WWE Secures Multi-Year Media Rights Deals With USA Network And Fox Sports

(RTTNews) - WWE (WWE) said that it has completed landmark agreements with USA Network and Fox Sports, effective October 1, 2019, for the U.S. distribution of WWE's flagship programs 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 each Friday on Fox broadcast network. These agreements increase the average annual value (AAV) of WWE's U.S. distribution to 3.6 times that of the prior deal with NBCU.

The monetization of content is a fundamental element of the Company's business model, and the new agreements with USA Network and Fox Sports will provide a sizeable increase in the average annual value of WWE's U.S. distribution. WWE management anticipates that revenue from "key content agreements" including the new U.S. deals, described as "Existing and New Agreements" revenue in Exhibit 1, will grow to approximately $311 million in 2019 and $462 million in 2021.2 The Company has other agreements that are subject to renewal in the 2019 - 2021 period, which are described as "To Be Negotiated," and their revenue subsequent to renewal is not ascertainable. The approach, which indicates revenue of $3 million in 2019 and $80 million in 2021, does not quantify management expectations and is used solely to reflect future risk or opportunity. As shown in Exhibit 1, revenue from the Company's "key content agreements" would increase to $314 million in 2019 and $542 million in 2021.

The Company is in the early stages of developing its operating and financial plans for 2019 and subsequent years. Given the substantial revenue growth provided by its new U.S. deals, the Company is currently targeting Adjusted OIBDA of at least $200 million for 2019, during which the new deals' rates are effective for only three months.

Management expects to provide additional long-term perspective on the Company's strategic and financial goals after its content distribution plans in the U.S., U.K. and India have been determined and its plans have further evolved. Management currently expects to reach agreement in the U.K. by year-end 2018; and in India during the first half of 2019. Although these agreements could be secured either before or after these dates, management believes that these ranges represent the most likely periods for such communication