WWE Official Annual 2021

Product Information

Announced multi-year distribution agreements with Sony Pictures Networks in India and DAZN in Germany to extend the reach of WWE content across television and digital platforms In July, WWE launched a new, enhanced digital platform for e-commerce and licensed merchandise in connection with its long-term partnership with Fanatics That said, even while linear TV viewing is in decline and skewing older in age, traditional TV still makes up the majority of TV use time in the U.S., while streaming accounts for a little over 25% of that share. Network revenue consists primarily of license fees from the global distribution of WWE Network content associated with our licensed partner agreements. Because of the nature of these items, WWE is unable to estimate the amounts of any adjustments for these items for periods after March 31, 2023 due to its inability to forecast if or when such items will occur. These items are inherently unpredictable and may not be reliably quantified.

Digital video views were a record 11.2 billion, an increase of 13%, and hours consumed were a record 394 million, an increase of 5%, across digital and social platforms 2 We are absolutely exploring the Metaverse as an opportunity for WWE, especially as the theory unfolds that that's really where more and more people are going to go to connect and socialize. WWE is a community-based business and is all about our fans coming together and sharing this experience. We think there are huge opportunities to expand upon that in the Metaverse itself. In terms of our approach, we're doing our due diligence. We're meeting with various partners and learning as much as we can. We don't want to be hasty in this space. That being said, we certainly don't want to be behind, we always like to be slightly ahead of the curve. It is something we are actively involved in and investigating and looking into," Stephanie said. Through the first nine months of 2017, digital engagement continued to grow with video views up 23% to 14.2 billion and social media engagements up 5% to 912 million from the prior year With the advent of the Metaverse, WWE is looking at that as yet another opportunity to expand its reach as more people learn about the concept. Stephanie McMahon alluded to its potential and how WWE can take advantage of it during the earnings call. Through the first nine months of 2016, digital engagement continued to grow with video views up 71% to

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I expect WWE’s live rights in the next round to include some kind of live streaming component. To ensure WWE can broadly reach consumers including younger audiences, live distribution on linear TV may not be enough by the late 2020s. The Company completed a content distribution deal in Germany (ProSieben) to grow WWE’s international Announced new UK Championship Tournament to showcase local talent, which successfully engaged both attendees and network viewers in January 2017 WWE content garnered more than 8 billion views on YouTube; WWE was the most followed sports channel on YouTube and the second most followed sports brand on Facebook

Reach is even more important to WWE than to other major U.S. sports leagues, where local markets support individual teams and most games are telecast as regional broadcasts. WWE needs high-reach availability nationwide and weekly to support live event touring and consumer products businesses. Part of the reason WWE projects to do so well financially this year and in the long-term is with the licensing of WWE Network in international markets, monetization of new original series, the licensing of Raw second window rights, further progress with sponsorship sales, and the continued execution of WWE’s stadium strategy for premium live events. Management believes WWE is well positioned to capitalize on significant future opportunities. In 2023, key initiatives that could have meaningful implications on the Company’s performance include the renewal of the domestic licensing agreement for NXT, the renewal of licensing agreements for WWE content in certain international markets, the monetization of new third-party original programming, growth in advertising and sponsorship sales, and the performance of the latest installment of the Company’s flagship video game franchise, WWE 2K23.Through the first six months of the year, digital engagement metrics continued to grow with video views up 18% to 9.1 billion and social media followers increasing 19% to 800 million For the 2022 calendar year, WWE expects to achieve record revenue margins once again, believing that a full year of events with fans in attendance will not only increase revenue but also increase profits. In addition, WWE is planning to continue its goal of expanding its reach with new ventures and more touring dates. Digital video views increased 15% to 7.7 billion; hours consumed increased 23% to 300 million hours across digital platforms; and social media followers increased 12% to over 1.0 billion 3 Launched WWE Network in China with PPTV (a Suning media company). The service showcases WWE’s major live events, ground-breaking original series, documentaries and classic matches Announced a new strategy for premium live events, which focuses on staging these events in stadiums rather than arenas, and utilizes targeted dates to maximize WWE’s live audience potential