World Wrestling Entertainment, Inc. Reports Q2 Results; Q2 E.P.S. $0.17 vs. $0.06 in the Prior Year; Increase of 183%

Operating income in the current quarter includes approximately$3.4 million in positive legal settlements. EBITDA was $21.7 millionin the current quarter as compared to $7.2 million in the prior yearquarter.

"In addition to excellent operating results, the quarter wasmarked by the successful move of Monday Night RAW(R) to USA Network,"stated Linda McMahon, CEO. "Thanks to an integrated marketingcampaign, and the dedication of our loyal fans, we achieved a 4.7average household rating for our inaugural homecoming show, which wasthe top rated basic cable entertainment telecast for the month ofOctober. Also, in the quarter we successfully transitioned to FridayNight SmackDown(R) enabling UPN to reach new key demographics onFridays. Both of our television partners have been very pleased, asare we, with the results of these programming moves."

Mrs. McMahon continued "The operating results for the quarterreflect another strong quarter for this fiscal year. Our Pay-Per-Viewbuys in the quarter exceed last year's buys, despite having only threeevents this quarter as compared to four events last year.Additionally, revenues in all of our Branded Merchandise businessesare ahead of the prior year quarter, with Home Video and Licensingshowing the largest percentage gains."

Results By Business Segment for the 2nd Quarter

Live and Televised Entertainment

Revenues from the Company's Live and Televised businesses were$60.0 million for the current quarter as compared to $66.8 million inthe prior year quarter.

-- Pay-Per-View revenues were $18.8 million versus $18.5 million in the prior year quarter. There were three Pay-Per-View events produced in the current quarter as compared to four events in the prior year quarter.

We will produce 16 pay-per-view events in fiscal 2006, as comparedto 14 events in fiscal 2005. The details for the number of buys (in000's) are as follows:
Event Q2 F06 Q2 F05
----- ---------- ----------
SummerSlam(R) 534 387
Unforgiven(R) 225 243
No Mercy(R) 219 193
Taboo Tuesday(TM) - 174
Prior events 312 135
---------- ----------
Total 1,290 1,132
========== ==========

-- Live Event revenues were $13.0 million as compared to $20.1
million in the second quarter of last year. This decrease is
primarily due to fewer international events in the current
quarter.

-- There were 78 events, including 2 international events, during
the quarter as compared to 83 events, including 15
international events, during the same period last year.

-- The average attendance at our North American events was
approximately 4,300 as compared to approximately 3,800 in the
prior year quarter.

-- The decrease in revenues is attributable to fewer
international events, which generate significantly more
revenue per event than our North American events due to the
combination of higher average attendance and higher average
ticket prices. The 15 international events held in the year
ago quarter had average attendance of 9,500 and an average
ticket price of approximately $70.00, resulting in an average
gross of approximately $670,000. This compares to an average
gross per North American event of approximately $150,000 in
the current quarter.

-- The lower number of international events in the quarter is
simply the result of tour scheduling as we performed 15 shows
across Europe during the month of November.

-- Television Advertising revenues were $7.7 million as compared to
$9.8 million in the prior year quarter. This decline was primarily
due to the change in the television distribution with USA Network,
which became effective in October 2005. Due to this change, we no
longer participate in domestic advertising sales, resulting in an
overall decline in advertising spots sold during the current
quarter.

-- Television Rights Fees revenues were $20.4 million as compared to
$18.4 million in the prior year quarter. The increase was due
primarily to approximately $1.4 million of additional
international rights fees primarily from India, Japan, South Korea
and Italy.

Branded Merchandise

Revenues from the Company's Branded Merchandise businesses were$28.9 million versus $17.1 million in the prior year quarter.

-- Merchandise revenues were $5.0 million as compared to $3.9 million in the prior year quarter. This increase in revenues is primarily driven by our WWE Shop website with the number of orders more than doubling from the prior year quarter from approximately 15,000 orders to approximately 36,000 orders.

