Here are some highlights from Thursday’s WWE investor conference call:

– Vince McMahon was asked about CM Punk’s status with the company. He replied,

“CM Punk is taking a sabbatical. Let’s just put it that way.”

– Overall, Vince said that their results were right around expectation (down due to “investment in the future”).

–  TV Viewership was up 17% to 14.2 million viewers a week. Total Divas has helped drive up TV revenue. Live events increased 2 percent in 2014.

– Due to expenses related to the WWE Network and a loss of revenue from PPV cannibalization, 2014 could see lower earnings than 2013. They expect a net loss of $12-15 million dollars in the first quarter of this year. They will have a better idea of this year’s outlook at the first quarter conference call in May.

– WWE has new TV deals in the UK and Thailand and the deals are 3-7 times more than they were in the past. The UK and Thailand deals are now their number one and three deals outside of the US.

– WWE has the second-highest selling line of action figure brands in the country.

– When asked why WWE is still in the movie business, Vince said that their third business model for movies is finally making them money. They are a content company and they are still optimistic about the earnings potential of WWE Studios. The WWE Studios division did much better in Q4 2013 and they plan to “stay the course” with the studio this year. They mentioned the upcoming Scooby-Doo and Flintstones animated movies.

WWE released their full year 2013 financial results on Thursday morning, reporting $508 million in total revenue (up from $484 million in 2013). Despite taking in more than half a billion dollars, the company was barely profitable, with Operating Income of only $5.9 million (down from. $43.2 million in 2012). Net Income was $2.8 million (down from $43.2 million in 2012).

The revenue increase was primarily driven by increases in domestic business and in the Live Event/TV division. Domestic business accounted for 77.1% of total revenue in 2013, up from 75.6% in 2012 and 72.4% in 2011. WWE attributed the decline in international business to “lower sales of consumer products” that “more than offset contractual increases in international television agreements.”

WWE explained that their heavy spending was “building for the future” – on infrastructure for the WWE Network and other long-term projects.

In a press release issued by WWE, WWE CEO Vince McMahon stated:

“During the past year, we laid the foundation for future growth and enhanced our brand strength. We have now announced the renewal of our television distribution agreement in the U.K., are continuing the negotiations regarding our domestic content, and are poised to launch our global WWE Network in the next few days. With preparations for WrestleMania 30 fully underway, we look forward to celebrating our enduring legacy and ushering in a new era as we blaze new trails in the media industry.”

WWE financial executive George Barrios added onto the TV negotiations item after discussing WWE’s long-term planning.

“As we prepared to transform our business, we invested in content production and talent. Although our earnings declined in 2013, our performance was in-line with our guidance, which targeted a range of OIBDA results, excluding film impairments, of $40 million to $50 million.”

“Regarding our domestic TV licensing agreements, we are now engaged with potential partners after exiting our exclusive negotiating period with NBCU. Based on our analysis of the value of comparable programs and our extensive research regarding consumer interest in WWE Network, we continue to believe that we can double or triple our 2012 OIBDA results of $63 million by 2015.”

WWE released their Q4 2013 and Full Year financial results on Thursday morning. Here are the final pay-per-view buy rates:

• Battleground in October: 114,000
• Hell in a Cell in October: 228,000 (up from 199,000 in 2012)
• Survivor Series in November: 177,000 (down from 208,000 in 2012)
• TLC in December: 181,000 (up from 175,000 in 2012)

Without factoring in WWE Battleground (which was a new pay-per-view in 2013), WWE sold 586,000 buyrates in the quarter, up from 582,000 in 2012.

The buyrate for Hell in a Cell was the show’s best since it debuted in 2009 – and the Daniel Bryan vs. Randy Orton main event outdrew the John Cena vs. Randy Orton WWE World Heavyweight Championship Unification match by a wide margin (26%).

Overall, you can see that pay-per-view is no longer a growth sector for WWE, which makes it an opportune time for WWE to transition those shows to the WWE Network.

WWE Reports Q4 2013 & Full Year Financial Results

Here are the buyrates for Hell in a Cell, Survivor Series and TLC over the past 4 years:

Hell in a Cell:

• 2013 – 228,000 buys
• 2012 – 199,000 buys
• 2011 – 182,000 buys
• 2010 – 210,000 buys

Survivor Series:

• 2013 – 177,000 buys
• 2012 – 208,000 buys
• 2011 – 281,000 buys
• 2010 – 244,000 buys

TLC:

• 2013 – 181,000 buys
• 2012 – 175,000 buys
• 2011 – 179,000 buys
• 2010 – 195,000 buys

STAMFORD, Conn.–(BUSINESS WIRE)– WWE (NYSE:WWE) today announced financial results for its fourth quarter ended December 31, 2013. Revenues totaled $118.4 million as compared to $115.1 million in the prior year quarter. Operating loss was $12.2 million as compared to income of $2.6 million in the prior year quarter. Net loss was $7.9 million, or $0.10 per share, as compared to income of $0.6 million, or $0.01 per share, in the prior year quarter. OIBDA in the fourth quarter 2013 decreased to a $5.6 million loss from income of $8.5 million in the prior year quarter.

