World Wrestling Entertainment, Inc. (WWE) Q1 2023 Earnings Call Transcript

World Wrestling Entertainment, Inc. (NYSE:WWE) Q1 2023 Earnings Conference Call May 3, 2023 8:30 AM ET

Company Participants

Seth Zaslow - Head of IR

Nick Khan - CEO

Frank Riddick - CFO

Paul Levesque - Chief Content Officer

Conference Call Participants

Curry Baker - Guggenheim Securities

Brandon Ross - LightShed Partners

Ben Swinburne - Morgan Stanley

Steven Cahall - Wells Fargo Securities

Eric Handler - ROTH MKM Partners

Peter Supino - Wolfe Research

David Karnovsky - JPMorgan

Alan Gould - Loop Capital Markets

Jason Bazinet - Citigroup

Operator

Please basal by we're astir to begin. Hello and invited to WWE's First Quarter Earnings Conference Call. [Operator Instructions]. I volition present crook the telephone implicit to Seth Zaslow, Senior Vice President and caput of Investor Relations. Please spell ahead, Seth.

Seth Zaslow

Thank you. And bully morning, everyone. Welcome to WWE's archetypal 4th 2023 net league call. Joining america connected today's telephone are Nick Khan, WWE's Chief Executive Officer; Paul Levesque, our Chief Content Officer, and Frank Riddick, our President and Chief Financial Officer. Following our prepared remarks, we'll unfastened the telephone for questions. We issued our net merchandise earlier this morning, and I posted the merchandise and different supporting materials to our website.

Today's treatment volition see forward-looking statement. These statements bespeak our existent views are based connected assorted assumptions, and are truthful taxable to risks and uncertainties. Please notation to our SEC filings for a treatment of the risks and uncertainties. Actual results whitethorn disagree materially an undue reliance should not beryllium placed connected these statements.

Additionally, we volition beryllium discussing definite non-GAAP fiscal measures connected today's call. Reconciliations of non-GAAP to GAAP accusation are provided successful our net merchandise and different supporting materials. Lastly, today's telephone is being recorded and the replay volition beryllium disposable connected our website.

With that, I'd present similar to crook the telephone implicit to Nick.

Nick Khan

Thanks, Seth. Good morning. And convey you everyone for joining america today. 2023 is disconnected to a beardown start. Our results successful Q1 exceeded our guidance and our concern is good positioned going forward. I on with Frank volition interaction connected some fiscal and operational highlights from the 4th successful much detail. But earlier we do, I privation to instrumentality a infinitesimal to code a fewer different topics.

As we announced successful January, Vince McMahon and WWE initiated a process to reappraisal strategical alternatives, with the extremity of maximizing worth for each shareholders. We conducted a fulsome process and the marketplace effect was astounding. After assessing each options we announced an statement connected Monday April 3, the greeting aft a historical 2 nighttime WrestleMania SoFi Stadium successful Los Angeles to harvester WWE and UFC into a new, soon to beryllium named publically listed institution that volition commercialized nether the banal ticker TKO.

The operation of WWE and UFC creates a 1 of a kind, highly complimentary axenic play planetary sports and amusement concern that volition unlock immense gross synergies and outgo synergies. The transaction is taxable to customary closing conditions including the required regulatory approvals, but we are moving intently to get that done. We expect that volition hap successful the 2nd fractional of 2023.

With the decision of the strategical reappraisal process, we're present heavy focused connected the home media rights renewals for Raw and SmackDown. And we are presently engaged with Arne existent -- pardon me, with our incumbent partners, NBCU and FOX, some of whom person been terrific.

With the ratings and viewership occurrence we've been seeing for Raw and SmackDown, we judge we are good positioned arsenic we participate these conversations.

Of course, we stay focused connected the day-to-day operations of WWE and delivering growth. This was evidenced 4 weeks agone astatine WrestleMania 39, which I mentioned earlier. WrestleMania 39 delivered the astir watched and astir profitable lawsuit successful our company's history.

A fig of caller records for WWE that item the spot of our company. Record attendance astatine WrestleMania with implicit 161,000 fans, grounds gross gross of implicit $21.5 million, grounds home viewership with implicit 15 cardinal hours consumed and a 31% viewership summation year-over-year, grounds sponsorship income with implicit $20 cardinal successful revenue, a year-over-year summation of implicit 100%, grounds venue merchandise gross of implicit $7 million, beating our erstwhile grounds of $5.2 million, which we acceptable astatine the twelvemonth anterior WrestleMania.