-- Home Video net revenues were $11.9 million as compared to $4.5 million in the prior year quarter. The increase was due in part to an increase of approximately 0.2 million gross units sold and an increase in the average sales price of our DVDs, of approximately $5.00 per unit, due to the release of several higher priced titles in the quarter. These higher priced units included our WrestleMania(R) Anthology box sets and several multi-disc titles. Other successful titles released in the current quarter included Tombstone: The History of the Undertaker, which sold approximately 155,000 gross units and The Self Destruction of the Ultimate Warrior, which sold approximately 118,000 gross units.

-- Licensing revenues were $6.4 million as compared to $3.8 million in the prior year quarter. The increase was generated by the sales in the toy category and the continued growth in our international markets.

-- Digital Media revenues were $2.3 million as compared to $1.8 million in the period year quarter. The increase was primarily driven by additional advertising sales on our website.

Profit Contribution (Net revenues less cost of revenues)

Profit contribution for the quarter was $41.6 million as comparedto $31.4 million in the prior year quarter. Total profit contributionmargin was approximately 47% for the current quarter as compared to37% for the prior year quarter.

The profit contribution margin for the Live and Televisedbusinesses was approximately 43% for the current quarter as comparedto 34% in the prior year quarter. This increase reflects increasedrevenue in the higher margin Pay-Per-View and Television rights feesbusiness units.

The profit contribution margin for the Branded Merchandisebusinesses was approximately 55% for the current quarter as comparedto 50% in the prior year quarter. The increase is due primarily toimproved margins in the home video business, reflecting an increase inthe average sales price per unit in the current quarter and increasedrevenues from our licensing business.

Selling, general and administrative expenses

SG&A expenses were $18.8 million for the current quarter ascompared to $22.9 million in the prior year quarter. Included in thecurrent quarter were positive legal settlements of approximately $3.4million. Excluding this item, SG&A expenses decreased by approximately$0.7 million.

Summary Results for the Six Months Ended

Total revenues through the first six months of fiscal 2006 were$182.7 million as compared to $165.4 million in the prior year period.Operating income for the current period was $34.7 million versus $15.4million in the prior year period. Net income was $22.9 million, or$0.33 per share, as compared to $12.1 million, or $0.17 per share, inthe prior year period. EBITDA was $40.2 million for the first sixmonths of fiscal 2006 as compared to $21.3 million in the prior yearperiod. As discussed above, current year operating income includesapproximately $3.4 million in positive legal settlements.

Cash Flows

Cash flows provided by operating activities were $20.1 million inthe current quarter.

Fiscal 2006 Outlook

Based on our results, which exceeded our plan, we have increasedour full year forecast as follows: revenues for fiscal 2006 of between$370.0 and $385.0 million, EBITDA of between $60.0 and $65.0 million,and income from continuing operations of between $35.0 and $40.0million, or $0.50 to $0.55 per share on a diluted basis.

Note: World Wrestling Entertainment, Inc. will host a conferencecall on Thursday, December 1, 2005, at 11:00 a.m. ET to discuss theCompany's second quarter earnings results for fiscal year 2006. Allinterested parties can access the conference call by dialing800-894-5910 (conference ID: WWE). Please reserve a line 15 minutesprior to the start time of the conference call. A presentation thatwill be referenced during the call can be found at the Company website at corporate.wwe.com. A replay of the call will be availableapproximately three hours after the conference call concludes, and canbe accessed at corporate.wwe.com.

World Wrestling Entertainment, Inc. (NYSE: WWE) is an integratedmedia and entertainment company headquartered in Stamford, Conn.Additional information on the Company can be found at wwe.com andcorporate.wwe.com.

Trademarks: The names of all World Wrestling Entertainmenttelevised and live programming, talent names, images, likenesses,slogans and wrestling moves and all World Wrestling Entertainmentlogos are trademarks, which are the exclusive property of WorldWrestling Entertainment, Inc. All other trademarks are the property oftheir respective owners.

Forward-Looking Statements: This news release containsforward-looking statements pursuant to the safe harbor provisions ofthe Securities Litigation Reform Act of 1995, which are subject tovarious risks and uncertainties. These risks and uncertainties includethe conditions of the markets for live events, broadcast television,cable television, pay-per-view, Internet, entertainment, professionalsports, and licensed merchandise; acceptance of the Company's brands,media and merchandise within those markets; uncertainties relating tolitigation; risks associated with producing live events bothdomestically and internationally; uncertainties associated withinternational markets; risks relating to maintaining and renewing keyagreements, including television distribution agreements; and otherrisks and factors set forth from time to time in Company filings withthe Securities and Exchange Commission. Actual results could differmaterially from those currently expected or anticipated.

