World Wrestling Entertainment Inc. (NYSE:WWE) Q2 2017 Earnings Conference Call - Final Transcript

Jul 27, 2017 • 11:00 am ET

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World Wrestling Entertainment Inc. (NYSE:WWE) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello and welcome to the webcast entitled WWE Second Quarter Earnings. We have just a few announcements before we begin. [Operator Instructions] I will now turn the call over to Michael Weitz, SVP, Financial Planning and Investor Relations. Please go ahead, Michael.

Executive
Michael Weitz

Thank you and good morning everyone. Welcome to WWE's second quarter 2017 earnings conference call. Leading today's discussion are Vince McMahon, our Chairman and CEO; George Barrios, our Chief Strategy and Financial Officer; and Michelle Wilson, our Chief Revenue and Marketing Officer.

We issued our earnings release earlier this morning and have posted the release, our earnings presentation and other supporting materials on our website, corporate.wwe.com/investors. Today's discussion will include forward-looking statements. These forward-looking statements reflect our current views, are based on various assumptions and are subject to risks and uncertainties disclosed in our SEC filings. Actual results may differ materially and undue reliance should not be placed on them. Additionally, the matters we will be discussing today may include non-GAAP financial measures. Reconciliation of non-GAAP to GAAP information is set forth in our earnings release and presentation, which are available on our website. Finally, as a reminder, today's conference call is being recorded and the replay will be available on our website later today.

At this time, it's my privilege to turn the call over to Vince.

Executive
Vince McMahon

Good morning, everyone. We are pleased with the execution of our strategy to optimize our long-term value of our content. As you know, revenue increased 8% to a quarterly record of $215 million. And we delivered our earnings results pretty much essentially in line with our guidance. Live event revenue increased to quarterly record of $53 million, which I think is notable. We are reaching $85 million year-to-date with our global attendance up about 100,000. The Network segment reached a quarterly record of $55 million as our WWE network paid subscribers increased 8%. Similar interesting things we have got on as well is -- there is something called the Mae Young Classic named after one of our more extraordinary female performers of the past. It's one of things that Paul Levesque is putting together for us as he did the [Indecipherable] and of course all the young individuals who are scheduled to one-day compete for us down at the performance center. The Mae Young Classic is really an opportunity to bring up young female performers, which is very -- is vital actually to our overall product, many of the quarter hours you see in television reflect our women superstars. So, this is an opportunity, obviously, to grow that base, which we haven't done all that well in the past.

Overall, one of the things that I look at with one of my barometers is the overall interest in the product. And for the first 6 months of the year, our digital video views reached 9.1 billion, which is pretty much extraordinary. It's up 18%. Our social media followers continue -- certainly surpassed the 800 million, which again I think is a