WWE Kicks Off Post-Vince McMahon Era With Strong Second Quarter Numbers; Co-CEO Stephanie McMahon praises father as “true founder and entrepreneur”

Stephanie McMahon, daughter of former WWE founder Vince McMahon and now CEO of the company, kicked off the company’s second quarter earnings call by honoring her father as a “true founder and entrepreneur.”

Earlier this summer, he and Nick Khan were named co-CEOs of the company when a board-initiated investigation into Vince McMahon’s conduct began. After an investigation confirmed multiple women’s claims of sexual harassment, retaliation and corruption, McMahon stepped down in July. Along with the financial results, the company said this morning that the investigation is now “substantially complete”.

McMahon and his wife, Linda, “have put their heart and soul into building this business and WWE from a regional wrestling promotion in the 1980s to the global entertainment company we are today,” said Stephanie McMahon. She has built the foundation on which we stand and prepared us for the future.

Prior to retirement, WWE reported strong results for the quarter that had to be repeated due to $ 14.6 million in “unregistered payments” made by Vince McMahon to various women. Stephanie McMahon noted that her father remains a “controlling shareholder” in the company and “is still looking for what’s best for our business in terms of maximizing returns for our shareholders.”

Net income increased to 58 cents per share, compared to 34 cents per share in the previous quarter, while revenues increased 24% to $ 328.2 million. Both metrics beat Wall Street analysts’ consensus estimates.

Frank Riddick, the company’s chief financial and administrative officer, said $ 1.7 million in expenses were incurred in the quarter due to the McMahon investigation. The former CEO has indicated that he will pay those costs, Riddick said, adding that the company also plans to incur additional financial costs related to the investigation.

Vince McMahon took over WWE from his father in the early 1980s and transformed it into a global media empire with profitable partnerships with NBCUniversal and Fox in the United States and US broadcast and other media rights in 180 countries in Worldwide. Last year, he struck a $ 1 billion deal to have his broadcast network taken over by NBCU’s Peacock.

Khan highlighted favorable trends in the sports rights market, including recent deals for Formula 1 and the upcoming Big Ten, during the call. He said the F1 deal offered a good model for WWE because it combines linear television with broadcasting. Slap It airs weekly on Fox, the broadcast network and True Broadcast in the US, the basic cable network and Peacock is the venue for live events such as struggle Y summer party.

“We like that mix,” Khan said. “It is always important to us that access to content is easy. … We thought Formula 1 was smart, regardless of the cost, to keep its current leader and shell out a little more money for a transmission-only option. “

The analyst also asked Stephanie McMahon about her long-term plans, given the recent dramatic changes in the company’s management. In her previous role as brand director, she took a gap year to spend more time with her family, then returned to the C-suite a few weeks later.

The executive touted his deep roots in the business, noting that he began working unofficially for WWE when he was 8, modeling catalog products and spending time at the company headquarters because his parents didn’t have the money to pay for childcare. “I have worked for this business all my life. I love this business, “he said. The three-week vacation break was” more than a lot of people do, “he continued.” They didn’t force me back. … I suggested. WWE is “something I believe in. in my soul”.

Regarding recent Wall Street speeches about a potential WWE acquisition, McMahon added that “we will properly evaluate any opportunities that arise.”

Lured by the potential for a lucrative M&A deal and buoyed by steady valuations and healthy market demand for live programming, investors shrugged off the Vince McMahon frenzy. WWE stock has risen to multi-year highs in recent days, with the stock gaining another 3% to open the new day at around $ 74.60.