We blew done records crossed our societal platforms, generating implicit 500 cardinal views and 11 cardinal hours of video consumed implicit the two-day WrestleMania event, a 42% summation implicit the anterior year. Internationally, the lawsuit was seen by implicit 35 cardinal viewers.

Our premium unrecorded events occurrence and maturation is not constricted to WrestleMania. In Q1 we staged Royal Rumble successful San Antonio, it was our astir viewed and highest grossing Royal Rumble successful institution history.

In February, we took our merchandise to Canada wherever we held Elimination Chamber successful Montreal. The lawsuit delivered the 54% year-over-year viewership summation a 300% sponsorship income summation and generated much gross and merchandise gross than immoderate Elimination Chamber successful WWE history. Strategically we hosted this lawsuit successful Canada, a cardinal planetary marketplace and 1 wherever we volition besides beryllium focused connected our adjacent media rights deal. These metrics are a wide motion of our popularity successful the region.

As our premium unrecorded events spot viewership increases, our flagship play TV properties are besides seeing growth, bucking the inclination crossed the remainder of the landscape. In the archetypal 4th of '23 wide TV viewership successful the 18 to 49 demo was down 16%.Not astatine WWE, Raw was up 16% successful the 18 to 49 demo and it was the fig 1 programme and the demo connected cablegram connected Monday nights.

SmackDown besides up 7% successful the demo and the fig 1 programme successful the demo connected broadcast connected Friday nights. And our fans that are tuning successful are watching longer than ever. Raw and SmackDown are astatine their highest clip spent viewing successful their history, astatine 73 minutes for Raw, a three-hour amusement and 42 minutes for SmackDown a two-hour show. We're besides filling arenas and stadiums astatine a record-breaking pace. Demand remains incredibly strong. We saw 52% summation successful our North American unrecorded events gross year-over-year, led by higher attendance and smarter summons pricing.

WWE is consistently generating the highest summons grosses successful the past of galore markets arsenic we proceed to circuit weekly, everyplace from Los Angeles and Chicago to Toledo successful Little Rock. We're not seeing immoderate signs of a slowdown.

This upcoming Saturday, August 5, is SummerSlam astatine Ford Field successful Detroit, different stadium event. Tickets went connected merchantability past month, and we saw grounds archetypal time income for the event. More tickets were sold astatine connected merchantability for this upcoming SummerSlam than immoderate different home WWE amusement successful our company’s past extracurricular of WrestleMania. In the coming weeks we expect to beryllium opening up caller sections of Ford Field truthful we tin support up with the demand.

Let's speech merchandise for a moment. Last period we announced that WWE and Fanatics are expanding our relationship, truthful Fanatics tin present bash our venue merchandise income successful summation to the already existing and increasing e-commerce concern that we person with Fanatics. And venue income person been a important maturation country for america implicit the past 2 years, arsenic we person taken a localized attack of offering determination and metropolis circumstantial merchandise to thrust sales. This caller concern with Fanatics should supercharge those sales.

Looking ahead, the coming months are an breathtaking infinitesimal for our institution arsenic we embark connected our biggest tally of planetary shows successful WWE history. This coming Saturday, Backlash volition emanate from San Juan, Puerto Rico, wherever Bad Bunny volition vie successful rang against Damien Priest, and what volition beryllium a wholly sold retired arena. We besides received a seven-figure subsidy for this event. We are successful a dialog with a fig of antithetic section governments, tourism groups and lawsuit organizations astir the economical interaction of WWE erstwhile our events travel to town. Look for much updates connected this successful the aboriginal arsenic these conversations progress.

On May 27, the Saturday Memorial Day weekend, we returned to the Jeddah Super Dome for 1 of our biannual shows successful the region, Night of Champions. We closed retired our planetary tally connected Saturday, July 1, which is the Saturday of the July 4 weekend, with Money In The Bank astatine the O2 Arena successful London, our archetypal premium unrecorded lawsuit successful London successful implicit 2 decades. We volition besides person Friday Night SmackDown the nighttime earlier besides astatine the O2 Arena. Both Money In The Bank and SmackDown volition aerial unrecorded astatine 8 p.m. Local UK Prime Time arsenic our United Kingdom media rights conversations continue. We expect that some of these events successful London volition beryllium sold retired shows.

As with each of our events, we expect each of the premium unrecorded events to present year-over-year maturation portion showcasing and increasing our planetary footprint.

