WWE News: WWE Stock decreases following First Quarter Earnings Report
What's the story?
WWE released their First Quarter 2019 Report earlier today and noted a decrease in revenue compared to last year's numbers and was followed by a decrease in the stock price.
The company's stock price was down over 9 percent following the release of WWE's First Quarter 2019 Report.
In case you didn't know...
WWE's stock closed at $98.50 on Wednesday April 24, which is just shy of their all-time high stock price of $99.25 reported for Tuesday April 23. Their current stock price is swaying between $89 and $90.
The company's stock saw major increases in 2018 around the time WWE announced their 10-year $450 million deal with Saudi Arabia and the news of their contract negotiations with USA Network and FOX.
The heart of the matter
WWE made $182.4 million in revenues for the first quarter, which was down $5.3 million from the 2018 first quarter revenues at $187.7 million.
The company also lost $6.8 million in operating income that was made from the $21.8 million generated in the 2018 fourth quarter report that was released in February.
WWE Chairman Vince McMahon said the company's engagement metrics were impacted by the absence of members of their roster and suggested it will improve as superstars return.
STAMFORD, Conn., April 25, 2019 - WWE (NYSE: WWE) today announced financial results for its first quarter ended March 31, 2019.
“During the quarter, we continued to execute our strategy and achieved targeted financial results,” stated Vince McMahon, Chairman and Chief Executive Officer. “While engagement metrics over the past two quarters were impacted by Superstar absences, we believe they will improve as our talent return and we launch our new season following a successful WrestleMania. We remain excited about the future, particularly with our debut on Fox in October.”
The first quarter report also stated that WWE Network averaged paid subscribers increased 2 percent, reaching 1.58 million subscribers. However, their network numbers are down when compared to the information released in their 2018 fourth quarter report which stated "WWE Network average paid subscribers increased 7% to approximately 1.59 million paid subscribers, consistent with Company guidance."
WWE also noted an increase in digital video views across social media platforms, but a decrease in live event revenue due to weaker attendance in North America.
What's next?
The first quarter report stated the WWE hopes to improve their business performance by continuing their investment in content, increasing their talent pool, leveraging fan data and more.