W W E Q 4 A N D F U L L Y E A R R E S U LT S F E B R U A R Y 8,

Similar documents
FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS

W W E Q R E S U LT S J U LY 2 7,

FORWARD-LOOKING STATEMENTS

Forward-Looking Statements

W W E Q R E S U LT S M AY 4,

WWE INVESTOR PRESENTATION

FORWARD-LOOKING STATEMENTS

WWE INVESTOR PRESENTATION

WWE INVESTOR PRESENTATION

W W E I N V E S T O R N E T W O R K P R E S E N TAT I O N A P R I L 9,

W W E I N V E S T O R P R E S E N TAT I O N - J A N U A R Y

W W E I N V E S T O R N E T W O R K P R E S E N TAT I O N A P R I L 3,

REVISED HISTORICAL TRENDING SCHEDULES: BASIS OF PRESENTATION

2018 TRENDING SCHEDULES - BASIS OF PRESENTATION

WWE Reports Strong Q Results & Targets Record Results in 2018

2018 TRENDING SCHEDULES - BASIS OF PRESENTATION

2016 TRENDING SCHEDULES - BASIS OF PRESENTATION

WWE Reports Strong Fourth-Quarter Achieving Record Results for 2017

WWE Reports Record Results For Fourth Quarter and Full Year 2018

WWE Reports Record Revenue and Q Results

WWE 2016 TRENDING SCHEDULES - BASIS OF PRESENTATION

WWE 2016 TRENDING SCHEDULES - BASIS OF PRESENTATION

WWE Reports 2010 Fourth Quarter and Full Year Results, Posting Record Full Year EBITDA and 6% Rise in Net income

World Wrestling Entertainment, Inc. (Exact name of registrant as specified in its charter)

NLSN 4Q and FY 2011 Investor Presentation

DISCOVERY, INC. REPORTS SECOND QUARTER 2018 RESULTS

Q Earnings. GAAP to Non-GAAP Reconciliation

Q Earnings. GAAP to Non-GAAP

THE WALT DISNEY COMPANY REPORTS RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR 2005

F O U R T H Q U A R T E R R E S U L T S February 6, 2018

Fourth Quarter 2017 Earnings Presentation

1Q 2013 INVESTOR PRESENTATION

NIELSEN REPORTS 2nd QUARTER 2018 RESULTS Conducting a Strategic Review of Buy Segment

Investor Presentation Q2 2017

Q EARNINGS PRESENTATION

SNAP INTERACTIVE, INC. Third Quarter 2017 Earnings Call November 7, 2017

THE WALT DISNEY COMPANY REPORTS IMPROVED RESULTS FOR THE YEAR ENDED SEPTEMBER 30, 2003

News Release. Investor Relations: Amy Glynn/Yaeni Kim, /5391 Media Relations: Anne Taylor Adams,

NLSN 2Q 2011 Investor Presentation

Q EARNINGS PRESENTATION

LIONS GATE ENTERTAINMENT CORP. TRENDING SCHEDULES BASIS OF PRESENTATION

Third Quarter 2018 Earnings Presentation

Q3 FY2014 Earnings Presentation November 4, 2014

News Release. Investor Relations: Sara Gubins, Media Relations: Anne Taylor Adams,

Raymond James 37 th Annual Institutional Investors Conference. March 8, 2016

DISCOVERY, INC. REPORTS FIRST QUARTER 2018 RESULTS

THE WALT DISNEY COMPANY REPORTS HIGHER RESULTS FOR THE QUARTER AND NINE MONTHS ENDED JUNE 30, 2004

THE WALT DISNEY COMPANY REPORTS RESULTS FOR THE QUARTER AND NINE MONTHS ENDED JULY 2, 2005

Safe Harbor. Non-GAAP Financial Information

GOPRO BY THE NUMBERS IPO IN JUNE ESTABLISHED IN HQ IN EMPLOYEES. >14mm capture devices sold; #1 camera/camcorder by $ share in U.S.