The decline in OIBDA and Operating income was primarily attributable to increased investment in staffing, talent and marketing to support our strategic content initiatives, including the launch of WWE Network. Lower sales of new DVD releases and a corresponding shift in product mix to lower priced catalog titles, as well as compressed television production margins that derived from changes in the mix of programming also contributed to the year-over-year decline.

During the past year, we laid the foundation for future growth and enhanced our brand strength, stated Vince McMahon, Chairman and Chief Executive Officer. We have now announced the renewal of our television distribution agreement in the U.K., are continuing the negotiations regarding our domestic content, and are poised to launch our global WWE Network in the next few days. With preparations for WrestleMania 30 fully underway, we look forward to celebrating our enduring legacy and ushering in a new era as we blaze new trails in the media industry.

As we prepared to transform our business, we invested in content production and talent. Although our earnings declined in 2013, our performance was in-line with our guidance, which targeted a range of OIBDA results, excluding film impairments, of $40 million to $50 million, added George Barrios, Chief Strategy & Financial Officer. Regarding our domestic TV licensing agreements, we are now engaged with potential partners after exiting our exclusive negotiating period with NBCU. Based on our analysis of the value of comparable programs and our extensive research regarding consumer interest in WWE Network, we continue to believe that we can double or triple our 2012 OIBDA results of $63 million by 2015.

Comparability of Results

For the full year 2013, OIBDA results included $11.7 million in film impairment charges primarily related to the Companys 2010-2012 film release slate, and an approximate $3.4 million positive impact from the transition of the Company’s video game business to a new licensee in 2013. For the full year ended 2012, OIBDA results included $1.2 million in film impairment charges, and net income included a $4.1 million benefit due to the recognition of previously unrecognized tax benefits. For the fourth quarter 2012, OIBDA results included a $0.5 million in film impairment charges. In order to facilitate an analysis of financial results on a comparable basis, where noted, fourth quarter and full year results have been adjusted to exclude these items. (See Schedule of Adjustments in Supplemental Information).

Three Months Ended December 31, 2013 – Results by Region and Business Segment

Revenues of $118.4 million increased 3% from the prior year quarter based on growth in international markets. Revenues from outside North Americagrew 12%, or $3.4 million, driven by the impact of scheduling three additional events in international markets, stronger performance of our live event tours, and contractual increases in international television agreements. These factors more than offset lower sales of licensed consumer products. North American revenues were essentially unchanged from the prior year quarter as revenue from the release of Christmas Bounty, a made-for TV movie, and the timing impact of an additional pay-per-view event during the quarter were offset by lower home entertainment sales and the impact to television rights from one less episode of Raw.

The following tables reflect net revenues by region and by segment (in millions):

Live and Televised Entertainment

Revenues from our Live and Televised Entertainment businesses increased 7% to $87.6 million primarily due to the timing of an additional pay-per-view event (4 vs. 3 in the prior year quarter), the staging of three additional live events, and changes in the mix of live events.

• Live Event revenues increased 9% to $25.4 million from $23.3 million in the prior year quarter primarily due to staging three additional events in international markets that in aggregate garnered a higher average ticket price in the current year quarter.
  • There were 78 total events, including 52 events in North America and 26 events in international markets, in the current quarter as compared to 75 events in the prior year quarter, including 52 events in North America and 23 in international markets.
  • North American live event revenue of $13.8 million was essentially unchanged from the prior year quarter, as a 4% increase average attendance to approximately 5,900 fans was offset by a reduction in live event sponsorship sales. The average realized ticket price of $44.59 also remained essentially unchanged from the prior year quarter.
  • International live event revenue increased 23% to $11.6 million from $9.4 million in the prior year quarter. The growth reflected the impact of staging three additional events in the quarter. Additionally, changes in venue mix contributed to both an increase in average ticket price and a partially offsetting decline in average attendance. The average ticket price rose 17% to $81.98 as the current year quarter included three events in Abu Dhabi, an international market that has historically garnered higher ticket prices. Average international attendance declined 7% to 5,200.
• Pay-Per-View revenues were $15.7 million as compared to $13.0 million in the prior year quarter primarily due to the production of four pay-per-view events in the current quarter as compared to three in the prior year quarter. Revenue for the events held in both the current and prior year quarter increased 2% based on a comparable increase in pay-per-view buys. The average revenue per buy for these events was essentially unchanged from the prior year.

The details for the number of buys (in 000s) are as follows:

• Television revenues increased 2% to $41.3 million from $40.6 million in the prior year quarter primarily due to the production and monetization of Total Divas, a new program, which debuted in July 2013, as well as contractual increases for existing programs licensed in international markets. These increases were partially offset by the timing of one less episode of Raw in the U.S. (due to one less Monday in the fourth quarter of 2013 as compared to the fourth quarter 2012).

• Venue Merchandise revenues were $3.4 million as compared to $3.8 million in the prior year quarter reflecting a 17% decline in merchandise sales per capita at our North American events due in part to the mix of products and timing of new merchandise offers.

