WWE reported third-quarter net income of $21.8 million, up significantly from third-quarter 2016”™s $11.1 million, while operating income increased to $33.9 million from $18.3 million. As a result, executives predicted record results moving forward.
Chief Strategy and Financial Officer George Barrios attributed the 14 percent revenue increase to the monetization of video content. “As we continue to drive WWE”™s digital and direct-to-consumer transformation, we have increased our 2017 guidance, which calls for record revenue, record adjusted OIBDA (operating income before depreciation and amortization) results, and record subscriber levels,” he said.
For the fourth quarter, the Stamford company projected average paid subscribers to WWE Network of 1.47 million and estimated its adjusted OIBDA of approximately $31 million to $35 million, up from fourth-quarter 2016”™s $20.5 million. WWE expects those increases to be driven by contractual escalation of television rights fees and the continued growth of WWE Network subscribers, as well as more favorable year-over-year comparisons in its fixed cost base.
For the full year 2017, WWE projected average paid subscribers to WWE Network of approximately 1.53 million, representing year-over-year growth of 8 percent, and record adjusted OIBDA of $108 million to $112 million.
In 2018, management expects the company to achieve another year of record revenue and has targeted adjusted OIBDA of at least $115 million.