In closing, I privation to reiterate however pleased we are by the show of our business. We're excited astir 2023 and expect to present different twelvemonth of grounds gross and adjusted with OIBDA. Our institution is good positioned and we're precise optimistic astir our historical statement with statement with Endeavor successful the UFC. Until then, we are focused connected closing that deal, portion continuing to execute connected our strategy and turn our business. It's an astonishing clip for WWE, and we stay highly excited astir our semipermanent future.

With that, I'll present crook the telephone implicit to Frank.

Frank Riddick

Thank you, Nick. Before I reappraisal our fiscal show and concern outlook, I privation to concisely sermon the transaction we announced past period with Endeavor. As Nick highlighted, we're precise excited astir the statement we reached with Endeavor to harvester the WWE and UFC businesses. The caller institution volition beryllium uniquely positioned, with the increasing sports and amusement ecosystem. The fiscal illustration of the institution is rather charismatic with beardown gross growth, adjusted OIBDA margins and escaped currency travel characteristics. We judge determination volition beryllium important opportunities to summation the integrated maturation illustration of the combined entity done assorted gross and outgo synergies.

The transaction values the WWE concern astatine an estimated $9.3 billion. Transaction represents a publication terms of WWE of astir $106 per share. Pursuant to the transaction statement astatine closing, WWE volition administer its excess currency to the caller nationalist company. Following the closing, the caller nationalist institution whitethorn find the dividends specified excess currency to its shareholders. We're moving arsenic rapidly arsenic we tin to adjacent the transaction, which is expected to hap successful the 2nd fractional of 2023.

Turning to our operations connected Slide 5. 2023 is disconnected to a beardown start. In the archetypal quarter, we generated gross of $298 cardinal and adjusted OIBDA of $84 million, which exceeded the high-end of our guidance. Our show successful the 4th places america firmly connected way to conscionable our afloat twelvemonth outlook. I'll interaction connected the outlook for the 2nd 4th and afloat twelvemonth successful much item aboriginal successful my remarks.

On Slide 6 of our presentation, we elaborate our concern show successful the quarter, which shows revenue, operating income and adjusted OIBDA publication by conception arsenic compared to the anterior twelvemonth quarter. The results successful the 4th reflected the displacement successful the timing of the staging of a ample standard planetary event, which occurred successful the archetypal 4th of 2022, but is expected to hap successful the 2nd 4th of 2023.

Looking astatine our Media conception connected Slide 7. Adjusted OIBDA decreased 32% connected a 19% diminution successful revenue. The astir notable point driving the effect was a alteration successful different gross owed to the lack of the ample standard planetary event.

Network gross decreased owed to the timing of our premium unrecorded events, which resulted successful 1 little lawsuit successful the archetypal 4th of 2023 compared to the anterior twelvemonth period. These decreases were partially offset by an summation successful halfway contented rights, chiefly owed to the contractual escalation of media rights fees for bespeak play programming Raw and SmackDown.

The alteration successful gross was partially offset by little operating expenses. The alteration successful expenses was chiefly related to the alteration successful the accumulation costs related to the timing of our premium unrecorded events.

Now let's crook to our Live Event business, arsenic shown connected Slide 8 of our presentation. Adjusted OIBDA from our Live Events improved $4.2 cardinal based connected a $9.5 cardinal summation successful revenue. During the archetypal quarter, we experienced beardown request for our unrecorded events. We held 50 events successful North America, with mean attendance up 37%, arsenic compared to the anterior twelvemonth period.

In our Consumer Products segment, arsenic shown connected Slide 9, adjusted OIBDA was $22 cardinal connected gross of $39 million. Results successful the conception reflected a fig of moving pieces. Venue merchandise gross accrued owed to an summation successful some attendance and per capita sales. Licensing gross reflected higher collectibles gross and comparatively level video gaming revenue.

During the quarter, we recorded $6 cardinal successful gross arsenic a effect of the aboriginal termination of an statement for our licensed collectibles. As antecedently discussed, the alteration successful e-commerce gross reflected the modulation of our integer retail level to Fanatics.

Now let's crook to WWE's superior operation shown connected Slide 10 of the presentation. In the archetypal quarter, we utilized $21 cardinal successful escaped currency travel arsenic compared to generating $70 cardinal successful the anterior twelvemonth period. The alteration was chiefly owed to the timing of moving capital, astir notably the timing of collections associated with our ample standard planetary events.

In the archetypal quarter, we incurred $33 cardinal of superior expenditures, $30 cardinal of which related to our caller headquarter facility. Excluding the caller HQ CapEx, escaped currency travel would person been $9 cardinal successful the quarter. During the quarter, we returned $9 cardinal of superior to shareholders successful the signifier of dividends paid.

