WWE aims to grow international media revenue but faces new competitor

World Wrestling Entertainment pulled off its top annual event, SummerSlam, in Las Vegas this month and is now looking to line up global business to reach historic revenue.

With its U.S. media rights secure, WWE wants to land global deals for its WWE Network streaming service. Although the world’s largest wrestling company dismantled the service in the U.S., it still serves as an international component. WWE wants similar streaming-rights deals like the one it has with CNBC parent company NBCUniversal, betting that its weekly wrestling content and classic library will lure media companies around the world.

WWE has agreements with Fox Sports and NBCUniversal, including a $1 billion agreement to stream U.S. content on NBCUniversal’s Peacock service. The company also has linear and streaming-rights packages internationally with networks including Virgin Media (Ireland), United Kingdom-based BT Sport and Sony India. Additionally, WWE has a deal with sports streaming service DAZN to show events in Germany, Austria and Switzerland, along with a streaming deal in China with online platform iQIYI, which is owned by tech company Baidu.

The combined media deals helped WWE bring in $475.9 million of its $529.1 million in revenue for the first six months of 2021. Last year, WWE made $868.2 million from media rights, not including revenue from the Peacock deal, which started in March. WWE is traded on the New York Stock Exchange and has a $3.6 billion market cap. On Monday, shares of WWE opened as $52 per share still down from its 52-week high of $70.72 last June.

WWE said SummerSlam, a full capacity event in Las Vegas, was the highest-grossing and most-viewed event, touting a “seven-figure” global viewership mostly consumed on Peacock and WWE Network. But the company didn’t disclose specifics around the figures.

It’s not clear how much WWE would gain from other international deals, but new agreements to license its content will not come close to NBCUniversal and Fox Sports’ fees. Fox also has a deal with WWE for $1 billion, and the USA Network — also owned by NBCUniversal — has a TV-only rights deal.

Eric Handler, MKM Partners managing director and senior research analyst, said WWE’s Day 2 rights with Hulu, which allows subscribers to watch Raw and Smackdown shows 24 hours after they air, will also be something to monitor on the media rights market. Currently, Peacock viewers can watch the shows 30 days after live telecasts.  

WWE uses operating income before depreciation and amortization formula on its earnings report to break down finances. Though media rights are stable since 2017, noticeable drops in revenue came in advertising, sponsorships and consumer products.

Chief Financial Officer Kristina Salen told CNBC in April that WWE wants to add more sponsorships and grow its e-commence business. In addition, WWE reportedly earns up…