Consumer Products

Revenues from our Consumer Products businesses decreased 31% to $14.1 million from $20.4 million in the prior year quarter, primarily due to declines in the Company’s home entertainment business and toy licensing as described below.

• Home Entertainment net revenues were $5.0 million as compared to $9.6 million in the prior year quarter. The decrease was driven by a 33% decline in the average price per unit to approximately $8 due, in part, to a higher proportion of catalog sales than in the prior year quarter. This shift derived from changes at retail, including reduced space for DVD inventory and demand for lower priced product. Shipments of catalog titles increased 51% and accounted for 57% of total unit shipments compared to 35% in the prior year quarter. Based on the sustained increase in catalog shipments, which historically have been characterized by lower sell-through rates, estimated returns increased to 51% from 37% of gross revenue. Also contributing to the decline in net home entertainment revenue, overall shipments fell 8% to 1.1 million with two fewer releases in the quarter (9 in Q4 2013 vs. 11 in Q4 2012).
• Licensing revenues declined 14% to $7.2 million from $8.4 million in the prior year quarter primarily due to reduced sales of toy products in the U.S. and international markets. Despite the fourth quarter decline, domestic retail toy sales increased for the full year and WWE maintained its position with the second highest selling action figure property in the U.S. market. In late 2013, the Company launched a new line of construction toys, a segment of the toy category that has demonstrated strong growth over the last several years. Royalties from the sale of video game and apparel products were essentially flat to the prior year quarter, as modest growth in the U.S. was offset by lower sales in international markets.
• Magazine publishing net revenues were $1.3 million as compared to $1.7 million in the prior year quarter, reflecting lower newsstand sales in the current year quarter.

Digital Media

Revenues from our Digital Media related businesses were $11.7 million as compared to $12.1 million in the prior year quarter.

• WWE.com revenues were $5.7 million as compared to $6.2 million in the prior year quarter with lower aggregate sales of digital content. Key digital metrics such as unique visitors to the Company’s website and mobile app as well as average monthly page views increased from the prior year quarter.
• WWEShop revenues were $6.0 million as compared to $5.9 million in the prior year quarter reflecting a comparable percentage increase in revenue per order to $47.88. The volume of online merchandise sales remained essentially unchanged at approximately 124,300 orders.

WWE Studios

WWE Studios recognized revenue of $5.0 million as compared to revenue of $0.6 million in the prior year quarter primarily due to the performance and timing of results from the Companys portfolio of movies. The fourth quarter 2013 reflected revenue from Christmas Bounty, a made-for-TV movie that aired in November 2013, and to a lesser extent, revenue from The Call (starring Halle Berry), which was released theatrically in March 2013. Although four movies were released during 2012, these releases had limited impact on revenue recognized in the fourth quarter of that year. WWE Studios’ movie portfolio generated income of $0.1 million in the quarter compared to a loss of $1.2 million in the prior year quarter, which included $0.5 million in film impairment charges. Excluding the impact of film impairment charges, theWWE Studios’ movie portfolio contributed to essentially break-even results in the current year as compared to a loss of $0.7 million in the prior year quarter.

Unallocated SG&A

Unallocated SG&A expense was $35.1 million for the current year quarter as compared to $32.0 million in the prior year quarter. The 10% increase was primarily due to increased marketing, recruiting and relocation expenses to support the Companys brands and key initiatives. A $1.0 million increase in salary was offset by a year-over-year reduction in accrued management incentive compensation.

Operating Income Before Depreciation and Amortization (OIBDA)

OIBDA declined $14.1 million to a loss of $5.6 million primarily due to lower results from the Companys home entertainment, licensing and television operations as well as sustained investment to support our content initiatives. Profits from home entertainment declined $3.5 million reflecting lower sales of new releases and a shift in product mix to lower priced catalog titles. Profits from the Companys licensing business declined $2.9 million with lower sales of toy products in both domestic and international markets. Profits from the Companys television operations declined $3.2 million reflecting changes in the mix of programming as well as increased production costs. Salary expense increased approximately $2.7 million with a 9% increase in headcount, talent expense increased $2.2 million and marketing expense increased nearly $1 million predominantly to support our strategic initiatives and brand strength. Partially offsetting these factors, the quarters results were favorably impacted by a year-over-year reduction in accrued management incentive compensation and increased profits from the timing of an additional pay-per-view event.

Based on the increased investment and changes in business mix, WWE’s OIBDA margin was a negative 5% in the quarter as compared to 7% in the prior year quarter. Excluding the impact of film impairments, Adjusted OIBDA declined $14.6 million to a loss of $5.6 million and the Adjusted OIBDA margin was a negative 5% as compared to 8% in the prior year quarter. (See Schedules of Adjustments in Supplemental Information).

Depreciation and amortization

Depreciation and amortization expense totaled $6.6 million for the current year quarter as compared to $5.9 million in the prior year quarter. The increase in depreciation and amortization expense derived from investment in assets to support the Company’s content initiatives, including efforts to launch WWE Network.