As of March 31, 2023, we held astir $465 cardinal successful currency and short-term investments. Debt totaled $235 million, including $214 cardinal associated with the carrying worth of our convertible notes. We person nary amounts outstanding nether our $200 cardinal revolving enactment of credit.

Looking ahead, we're not changing our outlook for the afloat twelvemonth adjusted OIBDA astatine this time. We proceed to people a scope of $395 cardinal to $410 million, which would beryllium an each clip grounds for the company. As we discussed connected our past net call, we're targeting grounds gross successful 2023 and comparatively level operating expenses.

As for the 2nd 4th of 2023, we're targeting adjusted OIBDA successful the scope of $125 cardinal to $135 million, which represents an summation of astir 37% to 48% from the anterior twelvemonth quarter. The estimation reflects gross maturation related to the favorable interaction of the displacement of the timing of the ample standard planetary lawsuit and the contractual escalation of home media rights fees for our flagship programs and premium events. We besides expect that 2nd 4th results volition bespeak an summation successful operating expenses.

In conclusion, WWE generated beardown archetypal 4th results that reflected continued robust request for our events and accrued depletion of programming crossed platforms. We proceed to judge our agelong word outlook is supported by the rising worth of unrecorded sports contented and expanding request for media companies that present scope and instrumentality engagement, some domestically and astir the globe.

Looking ahead, we stay focused connected our day-to-day operations, portion moving to adjacent the transaction with Endeavor arsenic rapidly arsenic possible. We judge that WWE remains good positioned to instrumentality vantage of important maturation opportunities crossed each of our lines of business. We look guardant to updating you connected the advancement of these initiatives successful the coming quarters.

That concludes our remarks, and I'll present crook it backmost to Seth.

Seth Zaslow

Thanks, Frank. Operator, we're acceptable for Q&A. Please unfastened the line.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] We'll spell archetypal to Curry Baker with Guggenheim.

Curry Baker

Hey, acknowledgment for the question. I've got 1 for Frank and 1 for Nick. Maybe the archetypal 1 for Frank, successful the commentary astir the 2nd 4th guidance, you mentioned an summation successful operating costs related to contented creation. Can you possibly supply a small much colour connected what these costs are, the magnitude successful the 2nd quarter? And however to deliberation astir immoderate incremental contented concern successful the backmost fractional of the year?

Frank Riddick

So primarily, the summation successful accumulation costs chiefly related to the staging of the events that moved from the archetypal 4th to the second, truthful it's truly adaptable costs. There are immoderate different outgo summation that we've incurred related to inflationary interaction connected staging of shows and the outgo of doing that. We deliberation we've adequately built those into our guidance.

Looking up to the remainder of the year, we don't spot important changes successful the inclination of creating the contented should we expect margins to beryllium successful enactment with what we've guided to.

Curry Baker

Okay. Thanks. And past for Nick, you're successful the exclusive model with some NBCU and FOX. High level, tin you speech astir however you consciousness astir the Raw and SmackDown positioning this cycle? If you're capable to supply immoderate incremental color, that would beryllium great. From a timing perspective, is your basal lawsuit anticipation the renewals are completed this year?

Nick Khan

A mates of things. We've had productive conversations with some FOX and NBCU. I judge that they're some seeing the product, the maturation of the product, the interaction of the merchandise successful the close way. So we're optimistic astir each of that.

In presumption of the timing connected getting a woody done, 1 happening I've experienced is that during the process of these things, you tin power a batch of it, you tin ne'er power erstwhile it closes oregon erstwhile you get to an agreement. So I can't estimation that yet, but we stay bullish connected Raw and SmackDown.

Curry Baker

Thanks for the questions, guys.

Operator

We'll spell adjacent to Brandon Ross with LightShed Partners.

Brandon Ross

Thanks, guys. Good morning. Maybe I'll commencement disconnected with a mates of follow-up questions to Curry's past question there. During the exclusive period, archetypal of all, are you capable to get IOIs from extracurricular parties during that time? Is determination immoderate mode to cognize what your negotiating presumption is arsenic you embark connected these negotiations with FOX and NBCU? Then, I conjecture that some of those parties person different sports rights that they're reasoning astir negotiating on. There's the NBA and NASCAR. As you recognize it, however intertwined are those negotiations with what you're doing? And past finally, has determination been immoderate speech of including the -- an hold of the Peacock woody successful these negotiations?

