WWE Body Slams Expectations to Deliver a Record Quarter

July 28, 2018 - WWE

Expectations were high going into World Wrestling Entertainment‘s (NYSE:WWE) second-quarter financial report. The association had recently announced landmark deals for a dual flagship promote programs, driving a batch to dizzying heights — adult over 167% so distant this year.

On Thursday, WWE reported a top quarterly income in a history, blustering past expectations and call a association to lift a full-year guidance. This sent a batch climbing to new all-time highs.

WWE wrestlers The Showoff and The Architect in an Iron Man compare for a Intercontinental Championship.

Image source: WWE.

The tender numbers

Data source: WWE Second-Quarter Financial Release. Chart by author.

WWE reported second-quarter income of $281.6 million, adult 31% year over year, blustering past a 11.6% boost approaching by analysts. Adjusted handling income before debasement and amortization (OIBDA) of $43.5 million augmenting 79% year over year, vastly surpassing a high finish of WWE’s guidance. Earnings per share of $0.11 augmenting 83% over a prior-year quarter, though came in reduce than a $0.16 approaching by analysts.

The large show

The immeasurable infancy of WWE’s income enlargement came from a company’s media segment, driven by placement of calm to general markets. Live-events income was radically unchanged, as increases in sheet prices were equivalent by reduce attendance. Demand for consumer products resulted in aloft royalties.

Data source: WWE Second-Quarter Financial Release. Chart by author.

The large news that occurred during a entertain was reaching agreements with Twenty-First Century Fox and Comcast. WWE sealed what it called “landmark” five-year promote deals for SmackDown Live with Fox and Monday Night Raw with Comcast-owned USA Network. While a terms of a deals were not released, a agreements were estimated to be value north of $1 billion each. Both programs continue to be a highest-rated programs on USA Network.

“‘We’re gratified with a continued success in augmenting a monetization of WWE calm globally,’ pronounced Vince McMahon, WWE Chairman and Chief Executive Officer. ‘This success is evidenced by a execution of a new U.S. placement agreements with USA Network and Fox Sports.'”

Looking ahead

WWE expects a practiced OIBDA for a third entertain to be in a operation of $30 million to $34 million. The association is lifting a practiced OIBDA foresee for a year to a operation of $160 million to $170 million, adult from a $150 million it formerly expected. For a third quarter, it anticipates normal paid subscribers of 1.67 million, adult 10% year over year.

For their part, analysts now design (on average) income of $201.33 million this entertain — a 7.8% boost year over year — and gain per share of $0.23, a decrease of 18% compared to a prior-year quarter.

It’s critical to note that a new deals for WWE’s flagship promote programs won’t strike a company’s financial formula until 2019, so there’s still some-more enlargement to come. The association pronounced these agreements will boost a normal annual value of WWE’s U.S placement to 3.6 times that of a before deal. Couple that with a general enlargement that’s only commencement to compensate off, and it spells good news for WWE investors.

source ⦿ https://www.fool.com/investing/2018/07/28/wwe-body-slams-expectations-to-deliver-a-record-qu.aspx

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