World Wrestling (WWE) Reports Q1 Loss, Revenues Fall Y/Y
Zacks Investment Research | Apr 24, 2019 11:57PM ET
World Wrestling Entertainment, Inc. (NYSE:WWE) reported wider-than-expected first-quarter 2019 loss per share. Net revenues also fell short of the Zacks Consensus Estimate after surpassing the same in the preceding quarter. We also note that both the top and bottom lines also came below the prior-year period.
This integrated media and entertainment company delivered loss of 11 cents a share wider than the Zacks Consensus Estimate of loss of 2 cents. The company had reported earnings of 18 cents a share in the year-ago period. The company’s bottom line was negatively impacted by lower top line, higher operating expenses, increased marketing and selling expenses, rise in general and administrative expenses and higher interest expense.
WWE’s revenues of $182.4 million fell 2.8% year over year and also missed the Zacks Consensus Estimate of $199.2 million. Management pointed that the increased monetization of content as evident from the Media segment benefited the top line. However, this was offset by a fall in live event ticket revenue and lower merchandise sales.
Nevertheless, management continues to anticipate record revenue of approximately $1 billion for 2019. Clearly, the company’s effort to focus on increasing original content production, localization and strategic initiatives as well as digitization and international development bode well.
Total adjusted OBIDA came in at $12.4 million within the company’s guided range of $9-$14 million but fell sharply from adjusted OBIDA of $35.2 million reported in the year-ago quarter. Meanwhile, adjusted OBIDA margin contracted to 7% from 19% in the prior-year period.
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