Investment Income, Interest and Other Income, Net

Investment income, interest and other income, net yielded income of $0.3 million in the current year quarter compared to expense of $0.2 million in the prior year quarter.

Effective tax rate

The current year quarter’s effective tax rate was 34% versus the prior year tax rate of 75%. The tax rate in the fourth quarter of 2012 was adversely impacted by $0.4 million of additional tax expense as a result of differences between estimated and actual full year taxable income. Additionally, the fourth quarter of 2012 tax rate reflected a $0.2 million increase in unrecognized tax benefits and $0.2 million to provide for dividends from a foreign subsidiary. In total, these items were responsible for 33 percentage points of the prior year quarter’s 75% effective tax rate.

Summary Results for the Year Ended December 31, 2013

Total revenues for the year ended December 31, 2013 were $508.0 million as compared to $484.0 million in the prior year. Operating income for the current year was $5.9 million versus $43.2 million in the prior year. Net income was $2.8 million, or $0.04 per share, as compared to $31.4 million, or $0.42 per share, in the prior year. OIBDA was $30.4 million for the current year as compared to $63.2 million in the prior year.

Excluding items that impacted comparability on a year-over-year basis, Adjusted Operating income was $14.2 million compared to $44.4 million in the prior year, Adjusted OIBDA was $38.7 million as compared to $64.4 million and Adjusted Net income was $8.2 million, or $0.11 per share, compared to $28.1 million, or $0.38 per share, in the prior year.

Year Ended December 31, 2013 – Results by Region and Business Segment

Revenues increased 5% to $508.0 million driven by growth in North America, which was primarily from the licensing of new television and digital content, improved performance of our live events, and the timing of our movie releases. Revenues from outside North America declined less than 2% as lower sales of consumer products more than offset contractual increases in our international television agreements. Changes in foreign exchange rates also reduced current year revenue by approximately $1 million.

The following tables reflect net revenues by region and by segment (in millions):

Live and Televised Entertainment

Revenues from our Live and Televised Entertainment businesses were $382.3 million for the current year as compared to $353.8 million in the prior year, representing an increase of 8%.

Consumer Products

Revenues from our Consumer Products businesses were $76.4 million for the current year as compared to $87.8 million in the prior year, representing a decrease of 13%.

Digital Media

Revenues from our Digital Media related businesses were $38.5 million as compared to $34.5 million in the prior year, representing an increase of 12%.

WWE Studios

During the current year, WWE Studios recognized revenue of $10.8 million as compared to $7.9 million in the prior year, reflecting the timing of results generated by the Company’s portfolio of movies. In November 2013, the Company released Christmas Bounty, a made-for-TV film. Additionally, five other films were released in the current year (12 Rounds 2: Reloaded, No One Lives, Dead Man Down, The Call and The Marine 3: Homefront) versus four in the prior year.

Based on revised ultimate expectations for the Company’s movies, film impairment charges increased to $11.7 million in the current year compared to $1.2 million in the prior year. Impairments were primarily related to the Company’s 2010-2012 film slate, as well as Dead Man Down, which was released earlier in 2013. As a result, WWE Studios generated a loss of $12.7 million compared to a loss of $5.5 million in the prior year. Excluding the impact of film impairment charges, the WWE Studios’ movie portfolio generated an adjusted loss of $1.0 million compared to an adjusted loss of $4.3 million in the prior year.

Unallocated SG&A

Unallocated SG&A expenses were $125.1 million in the current year as compared to $116.7 million in the prior year. The rise in expense was driven by an increase in salary and benefit costs of $5.2 million, consulting and professional fees of $3.3 million, marketing expenses of $1.9 million, and talent development costs, which were primarily to support the Company’s content related initiatives, including the launch of WWE Network. These items were partially offset by a $3.2 million reduction in accrued management incentive compensation and a $2.5 million reduction in bad debt expense.

Operating Income Before Depreciation and Amortization (OIBDA)

OIBDA was $30.4 million in the current year as compared to $63.2 million in the prior year. The decline in OIBDA was primarily due to a $10.8 million reduction in profits from the Pay-Per-View business reflecting increased production costs, a $10.5 million increase in film impairment charges primarily associated with the Company’s 2010-2012 film slate and the current year release of Dead Man Down, a $5.2 million increase in compensation and benefit costs, and lower results from Home Entertainment. These items more than offset the increased monetization of our content licensing on broadcast and digital platforms and the strong performance of the Live Event business. Based on the impact of film impairments, increased investment and resulting changes in business mix, the Company’s OIBDA margin was 6% in the current year as compared to 13% in the prior year. Excluding the impact of film impairments and video game transition, Adjusted OIBDA was $38.7 million in the current year as compared to $64.4 million in the prior year, and the Adjusted OIBDA margin was 8% in the current year as compared to 13% in the prior year. (See Schedules of Adjustments in Supplemental Information).

Depreciation and amortization

Depreciation and amortization expense totaled $24.5 million for the current year as compared to $20.0 million in the prior year. The increase in depreciation and amortization expense derived from investment in assets to support the Company’s content initiatives, including efforts to launch WWE Network.

