by this continued consolidation.
First like many of you we are not surprised by this continued consolidation Microsoft is making its biggest acquisition in its 46 year history with its purchase of Activision Blizzard.
Speaker 5: Microsoft is making its biggest acquisition in its 46-year history with its purchase of Activision Blizzard. Take-Two, one of our gaming partners, made its biggest acquisition in its 28-year history with its purchase of Zynga.
Take to one of our gaming partners made its biggest acquisition in its 28 year history with its purchase of Zynga.
Speaker 5: Sony made moves to bolster its gaming division with its acquisition of Bungie.
Sony made moves to bolster its gaming division with its acquisition of Bungie.
Speaker 5: Sony made it clear on their earnings call yesterday. We expect these companies to monetize the value of their newly acquired titles. Be a scripted and unscripted content.
As Sony made it clear on their earnings call yesterday, we expect these companies to monetize the value of their newly acquired titles scripted and unscripted content.
Speaker 5: sector should end up with four maybe five players emerging and the winners will largely be dependent on their IP.
Sector should end up with four maybe five players emerging and the winners will largely be dependent on their IP.
Speaker 5: As we've seen from Warner Discovery, Amazon MGM, and Univision Televisa, all of these are driven by content and distribution. This isn't just the major conglomerates. Penguin Random House and the New York Times have both made moves in recent months to scale their businesses through strategic acquisition.
As we've seen from Warner Discovery, Amazon MGM and Univision Televisa all of these are driven by content and distribution. This isn't just the major conglomerates Penguin random House and the New York Times. So both made moves in recent months to scale their businesses through strategic acquisitions, we are even seeing theme park consol.
Speaker 5: We're even seeing theme park consolidation with the sea world play on Cedar.
Sedation with the Seaworld play on Cedar Fair.
Speaker 5: All said, we believe this consolidation trend will continue in 2022. We're all keeping our eyes on DISH and DirecTV, NextStar, EA, and Lionsgate as they look to possibly enter into meaningful M&A conversations. Again, all content for platform play.
All said, we believe this consolidation trend will continue in 2022, we're all keeping our eyes on dish and Directv Nexstar.
And lionsgate as they look to possibly enter into meaningful M&A conversations again, all contest or platform plays.
Speaker 5: Finally, we want to touch on the latest movement in the sports rights space. We've discussed in the past how one of the biggest acquisition drivers for streamers is live rights.
Finally, we want to touch on the latest movement in the sports rights space. We've discussed in the past how one of the biggest acquisition drivers for streamers.
Is live rights.
Speaker 5: It's why Amazon, Peacock, Paramount+, and ESPN+, and Hulu have spent billions over the past year to bring top tier rights to their services.
It's why Amazon Peacock, Paramount plus an ESPN plus in Hulu has been billions over the past year to bring top tier rights to their services.
Speaker 5: ESPN alone closed seven major deals over the course of ten months.
ESPN alone plus seven major deals over the course of 10 months Amazon as we all know recently spent over $10 billion to be in business with the NFL and that deal is starting a season early.
Speaker 5: Amazon as we all know recently spent over 10 billion dollars to be in business with the NFL and that deal is starting a season early
Speaker 5: NBCU's $2.7 billion extension of the EPL was largely a peacock play, with most of the inventory slotted
NBC used $2 7 billion dollar extension of the EPL was largely a peacock play.
With most of the inventory slotted for the streamer.
Speaker 5: BiocomCBS and its first year has recognized the value of live rights, shifting its UEFA Champions League programming to their Paranon Plus on a near exclusive basis and picking up rights for Syria in the Europa League.
Viacom CBS in its first year has recognized the value of live rights shifting its UEFA Champions League programming to Paramount plus on a near exclusive basis and picking up rights for Siri op in the Europa League.
Speaker 5: We discussed Apple three quarters ago. It's just a matter of time for Apple. We all saw Netflix's Tricky Friday a few weeks ago.
We discussed the Apple three quarters ago, It's just a matter of time for Apple.
We also on Netflix is tricky Friday, a few weeks ago. It's just a matter of time for Netflix all of these aforementioned companies are more incentivized now licensed content that increased prices from content originators.
Speaker 5: All of these aforementioned companies are more incentivized now to license content at increased prices from
Speaker 5: In sum, with our company focus on extricating value from our IP across all lines of business, match with a marketplace that is hungry to partner with and build around premium brands. We couldn't be more optimistic to drive further growth in 2022 and beyond.
And some with our company focus on extra getting value from our IP across all lines of business matched with a marketplace that is hungry to partner with and built around premium brands, we couldnt be more optimistic to drive further growth in 2022 and beyond.
Speaker 5: And with that, I'd like to plerum the call over to my colleague and friend, Stephanie McIntyre.
And with that I'd like to turn the call over to my colleague and friend Stephanie Mcmahon.
Speaker 6: Thanks, Nick, and good evening to everyone on the call. Nick concluded his remarks by speaking about the value of WWE IP. In addition to the new deals being executed for global media rights and consumer products, WWE superstars are in high demand from the biggest sports properties, studios, and media outlets.
Thanks, Nick and good evening to everyone on the call. He concluded his remarks by speaking about the value of WWE IP. In addition to the new deals being executed for global media rights and consumer products WWE Superstars are in high demand from the biggest sports properties studios and media outlets.
Speaker 6: Earlier this month, Sasha Banks starred in the cold open for ESPN's College Football National Championship. That game saw an average audience of over 22.6 million viewers.
Earlier this month Sasha banks start in the Cold open for ESPN College football National Championship.
Gains on average audience of over $22 6 million viewers.
Speaker 6: In November , Drew McIntyre presented at the MTV EMAs, the Europe Music Awards, hitting international markets across Europe , LATAM, and North America. And in October , Big E starred in the cold open of what has been called the greatest heavyweight title fight in decades, Tyson Fury vs. Deontay Wilder, that aired on ESPN Plus and Fox Sports Pay-Per-View.
November drew Mcintyre presented at the MTBE any.
The European Music awards, hitting international markets across Europe , Latam and North America, and then October maybe start in the cold opened and what has been called the greatest heavyweight title XI in decades.
In theory versus Deonte, while there that aired on ESPN, plus Fox sports pay per view.
Speaker 6: Paramount Studios used WWE to promote their release, Jackass Forever, starring Johnny Knoxville.
Paramount Studios use WWE to promote their release Jackass forever starring Johnny Knoxville.
Speaker 6: Knoxville's involvement began on SmackDown December 10th and culminated with Knoxville wrestling in the Royal Rumble match. Knoxville spoke about the Royal Rumble and beating that low down and dirty Sami Zayn on Jimmy Kimmel Live, the late late show with James Gordon and posted WWE related content across social media garnering over 12 million video views.
National's involvement began on Smackdown December two and.
I needed with Knoxville wrestling in the Royal Rumble March Knoxville spoke about the Royal Rumble, and beating that low down and Dirty Sami Zayn on Jimmy Kimmel Live late late show with James Corden and posted WWE related content across social media, garnering over 12 million video views.
Speaker 6: The Royal Rumble premium live event took place at the Dome at America's Center in St. Louis, with surprise appearances from Grammy award winning artist, and I would say part-time WWE superstar Bad Bunny, as well as the baddest woman on the planet, Ronda Rousey, who won the Women's Rumble match and is headed to WrestleMania.
The Royal Rumble premium live event took place at the Dome In America Center in St. Louis with surprise appearances from Grammy Award, winning artist and I would say part time, WWE superstar bad banks as well as the Baddest woman on the planet Ronda Rousey, who won the women's Rumble match and is headed to Wrestlemania.
Speaker 6: As Nick mentioned, Royal Rumble 2022 saw a 45% increase in viewership versus 2020, the last time we had an event with fans, and was the most socially engaging program across all platforms.
As Nick mentioned Royal Rumble, 2022, 45% increase in viewership versus 2020. The last time, we had an event with fans and was the most socially engaging program across all platforms.
Speaker 6: The day of the Royal Rumble Premium Live event also marks the highest usage of the Peacock Platform 2D.
Dave the Royal Rumble premium live event.
Also marks the highest usage of the peacock platform to date.
