WWE Launches New Five-Year Agreements with USA Network and FOX Sports (Graphics)

STAMFORD, Connecticut – (BUSINESS WIRE) – WWE (NYSE: WWE) announced today that it has entered into historic agreements with USA Network and Fox Sports, effective October 1, 2019, for the US distribution of flagship programs of the WWE, Raw and SmackDown. As part of these five-year agreements, Monday Night Raw will continue to air on USA Network; and Fox Sports will distribute SmackDown Live every Friday on Fox's broadcast network. These agreements increase the average annual value (AAV) of the WWE distribution in the United States to 3.6 times that of the previous agreement with NBCU.

"Key Content Agreements" – The Top Seven Countries / Regions (see Exhibit 1)

Since the completion of its previous US distribution agreement for Raw and SmackDown in 2014, the Company has discussed the financial impact of the transaction by outlining the growth of the seven largest WWE television distribution. These "Key Content Agreements" 1 resulted in contract revenue growth of $ 105 million from 2014 to 2018, from $ 130 million in 2014 to approximately $ 235 million in 2018.

Monetization of content is a fundamental part of the company's business model, and the new agreements with USA Network and Fox Sports will provide a significant increase in the average annual value of the WWE distribution in the United States. WWE management expects revenue from "key content agreements", including new contracts in the United States, as described in Table 1, to reach approximately $ 311 million in 2019 and $ 462 million in 2021.2. company has entered into other agreements. subject to renewal during the period 2019-2021, which are described as being "for negotiation", and their income after renewal is not verifiable. For illustrative purposes, the corresponding amounts in Table 1 reflect no future change in annual revenues (ie, all future years are equal to the value of the last year in the agreements). current). This approach, which indicates revenues of $ 3 million in 2019 and $ 80 million in 2021, does not quantify management's expectations and is only intended to reflect future risks or opportunities. As illustrated in Figure 1, revenue from the company's "key content agreements" would increase to $ 314 million in 2019 and $ 542 million in 2021.

Core Content Revenue – All Global Markets (Exhibit 2)

Core content revenues, as reported in the Company's reported financial statements, include primarily licensing revenues from the worldwide distribution of its flagship programs, Raw and SmackDown. By definition, the Company's core content revenues include the subset of license fees associated with its top 7 countries / regions (the "Key Content Agreements") described above. The WWE management expects revenues from its core content agreements through 2019 and subsequent years, described as "existing and new" revenues in Exhibit 2, will reach approximately $ 331 million in 2019 and $ 462 million $ in 2021.2 The company has entered into other agreements are subject to renewal during the period 2019-2021, which are described as being "to be negotiated", and their revenues after the renewal are not verifiable. For illustrative purposes, the related amounts in Exhibit 2 do not reflect any future change in annual revenues (ie, all future years are equal to the value of the last year of the current agreements). ). This approach, which shows revenues of $ 17 million in 2019 and $ 114 million in 2021, does not quantify management's expectations and is only intended to reflect future risk or opportunities. As Table 2 shows, total revenues from the company's core content contracts would increase to $ 348 million in 2019 and $ 576 million in 2021.

2019 Financial Outlook

The company is in the early stages of developing its operational and financial plans for 2019 and subsequent years. Given the substantial revenue growth generated by its new operations in the United States, the Company is currently targeting an adjusted OIBDA of at least $ 200 million for 2019, during which the new rates will only be effective for three years. months.3

Management recognizes the transformative nature of these agreements and plans to provide an additional long-term perspective on the Company's strategic and financial goals after its content distribution plans in the United States, United Kingdom and India are determined. and that his plans will have evolved. Management is currently expecting to conclude an agreement in the United Kingdom by the end of 2018; and in India during the first half of 2019. Although these agreements can be obtained before or after these dates, management believes that these ranges represent the most probable periods for such a communication.

Additional information

WWE will hold a conference call on June 27 at 8:00 am ET to discuss the content of this release. All interested parties are invited to listen to a live webcast that will be hosted on the Company's website at corporate.wwe.com/investors. Attendees can access the conference call by dialing 1-855-200-4993 (toll-free) or 1-323-794-2092 from outside the United States (conference number for both lines: 1980819 ). Please reserve a line approximately 10 minutes prior to the start time of the conference call.

The referenced presentation at the call will be available on June 27, 2018 on corporate.wwe.com/investors. A replay of the call will be available approximately two hours after the end of the call and can be found on the Corporation's website.

Remarks
1. WWE's "Key Content Agreements" reflect the license of the WWE, Raw and SmackDown flagship programs in certain markets and, as such, constitute a subset of the company's core content offerings. These markets include the United States, the United Kingdom, India, Canada, LATAM, the Middle East and South Africa.
2. Income from "Existing and New Contracts" is subject to normal risks relating to the continuation of counterparty agreements and risks.
3. WWE is not able to provide a reconciliation between the 2018 and 2019 guidelines and the GAAP measures since, at the present time, WWE can not accurately determine any adjustments that may occur. would be necessary.