Investment Income, Interest and Other Income, Net

Investment income, interest and other income, net yielded expense of $1.3 million in the current year as compared to $0.5 million in the prior year as investment income, net declined by $0.8 million due to lower average balances of cash and short term investments. Interest expense and other expense were essentially unchanged from the prior year.

Effective tax rate

The effective tax rate was 40% in the current year as compared to 26% in the prior year. The prior year effective tax rates were positively impacted by the recognition of previously unrecognized tax benefits, primarily related to the settlement of several audits including the State of Connecticut, the IRS (IRS) and other state and local jurisdictions.

Cash Flows & Liquidity

Net cash generated by operating activities was $23.8 million for the year ended December 31, 2013 as compared to $63.0 million in the prior year. This $39.2 million decrease was driven by the decline in operating performance and changes in working capital, including an $11.0 million increase in the annual payout of management incentive compensation related to the Companys previous year performance, increased spending on television production assets, and timing differences in the collection of receivables, that negatively impacted current year cash flow as compared to the prior year.

The Company completed the purchase of a corporate aircraft and made related aircraft improvements for $30.9 million. The Company utilized debt financing for this purchase. Excluding the purchase of the corporate aircraft, purchases of property and equipment and other assets declined by $8.9 million primarily due to lower current year investment in assets to support the creation and distribution of new content, including through WWE Network.

As of December 31, 2013, the Company held $109.4 million in cash and short-term investments and estimates debt capacity under the Company’s revolving line of credit to be approximately $83 million.

Additional Information

Additional key performance indicators are made available to investors on a monthly basis on our corporate website – corporate.wwe.com.

Note: As previously announced, the Companys Chairman & CEO, Vincent K. McMahon, and the Companys Chief Strategy & Financial Officer, George Barrios, will host a conference call on February 20, 2014 beginning at 11:00 a.m. ET to discuss the Company’s earnings results for the fourth quarter and full year of 2013.

All interested parties are welcome to listen to a live web cast that will be hosted through the Companys web site at ir.corporate.wwe.com. Participants can access the conference call by dialing 1-800-697-5978 (US Toll Free) or 1-630-691-2750 using the passcode 6775847. Please reserve a line 10-15 minutes prior to the start time of the conference call.

WWE, a publicly traded company (NYSE:WWE), is an integrated media organization and recognized leader in global entertainment. The company consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience. WWE is committed to family friendly entertainment on its television programming, pay-per-view, digital media and publishing platforms. WWE programming is broadcast in more than 150 countries and 30 languages and reaches more than 650 million homes worldwide. The company is headquartered in Stamford, Conn., with offices inNew York, Los Angeles, London, Mexico City, Miami, Mumbai, Shanghai, Singapore, Munich and Tokyo. Additional information on WWE (NYSE: WWE) can be found at wwe.com and corporate.wwe.com. For information on our global activities, go to https://www.wwe.com/worldwide/.

Trademarks: All WWE programming, talent names, images, likenesses, slogans, wrestling moves, trademarks, logos and copyrights are the exclusive property of WWE and its subsidiaries. All other trademarks, logos and copyrights are the property of their respective owners.

Forward-Looking Statements: This press release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, including, without limitations, forward-looking statements regarding the Company’s growth plans. All of those forward-looking statements are subject to various risks and uncertainties. These risks and uncertainties include, without limitation, risks relating to entering into, maintaining and renewing key agreements, including television and pay-per-view programming and our new network distribution agreements; the need for continually developing creative and entertaining programming; the continued importance of key performers and the services of Vincent McMahon; the conditions of the markets in which we compete and acceptance of the Company’s brands, media and merchandise within those markets; our exposure to bad debt risk; uncertainties relating to regulatory and litigation matters; risks resulting from the highly competitive nature of our markets; uncertainties associated with international markets; the importance of protecting our intellectual property and complying with the intellectual property rights of others; risks associated with producing and travelling to and from our large live events, both domestically and internationally; the risk of accidents or injuries during our physically demanding events; risks relating to our film business; risks relating to increasing content production for distribution on various platforms, including the network; risks relating to new businesses generally and risks specific to the new network; risks relating to our computer systems and online operations; risks relating to the large number of shares of common stock controlled by members of the McMahon family and the possibility of the sale of their stock by the McMahons or the perception of the possibility of such sales; the relatively small public float of our stock; and other risks and factors set forth from time to time in Company filings with the Securities and Exchange Commission. Actual results could differ materially from those currently expected or anticipated. 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, general economic and competitive conditions and such other factors as our Board of Directors may consider relevant.

Non-GAAP Measures:

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 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.

Non-GAAP Measures:

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 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.

Non-GAAP Measure:

We define 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 and for payment of dividends.

WWE
Investors:
Michael Weitz, 203-352-8642
or
Media:
Tara Carraro, 203-352-8625

Source: WWE

Copyright Business Wire 2014

Rey Mysterio’s contract is the next major deal to expire in WWE. His deal is reportedly up in approximately two months. While he is one of the talents in the company with one of the largest downside guarantees, he is also one of the top merchandise movers currently in WWE.

