WWE’s 2023 First Quarter Earnings Call saw executives Nick Khan, Paul Levesque, and Frank Riddick discuss the company’s impressive financial success, particularly with the recent merger announcement with UFC and Endeavor. Notably, Vince McMahon was absent during the call.
Khan highlighted the financial success of Wrestlemania 39, which was the most profitable event in WWE history, with the highest attendance and record-breaking gate revenue. Viewership also increased by 31%, and sponsorship revenue increased by over 100% compared to the previous year. Internationally, the event was a huge success, with 35 million viewers tuning in.
Royal Rumble 2023 and Elimination Chamber 2023 were also financial successes, with the latter generating a larger gate than any previous Elimination Chamber event. Despite industry trends, Raw and Smackdown continue to experience growth, with a 52% increase in attendance in North America and higher ticket grosses.
The company is expanding seating sections at Ford Field for Summerslam 2023, which had an impressive number of tickets sold on its on-sale day, surpassing any other non-Wrestlemania event in WWE history. WWE is also promoting the return of Night of Champions events in Jeddah, Saudi Arabia on May 27th, and in London, UK on July 1st.
Fanatics will now oversee in-venue sales of WWE merchandise, and WWE received a seven-figure subsidy for the upcoming Backlash event, with discussions ongoing with multiple locations for similar deals. Khan emphasized that WWE is proud of its current business and excited about the prospect of further growth in 2023, with a major focus on the Endeavor transaction.
Vince McMahon and TKO Group (Via WWE/Twitter)
Frank Riddick provided an overview of the Endeavor deal, highlighting its positive aspects, while Nick Khan discussed the Endeavor takeover of WWE, expecting regulatory approval in the second quarter of 2023. Khan also disclosed that WWE is currently in “engaged” discussions with NBCU and FOX regarding media rights.
During the Q&A session, the WWE executives were asked about the increase in costs for content creation, with Riddick explaining that the increase was mainly due to certain events being rescheduled from Q1 to Q2, as well as the costs associated with staging those shows. Nick Khan emphasized that they do not anticipate any significant changes.
The executives were also asked about renewals for Raw and Smackdown, with Khan reporting that they have had productive conversations with NBCU and FOX, and have seen growth in the product. The executives were questioned about their preparedness for being part of a new structure and management transition under Endeavor, with Khan emphasizing that everyone at WWE is excited about the opportunities that could arise from the deal.
Paul Levesque echoed Khan’s sentiments, stating that excitement levels are high and they are looking forward to continuing to do what WWE does best. He expressed enthusiasm at the prospect of Endeavor leveraging their expertise to help grow WWE internationally across all areas of the business.
The WWE executives were asked about their focus on character development, with Levesque attributing their success to assembling the right team across the board, including building talents through the NIL program, the Performance Center, and international recruiting. He also praised Kevin Dunn’s production team, calling it unparalleled in the world.
WWE executives were asked about the exclusive windows for FOX and NBCU, with Khan responding that the exclusive windows run for about a month each. They were also asked about advertising and sponsorship growth, specifically whether WWE is looking for all-year deals or event-to-event deals, and if they have received any interest from UFC sponsors who have never worked with WWE before.
Khan explained that the company has been trying to establish more comprehensive and long-term sponsorships, but is waiting for the Endeavor deal to close before entering into discussions with existing UFC sponsors and partners. The executives were asked about potential future acquisitions internationally, with them emphasizing that their focus is currently on closing the Endeavor deal and building upon their existing business.
Regarding expenditures in the future to keep ratings growing, Khan explained that once new deals are made and revenue is generated, the company plans to use the funds judiciously. At this time, they are unable to provide specifics on how the money will be allocated, but they remain optimistic about the company’s future prospects.
Overall, the WWE executives expressed confidence in the company’s current business and excited about the prospect of further growth in 2023, with a major focus on the Endeavor transaction.