Speaker 6: Additionally, we launched a new sponsorship with DoorDash, who co-presented with 2K, one of our biggest gaming partners.
Additionally, we launched a new sponsorship with door Dash, who co presented with two K one of our biggest gaming partners.
Speaker 6: For two weeks prior to the event on Ross, Macdown, and NXT and during the Royal Rumble Premium Live event itself, we aired the WWE 2K22 trailer and announced the pre-order for our franchise simulation game, WWE 2K22, which will officially launch on March 11th. While it is still very early in the process, according to our partners, thus far, all indications are very positive.
For two weeks prior to the event Eros knockdown in NXT and during the Royal Rumble premium live event itself. We aired the WWE <unk> 'twenty, two trailer and announced the pre pre order for our franchise simulation game WWE <unk> 22, which will officially launch on March 11.
It is still very early in the process. According to our partners. Thus far all indications are very positive.
Speaker 6: Additionally, we saw a 14% increase in the performance of our mobile games year over year with games like 2K's WWE Supercard, 2K's highest-grossing mobile game with more than 24 million downloads to date, and Skoply's Champions. With over 50 million installs, Champions saw its best quarterly performance in the game's history in Q4 2021.
Additionally, we saw a 14% increase in the performance of our mobile games year over year with games like <unk> WWE Supercars.
<unk> highest grossing mobile game with more than 24 million downloads to date and scope lease champions with over 50 million installed champions saw its best quarterly performance in the game's history in Q4 2021.
Speaker 6: Gaming is a focus for WWE as roughly 85% of our audience self-identifies as gamers. And gaming itself is one of the ways today's audience connects and socialize.
Gaming is a focus for WWE as roughly 85% of our audience self identify as gamers and gaming itself is one of the ways today's audience connect and Socializes.
Speaker 6: We are even more optimistic as we look at YouTube and Netflix launching their own gaming initiatives. And as Nick mentioned earlier, Microsoft and Take 2's acquisitions of Activision Blizzard and Zinger Respect.
Even more optimistic as we look at Youtube and Netflix launching their own gaming initiatives and as Nick mentioned earlier, Microsoft and take two's acquisitions of Activision Blizzard and Zynga, respectively.
Speaker 6: The next generation of fans and superstars is a huge priority for WWE. In December , as a part of our evolving talent development strategy, we launched our NIL, our Name Image Likeness program, allowing the sponsorship of collegiate athletes, or what we call next in line.
The next generation of fans and superstars is a huge priority for WWE in December as a part of our evolving talent development strategy, we launched our Nio our name image likeness program, allowing the sponsorship of collegiate athletes or what we call next in line.
Speaker 6: The inaugural NIL class includes 16 athletes from 13 universities, seven conferences, and four sports.
The inaugural Nio class includes 16 athletes from 13 universities seven conferences.
Our sport.
Speaker 6: We are looking for elite athletes with big personalities, some of whom already have a strong branded presence on social media, like John Seaton, who plays football for Elon University, with a TikTok following of 1.6 million, or the Cavendor twins, who play basketball at Fresno State, and have a TikTok following of nearly four million.
We are looking for elite athletes with big personalities some of them already have a strong branded presence on social media like John Seaton, who plays football for Elon University with a tick tock following a $1 6 million.
What are the Kevin <unk>, who played basketball at Fresno State and have a tick tock following of nearly four months.
Speaker 6: Never before has there been such a clear pipeline to becoming a WWE superstar. Think about all the collegiate level athletes who won't make it to the NFL, NBA, WNBA, or the Olympic.
Never before has there been such a clear pipeline to be coming in WWE Superstar Inc.
Think about all the collegiate level athletes, who won't make it to the NFL NBA and WNBA or the Olympics. What other jobs are available to continue an athletic career. If your sport is shot but our hammer thrilling.
Speaker 6: What other jobs are available to continue an athletic career if your sport is shot put or hammered from it?
Speaker 6: becoming a WWE superstar is an opportunity to not only continue your athletic career, but learning how to build your own brand.
Becoming a WWE superstar is an opportunity to not only continue your athletic career.
How to build your own brands.
Speaker 6: The first signing Olympic gold medalist and reigning NCAA National Champion Gable Steven has already been drafted to the RAW roster when he has finished with his senior year at the University of Minnesota.
The first tiny Olympic gold medalist and raining NCWA National champion gable, Steve said has already been dropped into the roster. When he is finished with his senior year at the University of Minnesota.
Speaker 6: WWE has a lot to offer these athletes today. Amplifying their presence across all WWE clubs.
WWE has a lot to offer these athletes today amplifying their presence across all WWE platforms. According to third party source you Gov. WWE has more total fans 18 to 34 than the NFL MLB NBA UFC NHL and NASCAR.
Speaker 6: According to third party source you gov, WWE has more total fans 18 to 34 than the NFL, MLB, NBA, UFC, NHL, and NASCAR. When you factor in our audience across all platforms.
When you factor in our audience across all platforms.
Speaker 6: WWE's YouTube channel has 83.7 million subscribers, significantly more than all major US sports franchises combined.
WWE <unk> Youtube channel has 83 7 million subscribers significantly more than all major U S sports franchises combined the.
Speaker 6: The next biggest is the NBA at 17.4 mil.
The next biggest is the NBA at $17 4 million.
Speaker 6: At year end, WWE's Facebook followers were also the highest among any sports league and had the highest engagement. With year-over-year revenue increasing approximately 225%, and hours watched more than doubling.
At yearend Wwe's Facebook followers were also the highest among any sports league and had the highest engagement with year over year revenue, increasing approximately 225% in hours watched more than doubling.
Speaker 6: On TikTok, we launched our first Latin account, and within weeks had over 500,000 followers. And we remained the number one sports brand on TikTok with 15.1 million followers.
Kicked off we launched our first Latam account and within weeks had over 500000 followers and we remain the number one sports brand on tick tock with $15 1 million followers.
Speaker 6: Across all social platforms combined, we had 50 billion total views, earning tens of millions of additional revenue.
Across all social platforms combined we had 50 billion total views, earning tens of millions of additional revenue.
Speaker 6: On our last call, I spoke about WWE's unique ability to break through the clutter for brands and partners and amplify that messaging through our strong reach across-
On our last call I spoke about wwe's unique ability to break through the clutter for brands and partners and amplify that messaging through our strong reach across platforms.
Speaker 6: In Q4, at Survivor Series, this creativity was on full display for two brains.
In Q4 at Survivor series. This creativity was on full display for two brands Pizza hut trended during the night as the street profits made their entrance to the ring carrying a box of piping Hot Pizza hut pizza and a checkered tablecloth, saying, we got sponsored.
Speaker 6: Pizza Hut trended during the night as the street profits made their entrance to the ring carrying a box of piping hot Pizza Hut pizza and a checkered tablecloth saying, we got sponsored.
Speaker 6: During the match, the audience actually started to chant, we want pizza, which is not something we can ever guarantee, a partner, but a demonstration of how successful integrations can be when they're done with a fan mind.
During the match the audience actually started to chant, we want pizza, which is not something we can never guarantee a partner, but a demonstration of how successful integrations can be when they're done with a fan mindset.
Speaker 6: This was complemented with another first of its kind integration involving the presenting partner of Survivor Series Netflix.
This is complemented with another first of its kind integration involving the presenting partner of Survivor series Netflix net.
Speaker 6: Netflix returned to WWE to promote one of their biggest movies of the year Red Notice during none other than WWE Hall of Famer The Rock.
Netflix return to WWE to promote one of their biggest movies of the year Red notice.
None other than WWE hall of Famer with Iraq.
Speaker 6: A storylines loosely mirroring the film's plot in suit involving our chairman and CEO who plays the character of Mr. McMahon.
<unk> line loosely mirroring the films plot ensued involving our chairman and CEO , who plays the character of Mr. Mcmahon.
Speaker 6: The content delivered half a billion impressions and 20 million video views across the planet.
The content delivered half a billion impressions and 20 million video views across platforms.
Speaker 6: These partnerships and more drove sales and sponsorship revenue up nearly 30% during the course.