Mysterio’s contract is an interesting situation, as WWE officials would usually start aggressively attempting to re-sign a talent in his situation by this point, however that is apparently not the case.

Speaking of Mysterio, one of the main reasons he was booked to work the non-televised live events in Northern California as opposed to his hometown in San Diego was due to the feeling in the company that he has been booked too often in San Diego. For the record, San Diego ended up drawing the worst crowd among the live events that took place last weekend.

• Undertaker To RETIRE This Year?, MAJOR Star To RETURN To WWE + NEW HOF Inductees …(Credit: Wrestling Observer Newsletter)

One of the ideas currently floating around WWE creative right now is for The Wyatt Family to somehow cost John Cena the victory in the upcoming Elimination Chamber match this Sunday.

As previously reported, the plan for Cena’s match at WrestleMania XXX is for him to face Bray Wyatt in a singles match. The feeling is that something needs to be done to bring back the focus on the Wyatt vs. Cena feud, which was started at the Royal Rumble pay-per-view in January.

• Undertaker To RETIRE This Year?, MAJOR Star To RETURN To WWE + NEW HOF Inductees …(Credit: Wrestling Observer Newsletter)

As far as the one week trial for the WWE Network goes, you will still be required to sign up with a credit card at launch. Much like other companies, such as Netflix, the subscription will then automatically renew until you cancel the account.

Speaking of the WWE Network, there has been talk within WWE recently about the idea of doing a cliffhanger-type ending to the February 24th RAW (the night the Network launches) to encourage fans to immediately sign up for the WWE Network as soon as it becomes available.

• Undertaker To RETIRE This Year?, MAJOR Star To RETURN To WWE + NEW HOF Inductees …(Credit: Wrestling Observer Newsletter)

According to officials within WWE, Dwayne “The Rock” Johnson is the leading candidate as one of the “main event inductees” for the 2015 WWE Hall Of Fame ceremony in California.

Apparently it’s up to The Rock if he wants to accept the induction, as his decision would basically center around whether or not his Hollywood schedule allows him to be available to take part in the annual wrestling honor.

Regarding the rumors that Scott Hall will be inducted into the 2014 class of the WWE Hall Of Fame, sources claim that he is indeed on the current list of inductees.

As far as the speculation that Diamond Dallas Page may be inducted along with Hall and Jake “The Snake” Roberts, both of whom he helped get sober over the past year, he is said to not be on the list of this year’s inductees.

• Undertaker To RETIRE This Year?, MAJOR Star To RETURN To WWE + NEW HOF Inductees …(Credit: Wrestling Observer Newsletter)

One of the possible reasons WWE didn’t promote the big RAW show next Monday night was due to the fact that the company was focusing their promotional efforts on this Sunday’s Elimination Chamber and the launch of the WWE Network after next week’s RAW.

Apparently the feeling in the company was that they didn’t want to overshadow the Chamber PPV and Network launch with a RAW show, which was previously reported, is expected to feature the returns of both Hulk Hogan and The Undertaker. The show may also feature the announcement of Hogan as the host of WrestleMania XXX.

The following press release was issued recently:

WWE Wrestler Darren Young Joins GaymerX2

PRO WRESTLER SUPPORTS THE LBGT GAMING COMMUNITY

SAN FRANCISCO, CA (February 19, 2014) – MidBoss, the team behind the convention known as GaymerX2, is excited to announce that openly gay WWE wrestler Fred Rosser AKA Darren Young, will be participating in this year’s festivities. The convention is to be held at the InterContinental Hotel in San Francisco’s vibrant South of Market neighborhood from July 11-13th.

Darren Young will be signing autographs and joining in Friday’s Opening Ceremonies, as well as Sunday’s Closing Ceremonies. He will also be a part of a panel titled “A Fireside Chat with Darren Young” at GaymerX.

“Darren Young’s involvement in GaymerX is tremendously exciting. We understand the struggle that athletes face in coming out, especially when they live in the spotlight,” quoted Toni Rocca, President of GaymerX. “For a member of an organization as widely watched as WWE to be comfortable with his identity and also to continue to be accepted in his line of work is a great example for all athletic fields out there. We would really like to celebrate that.”

“I am very excited to be a part of this year’s GaymerX convention” Quoted Fred Rosser aka WWE’s Darren Young,”Gay geeks and gamers around the world deserve to have their own community and I’m very proud to be a part of what should be an awesome experience.”

Following the great success of last year’s GaymerX Kickstarter, the 2014 convention will support another Kickstarter, with a pledge where you can actually interact with and chat with Darren Young yourself. There are other pledges including sponsoring the convention, badges for the con, and cute stickers featuring the con’s mascots, Conway and Turing.

– As far as the RAW pre-show on the WWE Network is concerned, due to the West Coast time difference where the show airs three hours later, they will have to replay the pre-show while RAW is finishing up live. For the RAW post-show in the West Coast, they would likely have to replay that via tape-delay for the same reason.

