WWE Stock Plunges In After Hours Trading, Did WWE Double TV Deal?, Vince Talks Network Growth

At a retail price per month of up to $9.99, this would represent estimated incremental OIBDA, net of potential pay-per-view cannibalization, between $50 million and $180 million. Managing subscriber growth contains significant execution risk and actual results could vary materially from this range based on, among other factors, the rate of subscriber adoption and churn rates, as well as changes in pricing, promotion levels and distribution terms.

As shown below, the Company estimates that the WWE Network, on a global basis, will require 1.3 million to 1.4 million subscribers at "steady state" for the WWE Network's incremental OIBDA to offset the complete cannibalization of the Company's Pay-Per-View and SVOD businesses. At 1.3 million to 1.4 million subscribers, the Company's Network segment, which includes the results of WWE's Network, Pay-Per-View and SVOD businesses, would generate OIBDA results of $40 million, (+/- 10%), which is on par with the OIBDA profits generated by the Company's Pay-Per-View and SVOD businesses in 2012.

WWE Business Outlook for 2014 and 2015

The rate of subscriber adoption is a critical determinant of the Company's projected future financial performance. If WWE Network achieves approximately one million subscribers by year-end 2014, it would yield a 12-month average of 650,000 subscribers for the year.9 This rate of adoption in 2014 translates to an estimated 2014 OIBDA loss ranging from $35 million to $45 million, and a 2014 Net loss ranging from $45 million to $52 million.

If WWE Network achieves an average of 2 million to 2.5 million subscribers for 2015, the Company's 2015 OIBDA is expected to range from $125 million to $200 million, and 2015 Net income expected to range from $57 million to $105 million. Actual subscriber levels and financial performance could vary materially based on various factors.

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