Posted in: Sports, TV, WWE | Tagged: wrestling, wwe

Capitalist Dogs of WWE Report Record 2020 Earnings During Pandemic

Published Fri, 05 Feb 2021 12:35:30 -0600

Greetings, comrades! It is I, your El Presidente, with news of WWE's 2020 financial report and conference call. As expected, comrades, WWE got richer than ever during the pandemic despite saying a year ago that they needed to lay off or furlough dozens of workers for cost-cutting measures. That's capitalism at work, comrades. El Presidente is outraged!

Here's what WWE listed as 2020 highlights in the press release:

WWE produced live, in-ring content without interruption throughout the year, demonstrating the Company's ability to adapt to COVID-19 and unprecedented industry challenges
Revenue was $974.2 million, an increase of 1% or $13.8 million as the growth in core content rights fees was largely offset by the loss of ticket revenue and the absence of a large-scale international event
Operating income was $208.6 million, an increase of 79% or $92.1 million, driven by the substantial rise in content rights fees, which have a high incremental margin
Adjusted OIBDA reached a record $286.2 million, an increase of 59% or $106.2 million
Digital video views were 38.0 billion, an increase of 10%, and hours consumed were 1.4 billion, an increase of 10%, across digital and social media platforms.

All of that wealth should be redistributed to the people, but instead, WWE distributed some of it to its own stockholders in the form of dividends, a third of which goes to Vince McMahon himself. As Bleeding Cool noted throughout the year, each quarterly dividend of more than $9 million could have paid all of the talent laid off back in April for a full year. But Vince McMahon needs it more, comrades!

WWE's increase in revenue is a result of massively lowered costs from not needing to run live events, combined with all the money rolling in from television deals. Plus, comrades, there's all that Twitch money the company stole from its own talent in Q4. And WWE is looking forward to earning even more in 2021. Here's the highlights of the company's 2021 outlook, also from the press release:

WWE entered into a multi-year WWE Network U.S. licensing agreement (effective March 18, 2021) with Peacock, NBCU's streaming service. This strategic agreement enables WWE to reach a larger audience and realize a greater economic return as compared to a stand-alone subscription service
WrestleMania will return to Tampa Bay on Saturday, April 10 and Sunday, April 11, 2021 at Raymond James Stadium with ticket availability and safety protocols forthcoming
Management expects restrictions related to the spread of COVID-19, particularly related to the cancellation, postponement or reduced capacity of ticketed live events, to continue at least through the first half of 2021. Additionally, management anticipates a significant year-over-year increase in WWE's expense base due to the return of employees from furlough and continued higher expenses associated with the production of its weekly Raw and SmackDown television content at the WWE ThunderDome from its stadium residence. The Company estimates it can achieve 2021 Adjusted OIBDA of $270 – $305 million as revenue growth, driven by the impact of the Peacock transaction, the gradual ramp-up of ticketed live events, including large-scale international events, and the escalation of core content rights fees, is offset by the increase in personnel and production expenses. Management estimates that the stated 2021 Adjusted OIBDA guidance range would be 15% – 20% higher without the ongoing impact of COVID-19, which includes the loss of ticket and merchandise sales at live events and the increased investment in production to further fan engagement. (See 2021 Business Outlook on page 6 for further information)

Comrades, if ever there were a time for the workers to seize the means of production, it is now. Sadly, the capitalist dogs of WWE will likely continue to rake in obscene amounts of cash while paying their workers less. That is why El Presidente ends every article with his motto, my friends: socialism or death!

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