These partnerships and more drove sales and sponsorship revenue up nearly 30% during the quarter.
Speaker 6: We look forward to continuing to strengthen and grow the WWE brand across all life of business and drive value for our shareholders.
We look forward to continuing to strengthen and grow the WWE brand across all lines of business and drive value for our shareholders and now I'll hand, it over to our CFO Frank Riddick.
Speaker 6: And now I'll hand it over to our CFO , Brank Reddit.
Speaker 3: Thank you, Stephanie. There are several key topics which we'd like to review today. These include discussion of our financial performance, the progress of key initiatives, and our business outlook.
Thank you Stephanie.
There are several key topics, which we'd like to review today. These include discussion of our financial performance the progress of key initiatives and our business outlook.
Speaker 3: In 2021, we generated record revenue of nearly 1.1 billion in record adjusted OEM of 327 million, which exceeded the high end of our guide.
In 2021, we generated record revenue of nearly $1 1 billion and record adjusted OIBDA of $327 million, which exceeded the high end of our guidance adjusted.
Speaker 3: adjusted a whip to increase 14%. Primarily do the higher revenue and profit from the distribution of network programming on PCOT.
Adjusted OIBDA increased 14%, primarily due to higher revenue and profit from the distribution of network programming on Peacock.
Speaker 3: the contractual escalation of rights fees from our flagship shows, Ron Smackdown, and the return of a ticketed audience to our lives of them.
The contractual escalation of rights fees from our flagship shows raw and Smackdown, and the return of a ticketed audience store live events.
Speaker 7: The growth in revenue and profit were partially offset by higher television and then that related production expense which derived in part from the lower cost of producing televised content from a performance center in Orlando for much of the prior year.
The growth in revenue and profit were partially offset by higher TV and event related production expense, which derived in part from the lower cost of producing televised content from our performance center in Orlando for much of the prior year.
Speaker 7: Additionally, adjusted a web to reflect at higher staff related costs, including management and center compensation, resulting from our improved operating performance in the year.
Additionally, adjusted OIBDA reflected higher staff related costs, including management incentive compensation, resulting from our improved operating performance in the year.
Speaker 7: Throughout the year, we continue to create additional content, producing more than 2400 hours content for television, network, and digital platforms.
Throughout the year, we continued to create original content producing more than 2400 hours of content for television network and digital platforms.
Speaker 7: We expanded our reach across new platforms such as PCoc, TikTok and Spotify and established new sponsor and product partners such as blockchain, creative labs and draft games.
We expanded our reach across new platforms, such as Peacock tick tock, and Spotify and establish new sponsor and product partners, such as blockchain creative labs and draft gangs.
Speaker 7: During the fourth quarter, we had strong performance across our business segments as we engaged a wider audience with distribution on new digital platforms, including Peacock, and saw the continued return of fans that are alive with them.
During the fourth quarter, we had strong performance across our business segments as we engaged a wider audience with distribution on new digital platforms, including pickup and saw the continued return of fans at our live events.
Speaker 7: Revenue increased 30% to $310.3 million, driven by the timing of our large-scale international event Crown Jewel, as well as higher ticket and venue merchandise sales associated with the return to live event touring beginning in July .
Revenue increased 30% to $310 3 million driven by the timing of our large scale international event Crown jewel as.
As well as higher ticket venue merchandise sales associated with the return to live inventory beginning in July .
Speaker 7: adjusted a lift and increased 90% to 97.2 million is the impact of the growth and revenue was partially offset by the increase in management and center compensation.
Adjusted OIBDA increased 90% to $97 2 million as the impact of the growth in revenue was partially offset by the increase in management incentive compensation.
Speaker 7: The review or business performance in the quarter was turned to page three of our presentation, which shows revenue, operating income, and adjusted OIBDA contribution by segment as compared to the prior year course.
To review our business performance in the quarter, let's turn to page three of our presentation, which shows revenue operating income and adjusted OIBDA contribution by segment as compared to the prior year quarter.
Speaker 7: Looking at our media segment, adjusted a web to increase 54% as the contribution of our large scale international event and the contractual escalation of right fees from the distribution of wrong smackdown were partially offset by a decrease in network revenue and an increase in management incentive comp. The decrease in network revenue was driven by the timing of revenue attributed to the delivery of WWE network content to peacock in the quarter as compared to the recognition of subscription revenue in the prior year.
Looking at our media segment adjusted OIBDA increased 54% is the contribution of our large scale international events and the contractual escalation of right fees for the distribution of launch Smackdown were partially offset by a decrease in network revenue and an increase in management incentive comp. The decrease in network revenue was driven by the time.
<unk> of revenue attributed to the delivery of WWE network content Peacock in the quarter as compared to the recognition of subscription revenue in the prior year quarter.
Speaker 7: Although Peacock revenue was down from the prior year quarter, that decline was a function of the underlying accounting for revenue recognition related to our Peacock contract.
Although <unk> revenue was down from the prior year quarter that decline was a function of the underlying accounting for revenue recognition related to our peacock contract.
Speaker 7: or key-cut contract generates favorable economics relative to the prior subscription model, notwithstanding some variability in the revenue recognition related to our premium life
Our peacock contract generates favorable economics relative to the prior subscription model notwithstanding some variability in the revenue recognition related to our premium live events.
Speaker 7: importantly since transitioning to PECOT, network viewership of our premium live events increased 42% from their provider performance on what was our direct consumer network service.
Importantly, since transitioning to Peacock network viewership of our premium live events has increased 42% from their prior performance on what was our direct to consumer network service.
Speaker 7: Now let's turn to our live events business as shown on page 5 of our presentation.
Now, let's turn to our live events business as shown on page five of our presentation.
Speaker 7: adjusted a whim from our live events approved 8.3 million based on a 19.4 million increase in revenue with the return to live event touring. As a reminder, we did not stage any live events with ticket fans during the prior year 4th quarter.
Adjusted OIBDA from our live events improved $8 3 million based on a $19 4 million increase in revenue with a return to live inventory.
As a reminder, we did not stage any live events what ticket advance during the prior year fourth quarter.
Speaker 7: Since we returned to live event touring, we've experienced heightened demand for our live event.
Since we returned to live event touring we've experienced heightened demand for our live events.
Speaker 7: During the fourth quarter or 48 events in North America, attracted average attendance of 5200 fans, which were down from the third quarter, but roughly on par with 2019.
During the fourth quarter, our 48 events in North America attractive average attendance of 5200 fans, which was down from the third quarter, but roughly on par with 2019.
Speaker 7: in our consumer product segment, adjusted the web to increase 42% or 3.8 million, with the growth of Tribunal to our franchise video game and a higher sales of emergency dice that are live in the opinion.
In our consumer products segment, adjusted OIBDA increased 42% or $3 8 million with the growth attributable to our franchise video game and a higher and higher sales of merchandise at our live event venues sales.
Speaker 7: Sales of merchandise on our e-commerce site, WWE Shop, declined, in part due to a tough comparison to an elevated COVID-related sales in the prior year quarter.
Sales of merchandise on our E Commerce site WWE shop declined in part due to a tough comparison to an elevated COVID-19 related sales in the prior year quarter.
Speaker 7: For our consumer products business, the year was highlighted by new partnerships, including those mentioned earlier, as well as IGT to develop the WWE-branded lottery games, Igloo, and Swag. While developing these partnerships, we continue to produce one of the top-selling action figure toys and further develop the collectibles category with sales of bobbleheads led by our partner, Funko.
For our consumer products business. The year was highlighted by new partnerships, including those mentioned earlier as well as IGT to develop the WWE brand as lottery games Igloo swag, while developing these partnerships. We continue to produce one of the top selling action figure toys and further develop the collectibles category with sales of bottles.
Led by our partner Hong Kong.
Speaker 7: Historically, video games have represented one of the most dominant product categories for WWE. And we look forward to the launch of a new franchise game with Take 2 Interactive on March 11.
Historically videogames have represented one of the most dominant product categories for Ww and we look forward to the launch of a new franchise game with take two interactive on March 11th this year.
Speaker 7: Now let's turn WDE's overall cast generation as shown on slide seven of the presentation.