Acquisition of Dealer Inspire and Launch Digital Marketing

LIONSGATE REPORTS RESULTS FOR FISCAL 2016

CBS CORPORATION REPORTS FIRST QUARTER 2013 RESULTS $4 6% OIBDA

Investor Presentation Q1 2017

LIONS GATE ENTERTAINMENT CORP. TRENDING SCHEDULES BASIS OF PRESENTATION

Investor Overview Presentation. August 2018

TO OUR SHAREHOLDERS 2017 BREAKING RECORDS (AGAIN) BUILDING ON STRENGTH

Univision Lender Presentation Term Loan Amend and Extend. March 2nd, 2017

Helping Clients Win with Digital

EARNINGS RELEASE FOR THE QUARTER ENDED SEPTEMBER 30, 2017

William Blair Growth Stock Conference. June 13, 2012

LIONSGATE REPORTS RESULTS FOR FIRST QUARTER 2018

EVINE Live Inc. (Exact name of registrant as specified in its charter)

2 nd QUARTER 2016 RESULTS. July 27, 2016

LIONSGATE REPORTS RESULTS FOR THIRD QUARTER 2016

Investor Presentation

Caution Concerning Forward Looking Statements and Non-GAAP Financial Measures

Gannett Company Overview

Live Nation Entertainment Reports First Quarter 2016 Financial Results

THE WALT DISNEY COMPANY REPORTS INCREASED THIRD QUARTER EARNINGS

Financial Highlights Q May 3, 2018

THE WALT DISNEY COMPANY REPORTS EARNINGS FOR THE QUARTER AND NINE MONTHS ENDED JUNE 30, 2003

CBS CORPORATION REPORTS RECORD RESULTS IN THE SECOND QUARTER OF 2012

Live Nation Entertainment, Inc. (Exact name of registrant as specified in its charter)

Avid Technology Q Business Update November 9, 2017

EARNINGS RELEASE FOR THE QUARTER ENDED DECEMBER 31, 2017

4th QUARTER AND FULL-YEAR 2018 RESULTS. January 23, 2019

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C FORM 10- Q

CBS CORPORATION REPORTS SECOND QUARTER 2013 RESULTS

THE WALT DISNEY COMPANY REPORTS HIGHER RESULTS FOR THE QUARTER AND SIX MONTHS ENDED MARCH 31, 2004

Q2 FY2015 Earnings Presentation August 4, 2015

Investor Presentation

LIONS GATE ENTERTAINMENT CORP. TRENDING SCHEDULES BASIS OF PRESENTATION

Click here to edit the name of your presentation. Fourth Quarter and Full Year Earnings Results

Investor Presentation

FOR IMMEDIATE RELEASE Contacts: Zenia Mucha November 18, John Spelich

Corus Entertainment Annual Report

THE WALT DISNEY COMPANY REPORTS FIRST QUARTER EARNINGS

EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2018

LIONS GATE ENTERTAINMENT CORP. TRENDING SCHEDULES BASIS OF PRESENTATION

Goldman Sachs Communacopia Conference. September 19, 2012

THE WALT DISNEY COMPANY REPORTS RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2004

CPI Card Group Inc. Reports Fourth Quarter and Full Year 2016 Results

Vonage 2017 Results Powered by 33% GAAP Business Revenue Growth; Company Continues to Execute on Its Strategic Growth Initiatives

Snap Interactive Reports Results for the Quarter Ended June 30, 2015

CBS CORPORATION REPORTS THIRD QUARTER 2013 RESULTS $3.6 11% OIBDA

Q1 FY2015 Earnings Presentation May 5, 2015

Live Nation Entertainment Reports Third Quarter 2018 Financial Results

SAFE HARBOR STATEMENT

Transcription:

W W E Q 4 A N D F U L L Y E A R 2 0 7 R E S U LT S F E B R U A R Y 8, 2 0 8

Forward-Looking Statements This presentation contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 995, which are subject to various risks and uncertainties. These risks and uncertainties include, without limitation, risks relating to: WWE Network (including the risk that we are unable to attract, retain and renew subscribers); major distribution agreements; our need to continue to develop creative and entertaining programs and events; the possibility of a decline in the popularity of our brand of sports entertainment; the continued importance of key performers and the services of Vincent K. McMahon; possible adverse changes in the regulatory atmosphere and related private sector initiatives; the highly competitive, rapidly changing and increasingly fragmented nature of the markets in which we operate and greater financial resources or marketplace presence of many of our competitors; uncertainties associated with international markets; our difficulty or inability to promote and conduct our live events and/or other businesses if we do not comply with applicable regulations; our dependence on our intellectual property rights, our need to protect those rights, and the risks of our infringement of others intellectual property rights; the complexity of our rights agreements across distribution mechanisms and geographical areas; potential substantial liability in the event of accidents or injuries occurring during our physically demanding events including, without limitation, claims relating to CTE; large public events as well as travel to and from such events; our feature film business; our expansion into new or complementary businesses and/or strategic investments; our computer systems and online operations; privacy norms and regulations; a possible decline in general economic conditions and disruption in financial markets; our accounts receivable; our indebtedness; litigation; our potential failure to meet market expectations for our financial performance, which could adversely affect our stock; Vincent K. McMahon exercises control over our affairs, and his interests may conflict with the holders of our Class A common stock; a substantial number of shares are eligible for sale by the McMahons and the sale, or the perception of possible sales, of those shares could lower our stock price; and the relatively small public float of our Class A common stock. In addition, our dividend is dependent on a number of factors, including, among other things, our liquidity and historical and projected cash flow, strategic plan (including alternative uses of capital), our financial results and condition, contractual and legal restrictions on the payment of dividends (including under our revolving credit facility), general economic and competitive conditions and such other factors as our Board of Directors may consider relevant. Forward-looking statements made by the Company speak only as of the date made and are subject to change without any obligation on the part of the Company to update or revise them. Undue reliance should not be placed on these statements. For more information about risks and uncertainties associated with the Company s business, please refer to the Management s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of the Company s SEC filings, including, but not limited to, our annual report on Form 0-K and quarterly reports on Form 0-Q. This presentation contains non-gaap financial information, including OIBDA. We define OIBDA as operating income before depreciation and amortization, excluding feature film and television production amortization and related impairments. OIBDA is a non-gaap financial measure and may be different than similarlytitled non-gaap financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for the Company's business. OIBDA should not be regarded as an alternative to operating income or net income as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA. Reconciliations of OIBDA to operating income can be found in the Company s earnings release dated February 8, 208. 2

207: Another Year of Record Achievements For the year, achieved record revenue of $80M and record Adjusted OIBDA of $2M, which was at the high-end of our guidance For the year, WWE Network s average paid subscribers increased 8% to.53m On social and digital platforms, WWE content reached a record 20B video views (up 32% from 206); social media engagements increased 4% to.2b WWE s YouTube channel remained the # most viewed Sports Channel and the 2nd most viewed channel on YouTube with 20B lifetime views Formed partnerships to create content across multiple platforms including: - Mixed Match Challenge, a live in-ring series that launched on Facebook Watch on Jan 6; Facilitates mobile consumption and social interaction - Miz & Mrs., a reality program that will air on USA Network - Virtual reality experiences, partnered with NextVR to produce content from select 208 special events for the NextVR app This January, we celebrated the 25th anniversary of Raw, which ranked # on cable and #3 on all of TV; Best ratings in 3 years for the Jan 22 event Recently, held first women s Royal Rumble, which was highlighted by appearance of Ronda Rousey Pleased with performance. Looking forward to 208 and expect to achieve record revenue, record Adjusted OIBDA and record subscribers 3

WWE Financial Highlights 207 ($ in millions) Revenue Operating Income Adjusted OIBDA $729.2 +0% $80.0 +36% $75.6 +40% $.9 $55.7 $80. 206 207 206 207 206 207 208 financial results reflected the successful execution of WWE s content strategy: to increase the monetization of video content by creating compelling original programming, leveraging a large social and digital footprint to increase engagement, and utilizing data analytics to optimize performance Operating income increased 36% with a 0% increase in revenue to over $800M. WWE achieved the highest annual revenue and Adjusted OIBDA in the Company s history and exceeded the financial objectives that were established at the start of 207 A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation 4

Q4 207: Financial Highlights ($ in millions) Revenue Operating Income Adjusted OIBDA 94.9 2.4 27.8 38.6 +9%. 2.6 9.6.6 30.0 35.2 3.9 6.2 9.7 48. +94% 27.0 0.3. 5.4 63.5 20.5 9.7 6.2 5.2 +70% 34.8.8. 5.4 66.4 25.0 35.2 (49.0) (53.3) (.) (45.5) (49.9) (.) Q4 206 Q4 207 Q4 206 Q4 207 Q4 206 Q4 207 Corporate & Other WWE Studios Consumer Products Live Events Media A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation 5