– The following are some recent WWE attendance figures:

February 15th live event in Phoenix, Arizona drew approximately 7,000 fans.
February 16th live event in Las Vegas, Nevada drew approximately 6,000 fans.
February 17th RAW show in Denver, Colorado drew approximately 10,000 fans.

As things stand presently, there are no official plans for the WWE Divas Championship at WrestleMania XXX. The original plan, before Naomi suffered the eye injury at RAW, was for the Funkadactyl to face AJ Lee for the title. While not official, the likely scenario would have seen Naomi win the title as part of a story line for the second season of the “Total Divas” reality show. Even though those plans may be off the table, there is a good chance that Naomi’s injury and recovery will be used as part of a Total Divas story line.

As far as Naomi’s role at WrestleMania XXX is concerned, after the company received word last week that she will not need surgery, there is still time to factor her into plans for this year’s WrestleMania.

Naomi is expected to be out of in-ring action for four-to-six weeks. She won’t be able to appear on television unless she drives to RAW, as the pressure on her eyes from a flight would be dangerous.

As far as ticket sales for WrestleMania XXX are concerned, the event is not yet officially sold out. There are, however, 9,916 of the 55,000-plus ticket holders who have their seats available at Stubhub.com. Basically, this means many of those tickets were purchased strictly for investment purposes.

The nosebleed seats are going for $46.90, and you can still buy two front-row seats for $13,000 a piece.

WWE officials are under the impression that Curtis Axel, who is from the Minneapolis area and is part of the famous Hennig family (Larry Hennig, Curt “Mr. Perfect” Hennig), may receive a babyface reaction from the fans in attendance at this Sunday’s WWE Elimination Chamber event.

As previously reported, Axel, along with Ryback, will take on Goldust and Cody Rhodes in a tag-team match during the Kickoff Show prior to the start of the pay-per-view.

– As of right now, the tentative plan in WWE is to tape the WWE RAW post-shows backstage during the shows each week. The key reason for this is due to the fact that the post-shows would be going on at the same time as the dark match main-events live inside the arena.

– One of the main reasons that WWE may not be pushing for the Apple TV clearance for the WWE Network is because Apple TV charges a 50 percent cut of all subscriptions. Similar streaming services such as XBOX or Roku charge closer to 30 percent.

As previously reported, WWE released a statement regarding DISH Network choosing not to offer the upcoming Elimination Chamber pay-per-view. For those who missed it, here is the statement WWE released:

“WWE has chosen to launch a 24/7 online network, without its TV partners, that includes all of its pay-per-view events. As WWE enters the increasingly fragmented media world by themselves, DISH will continue to consider the value of WWE pay-per-view on an event by event basis. DISH continues to provide a variety of WWE programming, including ‘WWE Raw’ on USA, ‘WWE Smackdown’ on Syfy, ‘WWE Main Event’ on Ion and ‘WWE Total Divas” on E!. At this time, WWE pay-per-view events are not available on DISH.”

DISH Network sent out a statement in response to the aforementioned comments made by WWE. That statement reads as follows:

“DISH will not offer the ‘WWE Elimination Chamber’ PPV on 2/23. WWE is not willing to adjust their PPV costs to satellite and cable companies, which is unfair to their customers. We need to re-focus our efforts to support partners that better serve DISH customers. Other satellite and cable companies, including DIRECTV, have also expressed they may no longer provide WWE PPV events in the future.”

WWE sent us the following statement on Wednesday evening regarding the future of WWE pay-per-view events on the Dish Network satellite TV provider:

“WWE is pleased that the majority of our cable and satellite Pay-Per-View distributors are giving our fans an option to purchase traditional Pay-Per-Views as we prepare to launch WWE Network on Monday, February 24. Unfortunately, DISH will not be doing so. We hope DISH will reconsider for this Sunday’s Elimination Chamber Pay-Per-View event and especially for WrestleMania 30.”

– The new Jim Ross “Ross Report” podcast is already having great success. After only one show, JR’s podcast is already the number one ranked Sports & Recreation podcast on iTunes for the U.S., U.K. Canada and Australia. In overall podcasts, it’s number two in the U.K., number three in the U.S., number five in Australia and number seven in Canada.

– The latest video blog from Cody Rhodes and Brandi Rhodes (aka Eden) is now available. You can check it out at WWE.com.

– It was announced today that the USA Network will be airing a one-hour special for the WWE Hall Of Fame ceremony on Monday, April 7th at 11:05pm E.T. The special will air the night after WrestleMania XXX. The full ceremony will air live on the WWE Network on Saturday, April 5th at 9pm E.T.

The Monday, February 17th “Elimination Chamber go-home” edition of WWE RAW scored a final cable rating of 3.08, according to Nielsen Media Research. The 3.08 final draw marks a decrease from the 3.14 final cable rating that the show drew the previous week with Betty White as special guest host.