Now, let's turn to <unk> overall cash generation as shown on slide seven of the presentation.
Speaker 7: In 2021, we generated approximately 139 million in free cash flow as compared to 292 million in the prior year. Higher net income was more than offset by a decrease in non-cash adjustments as well as the timing of collections associated with our large scale international event and WWE network revenues and to a lesser extent an increase in capital expenditures and the majority of which was related to the construction of our new head.
In 2021, we generated approximately $139 million and free cash flow as compared to $292 million in the prior year.
Higher net income was more than offset by a decrease in noncash adjustments as well as the timing of collections associated with our large scale international event at WWE network revenues and to a lesser extent an increase in capital expenditures the majority of which was related to the construction of our new headquarters.
Speaker 7: Notably, during the year, we returned $202 million of capital to our shareholders, including approximately $166 million in share repurchases and $36 million in dividends paid.
Notably during the year, we returned 200 to millions of dollars of capital to our shareholders, including approximately $166 million in share repurchases and $36 million and dividends paid to.
Speaker 7: To date, we've repurchased $249 million of stock, 4.6 million shares, representing approximately 50% of the authorization under our $500 million share repurchase program.
To date, we've repurchased $249 million of stock $4 6 million shares representing approximately 50% of the authorization under our $500 million share repurchase program.
Speaker 7: as of December 31st, 2021. WWW held approximately $416 million in cash and short-term investment.
As of December 31, 2021, WWE held approximately $416 million in cash and short term investments.
Speaker 7: Debt totaled $223 million, including $201 million associated with the carrying value of our convertible notes.
That totaled $223 million, including $201 million associated with the carrying value of our convertible notes.
Speaker 7: We have no amounts outstanding under a revolving line of credit and estimate related debt capacity of approximately 200 million.
We have no amounts outstanding under our revolving line of credit and estimate related debt capacity of approximately $200 million.
Speaker 7: Looking ahead over the next years, we believe that WWE remains well positioned to take advantage of significant growth operatives.
Looking ahead over the next years, we believe that WWE remains well positioned to take advantage of significant growth opportunities.
Speaker 7: These include increasing the production and monetization of content, leveraging our celebrity talent and world-class production capability to fuel new content and product offerings.
These include increasing the production and monetization of content, leveraging our celebrity talent and world class production capability to fuel new content and product offerings.
Speaker 7: and capitalizing on our expanding global audience to support growth across all our business.
Capitalizing on our expanding global audience to support growth across all our business lines.
Speaker 7: We believe our long-term outlook is supported by the rising value of live sports content, increasing spend by streaming platforms on live and sports to retain and acquire customer support.
We believe our long term outlook supported by the rising value of live sports content, increasing spend by streaming platforms on live and sports to retain and acquire customers increasing brand spend with made of media companies that deliver reach and fan engagement and increasing premium for celebrities and hit content fueling new IP monetization.
Speaker 7: increasing brand spend with media companies that deliver reach and fan engagement and increasing premium for celebrities in hit content, fueling new IP monetization opportunities and the growth of media and entertainment in international markets.
<unk> and the growth of media and entertainment in international markets.
Speaker 7: In 2022, we are projecting another year of record revenue with growth driven by the full-year impact of ticketed live events, the staging of additional large-scale international events, escalation of rights fees for the company's flagship programs, and monetization of new original series.
2022, we are projecting another year of record revenue with growth driven by the full year impact of ticketed live events the staging of additional large scale international events.
Collation of rights fees for the Companys flagship programs and monetization of new original series.
Speaker 7: Additionally, we're planning for a significant increase in WWE's operating expense base associated with a higher level of activity in the coming year.
Additionally, we are planning for a significant increase in Wwe's operating expense base associated with a higher level of activity in the coming year.
Disease expense to support the full year return of live event touring expanded global production and the development of new content, they should contribute to higher revenue and profit in the near term and strengthened our fan engagement, increasing the value of our content and WWE <unk> long term growth potential.
Speaker 7: Accordingly, we have targeted an adjusted OIBDA range of $360 to $375 million, an all-time record, which is up 10 to 15% from 2021 adjusted OIBDA of $327.1 million, as revenue growth is partially offset by the increase in production content related and other expenses.
Accordingly, we have targeted an adjusted OIBDA range of $360 million to $375 million, an all time record, which is up 10% to 15% from 2021 adjusted EBITDA of $327 1 million as revenue growth is partially offset by the increase in production content related and other expenses.
Speaker 7: We previously discussed our total projected capital expenditures to support our workplace strategy as well as maintain and enhance our infrastructure.
We previously discussed our total projected capital expenditures expenditures to support our workplace strategy as well as maintain and enhance our infrastructure.
Speaker 7: In 2021, WWE had total capital of expenditures of $39 million, which included approximately $17 million to build out our new headquarters facility. With the remainder primarily focused on strengthening our production and enterprise technology.
In 2021, WWE had total capital expenditures of $39 million, which included approximately $17 million to build out our new headquarter facility with the remainder primarily focused on strengthening our production enterprise technology.
Speaker 7: For 2022, we estimate total capital expenditures of 280 to 310 million, including construction spending of approximately 235 to 255.
For 2022, we estimate total capital expenditures of $280 to $310 million, including construction spending of approximately $235 million to $255 million.
Speaker 7: As shown on page 10 of our presentation, we estimate that total capital expenditures related to the new headquarters facility through 2023 will be approximately $270 to $300 million. We expect the total project spend will be partially offset.
As shown on page 10 of our presentation, we estimate that total capital expenditures related to the new headquarters facility through 2023 will be approximately $270 million to $300 million.
We expect the total project spend will be partially offset.
Speaker 7: by tenant improvement allowances, tax credits, and proceeds from the sale of other real estate assets.
By tenant improvement allowances tax credits and proceeds from the sale of other real estate assets.
Speaker 7: total net cost of the company's new headquarters through completion. That is net of these items is estimated within a range of 160 million to 180 million.
Total net cost of the company's new headquarters through completion that is net of these items is estimated within a range of $160 million to $180 million.
Speaker 7: This range includes expenditures of approximately 70 million for IT equipment and broadcast production technology that had an accelerated part of the new headquarters project. But likely would have been spent in the absence of...
This range includes expenditures of approximately $70 million for equipment and broadcast broadcast production technology that had been accelerated as part of the new headquarters project, but likely would have been spent in the absence of this project exclude.
Speaker 7: Excluding these costs yields a net incremental investment of $90 to $110 million.
Excluding these costs yields a net incremental investment of $90 million to $110 million.
Speaker 7: I'd like to briefly summarize some of the significant benefits that support this investment, which are summarized on page 11 of our presentation.
I'd like to briefly summarize some of the significant benefits that support this investment which are summarized on page 11 of our presentation.
Speaker 7: New headquarters will provide expanded world class media production facilities and enhance our ability to deliver high quality content globally. It will consolidate four current facilities and substantially all of our employees into one location, increasing collaboration and cooperation across our businesses.
The new headquarters will provide expanded world class media production facilities and enhance our ability to deliver high quality content globally. It will consolidate four current facilities and substantially all of our employees into one location, increasing collaboration and cooperation across our businesses.
Speaker 7: It will also provide an optimized workplace and technology to attract, retain, and engage employees.
It will also provide an optimized workplace and technology to attract retain and engage employees.
Speaker 7: Importantly, it will provide for future growth while creating operational efficiency.
Importantly, it will provide for future growth, while creating operational efficiencies.
Speaker 7: You should note that we expect total capital expenditures will return to approximately 4-5% of revenue once construction of our new headquarters has been completed.
You should note that we expect total capital expenditures will return to approximately 4% to 5% of revenue once construction of our new headquarters has been completed.
Speaker 7: These expenditures would be at the low end of our historic range of approximately 4% to 7% of revenue and are predominantly to maintain or improve existing infrastructure.
These expenditures will be at the low end of our historic range of approximately 47% of revenue and our predominantly to maintain or improve existing infrastructure.
Speaker 7: As we look to the first quarter of 2022, we estimate first quarter of 2022 adjusted a web to 90 to 100 million.
As we look to the first quarter of 2022, we estimate first quarter 2022, adjusted OIBDA of $90 million to $100 million.