Q4 207: Media Division ($ in millions) Revenue Operating Income Adjusted OIBDA 25.0 4.2 8.5 43.7 +8% 35.2 0.9 2.8 46.2 48. 3.7 +32% 63.5 5.8 9. 5.2.9.9.9.9 5.5 +30% 66.4 5.9 2.0 68.6 75.3 30.6 39.3 3.9 40.3 (0.7) (0.8) Q4 206 Q4 207 Q4 206 Q4 207 Q4 206 Q4 207 Home Entertainment Digital Media Network Television A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation 6

Q4 207: Live Events ($ in millions) Revenue Operating Income Adjusted OIBDA 38.6-9% 35.2 6.2-3% 5.4 6.2-3% 5.4 Q4 206 Q4 207 Q4 206 Q4 207 Q4 206 Q4 207 A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation 7

Q4 207: Consumer Products ($ in millions) Revenue Operating Income Adjusted OIBDA 27.8 4.9 +8% 30.0 4.4 9.7 2. +4%..8 2.8 9.7 2. +4%..8 2.8 2.8 4.3 3.0 3.0 0..3 4.6 6.5 4.6 6.5 Q4 206 Q4 207 Q4 206 Q4 207 Q4 206 Q4 207 Venue Merchandise WWEShop Licensing A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation 8

Capital Structure ($ in millions) Cash & ST Investments Free Cash Flow $267. +$30.3 $297.4 $7.9 +$39.7 $32.2 206 207 206 207 As of Dec. 3, 207, WWE held ~$297M in cash and short-term investments and had ~$00M in debt capacity under the Company s revolving credit facility Free Cash Flow year-to-date increased ~$40M over the prior year period to ~$72M reflecting the change in cash from operating activities and $4.9 million paid towards the purchase of a building and underlying real property in the prior year period 9

WWE Operational Highlights 207 Made meaningful progress creating new content that reflects the evolving preferences of fans, particularly as it relates to mobile consumption and social interaction Developed a new in-ring series, Mixed Match Challenge, that premiered live on Facebook Watch Announced a new docuseries, Miz & Mrs., that will air on USA network Marked milestone in women s evolution with first Royal Rumble match featuring female superstars and surprise appearance of Ronda Rousey Continued to deliver strong viewership: Raw and Smackdown remained the # and #2 programs on USA; WWE Network continued to be a leader in directto-consumer video; Digital consumption increased 32% to 20B video views Global sponsorship revenue across platforms increased 30% in 207 Innovation across WWE: strengthened talent base, launched new mobile games, delivered # action figure, applied data analytics to enhance marketing 0

Planned financial reporting changes Effective starting with Q 208 results Segment Reporting (Including Allocation of Business Support Costs) Adjusted OIBDA Definition Revenue Recognition

Revised Business Segment Reporting Effective starting with Q 208 results WWE has executed a successful business transformation, with an increasing share of revenue coming from the monetization of video content Given this ongoing transformation, management has continued to evolve the way it analyzes results and allocates resources To reflect its revised perspective, the Company is implementing changes in the structure of its reported segments, reducing the number of reported segments from 0 to 3 (WWE Studios to be included in Media) The Company plans to allocate certain Business support costs, such as talent development/training, marketing, business strategy and data analytics, to the revised segments Plan to provide greater visibility into WWE s revenue streams, such as entertainment rights fees, advertising and sponsorship revenue The Company believes the revised presentation of results will be more informative for users of the financial statements and that the revised structure and allocation of costs will be more consistent with that of its media peers 2 3 4 5 6 7 8 9 0 Prior 0 Segments Network Television Home Entertainment Digital Media WWE Studios Live Events Licensing Venue Merchandise WWE Shop Corporate & Other Revised Segments 2 3 Media Live Events Consumer Products Corporate * Note: We also plan to evaluate and revise the disclosure of key operating metrics 2