As previously noted, RAW on Monday averaged 4.35 million viewers. The hourly breakdown saw hour one average 4.66 million viewers, hour two average 4.30 million viewers and the final hour average 4.13 million viewers.

The following are highlights from a recent Busted Open Radio Show interview with TNA star Ethan Carter III:

On his transition with Hulk Hogan and Sting leaving TNA: “I’ve been ready for a very long time to either sink or swim with an opportunity and I’ve been given it here in TNA. Transition wise, I’ve said before it’s not so much of a transition because at the end of the day, there’s a red light with millions of people behind it that you are paid to entertain one way or another and something I’ve always loved and something I have the chance to do now, so I’m doing it. Transition regardless, we’re in a ring, there’s a camera on us, and there’s people in the stands… so let’s do it.”

On the biggest driving factor in getting him to TNA: “Honestly I think more people over there watched my stuff on NXT originally and knew I had talent and ability. I had a chance to really shine out on the grand stage. So there’s a couple people who brought me over and I was just looking for the opportunity to prove myself, prove people wrong, take the ball and run with it. Big John Gaburick came over from WWE and brought me over. He put a lot of faith in me and hopefully I’m returning the favor and faith to him.”

On Samoa Joe’s recent speech to the talent: “Samoa Joe is a guy I looked up to while I was an indie guy. He made a strong name for himself in Ring of Honor and then was in TNA and had an incredible undefeated streak going and was at the top of the mountain for a very long time, so that’s a guy we look up to and is a locker room leader who can fire you up because he’s a fiery guy.”

On if he had any hesitation in going from WWE to TNA: “Not one hesitation what so ever because one place has given me a golden opportunity to shine and I’ve taken that as far as I possibly can. It feels good to be in TNA right now because it’s an atmosphere where everyone has their eye on the prize. Everyone’s focused on one goal and that’s to continue to move forwards and to drive and succeed with each other.”

On what happened with NXT and WWE: “I have multiple opinions. I think injury at an inopportune time and the regime change. Like in any business, if you’re not somebody’s guy, then you’re not the guy. That’s fine because I was born to make somebody some money. I’m very happy in TNA. Once I hit the top of the main event, I will never be leaving TNA.”

Check out the complete interview at BustedOpenNation.com.

The Monday, February 17, 2014 edition of WWE RAW averaged 4.35 million viewers, which is the same number the show drew the previous week with special guest host Betty White.

The hourly breakdown for RAW viewership, for what was the Elimination Chamber “go-home” edition of the show, is as follows:

Hour One: 4.66 Million Viewers
Hour Two: 4.30 Million Viewers
Hour Three: 4.13 Million Viewers

We should have the final cable rating out later today.

– The official WWE website is currently running an article where former ECW announcer Joey Styles looks at what he considers the top five ECW pay-per-views that will be available on the new WWE Network. Styles’ list is as follows:

1. ECW One Night Stand 2005
2. Living Dangerously 1999
3. Heatwave 1998
4. Living Dangerously 1998
5. Barely Legal 1997

Check out the complete article at WWE.com.

– The following is WWE’s “Black History Month” video on current WWE Superstar Xavier Woods:

WWE issued the following press release today:

WWE PROMOTES TANDY O’DONOGHUE

STAMFORD, Conn., February 19, 2014 – WWE (NYSE: WWE) today announced that Tandy O’Donoghue has been promoted to Executive Vice President, Strategy & Analytics, effective March 15. In this newly created role, she will be responsible for overseeing corporate strategy, corporate and business development and data analytics for WWE. O’Donoghue will report to WWE’s Chief Strategy & Financial Officer George A. Barrios.

O’Donoghue will work with WWE executives to identify and execute cross-functional high-impact initiatives including the global rollout of WWE Network, the development and execution of WWE’s long-term gaming strategy and global content monetization initiatives. She will also lead WWE’s efforts in securing strategic equity investments and partnerships, and will provide leadership for WWE’s use of advanced data analytics to support short- and long-term decision making across the company.

O’Donoghue previously served as WWE’s Senior Vice President, Affiliate Relations & Business Development, where she was responsible for the day-to-day management of WWE’s pay-per-view business as well as the development and launch plans for WWE Network.

O’Donoghue holds a J.D. from Tulane University School of Law and a Bachelor of Science degree in Industrial and Labor Relations from Cornell University.

• Undertaker To RETIRE This Year?, MAJOR Star To RETURN To WWE + NEW HOF Inductees …

The official WWE website features a new article focusing on the Elimination Chamber match. In the article, Triple H talks about how he created the match. HHH noted:

“I’m the one who invented it. I drew a square cage and put four other squares in the corners, and I said, ‘It’s six guys. Two start and every few minutes, another cage opens and one more guys enters the fight, and everyone fights until there’s one guy left.’ I thought it could be interesting because, if the Superstars involved have issues, then there’s intrigue.”

“In typical WWE form, it was twice as big as I envisioned it and twice as elaborate. We don’t do anything small, so I should have known better. When I stood in it for the first time, I thought, ‘Jeez. Please don’t tell anybody this was my idea!’”

Check out the complete article at WWE.com.