Nick Khan

So successful nary peculiar order, Brandon, this is Nick. We'll spot what happens with the Peacock situation. As I deliberation everyone knows, that's not up for a mates of years. In presumption of different sports rights that are up and astir the aforesaid play of time, we're surely alert of them. We person our ain investigation of what the precedence is to each and each purchaser retired there, including buyers supra and beyond FOX and NBCU. In our opinion, we're precocious connected a -- really, truly precocious connected a batch of folks' lists successful presumption of getting different offers oregon immoderate volition of an offer. No, exclusive needs exclusive. We privation to support it clean, and we privation to amusement each the respect that FOX and NBCU person earned to them. So let's spot however the adjacent play of clip shakes out.

Brandon Ross

And past conscionable looking up from the home deals to international, it ever seemed similar India was the biggest imaginable accidental for you guys extracurricular the U.S. As you analyse the rights deals happening possibly simultaneously oregon conscionable aft the home ones, what bash you spot arsenic the biggest planetary opportunity? And what is the gating origin successful getting India specifically to fulfill its promise?

Nick Khan

The gating origin connected India was COVID. As you know, precise hard to get successful and retired of India during that play of time, which paused our efforts there. Those person been unpaused. Sony India, arsenic you know, is going done a merger with Zee. They're waiting connected regulatory support for that. That woody is not up until aboriginal successful 2024, if I'm remembering correctly disconnected the apical of my head. So what our program is, is hyper focused connected the U.S. media rights, past displacement to India station support of the Zee-Sony India merger, but we're successful changeless dialog with Sony often. So we consciousness bully astir wherever that is. We consciousness bully astir wherever it tin spell to with them and beyond.

Brandon Ross

And conscionable 1 follow-up connected that. It seems similar Jio is getting a small much assertive successful that region. Is that a spouse that you're watching?

Nick Khan

Yeah. We're watching each of them. Look, adjacent connected the cricket rights that were up 3 to six months ago, you saw however that 1 ended up. You saw the increases. You spot that the Reliance, Viacom, James Murdoch Group is doing it for escaped there, which we felt was a astute thought and we'll spot however that each shakes out. But yeah, we're paying rather adjacent attraction to each things going connected successful India. By the way, that was a full of, I think, 17 questions from you.

Brandon Ross

Sorry.

Nick Khan

No, no. No more.

Brandon Ross

No, I got to enactment immoderate for -- immoderate of my peers. Thank you.

Operator

We'll spell adjacent to Ben Swinburne with Morgan Stanley.

Ben Swinburne

Hey, bully morning, guys. I think, Nick, Frank, you guys person some been astir the institution for a agelong time. I'd beryllium funny however you consciousness the enactment is prepared for beingness wrong of a larger company. I mean, this has been -- I wouldn't accidental a household tally company, but certainly, a circumstantial operation for decades. It's a beauteous large alteration to however the concern is going to beryllium run. I'd emotion your thoughts connected benignant of however you deliberation that -- however the concern is prepared for that and however -- your assurance level connected benignant of absorption modulation fixed the value of a batch of the -- peculiarly connected the originative side, keeping the concern caller and sustaining the benignant of ratings trends that you guys highlighted successful this -- successful the platform this morning.

Nick Khan

This is Nick speaking, Ben. A mates of things connected that. We're each excited astir everything that should and volition hap unneurotic with UFC and with the folks from Endeavor. Keep successful mind, we've known these folks for a agelong play of time, truthful they're not strangers to us. Their benignant is not unusual to us. It's thing that we springiness a afloat clasp to. And I tin surely correspond emphatically to you connected the originative that there's nary 1 astatine Endeavor oregon the UFC that has immoderate involvement successful trying to interfere with that successful immoderate mode whatsoever.

I deliberation Dana White would besides correspond to you that ne'er oregon astir never, I don't cognize the specifics, but ne'er would beryllium my conjecture has the Endeavor folks told him, no, you should bash this lucifer oregon you should bash it this way. That's not what they do. That's not what they accidental they do, and that's not what they're going to do.

All of the different things that we talked astir successful presumption of gross and continuing to physique a concern internationally and domestically, we deliberation they're experts at. And we're looking guardant to getting into each of that and much erstwhile the woody is approved.

Ben Swinburne

That's helpful, Nick. And possibly conscionable 1 much -- spell ahead, sir.

Paul Levesque

This is Paul, and I tin conscionable reiterate that I deliberation that the excitement level present is truly high. Creatively, we look guardant to continuing to bash what we bash and the momentum that it has. And connected apical of that, I mean, I talk for myself, I'm incredibly excited astir what Endeavor brings to the array and however we tin utilize them to grow our efforts and truly hyperfocus connected them internationally and increasing what we bash crossed the globe. I deliberation they'll beryllium incredibly adjuvant there.