Speaker 7: represents an increase of approximately 7 to 19 percent from the prior year quarter.
Which represents an increase of approximately 7% to 19% from the prior year quarter.
Speaker 7: The estimate reflects substantial revenue growth from the staging of a large scale international event for which the comparable event occurred in the fourth quarter of 2021. And the impact of WBE's continued return to live event touring.
The estimate reflects substantial revenue growth from the staging of a large scale international event for which the comparable of that occurred in the fourth quarter of 2021 and the impact of W. Giving US continued return to live event touring.
Speaker 7: We also anticipate that the first quarter growth will be partially offset by the absence of one-time revenue recognition associated with the PCOT contract, as well as an increase in operating expenses, including higher production and content-related costs, as well as other activity-based expenses.
We also anticipate that the first quarter growth will be partially offset by the absence of onetime revenue recognition associated with the <unk> contract as well as an increase in operating expenses, including higher production and content related costs as well as other activity based expenses.
Speaker 7: For the fourth quarter and full year 2021, WWE generated better than expected adjusted OEB results, reflecting robust demand for our events and increased consumption of programming across platforms.
For the fourth quarter and full year 2021, WWE generated better than expected adjusted OIBDA results, reflecting both robust demand for our events and increased consumption of programming across platforms.
Speaker 7: accepting the?ll Ver Bruce and Senatorkrä horses un un un un un un un un un un
In 2022 key initiatives that could have a meaningful that could have meaningful implications for <unk> long term growth and shareholder value creation, including the licensing of WWE network in international markets modernization of New original series the licensing of raw second window rights further increases in sponsorship shell sales and the continued execute.
Our stadium strategy for our premium live events.
Speaker 7: We look forward to updating you on the progress on these initiatives in the coming year. This concludes our remarks. And I'll
We look forward to updating you on our progress on these initiatives in the coming year.
This concludes our remarks and I'll now turn it back to Seth.
Speaker 3: Thank you Frank. Operator, we're ready for Q&A. Please open the lines for questions.
Thank you Frank operator, we're ready for Q&A. Please open the lines for questions.
Speaker 2: Thank you. If you would like to signal with questions, please press star one on your touchtone telephone. If you are joining us today using a speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that will be star one. If you would like to signal with questions, star one.
Thank you if you would like to signal with questions. Please press star one on your Touchtone telephone. If you are joining us today use a speaker phone. Please make sure. Your mute function is turned off to why your signal to reach our equipment.
That will be star one if you would like to signal what questions stride one please.
Speaker 2: and our first question will come from Curry Baker with Guggenheim.
And our first question will come from Curry Baker with Guggenheim.
Speaker 8: Hey, good evening, guys. Thanks for the questions. So first one, this is probably for Frank or Nick. Your court content rights fee stepped up, $12 million sequentially or 9.4% year every year. I know you have the US rights. That escalator kicks in in the fourth quarter. Can you help us with any additional color there? Were there any renewals or one-time items to call out?
Hey, good evening guys. Thanks for the questions. So first one is probably for Frank or Nick.
Core content rights fees stepped up.
$12 million sequentially or nine 4% year over year.
No you have the U S rights that escalator kicks in in the fourth quarter can you help us with any additional color there.
Were there any renewals or onetime items to call out.
Speaker 7: Not on the core content rights, no one times, and we have the escalation that's built into the contract that we signed a few years ago. So it will continue to step.
Not on the core content rights no no one times and Lee.
The escalation that's built into the contract that we signed.
A few years ago. So it will continue to step up.
Speaker 8: Okay. So 153 is kind of the new run rate with just the escalators kicking in. Okay. I just wanted to double check that. And then my second question is probably for Stephanie or Nick.
Okay. So $1 53 is kind of the new run rate with just the escalators kicking in okay. I just wanted to double check that.
And then my second question's, probably for Stephanie or Nick.
Speaker 8: You know, on sponsorship, I know you've framed the overall opportunity as, you know, I think $100 million plus. It's an area that I think we all agree you have historically under-monetized on. Can you help us think about, you know, what you hope to achieve this year, maybe any benchmarks? And then what, if anything, is baked into the guidance for new sponsorship business?
Yes.
Sponsors on sponsorship I know you've framed up the overall opportunity is I think $100 million plus it's an area that I think we all agree you undermine or have historically under monetize dawn.
Can you help us think about.
What you hope to achieve this year, maybe any any benchmarks and then what if anything is baked into the guidance for new sponsorship business.
Speaker 6: Absolutely, I can take that, Korean. Thank you for the question. To your point, there's no reason why we won't be in the hundreds of millions over the next few years. Any guidance has already baked in to the 2022 projection.
Absolutely I can take that Corinne. Thank you for the question to.
To your point there is no reason why we won't be in the hundreds of millions over the next few years any guidance is already baked into the 2022 projections.
Speaker 6: And we are unlocking new assets, transitioning the business model from contractual to transactional. We're leveraging our unique content opportunities to really engage audiences across all platforms.
And we are unlocking new assets.
Transitioning the business model from contractual to transactional we're leveraging our unique content opportunities to really engage audiences across all platforms.
Speaker 6: and utilizing our talent truly as influencers and building that brand mode around that IP. Great, thanks for the question.
And utilizing our truly truly is as influencers and building that brand around that IP.
Great. Thanks for the questions guys.
And our next question.
Oh I'm sorry go ahead.
Speaker 2: No, next question, please. Thank you. Our next question will come from Eric Handler with MKM Partners.
Now next question. Please. Thank you. Our next question will come from Eric Handler with <unk> partners.
Speaker 3: Good evening, thanks for the question. One question for Nick and then one for Frank. Nick, I'm curious, you know, it was interesting to see the Disney Plus deal with an Indonesia for the license network.
Good evening. Thanks for the question one question for Nick and then one for Frank.
Nick I'm curious if there was anything to see the Disney plus deal with in Indonesia.
The license the network.
Speaker 9: I'm curious as you think about Disney Plus covering many countries internationally, you've got Discovery now with, you know, covering multiple countries with the Euro Sport Discovery Plus.
I'm curious as you think about Disney plus covering many countries internationally, you've got discovery now with covering multiple countries with Eurosport and discovery plus and obviously, there's many other multi country players.
Speaker 9: and obviously there's many other multi-country players.
Speaker 9: Why start with a one country deal and are you looking more to do more blanket type deals for the licensing WWP network?
I start with a one country deal and are you looking more to sort of do more blanket type deals.
Licensing WWE network.
Speaker 5: Yeah, we're looking region by region and part of the region by region approach is country by country As to what partner makes the most sense in that particular territory. So as I mentioned earlier look for more Countries to be announced in in the not too distant future But that apac region we thought disney was particularly strong there in indonesia and again, even with the
So we looked at region by region and part of the region by region approach is country by country.
As to what partner makes the most sense in that particular territory. So as I had mentioned earlier to look for more countries to be announced in the not too distant future, but that APAC region. We thought Disney was particularly strong there in Indonesia and again, even with the.
Speaker 5: The Sky Showtime approval having come in a couple of days ago on those two entities working together in different territories around the world, now you have really the U.S. based companies expanding all at the same time, give or take. So we wanted to wait for that and I think we're going to be in good shape in a couple
The Sky Showtime approval, having come in.
A days ago on those two entities working together in different territories around the world now you have really the U S based companies expanding all.
At the same time give or take so we wanted to wait for that and I think we're going to be in good shape in a couple of months.
Speaker 9: Great. And then Frank, I know you don't give revenue guidance, but I'm curious on the EBITDA growth that you are projecting, will that come, will you be able to expand margins along with that growth?
Great.
And then Frank I know you don't give revenue guidance, but I am curious on the EBITDA growth.
The growth you are.
Jack.
Will that come we will be able to expand margins.
Along with that group.
Speaker 2: Well, for next year, we think our margins at the adjusted at Web to Level will actually be down slightly. Part of that, as we've mentioned in the speech, was that we have the full cost of going back to the live touring and producing content, but we're also making investments in the business that we think will generate long-term returns. So slight degradation in margins for next year. Thank you. And our next question comes from Brandon Ross with Light Shed Partners.
