Business Outlook
The level of WWE Network subscribers is a critical determinant of the Company’s projected future financial performance.
In 2015, the Company expects year-over-year adjusted OIBDA growth in every quarter, with growth driven by the performance of WWE Network as well as the escalation of television rights fees, and continued innovation across all of the Company’s businesses. For the first quarter 2015, the Company currently projects its adjusted OIBDA will exceed the high end of its most recent public guidance associated with the quarter’s actual average of 918,000 paid subscribers.2 The most recent public guidance implied a range of adjusted OIBDA of approximately $3 million to $8 million associated with that average.
The table below outlines ranges of potential Company performance for the full year 2015 at different subscriber levels. The Company is maintaining its 2015 Business Outlook at various subscriber levels as released on February 12, 2015. The 2015 Adjusted OIBDA table (below) is consistent with the previously provided business outlook. (The Company’s previous business outlook as well as reconciliations of Operating Income to Adjusted OIBDA can be found in the Company’s Q4 2014 Earnings Release – February 12, 2015).
1 Average paid subscribers are calculated based on the arithmetic daily mean over the relevant period, and may differ substantially from paid subscribers at the end of any period due to the timing of paid subscriber additions. Trial subscribers acquired during a promotional period are not counted as paying subscribers until they convert after the end of the free period.
2 These projections are preliminary and are subject to change based on the completion of the Company’s quarter-end financial reporting process.
Total Company – Adjusted OIBDA (in millions)
Average Paid Subscribers (3,4)
2015E
500 ($10) – $10
1,000 $45 – $65
1,500 $100 – $120
2,000 $155 – $175
2,500 $210 – $230
(3) Average paid subscribers shown in thousands. The average number of paid subscribers over the 12-months of 2014 was approximately 567,000. This 12-month average is below the average for the 2014 period in which WWE Network was operative (WWE Network was launched on February 24, 2014).
(4)The average paid subscribers the Company will achieve over the full year 2015 is unknown. The range of average subscribers over the full year 2015 has been provided for illustrative purposes rather than as guidance, and has not been updated or changed since it was initially presented (July 31, 2014)
Nick was born and raised in Detroit, Michigan, and lived there until the age of 18, when he decided to pack his flack jacket and move to New York City.
