2017 Q1 WWE SEC Filings

Things Of Note:

Revenue is up about 10% year to year for this quarter ending March 31, 2017 to about $188M. But looks like costs are up as well. Comprehensive income for the quarter is only 897K compared to 14.111M for the same quarter last year - cause for concern right there.

Network Subscriptions:

1,573,500 @ End of Quarter (EOQ)
-1,164,700 domestic subscribers
-408,800 international subscribers

Subscriptions are up 16% year to year.

Revenue Breakdown:

Following is a breakdown of revenue by major, but not all sources -

Network (includes subscription fees to the WWE Network, advertising fees on the network, as well as PPV revenue): 46.47M; 24.66% of total revenue
TV: 64.016M; 33.97% of total revenue 
Live Events: 32.096M; 17.03% of total revenue 
Digital Media: 5.735M; 3.04% of total revenue
Licensing: 20.097M; 10.66% of total revenue
Venue Merch: 7.088M; 3.76% of total revenue
WWE Shop: 7.921M; 4.20% of total revenue
WWE Studios: 1.282M; .68% of total revenue

So, looks like major sources of revenue are TV rights fees (33.97%), network subscription fees(24.66%), live event gates(17.03%), and licensing fees (10.66%) which account for more than 85% of its revenue. Remaining revenue is made up by merchandise sold at venues, on WWE shop, digital media revenue, etc.

Operating Income before Depreciation and Amortization (OIBDA):

For the categories listed above, below is the share of OIBDA -

Network: 14.286M
TV: 30.834M
Live Events: 8.121M
Digital Media: -505K
Licensing: 13.394M
Venue Merch: 2.588M
WWE Shop: 1.894M
WWE Studios: -2.928M

Total OIBDA for the quarter: 10.857M

So, looking above it looks like the WWE actually lost money on its digital media ventures which may include costs of running its website, YouTube Channels, FaceBook, and Twitter accounts. WWE Studios also continues to lose money for the company.

Live Events (LE) Breakdown:

Avg LE attendance: 6K (domestic), 4K(internatioanl)

Number of shows run in the quarter: 91

Note: NXT attendance has been reported separately. NXT is WWE's developmental brand. Per their notes, 44 NXT shows were run for a total attendance of 34,300, which is less than one thousand people a show on average.

Revenue by Geography:

North America: 146.223M
Europe, Middle East, and Africa: 26.585M
Asia Pacific: 12.974M
Latin America: 2.662M

The United Kingdom was the largest international market, with revenue of 15.68M

Debt:

One major difference in the balance sheet from this time last year is the presence of 174.224M in convertible debt on the sheets at the end of the quarter. Last year, at the end of the corresponding quarter, convertible debt was zero.

Cash reserves at the beginning of last year for the same quarter were 38.019M. This year they were 211.976M. At the end of this quarter, it was 165.621M. The increase in cash reserves can be attributed to the convertible debt they have taken on. On December 16, 2016 200M in senior notes were issued. On January 11, 2017 an additional 15M of such notes were purchased by the note owners as per their option to do so. So, they have a total principal of 215M in convertible debts. Carrying amount at the end of the quarter of this convertible debt was 174.224M. This is a cause for concern. The debt is due December 15, 2023. In case of inability to pay all or part of the debt - conversion terms are 40.1405 shares of common stock per $1 of principal amount of notes outstanding. Currently, 76.4 million shares of WWE stock are issued and outstanding. So, in the case of inability to repay the debt and if it is instead converted to equity the owners of these notes will basically end up owning most of the company.

Market Capitalization:

Shares Outstanding: 76.4M
Share Price: $20.25 (as of End of Day 5/5/2017)
Market Capitalization: 76.4M*20.25 = 1.547B