WWE quarterly revenue falls on delay in key event

(Reuters) - World Wrestling Entertainment Inc on Wednesday reported a drop in first-quarter revenue and operating income due to a delay in a key event, sending its shares down about 2% in premarket trading.

Revenue at the sports entertainment company, which is in the process of merging with Endeavor Group-owned Ultimate Fighting Championship (UFC) franchise, declined 11% to $297.6 million in the quarter ended March.

The company said revenue fell mainly due to the shifting of a large-scale international event, which occurred in the first quarter of 2022, but this year is expected to occur in the second quarter.

Operating income decreased 43% to $53.1 million dragged by the decrease in revenue. Net income dropped to $36.7 million, or $0.43 per diluted share, from $66.1 million, or $0.77 per diluted share.

Last month, WWE and Endeavor Group signed a deal to combine the wrestling company and mixed martial arts franchise UFC to form a new publicly listed entertainment giant valued at about $21 billion.

As part of the deal, which is expected to close in the second half of this year, Endeavor will own a 51% stake in the resultant company, while WWE investors will own the rest.

(Reporting by Yuvraj Malik in Bengaluru; editing by Eileen Soreng)