Vince McMahon Talks WWE's Adaptations; More Takeaways from Q4 Results

WWE released its financial report from the fourth quarter of 2020 on Thursday, showing a 26 percent decrease in revenue to $238.2 million.

That's a drop of $84.6 million, which was related to the company's lack of shows in Saudi Arabia and lack of gate revenue from fans. 

WWE Chairman Vince McMahon said in a statement: 

"During the fourth quarter, we continued to produce live content in new ways, which successfully increased audience interaction and engagement. As we continued to adapt our business to the changing media environment, we completed an important agreement to license WWE Network content to Peacock, which we expect will expand the reach of our brands and enhance the value of our content."

The company saw a 64 percent drop in operating income to $36.2 million. 

While the fourth-quarter results compare unfavorably to 2019's, WWE's overall financial picture from 2020 paints a far rosier view. WWE totaled $974.2 million in overall revenue, an increase of $13.8 million, thanks in large part to the increase in revenue from television deals.

That significant increase in revenue from their deals with Fox and USA allowed the company to more than offset the loss of gate receipts and expenses setting up the ThunderDome.

WWE laid off several employees in April, citing pandemic-related cuts, but wound up more financially sound than perhaps the company expected. The lack of nationwide travel and holding shows in one location undoubtedly helped reduce expenses as well.

In the revenue report, WWE says it expects "restrictions related to the spread of COVID-19, particularly related to the cancellation, postponement or reduced capacity of ticketed live events, to continue at least through the first half of 2021."

WWE could offset some of the continued lost gate receipts with its new Peacock deal, which will see the company shutter its standalone streaming network in favor of a five-year partnership with NBCUniversal. The deal with Peacock begins March 18.

WWE Network has 1.5 million worldwide subscribers.