WWE's Profits Soar In Q2 2020
A successful quarter for the wrestling behemoth...
At the close of business yesterday, WWE reported their Q2 2020 results. Predictions on Wall Street estimated the company's net profit for the quarter would be between $11.5 million and $12 million, but the wrestling behemoth far surpassed those numbers and recorded a net income of $43.8 million, a 321 percent increase from Q2 2019.
This is despite revenue falling by 23 percent from $291 million in Q1 2020 to $223.4 million in Q2 2020. The company brought in less money primarily because of reduced ticket and merchandise sales due to the ongoing coronavirus pandemic and the "unfavourable timing" of Super ShowDown in Saudi Arabia.
The lower revenue was offset by the decline in operating expenses, however, as WWE has run all shows from behind closed doors at the Performance Center and Full Sail University since the March 13 episode of Friday Night SmackDown. Holding TV tapings as opposed to broadcasting shows live every week has also helped the wrestling behemoth keep costs down.
The reduced costs then combined with a lower tax rate to give the company a healthy profit in Q2 2020.
The extent of WWE's profits has drawn criticism, however, primarily because the company made a net income of $43.8 million while still paying the salaries of all main roster Superstars who were released back on April 15.