World Wrestling Entertainment Financial Report

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This article will be a full analysis of World Wrestling Entertainment (WWE). It will analyze financial reports, key performance indicators, and conference calls. It will also discuss possibilities for the upcoming Q2 earnings report. Television Deals With the massive hype around the WWE Network and TV deals culminating in early March of 2014, it is no wonder that the stock price fell as much as it did and as quickly as it did. However, I still believe that shareholders have not attributed enough value to either of these. With the expectation of the television revenues doubling or possibly even tripling, comparing new revenues to that of NASCAR, the stock price obviously increased. With the announcement of the deal being a 50% increase and …show more content…

It is only a difference of 12,000 and would not show the churn rates from WM, but it still shows that there are more people interested in the product and more fans signing up for the service. Therefore, I do not believe that 1.3 million is the peak subscriber count for the network. I believe that the Network will see year/year growth; however, there will be some seasonality around WrestleMania and SummerSlam which can be seen in the PPV buy rates. They say that they can reach 3-4 million subscribers with the network and how it will be transformational for the company financially if they can achieve that. They reached that benchmark through a lot of statistical research and somewhat basing it off of Netflix's numbers of going from 17 million homes for their DVD business to most recent numbers of over 60 million accounts to their streaming …show more content…

The WWE profit margin on additional subscribers is over 80%. For the WWE network to be as profitable as Netflix, they only need 1/16 of the subscribers. At this point, the latest Netflix subscriber count is 62.3 million subscribers. To match their profitability, the WWE network only has to reach 3.9 million subscribers. In 14 short months, the WWE is already one third of the way