World Wrestling Entertainment, Inc.
Consolidated Income Statements
(in thousands, except per share data)
(Unaudited)


Three Months Ended Six Months Ended
October October October October
28, 2005 29, 2004 28, 2005 29, 2004
--------- -------- --------- ---------

Net revenues $88,933 $83,857 $182,745 $165,407

Cost of revenues 47,305 52,493 99,806 100,909
Selling, general and
administrative expenses 18,807 22,900 41,042 40,775
Depreciation and amortization 2,781 3,051 5,477 5,971
Stock compensation costs 1,112 1,273 1,692 2,384
--------- -------- --------- ---------

Operating income 18,928 4,140 34,728 15,368

Investment income, net 1,397 1,034 3,270 2,266
Interest expense 149 162 302 330
Other loss, net (138) (283) (211) (65)
--------- -------- --------- ---------

Income before income taxes 20,038 4,729 37,485 17,239

Provision for income taxes 8,362 1,724 14,631 6,478
--------- -------- --------- ---------

Income from continuing
operations 11,676 3,005 23,854 10,761
--------- -------- --------- ---------

Discontinued operations:

Income from discontinued
operations, net of tax 26 1,444 28 1,333

--------- -------- --------- ---------
Net income $11,702 $4,449 $22,882 $12,094
========= ======== ========= =========

Earnings per share - Basic:
Continuing operations $0.17 $0.04 $0.33 $0.16
========= ======== ========= =========
Discontinued operations $0.00 $0.02 $0.00 $0.02
========= ======== ========= =========
Net income $0.17 $0.06 $0.33 $0.18
========= ======== ========= =========

Earnings per share - Diluted:

Continuing operations $0.17 $0.04 $0.33 $0.16
========= ======== ========= =========
Discontinued operations $0.00 $0.02 $0.00 $0.02
========= ======== ========= =========
Net income $0.17 $0.06 $0.33 $0.17
========= ======== ========= =========

Weighted average common shares
outstanding:
Basic 69,016 68,553 68,994 68,516
========= ======== ========= =========
Diluted 70,069 69,483 69,888 69,422
========= ======== ========= =========


World Wrestling Entertainment, Inc.
Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
As of As of
October 28, April 30,
2005 2005
----------- ----------
ASSETS

CURRENT ASSETS:

Cash and equivalents $123,381 $56,568
Short-term investments 154,711 201,487
Accounts receivable, net 50,611 61,901
Inventory, net 1,834 1,057
Prepaid expenses and other current assets 13,562 15,191
Assets of discontinued operations 417 544
----------- ----------
Total current assets 344,516 336,748

PROPERTY AND EQUIPMENT, NET 68,022 66,638

FILM PRODUCTION ASSETS 33,233 28,771

INTANGIBLE ASSETS, NET 1,594 2,608

OTHER ASSETS 10,822 6,640

----------- ----------
TOTAL ASSETS $458,187 $441,405
=========== ==========


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt $786 $756
Accounts payable 14,937 15,669
Accrued expenses and other liabilities 30,290 21,151
Deferred income 19,295 20,843
Liabilities of discontinued operations 284 254
----------- ----------
Total current liabilities 65,592 58,673

LONG-TERM DEBT 6,798 7,198

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Class A common stock 212 210
Class B common stock 479 479
Additional paid-in capital 258,372 254,716
Accumulated other comprehensive loss (446) (908)
Retained earnings 127,180 121,037
----------- ----------
Total stockholders' equity 385,797 375,534
----------- ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $458,187 $441,405
=========== ==========


