WWE On Course For Most Profitable Year In Company History
WWE's decision to make cutbacks in April continues to draw criticism...
WWE reported their Q3 2020 results yesterday. Analysts predicted the company's net profit for the quarter would be between $30.7 million and $34.9 million. WWE once again surpassed these predictions, though, and reported a net income of $48.2 million, a 731 percent increase from Q3 2019 and a 10 percent increase from Q2 2020.
WWE generated $221.6 million in revenue in the last quarter, up 19 percent from Q3 2019, primarily because of their TV rights deals with FOX and the USA Network. The amount was partially offset by the loss of ticket and merchandise sales because of the ongoing coronavirus pandemic.
Similar to Q2 2020, lower revenue than Q1 2020 was offset by reduced production expenses. The "short-term cost reductions" the company implemented on April 15 when they fired 37 Superstars and furloughed office staff at Titan Towers also helped WWE make a net income of $48.2 million. The final figure was partially offset by $4.3 million in "after-tax severance expenses" paid to those who were fired on April 15.
Net income was also affected by an $8.2 million reduction in tax benefits but this was partially offset by WWE's partnership with DraftKings.
Having generated a net income of $118.2 million in 2020 so far, WWE is on course to have the most profitable year in company history, surpassing 2018's total net income of $99.6 million.