The revised business segments expected to reflect WWE s operations as described below Prior 0 Segments Revised Segments Key Drivers of Revenue and Performance 2 3 4 Network Television Home Entertainment Digital Media Media Production and monetization of content across platforms, including: Subscription and rights fees, advertising and sponsorship Long-form and short-form programs Distribution across WWE Network, pay television, digital/social media and filmed entertainment outlets 5 6 WWE Studios Live Events 2 Live Events Ticket sales of the Company's global live events, including primary and secondary distribution 7 8 Licensing Venue Merchandise 3 Consumer Products Licensing royalties and direct sales of branded merchandise, including: Video and mobile games, toys, apparel and other products Sold at retail, online and at WWE venues 9 0 WWE Shop Corporate & Other Corporate Expect to reflect traditional "G&A" expenses such as finance, human 9 resources, information technology, facilities and legal Expect to be treated as a reconciling item, not a separate segment (See following page) 3

WWE plans to allocate certain business support costs (previously in Corporate & Other ) to revised segments Prior Segment: Corporate & Other Revised: Allocated or Kept as Reconciling Item Business Support (Examples) Talent Development Performance Center Sales & marketing Business Strategy Data Analytics Allocated to Revised Business Segments (Media, Live Events, Consumer Products, Other) Based primarily on segment share of total revenue Plan to allocate certain business support costs to the revised segments. These costs are more directly related to producing and distributing WWE s content and products, and therefore, more directly tied to generating revenue "Traditional G&A The remainder of the Company s prior Corporate & Other expenses, such as costs associated with finance, human resources, information technology, facilities and legal functions are expected to be reported as Corporate expenses, which in aggregate are treated as a reconciling item rather than as a reported segment 4

Expect to provide enhanced visibility of revenue, such as rights, advertising and sponsorship Prior Segments: 207 Revenue ($M) ❶ Network $98 - Subscriptions 84 - Pay-per-view 4 ❷ Television 270 ❸ Home Entertainment 9 ❹ Digital Media 34 ❺ WWE Studios 9 ❻ Live Events 52 - North America 5 - International 34 - Travel Packages 4 ❼ Licensing 52 ❽ Venue Merchandise 24 ❾ WWE Shop 38 ❿ Corporate & Other 6 $80 Revised Segments: 207 Revenue ($M) ❶ Media $536 - Network Subscriptions 76 - Core entertainment rights fees 244 - Other content rights fees () 49 - Advertising and sponsorship 52 - Pay-per-view 4 ❷ Live Events $52 - North America ticket sales 3 - International ticket sales 32 - Advertising and sponsorship 2 - Travel packages 4 ❸ Consumer Products $4 - Consumer product licensing 52 - ecommerce 38 - Venue merchandise 24 $80 Includes Studios revenue 5

New primary measure of performance: Adjusted OIBDA modified to exclude stock compensation The Company plans to change its primary measure of performance from OIBDA to Adjusted OIBDA, and to modify its definition of Adjusted OIBDA to exclude stock-based compensation expense (a non-cash expense that may vary from period to period with limited correlation to operating performance) The Company will continue to exclude certain impairment charges and other non-recurring material items from its definition of Adjusted OIBDA as these items also impact the comparability of results between periods The Company believes Adjusted OIBDA is relevant because it provides a meaningful representation of operating cash flows and is a primary measure used by media investors, analysts and peers for purposes of valuation The Company s previously stated 208 Adjusted OIBDA target of $5M equates to a target of approximately $40M based on the revised definition Note: Adjusted OIBDA is a non-gaap financial measure and may be different than similarly-titled non-gaap financial measures used by other companies. WWE views operating income as the most directly comparable GAAP measure. Adjusted OIBDA should not be considered in isolation of, or as a substitute for operating income or other GAAP measures, such as net income or operating cash flow, as an indicator of operating performance or liquidity Reconciliation to Adjusted OIBDA (revised; $M) Adjusted OIBDA (Revised definition) 207 208 Target Operating Income () $75.6 - Depreciation & amortization () 26.0 - OIBDA () 0.6 - Adjustments (2) 0.3 - Adjusted OIBDA (Prior).9 5.0 Stock Compensation 24. ~25.0 Adjusted OIBDA (Revised) $36. ~$40.0 Adjusted OIBDA is defined as operating income excluding depreciation and amortization, stock-based compensation expense, certain impairment charges and other non-recurring materials items that otherwise would impact the comparability of results between periods. Adjusted OIBDA includes amortization expenses directly related to the Company s revenue generating activities including the amortization of feature film, television production and WWE Network programming assets At this time, WWE is unable to reconcile to GAAP measures for 208, as the Company is unable to determine all of the adjustments that would be required 2 207 adjustments include $4.7 million in film impairment charges and non-recurring expenses of $5.6 million primarily related to certain legal matters and other contractual obligations 6 6