Ben Swinburne

That's great, Paul. And I conscionable privation to inquire you guys astir the Fanatics deal. I think, Nick, you made the remark it's supercharge income astir your user products. Can you conscionable speech a small spot much astir what they're bringing? Obviously, you had to astir apt springiness up immoderate economics. But clearly, the concern is surging close present based connected the results this morning. So tin you conscionable archer america a small spot much astir however that woody is going to assistance successful your ambitions successful CP implicit time?

Frank Riddick

Hey, Ben. It Frank Riddick. So with respect to the -- what it brings to the table, to supercharge the growth, obviously, their sourcing and their quality to make products with america and execute fixed their scale, arsenic they've done successful our e-commerce business, we judge they'll lend importantly to the venue business. With respect to the economics, we deliberation it's a precise -- it volition beryllium precise affirmative for us. The operation of the woody is akin to the e-commerce deal, and that it's a minimum guarantee, which was negotiated and precise favorable for us. And eventually, determination volition beryllium upside successful the woody if they proceed to outperform arsenic we turn the business.

So we're precise bullish. It besides improves the contractual quality of our business. It's present a declaration and derisk the concern for us. So we're precise bullish connected what it's going to bring to the table.

Ben Swinburne

Thanks, everybody.

Nick Khan

Thank you.

Operator

We'll spell adjacent to Steven Cahall with Wells Fargo.

Steven Cahall

Thanks. Frank, I was wondering if you could unpack WWE's firm disbursal a small bit. I deliberation that immoderate looking astatine the woody are optimistic determination could beryllium immoderate upside to the outgo synergies. And I privation to inquire you to opine connected that, but I was wondering if you could conscionable possibly instrumentality WWE's $130 cardinal successful firm overhead and conscionable assistance america deliberation astir what the large buckets are successful determination betwixt things similar staff, offices, nationalist filing costs, benignant of immoderate of those things. And past I person a speedy travel up.

Frank Riddick

Yeah. So the firm disbursal is the unallocated overhead, but we person different expenses that we see firm that are allocated to the concern segments, obviously. But it's chiefly the outgo of the finance, the technology, the information analytics, selling and planetary groups arsenic good arsenic emblematic corporate, the enforcement office. So that's the superior outgo that are successful the firm buckets.

If you look astatine it, the main disbursal we person is that shows up successful firm is radical and the outgo of compensation, outgo for people. The outgo of moving the nationalist institution are not the biggest portion of that disbursal bucket. There are costs similar D&O security and the outgo of the committee and the outgo of doing SEC filings and things similar that. But wherever determination is opportunity.

And with respect to the imaginable for outgo synergies, we've independently not with Endeavor, but ourselves looked astatine our costs successful the buckets and wherever determination mightiness beryllium opportunities. And we're precise comfy with the $50 cardinal to $100 cardinal scope that's been articulated and are starting to deliberation astir however to signifier to spell get those costs erstwhile the woody closes.

Steven Cahall

Thanks. And past Paul and Nick, I deliberation the ratings show this 4th is the champion we've seen, going backmost astatine slightest successful my shot astir arsenic acold arsenic I tin find. And Paul, I cognize you've done a batch successful presumption of investing successful the content. But tin you conscionable assistance america deliberation done precisely what immoderate of the changes you've made are, what you've done to benignant of deliberately thrust the viewership higher that was antithetic from however it was being done before? Thank you.

Paul Levesque

Thank you. This is Paul. Thanks for the question. So yeah, we're highly excited astir the performance. As Nick mentioned, astir palmy WrestleMania successful history, Rumble precocious is viewership successful the history, the Raw and SmackDown ratings up crossed the board, fig 1 amusement connected cablegram connected the nighttime and connected broadcast connected the night. So incredibly exciting. I deliberation that truly comes down to america conscionable having assembled the close squad crossed the board. We person world-class superstars, and that continues to turn each time done our developmental systems, done our NIL, done planetary recruiting, done home recruiting. So the pipeline coming successful is precise strong.

I deliberation you conscionable saw that successful the caller draught and the magnitude of endowment that we had to draught backmost and distant and coming up from NXT. And done that pipeline, the penning squad is world-class. And Kevin Dunn's accumulation team, there's thing similar it successful the world. The quality for anybody that saw WrestleMania oregon what we bash connected a regular basis, there's thing successful the satellite retired there, successful my opinion, similar what we bash and the merchandise that they enactment retired and the look and the consciousness of it and everything else, it engages our fans similar thing other successful the world.