Well for next year, we think our margins at the adjusted OIBDA level will actually be down slightly.
Part of that as we mentioned in the.
The speech was that we have the full cost of going back to the live touring and producing content, but we're also making investments in the business that we think will generate long term returns so slight degradation in margins for next year.
Thank you.
And our next question will come from Brandon Ross with light shed partners.
Brandon are you there.
Again your line is open. Please go ahead with your questions.
Again, Mr. Ross. Your line is open. Please go ahead with your questions.
Speaker 2: Dustin, why don't we go to the next person in the queue and we can come back to Brandon in a moment? Thank you. Our next question will come from Ben Swinburne with Morgan Stanley .
Justin why don't we go to the next person in the queue and we can come back to branded in a moment.
Our next question will come from Ben Swinburne with Morgan Stanley .
Good afternoon can you hear me.
Speaker 10: Yeah, hi, Ben. Hey, Seth. Great. I had two questions, sort of a longer term one, and more about sort of the near term on Peacock. So longer term, I want to get the team's view on opportunities around the metaverse and AR, VR. And I know it can get pretty sci-fi pretty quick. But when I think about WWE for decades, you've extended the business and the brand into new markets, both physical and digital.
Yes, Hi, Bert.
Great.
I had two questions are.
Sort of a longer term, one and more about a sort of mid near term on peacock. So so longer term I wanted to get the team's view on opportunities around the meta versus an AR VR and I know it can get pretty SIFI pretty quick, but when I think about WWE for decades, you've extended the business and the brand it's a.
New markets, both physical and digital and.
Speaker 10: You know, I could see a huge opportunity for WWE as we move into immersive digital environments. Is this an area you guys are focused on or excited about or investing in and anything you would be looking for as you look at, you know, maybe even rights deals on this front as you look out over time? Maybe I'll just leave that one there and I'll follow up after you guys take a shot at it if you have a view.
I could see a huge opportunity for WWE as as we move into immersive digital environment. So is this an area. You guys are focused on are excited about our investing in them.
Anything you would be looking for as you look at maybe even rights deals on this front as you look out over time.
Bill I'll, just slightly about one there and I'll follow up after you guys take a shot at it if you have a view.
Speaker 6: Great. Ben, this is Steph. Thank you again for the question, and yes, we are absolutely exploring the metaverse.
Great. Ben This is Jeff. Thank you again for the question and yes, we are absolutely exploring the meta versus <unk>.
Speaker 6: as an opportunity for WWE, especially as the theory unfolds that that's really where more and more people are going to go to connect and socialize.
As a as an opportunity for WWE, especially as the theory and fall because that's really where more and more people are going to go to connect and socialize WWE as a community based business. It's all about our fans coming together to share. This experience. We think there is huge opportunities to expand upon that.
Speaker 6: WWE is a community-based business. It's all about our fans coming together to share this experience.
Speaker 6: We think there's huge opportunities to expand upon that in the metaverse itself.
In the matter verse itself in terms of our approach we're doing our due diligence we're meeting with various different partners. We're learning as much as we can we don't want to be hasty in this space that being said, we certainly don't want to be behind we always like to be slightly ahead of the curve.
Speaker 6: In terms of our approach, we're doing our due diligence. We're meeting with various different partners. We're learning as much as we can. We don't want to be hasty in this space.
Speaker 6: That being said, we certainly don't want to be behind. We always like to be slightly ahead of the curve.
Speaker 6: So it is something we are actively involved in and investigating and looking into.
It's something we are actively involved in and investigating and looking into.
Speaker 10: Thank you, Stephanie. And then my follow up is maybe a little less interesting, but I was wondering if you guys would help us think about the impacts from the T-Cock deal in 22 versus 21. Any comment, maybe for Frank on sort of revenues, or costs year on year, you mentioned the accounting and has some volatility to it. I'm just wondering if there's anything you could do to help us think about the year-rear impact of T-Cock as we move into year two in 2022.
Thank you Stephanie and then my follow up is maybe a little less interesting, but I was wondering if you guys would help us.
Think about the impact from the Peacock.
Deal in 'twenty, two versus 21 any comment maybe for Frank on sort of revenues.
Our costs year on year, you mentioned, the accounting has some volatility to it I'm just wondering if there's anything you could do to help us think about the year over year impact of Peacock as we move into year, two and 2022.
Sure.
Speaker 7: Well, in 2021, when we signed the deal, just given the nature of...
Well in 2021, when we signed the deal just given the nature of the contract terms as well as revenue recognition requirements under GAAP, we recognized a significant chunk of revenue upfront related to our IP that was licensed to peacock. So in 2022.
Speaker 7: The contract terms, as well as revenue recognition requirements under GAAP, we recognized a significant chunk of revenue up front related to our IP that was licensed to Peacock. So in 2022, we won't have that. And in addition, the way that we recognize revenue is dependent on the timing and number of premium live events.
We won't have that.
In addition, the way that.
We recognize revenue is dependent on the timing and number of.
Premium live events.
Speaker 7: So that can change how much revenue we recognize.
So that that can change how much revenue we recognize.
Speaker 7: But I think net of those items, we expect an increase in peacock revenue in the year. So we can talk a little bit more about this on a separate call, if you like, to get into the details of the accounting. But that's the puts and takes.
But I think net of those items, we expect.
An increase in Peacock revenue in the year.
So if.
We could talk a little bit more about this.
On a separate call if you'd like to get into the details of the accounting, but that's the puts and takes.
Speaker 7: The contract also, under the accounting, has an escalation in it by design for the accounting, so that's a plus in 2020.
Contract also under the accounting has an escalation in it.
By design.
For the county, so that's a plus in 2022.
Speaker 7: So slightly up in 2022, notwithstanding the upfront in 2021.
Slightly up in 2022, notwithstanding the upfront in 2021.
Thank you Frank.
Speaker 2: Thank you. Our next question will come from Stephen Cahal with Wells Fargo.
Thank you. Our next question will come from Steven Cahall with Wells Fargo.
Speaker 11: Thanks. Maybe just first a couple of questions on the 2022 guidance. I'm wondering what type of media OPEX growth is implied in there? That's always a tough one to model, so any commentary on that?
Thanks, maybe just first a couple of questions on the 2022 guidance I'm wondering what type of media Opex growth is implied in there that's always a tough one to model. So any commentary on that second sorry, if I missed this should we assume two large scale international events and then I think you mentioned the other.
Speaker 11: Second, sorry if I missed this, should we assume two large scale international events?
Speaker 11: And then I think you mentioned the other content monetization is one of the drivers of Oivida growth in fiscal 22. What can we read into that? And is that the international deals that are still to be signed or is that stuff that's already on contract? So any future international digital rights would be atop that. Thank you.
Monetization is one of the drivers of OIBDA growth in fiscal 'twenty, two what can we read into that and is that the international deals that are still to be signed or is that stuff. That's already on contract. So any future international and digital rights would be a top that thank you.
Speaker 12: I don't think we're gonna give any guidance, you know, specifically on media. Spend, although I think it's...
So I don't think we're going to give any guidance specifically on media spend although I think.
<unk>.
Speaker 12: I will just say that the increase in media is largely a function of the cost of going to full-year touring and some of the bigger international events that we have in the plan for next year. Yes, we do have a plan for at least two large international events next year.
Yes, I would just say that it's largely the.
Increase in media is largely a function of the cost of going to full year touring and some of the bigger international events that we have in the plan for next year and yes, we do have.
Planned for for at least two large international events.
Next year.
And what was the third part of your question.
Speaker 11: The other content monetization that I think you've talked about, is that digital rights still to be contracted, or would a future digital rights deal be atop the current guidance?
The other content monetization, but I think you've talked about is that digital rights still to be contracted or wood future.
Future digital rights <unk> atop the current guidance.
Speaker 7: Well, the two things that we're really referring to there, one, are some of the new content we're creating for new partners. Those are not announced yet, so we're not going to speak to that. In addition, we do have the Hulu deal that's up next year, I mean this year, so those would be the two items. We're not... There's other opportunities internationally with respect to the network and other content deals internationally.