Revenue recognition: adoption of new FASB standard (Effective //8) In May 204, the FASB issued ASU No. 204-09, Revenue from Contracts with Customer (Topic 606)" Adoption of guidance requires WWE to record revenue based on current period estimates rather than wait for statements that show actual results The revised approach expected to have the most significant impact on WWE s licensing and filmed entertainment businesses, where it shifts the timing of revenue Existing Licensing Accounting Royalties from the sale of licensed products recorded upon receipt of statements from individual licensees Unearned minimum guarantees are recorded as revenue after the end of the licensing contract New Licensing Accounting Product royalties estimated during the period of sale (lagged reporting no longer acceptable) Fixed MG payments will not be deferred until the end of the contract. The Company anticipates changes in the quarterly timing of revenue, but does not expect a material impact on full-year results Specifically, the Company estimates an $M to $3M decline in licensing revenue from the first quarter 207 to the first quarter 208 WWE adopted the new standard January, 208 Note: As part of its implementation, the cumulative effect of initially applying the guidance - primarily estimated Q4 207 licensing royalties - will be reflected as an adjustment to beginning retained earnings Existing WWE Studios Accounting In arrangements with distribution partners, revenue is recorded on a net basis after partners recoup distribution fees and expenses Participation statements are reported on a lag and not during the period of film sale/ exhibition New WWE Studios Accounting Feature film distribution revenue recorded in the period of film sales/ exhibition (based on estimates) For co-distributed films, where WWE receives a revenue share, revenue recorded in the period of film exhibition (not on a lag) 7

Adoption of the FASB guideline accelerates the timing of licensing revenue as demonstrated below Basis of Revenue Recognition Q 208 Q2 208 Q3 208 Q4 208 207 Accounting Methodology (If continued) Statement of Q4 207 sales/ royalties Statement of Q 208 sales/ royalties Statement of Q2 208 sales/ royalties Statement of Q3 208 sales/ royalties 208 Accounting Methodology (New Standard) Estimate of Q 208 sales/ royalties Estimate of Q2 208 sales/ royalties Estimate of Q3 208 sales/ royalties Estimate of Q4 208 sales/ royalties Note: Statement of Q4 207 sales/ royalties Q4 207 product sales/ royalties which would be previously have been recorded in Q 208, is recorded in the beginning balance of Q 208 retained earnings (and will not impact the income statement) 8 8

Q 208 Business Outlook Estimate first quarter 208 Adjusted OIBDA of $23M to $27M, excluding stock-based compensation expense As compared to the first quarter 207, this range represents higher profits from the increased monetization of content, which are partially offset by the timing of lower licensing revenue associated with the new FASB standard for revenue recognition As shown (at right), on a pro-forma basis, reflecting 207 revenue on a comparable basis to 208, the range of first quarter 208 Adjusted OIBDA represents growth of approximately $8M to $2M WWE also projects Q 208 average paid subscribers to WWE Network of approximately.53 million Pro Forma Impact of New FASB standard on Adjusted OIBDA (revised, $M) 208 Q 207 Q Operating Income () - $4.0 Depreciation & amortization () - 6.9 OIBDA () - 0.9 Adjustments (2) - 7.7 Adjusted OIBDA (Prior) () 6 20 8.6 Stock Compensation 7 6.6 Adjusted OIBDA (Revised) 23-27 25.2 Estimated Impact Due to Changes in Revenue Recognition Guidance (3) - ~(0) Pro Forma Adjusted OIBDA $23 - $27 ~$5.2 At this time, WWE is unable to reconcile to GAAP measures for 208, as the Company is unable to determine all of the adjustments that would be required 2 For Q 207, Adjustments include $2. million in film impairment charges and $5.6 million primarily related to certain legal matters and other contractual obligations 3 Impact to Q 207 Adjusted OIBDA represents an approximate estimate of the effect due to the timing shift in our licensing business 9