So arsenic acold arsenic what we're focused on, we're focused connected quality development. And I deliberation you spot that crossed storylines wherever our fans are ace engaged successful the talent. Let's instrumentality Sami Zayn and Bloodline implicit the past mates of years, really, but particularly successful the past six-eight months, wherever that communicative and the quality improvement has reached a full caller level. I deliberation it's got our fans invested and excited successful the contented similar they haven't been successful a agelong time.

And for us, extending the readying of the lawsuit horizon. So looking retired year-over-year, wherever we privation to beryllium adjacent twelvemonth and past backtracking from there, truthful that we're ever up of the curve and ever reasoning ahead, and it allows america to person amended planning. And past it's conscionable trying caller things and getting extracurricular of a container of what we bash and seeing what works and what doesn't. I don't see thing not moving a failure. I see it a learning. So really, truly excited astir the aboriginal and wherever we tin instrumentality each of this.

Steven Cahall

Thank you.

Operator

We spell adjacent to Eric Handler with Roth MKM.

Eric Handler

Yes. Good morning. Thanks for the question. First question, I guess, to Nick, however agelong does the exclusive model for U.S.A. and FOX spell for?

Nick Khan

About a period each.

Eric Handler

Okay. Great. And secondly, tin you speech a small spot astir the advertizing and sponsorships concern that you're seeing? Obviously, truly bully maturation for WrestleMania. But successful presumption conscionable much broadly speaking, tin you speech possibly astir -- are radical looking to bash conscionable lawsuit by event? Are you looking for benignant of each encompassing benignant of year-round deals, what you're seeing successful presumption of declaration size? And are you getting immoderate effect astatine this constituent from immoderate UFC sponsors that person ne'er worked with you before?

Nick Khan

A mates of things. Thanks, Eric. First of all, we deliberation we person the close enactment successful spot connected the income and sponsorship side. That matters a lot. The elemental displacement has been fto the deals beryllium much robust and let's motion them into longer word deals. So alternatively than a bid of one-offs, let's get retired of that concern and spell into longer word partnerships. We judge that has each been effective, arsenic is reflective successful the numbers.

In presumption of the UFC sponsors, we're not doing immoderate weapon jumping. We're waiting until this woody is closed. And erstwhile that happens, we deliberation it's going to ignite our income and sponsorship concern adjacent further.

Eric Handler

Thank you.

Operator

We'll spell adjacent to Peter Supino with Wolfe Reseach.

Peter Supino

Good morning, thanks. Following up connected the treatment of ratings, erstwhile you person higher gross from renewed TV rights, I wondered what are you astir excited astir investing in. And related to that, I wondered if you'd update america connected your involvement successful imaginable acquisitions extracurricular of the United States, Europe, Latin America, Asia.

Nick Khan

Yeah. This is Nick. Thanks, Peter. A mates of things. In presumption of aboriginal acquisitions, the absorption close present is benignant of threefold, continuing to physique the existing concern astatine manus done the merchandise and different closing the woody with Endeavor and our U.S. media rights. So successful presumption of aboriginal acquisitions, those aren't conversations that we're having astatine this moment. But erstwhile things are settled in, we'll spot what everyone wants to do, and we're excited astir that arsenic well.

I'm sorry, Peter, repetition maine the TV ratings question that you had.

Peter Supino

Yeah. To support the ratings growing, arsenic your gross rises, acknowledgment to your soon-to-be renewed TV rights. I wondered what you'd beryllium funny successful spending further OpEx dollars connected to effort to support that flywheel turning.

Nick Khan

Look, we'll spot from your rima to God's ears connected the caller imaginable deals. Once the wealth comes in, we evidently privation to beryllium judicious with it. So it's ever astir increasing the concern and investing successful the concern successful the close way, portion being financially liable and making definite that our shareholders are taken attraction of. So there's thing specifically I could articulate arsenic to, well, if we get the summation that we deliberation we're going to get, we're going to walk it connected x. We don't privation to leap the weapon connected that either. We're optimistic astir it all, and let's spot however it shakes out.

Peter Supino

Thank you.

Nick Khan

Thank you.

Operator

We'll spell adjacent to David Karnovsky with JPMorgan.

David Karnovsky

Hi, convey you. Nick, immoderate update you tin supply connected the WWE web internationally, including the UK? Are you inactive engaged successful a process determination to merchantability oregon licence retired that content? Or volition that beryllium much tied up with the halfway contented rights income for that market?

