WWE reported that its subscription streaming service, WWE Network, averaged 1.5 million paid subscribers during the fourth quarter of last year, an increase of 6% from 1.41 million during the previous-year period. The SVOD platform, which was launched in the United States in 2014, reached a peak of 1.8 million subs in 2016.
The wrestling company’s general revenue was $238.2 million, a decrease of 26% or $84.6 million, reflecting the absence of WWE’s large-scale event in Saudi Arabia and ticketed live events. Meanwhile, operating income was $36.2 million, a decrease of 64% or $63.6 million, while net income was $13.6 million, a decrease from $69.3 million, in the fourth quarter 2019, primarily reflecting lower operating performance.
The company’s financial results follow the recently announced license agreement with NBCUniversal’s Peacock platform, making the AVOD/SVOD hybrid service the exclusive North American home for professional wrestling. WWE said the agreement enables the company to reach a larger audience and realize a greater economic return as compared to a standalone subscription service.
“During the fourth quarter, we continued to produce live content in new ways, which successfully increased audience interaction and engagement. As we continued to adapt our business to the changing media environment, we completed an important agreement to license WWE Network content to Peacock, which we expect will expand the reach of our brands and enhance the value of our content,” said Vince McMahon, CEO and Chairman of WWE.
Kristina Salen, Chief Financial Officer at WWE, added: “For the year, we achieved record revenue and Adjusted OIBDA, which was at the high end of our rescinded guidance. Adjusted OIBDA increased nearly 60% reflecting the full year impact of our new content distribution agreements in the United States and comprehensive efforts to contain costs in challenging times. In 2021, we anticipate Adjusted OIBDA of $270 million to $305 million, reflecting the increasing monetization of our content tempered by the ongoing impact of Covid-19”.