208 Full Year Outlook* In 208, expect to achieve another year of record revenue and previously targeted Adjusted OIBDA of at least $5M. Based on revised definition (excluding stock compensation), this equates to an approximate 208 Adjusted OIBDA target of at least $40M Given significant long-term growth potential, our target balances near-term results with strategic investments For 208, expect capital expenditures of $50M to $70M reflecting, in part, the shift from 207 (In 207, planned capex to expand overall production capacity was largely delayed) Expect long-term benefit from new tax law as the reduced corporate rate more than offsets eliminations of deductions for domestic production and certain executive compensation. Effective tax rate to decrease from ~36% to 25-27% (ex discrete items) Key 208 initiatives include delivering a wide range of content across platforms, continuing to develop data and technology infrastructure and investing in markets with the greatest long-term potential. Integral goal is finalizing distribution in US, UK and India A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company s Q4 and Full Year 207 earnings materials and in the appendix to this presentation * The Company s business model and expected results will continue to be subject to significant execution risks, including those risks outlined in the Company s Form 0-K filing with the SEC. See additional notes on page 26 of this presentation 20

K e y 2 0 8 I n i t i a t i v e s Announce Future Distribution: U.S., U.K., India Expected Announcement of Future Distribution Plan Expiration of Current Licensing Agreements U.S. U.K. May - Sept. 208 Second Half of 208 India First Half of 209 End of Quarter Q2 208 Q3 208 Q4 208 Q 209 Q2 209 Q3 209 Q4 209 Future distribution is subject to negotiations, which are expected to begin next year. Although these announcements could occur either before or after these dates, management believes that these ranges represent the most likely periods for such communication. 2

A P P E N D I X

Reconciliation of Non-GAAP Measures Reconciliation of Adjusted OIBDA () to Operating Income $mm Q4 206 Q4 207 FY 206 FY 207 Adjusted OIBDA $20.5 $ 34.8 $ 80. $.9 Depreciation & amortization (6.6) (6.3) (24.4) (26.0) Film Impairments (2) - (.5) - (4.7) Asset Impairments - - - - Gain (loss) on operating assets - - - - Restructuring charges - - - - Other operating income items (3) - - - (5.6) Operating Income (U.S. GAAP Basis) $ 3.9 $ 27.0 $ 55.7 $ 75.6 Reconciliation of Net Cash to Free Cash Flow $mm Q4 206 Q4 207 FY 206 FY 207 Net cash provided by operating activities $ 36.9 $ 55.6 $ 62. $ 96.6 Less cash used for capital expenditures: Purchase of property and equipment and other assets (6.0) (7.0) (29.9) (24.7) Free Cash Flow $ 30.9 $ 48.6 $ 32.2 $ 7.9 A definition of OIBDA and Adjusted OIBDA can be found on page 26 of this presentation. Source: WWE Q4 and Full Year 207 Earnings 02/08/208 (corporate.wwe.com/investors) 2 Adjustments to Q4 207 and FY 207 OIBDA reflects film impairment charges of $.5 million and $4.7 million, respectively, considered to be material in the period in which they occurred, and may differ from total film impairments 3 Adjustments to FY 207 OIBDA of $5.6 million of non-recurring expenses primarily related to certain legal matters and other contractual obligations 23