Nick Khan

We're having conversations astir some the halfway contented rights and WWE web present with the buyers successful the UK Part of the crushed for the Money In The Bank event, July 1 astatine the O2 Arena successful London is truthful the buyers tin spot our merchandise live, the ones who haven't seen it yet. It's a heck of a batch easier for each of america erstwhile radical person for them to recognize precisely what sports amusement is compared to america simply articulating to them what we judge it is.

So the Los Angeles SoFi WrestleMania going into the U.S. media rights dialog was intentional. And obviously, the London UK amusement is arsenic well. But we're unfastened to concern successful presumption of the web and, of course, the halfway contented rights.

David Karnovsky

Okay. And past conscionable connected unrecorded events, beardown 4th some for pricing and attendance. Obviously, the merchandise doing good helps, but wanted to conscionable spot if you could talk to immoderate of the circumstantial actions you've taken connected pricing oregon selling that are benignant of helping thrust this.

Nick Khan

You looked astatine WrestleMania, which we talked astir grounds summons revenue, our apical ticket, our premium summons was 2x from the WrestleMania the twelvemonth prior. Yet the -- getting the gathering lowest terms summons was, I believe, precisely the aforesaid astatine $25. So for us, it's making definite that we ne'er exclude our fans. We're a family-friendly product, and we privation to marque definite that everyone from antithetic socioeconomic paths tin be our events, particularly our biggest events. At the aforesaid time, for example, the bully folks similar you connected this call, if you're consenting to walk connected an event, we're consenting to instrumentality each that you're consenting to spend.

So we deliberation we've been smarter successful pricing. We think, adjacent successful presumption of geographic locations, it's making definite that we're not successful marketplace with different large events astatine the aforesaid play of time, unless those events tin beryllium supplemental to our event. So it's conscionable a batch of clip and vigor enactment successful by a batch of bully folks present to marque definite that we're routing it a circumstantial mode that's outgo businesslike and nett businesslike also.

David Karnovsky

Thanks, Nick.

Nick Khan

Thank you.

Operator

We'll spell adjacent to Alan Gould with Loop Capital.

Alan Gould

Thanks for taking the questions. Two, please. First, Nick, the writer strike, I'm assuming the writers astatine WWE are not portion of the guild. Does this possibly interaction your different programming, the benignant you person connected A&E? And secondly, your remark astir authorities subsidies successful Puerto Rico, is that thing new? It sounds rather interesting. Thanks.

Nick Khan

Thank you. In presumption of the guild, no, we're not -- our writers are not members of the guild, truthful there's nary effect connected america whatsoever. Of course, we're supportive of the writers who are members of the guild and their efforts, and we're hopeful that a woody tin beryllium reached betwixt them and the different broadside successful abbreviated order.

In presumption of Puerto Rico and the subsidies, yes, I deliberation we kicked it disconnected with our portion amusement past Labor Day play successful obviously, Wales, wherever determination was what we judge to beryllium a important authorities subsidy for that event. We deed each the markers connected it. And we've present started to replicate that, some domestically and proceed to bash truthful internationally. So Puerto Rico, we're having conversations with a fig of antithetic cities successful the United States and overseas successful presumption of what we tin do. And conscionable 1 circumstantial happening backmost to the writer's guild question, nary interaction connected the A&E merchandise either.

Alan Gould

Thank you, Nick.

Nick Khan

Thank you.

Seth Zaslow

Operator, wherefore don't we instrumentality 1 past question, please?

Operator

Thank you. We'll spell adjacent to Jason Bazinet with Citi.

Seth Zaslow

Jason, are you there?

Jason Bazinet

Sorry, tin you perceive me?

Seth Zaslow

We tin perceive you now, but possibly if you could conscionable commencement from the beginning, yet. We didn't perceive you initially.

Jason Bazinet

Okay. Great. As it relates to the peculiar dividend, should investors beryllium including the short-term investments arsenic they deliberation astir the imaginable size of that dividend oregon conscionable the currency arsenic you specify it connected the equilibrium sheet? Thanks.

Frank Riddick

The outgo -- immoderate imaginable dividend volition beryllium based connected currency and currency equivalents. So the short-term investments we person are truly conscionable currency equivalents.

Jason Bazinet

Okay, convey you.

Seth Zaslow

Great. Well, convey you, everyone, for joining america connected today's call. Operator, you tin reason the call.

Operator

This does reason today's conference. We convey you for your participation.