Well the two things that we're really referring to there wanted or that some of the new content, we're creating for new partners.
Those are not announced yet so we're not going to speak to that.
In addition, we do have the Hulu deal that's up next year.
So there's always this year so those would be the two items were not theres other opportunities internationally.
With respect to the network and other kind of other content deals internationally as well.
Speaker 5: Great. Thank you. Always, Steven, just quickly on the international large scale events, why just limited to two? Let's see how it looks in the next couple of months. Thank you.
Great. Thank you David just quickly on the international large scale events.
Why just limit it to two.
Let's see how it looks in the next couple of months.
Great. Thank you.
Thank you.
Speaker 2: Thank you. Our next question will come from David Karnofsky with JPMorgan.
Thank you. Our next question will come from David Karnofsky with J P. Morgan.
Speaker 11: Thanks for taking the question. Just one for Nick or Stephanie, can you discuss in more detail the Next in Line program? I'm just interested to know how this is different or improved relative to the way you traditionally recruited talent from some of the regional or smaller promotions.
Hi, Thanks for taking the question just one for Nick or Stephanie can you discuss in more detail. The next in line program just interested to know how this is kind of different or approved relative to the way you traditionally recruited talent from some of the regional or smaller promotions.
Speaker 6: Absolutely, David. This is Steph again, and thank you for the question. It is absolutely an evolution of our process. You know, the NIL program, I think, offers WWE more opportunity than any other brands who are partnering with these collegiate athletes because it is such a recruiting tool.
Absolutely David This is Jeff again, and thank you for the question. It is absolutely an evolution of our process. The Nio program I think operate up offers WWE more opportunity than any other brands who are partnering with these collegiate.
Our fleets because it is such a recruiting tool.
Speaker 6: You have, you know, elite level college athletes with big brands and personalities that, you know, otherwise wouldn't necessarily have a path forward. Think about how many people actually make it into the NFL or how many people actually make it into the NBA, et cetera. It's a very, very small pool and you're left with some incredibly talented athletes who really have no options to move forward with their athletic careers.
You have elite level college athletes with big brands and personalities.
That otherwise wouldn't necessarily have a path forward think about how many people actually make it into the NFL or how many people actually make it into the NBA et cetera, It's a very very small pool and you're left with some incredibly talented athletes, who really have no options to move forward with their athletic careers.
Speaker 6: save for WWE. The NIL program now offers that pathway. We have a recruiting website tied to the NIL program and not only the athletes that we have under contract but now all of the athletes who follow those athletes are going to be coming into the pipeline and we have been seeing a number of college athletes signing up on our tryout site.
<unk> for WWE. The Nio program now offers that pathway, we havent recruiting website tied to the Nio program and not only the athletes that we have under contract, but now all of the athletes who follow those athletes are going to be coming into the pipeline and we have been seeing a number of college athlete.
Signing up on our try out our site.
Speaker 5: I would also add into that, David, just off the top of our heads, Big E, University of Iowa, Roman Reigns, Georgia Tech, Dwayne Johnson, University of Miami, Goldberg, University of Georgia. It's those folks, just one step away from making it to the NFL, who are amazing athletes, big personalities who we think can cross over, so why not get involved in their lives at an early stage? It made all the sense in the world.
I would also add into that David just off the top of our heads Biggie University of Iowa Roman reigns, Georgia Tech Dwayne Johnson University of Miami Goldberg University of Georgia, It's those folks just one step away from making it to the NFL who are amazing athletes big.
Personalities, who we think can crossover so why not get involved in their lives at an early stage. It made all the sense in the world for us.
Speaker 10: Okay, and then Nick, this morning your partner in the UK, BT Sport, they announced a new joint venture to pursue sports rights. Just wanted to get your early thoughts on how this potentially impacts that market and maybe the timing of negotiating network distribution in there.
Okay and then Nick this morning your partner in the UK BT sport, they announced a new joint venture to pursue sports rights just wanted to get your early thoughts on how this potentially impacts that market and maybe the timing of negotiating network distribution in there.
Speaker 5: Yeah, look, it's, as we know, there's now more buyers in that region. So whether, you know, the zone obviously did not acquire BT, as we all read, and as I'm sure we're all following. And now we'll see if the joint venture comes to fruition and what that looks like. BT has been an amazing partner to us, but WWE Network there is still agnostic. So that's a, you know, territory where we're having deep conversations with a number of different parties.
Yeah look it's as we know there is now more buyers in that region. So whether the zone, obviously did not acquire beauty as we all read and as I'm sure. We're all following and now we'll see if the joint venture comes to fruition and what that looks like a beachy has been an amazing partner.
US, but WWE network, there is still agnostic so betsy.
Territory, where we're having deep conversations with a number of different parties.
Thank you.
Speaker 2: And our next question will come from Jason Bazinet with...
And our next question will come from Jason Bazinet with Citi.
Speaker 13: I just had a question on media rights in terms of how you guys think about the fair value of your content.
I just had a question on media rights in terms of how you guys think about the fair value of your content to the <unk>.
Speaker 13: you know, legacy linear world versus...
Legacy linear world versus direct to consumer world because it just.
Speaker 13: I can imagine, as you're thinking about the value of your content, on the linear side, it has a certain set of variables, you know, pay TV penetration, affiliate fees, viewership. But it seems like the calculus would be very, very different in a direct way.
I can imagine that youre thinking about the about your content on the linear side that has a certain set of variables pay TV penetration in affiliate fees viewership.
But it seems like the calculus would be very very different and a direct to consumer world and how you think about the value you deliver do.
Do you mind without talking numbers or specific partners just walking through some of it.
Compare and contrast, the key variables.
Speaker 5: Absolutely Jason, a couple things on the winner side. I think we've all collectively seen that scripted content is no longer necessarily working on broadcast television. Certainly not in the way that it used to work. You're seeing the premium...
Absolutely Jason a couple of things on the linear side I think we've all collectively seen that screw.
<unk> content is no longer necessarily working on broadcast television certainly not in the way that it used to work.
In the premium.
Speaker 5: Unscripted creators shifting to streaming obviously that started with Netflix years ago so there's more openings in the broadcast linear space for live and Unscripted content at the same time in basic cable You're seeing live work. They're as effective as it's working in broadcast television
Scripted creators shifting to streaming obviously that started with Netflix eight years ago. So there's more openings in the broadcast linear space for live and unscripted content at the same time and basic cable Youre seeing live work there as <unk>.
<unk> is its working in broadcast TV scripted content. There also struggling a little bit which creates more open real estate again your top scripted content creators have really moved to streaming that you'll look at streaming and you look at even the deals that I had mentioned earlier in the call.
Speaker 5: scripted content there also struggling a little bit, which creates more open real estate. Again, your top scripted content creators have really moved to streaming. Then you look at streaming, and you look at even the deals that I had mentioned earlier in the call, all of those are almost exclusively in the streaming space.
All of those are almost exclusively in the streaming space. So we all know from a few years ago that it was going to be the streaming wars and that there would be a lot of beneficiaries from that.
Speaker 5: So we all know from a few years ago that it was going to be the streaming wars and that there would be a lot of beneficiaries from that.
Speaker 5: We'd like to think that we're one of those with our peacock field, that that will grow at the same time broadcast and basic cable has been good to us. And people are still tuning in again, other than scripted content in meaningful ways. So we think we have the triple play.
We'd like to think that we're one of those with our Peacock deal that that will grow at the same time broadcast and basic cable has been good to us and people are still tuning in again other than scripted content and meaningful ways. So we think we have the triple play there.
Speaker 13: Is it fair to say that it's more about your ability to deliver net ads?
Is it fair to say that it's more about your ability to deliver net ads or a part of.
Is that does that but ultimately is the key driver.
Speaker 5: I think advertiser-friendly content certainly helps on broadcast network. It definitely helps on basic cable. If you look at where some of the streaming models are going with ad-supported tiers, you need content that can obviously be sold to advertiser.
I think advertiser friendly content certainly helps on broadcast network. It definitely helps on basic cable if you look at where some of the streaming models or going with AD supported tiers, you need content that can obviously be sold to advertisers. So we think our peacock deal, which we're thrilled with.