World Wrestling Entertainment, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited)
Six Months Ended
October 28, October 29,
2005 2004
----------- -----------
OPERATING ACTIVITIES:
Net income $22,882 $12,094
Adjustments to reconcile net income to net
cash provided by operating activities:
Income from discontinued operations, net
of taxes (28) (1,333)
Revaluation of warrants (756) 224
Depreciation and amortization 5,477 5,971
Realized loss on sale of investments 791 738
Amortization of investment income (609) (135)
Stock compensation costs 1,692 2,384
Provision for doubtful accounts 399 865
Provision for inventory obsolescence 606 920
Provision for deferred income taxes 247 1,152
Changes in assets and liabilities:
Accounts receivable 10,891 13,162
Inventory (1,383) (1,266)
Prepaid expenses and other assets (5,957) (347)
Feature film production assets (4,462) (7,831)
Accounts payable (732) (1,894)
Accrued expenses and other
liabilities 13,923 (13,777)
Deferred income (1,303) (3,750)
----------- -----------
Net cash provided by continuing
operations 41,678 7,177
Net cash provided by (used in)
discontinued operations 184 (2,045)
----------- -----------
Net cash provided by operating
activities 41,862 5,132
----------- -----------

INVESTING ACTIVITIES:
Purchase of property and equipment (5,847) (2,878)
Purchase of short-term investments (16,636) (2,280)
Proceeds from sales of maturities of short-
term investments, net 62,643 49,411
----------- -----------
Net cash provided by continuing
operations 40,160 44,253
Net cash used in discontinued
operations - -
----------- -----------
Net cash provided by investing
activities 40,160 44,253
----------- -----------

FINANCING ACTIVITIES:
Repayments of long-term debt (370) (343)
Dividends paid (16,554) (8,225)
Issuance of stock, net 238 213
Proceeds from exercise of stock options 1,477 99
----------- -----------
Net cash used in continuing
operations (15,209) (8,256)
Net cash used in discontinued
operations - -
----------- -----------
Net cash used in financing activities (15,209) (8,256)
----------- -----------


NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 66,813 41,129
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 56,568 48,467
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $123,381 $89,596
=========== ===========
World Wrestling Entertainment, Inc.
Supplemental Information - EBITDA
(dollars in thousands)
(Unaudited)


Three Months Ended Six Months Ended
October October October October
28, 2005 29, 2004 28, 2005 29, 2004
--------- --------- --------- ---------

Net income reported on GAAP
basis $11,702 $4,449 $22,882 $12,094

Income from discontinued
operations, net of tax (26) (1,444) (28) (1,333)
Provision for income taxes 8,362 1,724 14,631 6,478

Interest and other, net (1,110) (589) (2,757) (1,871)

Depreciation and amortization 2,781 3,051 5,477 5,971

--------- --------- --------- ---------
EBITDA $21,709 $7,191 $40,205 $21,339
========= ========= ========= =========

Non-GAAP Measure:

EBITDA is defined as earnings from continuing operations before
interest, income taxes, depreciation and amortization. Although it is
not a recognized measure of performance under U.S. GAAP, EBITDA is
presented because it is a widely accepted financial indicator of a
company's cash flow. The Company uses EBITDA to measure its own
performance and to set goals for operating managers. EBITDA should not
be considered as an alternative to income from continuing operations,
net income, cash flows from operations or any other indicator of World
Wrestling Entertainment Inc.'s performance or liquidity, determined in
accordance with U.S. GAAP.

World Wrestling Entertainment, Inc.
Supplemental Information- Free Cash Flow
(dollars in thousands)
(Unaudited)

Three Months Ended Six Months Ended
October October October October
28, 2005 29, 2004 28, 2005 29, 2004
---------- --------- ------------ ----------

Net cash provided by
(used in) continuing
operations $20,057 $(3,884) $41,678 $7,177

Less cash provided for
capital expenditures:

Purchase of property
and equipment (5,592) (1,962) (5,847) (2,878)

---------- --------- ------------ ----------
Free Cash Flow $14,465 $(5,846) $35,831 $4,299

========== ========= ============ ==========

Non-GAAP Measure:

We define Free Cash Flow as net cash provided by continuing
operations less cash used for capital expenditures. Although it is not
a recognized measure of performance under U.S. GAAP, Free Cash Flow
provides useful information regarding the amount of cash our
continuing business is generating after capital expenditures,
available for reinvesting in the business and for payment of
dividends.