WWE Stock Plummets After Worrying Q3 Report

WWE held its Q3 earnings call today.  George Barrios was on the call today because Vince McMahon was in Saudi Arabia for Crown Jewel.

George didn’t have a lot of positive news to share on the call.  It seems like almost is heading in the wrong direction except Social Media views.

Needless to say… WHAT A NIGHT! #WWECrownJewel pic.twitter.com/Tudo1x06fB

— WWE (@WWE) October 31, 2019

WWE stock closed at $56.  This is down about $10.  Earnings are down and this dramatically affected the stock today.  WWE highlights the following on their press release today:

• Revenues were $186.3 million as compared to $188.4 million in the prior-year quarter
• Operating income was $6.4 million; Adjusted OIBDA was $25.4 million, which exceeded the Company’s guidance
• SmackDown debuted on Fox (Friday, Oct. 4) and averaged 3.9 million viewers during the premiere telecast, up 221% versus the same time slot over the prior four weeks on Fox (9/6-9/27)
• Announced content distribution deal with USA Network to air NXT, expanding the reach of the new live, 2-hour show to further build WWE’s third global brand alongside Raw and SmackDown
• WWE Network averaged 1.51 million paid subscribers, consistent with the Company’s guidance
• Through the first nine months of 2019, digital video views increased 12% on a year-over-year basis to 25.6 billion and hours consumed increased 14% to 957 million hours across digital and social platforms.

As you can see, revenue is down.  They also announced live event revenue was down $23 million.  They said this was due to fewer events and “weakened performance.”

It sure would be nice to hear their definition of what a weaker performance means.  Most likely they just mean fewer people attending, but it’s hard to argue that WWE had a “weaker performance” in a lot of areas.

 

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