Speaker 5: So we think our peacock deal, which we're thrilled with, we can without perform on that platform in a, you know, short period of time over nine to 10 months. So subscription side, we think we deliver.
<unk>.
We think we've outperformed on that platform in a short period of time over nine to 10 months. So subscription side, we think we deliver free to air side, We think we deliver with advertiser friendly content basic cable, we'd like to think we deliver as well.
Speaker 5: Breda Airside, we think we deliver with advertising-friendly content. Basic Cable, we like to think we deliver as well.
Very helpful. Thank you.
Thanks, Jason.
Speaker 2: And we will go to Brandon Ross with Light Shed Partners.
And we'll go to Brandon Ross with light shed partners.
Hey, guys hopefully you can hear me this time.
Yes, we got you okay.
Speaker 14: Thankfully, okay. So I had to drop out for a minute, not sure if any of these questions were asked, but first, was wondering if you gave an update on how you're feeling and how things are progressing with the raw second window renewal?
Thankfully okay.
So I had to drop out for a minute not sure if any of these questions were asked but burst.
Was wondering if you gave an update on how you're feeling and how things are progressing with the raw second window renewal.
Speaker 5: We did not. We were not asked that question. Happy to answer it here. We feel as good about that as we did our Ron Smackdown deals a few years ago and as we did our WWE Network deal with Peacock.
We did not we were not asked that question happy to answer here.
We feel as good about that as we did our raw and Smackdown deals a few years ago and as we did our WWE network deal with Peacock.
Speaker 14: Great. And then Nick, in your introductory remarks, you opined on consolidation across TMT. I know that you're strategic when you write these scripts. So it's wondering if you were trying to message something there, or really how do you see WWE as a possible strategic piece in this M&A way, weren't there one more?
Great and then Nick in your introductory remarks, you opined on consolidation across PMT.
I know that your strategic when you write the script. So I was wondering if you were trying to message something there or really how how do you see WWE as a possible strategic piece in that Emma.
M&A wave, where it then I have one more.
Speaker 5: So, thanks for the kind words. I don't know how strategic it is, just how organic it is.
Sure. Thanks for the kind words, I dunno, how strategic it is.
Our organic it is what the message we're trying to convey suddenly or overtly is it appears to us that every platform every business wants to be in business in a material way with people, who can create content, which we've been doing here as you know for 35 years plus so.
Speaker 5: What the message we're trying to convey subtly or overtly is it appears to us that every platform, every business.
Speaker 5: wants to be in business in a material way with people who can create content, which we've been doing here, as you know, for 35 years.
Speaker 5: So we think, you know, there's even more buyers now, as we all know, than there were three years ago. We think in two years from now, there's going to be even more buyers than there are now. So that was what was reflected in those comments.
We think theres, even more buyers now as we all know than there were three years ago. We think in two years from now theres going to be even more buyers than there are now so that was.
That was what was reflected in those comments.
Got you and then finally.
Speaker 14: In your introductory remarks, you also talked about the importance of the extra engagement that you've been able to build through Peacock versus when you own the WWE Network. And your last Raw and SmackDown deal you did with Fox, and one of the reasons was because it provided you with the widest possible distribution. And as you look towards your renewals for Raw and SmackDown coming up in a couple of years,
In your introductory remarks, you also talked about the importance of the extra engagement that you've been able to build through peacock.
Versus when you own the WWE network and Youre last run Smack down deal you did with Fox and one of the reasons, what's because it.
It provided you with the widest possible distribution and as you look towards your renewals for raw and Smackdown, coming up in a couple of years.
Speaker 14: Do you think that broadcast is still going to be the right avenue to pursue or with all of the eyeballs that are shifting to streaming? Do you think that a streamer might be the way to go?
Do you think that broadcast is still going to be the right avenue to pursue or with Av.
The eyeballs that are shifting to streaming do you think that a stream or might be the way to go.
Speaker 5: Couple things, number one, we're extremely pleased with our partnership with Fox, and obviously we believe in what they're doing. If, just off the top of our head, if you look at where the playoffs and finals of these sports live, and keep in mind, our playoffs and finals, our premium live events, are living on Peacock, our regular season, if you will, on Fox in USA. Super Bowl upcoming in a week and change, NBC NBA Finals.
A couple of things number one we're extremely pleased with our partnership with Fox and obviously, we believe in what they're doing.
Just off the top of our head if you look at where the playoffs and finals of the sports live and keep in mind, our playoffs and finals are premium live events are living on Peacock. Our regular season, if you will on Fox and USA.
Super Bowl upcoming and we can change NBC NBA finals in June .
Speaker 5: in June ABC, the final four matchup, a combination of Turner and CBS .
See.
The final format shop, a combination of Turner and CBS . So we feel still think that you are seeing big event programming there.
Speaker 5: So we still think that you're seeing big event programming there.
Speaker 5: We won't dismiss or discount those buyers as to where the future is going. We think they're real. We also realize the world that we're all living in, where premium dollars are being paid for premium content, certainly not only on Peacock, but on all of the other streamers as we know. When Vince, Steph, and company launched WWE Network in 2014, they really just had to be the second best after Netflix to be the second best in the world.
We won't dismiss or discount those buyers as to where the future is going we think they are real we also realized a world that we're all living in where premium dollars are being paid for premium content certainly not only on peacock, but on all of the other streamers as we know with Vince Stefan Company launched WWE network.
In 2014, they really just has to be the second best after Netflix to be the second best in the world.
Speaker 5: And if you want to slide Rulu in there, then third best in the world. Now, as you know, it's a cluttered marketplace. So made all the sense of the world to partner up with T-Foc on that one. And we'll see where we are coming the next right steel.
If you want a slight move in there than third best in the World now as you know, it's a cluttered marketplace. So made all the sense of the world to partner up with Peacock on that one and we'll see.
We'll see where we are come the next rights deal.
And your Super Bowls Peacock great.
Speaker 14: Are you coming this year or are you not attending? I hope to be there.
So media coming this year or are you not attending.
I hope to be there.
Speaker 3: Thank you. You know the special pile driver ready for you from the other day. I bet you do. I'll stay waiting. Operator, we have time for one.
Productivity there.
We have a special pile driver are ready for you from the others.
Okay.
I bet you do.
I'll just say that.
Okay.
Thanks.
Operator, we have time for one last question. Please.
Speaker 2: Thank you and that question will come from David Joyce with Barks.
And that question will come from David Joyce with Barclays.
Speaker 15: Thank you. A couple of questions, please. First, on the international event that you held back in October , was there anything different about the economics there compared to your typical events that you've been holding in that region historically? And then secondly, on Peacock,
Thank you a couple of questions. Please first on the international a bit that you held back in October .
Was there anything.
Different about the economics, there compared to your.
Typical events that you've been holding in there.
Region.
Historically, and then secondly on Peacock.
Speaker 15: Are you generating any revenue and EBITDA from any performance metrics maybe that you have a contractually agreed to with BCOC? Thank you.
Are you generating any.
Revenue and EBITDA from.
Albert Danielle performance metrics, maybe that you have contractually agreed to with Peacock.
Speaker 7: So on the International Window, the economics are very similar to the other events. International Window.
So on the international that know the economics are very similar to the other events international as we build.
Speaker 7: And no, the peacock deal is a contractual deal with fixed amount of revenue. There's no escalation. You know, there is
And no the Peacock deal as a contractual deal with fixed.
Fixed amount of revenue there's no escalation.
There is.
Speaker 7: they can be able to earn more sponsorship money, but not based on viewership.
The ability to earn more sponsorship money, but not not based on viewership.
Okay. That's all from me thank you.
Speaker 3: All right, well thank you everyone. We appreciate you listening to the call today. If you have any follow up questions, please don't hesitate to contact me. Operator, you can conclude the call now.
Alright, well. Thank you everyone. We appreciate you listening to the call today do you have any follow up questions. Please don't hesitate to contact me.
Operator, you can conclude the call now.
Speaker 2: Thank you. That does conclude today's conference. We do thank you for your participation. Heavens.
Thank you that does conclude today's conference. We do thank you for your participation and have an excellent day.