Reconciliation of Non-GAAP Measures Reconciliation of Adjusted OIBDA () Three Months Ended December 3, 207 Operating Adjustments Adjusted $mm Income Depreciation OIBDA to OIBDA OIBDA Network $ 9. $.9 $ 2.0 $ - $ 2.0 Television 39.3.0 40.3-40.3 Home Entertainment (0.7) (0.) (0.8) - (0.8) Digital Media 5.8 0. 5.9-5.9 Live Events 5.4-5.4-5.4 Licensing 6.5-6.5-6.5 Venue Merchandise.8 -.8 -.8 WWEShop 2.8-2.8-2.8 WWE Studios (2) 0.3-0.3.5.8 Corporate & Other (53.3) 3.4 (49.9) - (49.9) Total Operating Income $ 27.0 $ 6.3 $ 33.3 $.5 $ 34.8 Three Months Ended December 3, 206 Operating Adjustments Adjusted $mm Income Depreciation OIBDA to OIBDA OIBDA Network $ 3.7 $.8 $ 5.5 $ - $ 5.5 Television 30.6.3 3.9-3.9 Home Entertainment.9 -.9 -.9 Digital Media.9 -.9 -.9 Live Events 6.2-6.2-6.2 Licensing 4.6-4.6-4.6 Venue Merchandise 2. - 2. - 2. WWEShop 3.0-3.0-3.0 WWE Studios (.) - (.) - (.) Corporate & Other (49.0) 3.5 (45.5) - (45.5) Total Operating Income $ 3.9 $ 6.6 $ 20.5 $ - $ 20.5 A definition of OIBDA and Adjusted OIBDA can be found on page 26 of this presentation. Source: WWE Q4 and Full Year 207 Earnings 02/08/208 (corporate.wwe.com/investors) 2 Adjustments to Q4 207 OIBDA reflects film impairment charges of $.5 million, considered to be material in the quarter in which they occurred 24

Reconciliation of Non-GAAP Measures Reconciliation of Adjusted OIBDA () Year Ended December 3, 207 $mm Operating Income Depreciation OIBDA Adjustments to OIBDA Adjusted OIBDA Network $ 57.3 $ 6.9 $ 64.2 $ - $ 64.2 Television 34.7 4.7 39.4-39.4 Home Entertainment.6 -.6 -.6 Digital Media 0.0 0.2 0.2-0.2 Live Events 42.3-42.3-42.3 Licensing 3. - 3. - 3. Venue Merchandise 9. - 9. - 9. WWEShop 8.3-8.3-8.3 WWE Studios (2) (3.6) - (3.6) 4.7. Corporate & Other (3) (25.2) 4.2 (20.0) 5.6 (95.4) Total Operating Income $ 75.6 $ 26.0 $ 0.6 $ 0.3 $.9 Year Ended December 3, 206 $mm Operating Income Depreciation OIBDA Adjustments to OIBDA Adjusted OIBDA Network $ 36.9 $ 6. $ 43.0 $ - $ 43.0 Television 4.8 5.0 9.8-9.8 Home Entertainment 5.3-5.3-5.3 Digital Media 4.3 0.3 4.6-4.6 Live Events 4.8-4.8-4.8 Licensing 27.4-27.4-27.4 Venue Merchandise 9.8-9.8-9.8 WWEShop 7.3-7.3-7.3 WWE Studios (0.2) - (0.2) - (0.2) Corporate & Other (9.7) 3.0 (78.7) - (78.7) Total Operating Income $ 55.7 $ 24.4 $ 80. $ - $ 80. A definition of OIBDA and Adjusted OIBDA can be found on page 26 of this presentation. Source: WWE Q4 and Full Year 207 Earnings 02/08/208 (corporate.wwe.com/investors) 2 Adjustments to Full Year 207 OIBDA reflects film impairment charges of $4.7 million, considered to be material in the quarter in which they occurred, and may differ from total film impairments 3 Adjustments to OIBDA of $5.6 million of non-recurring expenses primarily related to certain legal matters and other contractual obligations 25

Notes: Non-GAAP Measures The Company defines OIBDA as operating income before depreciation and amortization, excluding feature film and television production asset amortization and related impairments, as well as the amortization of costs related to content delivery and technology assets utilized for our WWE Network. OIBDA is a non-gaap financial measure and may be different than similarly-titled non-gaap financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for the Company's business. OIBDA should not be regarded as an alternative to operating income or net income as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA Adjusted OIBDA, Adjusted Operating income, Adjusted Net income and Adjusted Earnings per share exclude certain material items, which otherwise would impact the comparability of results between periods. These should not be considered as an alternative to net income, cash flows from operations or any other indicator of WWE's performance or liquidity, determined in accordance with U.S. GAAP The Company defines Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. Although it is not a recognized measure of liquidity under U.S. GAAP, Free Cash Flow provides useful information regarding the amount of cash our continuing business is generating after capital expenditures, available for reinvesting in the business, debt service, and payment of dividends 26