The 2016 Annual Report
TO OUR SHAREHOLDERS Several years ago, we began transforming WWE’s business to drive long-term growth by placing strategic emphasis on optimizing the value of our content, developing digital and technology platforms, and expanding our global presence. Our execution of these initiatives has been strong as we continue to leverage the three pillars of our content ecosystem: traditional television distribution, direct-to-consumer (WWE Network), and digital and social platforms. Our results in 2016, including record revenues and increased consumption of our content, demonstrate the successful ongoing transformation of our business model. Every day, as the media industry evolves, we become more digital and more global, with a greater emphasis on direct-to- consumer. We believe we are well positioned to drive long-term growth and create shareholder value. 2016 BREAKING RECORDS… BUILDING ON STRENGTH In 2016, WWE delivered the highest revenue in our Company’s history, $729 million – up 11% from 2015 and an impressive 44% from 2013, the year prior to the launch of WWE Network. These results included record revenue from our Network, Television, Live Events, Venue Merchandise and WWE Shop business segments. Growth from international markets continued to fuel our performance, reaching $189 million, up 11%. WWE’s strong, top-line growth translated into a 44% increase in operating income to $55.7 million. The market continued to reward this performance. Over the past twelve months, WWE stock provided shareholders with a 12% total return (including $37 million dividend payout).1 In addition, we issued $215 million of convertible note financing on favorable terms to support the execution of our long-term growth strategy.2 FORBES NAMED WRESTLEMANIA AS ONE OF THE TOP 5 MOST VALUABLE SPORTS EVENTS IN THE WORLD RECORD BRAND ENGAGEMENT We delivered these results because WWE is a one- of-a-kind brand with unmatched global engagement – a brand now able to directly reach any household with broadband access anywhere in the world.
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