As previously reported, WWE announced their earnings for the second quarter of 2019 today. WWE CEO Vince McMahon didn't appear thrilled with the results, stating on today's earnings call that "it is what it is."
The company reported a drop in television ratings, network subscribers, merchandise sales, live event revenue and attendance from the prior year quarter. Revenues were down 5% to $268.9 million from $281.6 million in the prior year quarter due to the declines in those areas.
From the same quarter in 2018, RAW ratings were down 14%, SmackDown ratings were down 11%, consumer products declined 13%, Network subscribers were down 6%, live event revenues declined 7%, North American live event attendance was down 2% and international attendance was down 14%.
Despite the declines, WWE was profitable this quarter after posting a loss in Q1. While WWE reported a net loss of $8.4 million in Q1, they had a net income of $10.4 million in Q2. Wall Street responded favorably to the report and WWE stock rose 8.66% to close at $74.68.
Wall Street analysts expected WWE to report a loss of 3 cents per share for the quarter, however the company reported earnings of 11 cents a share. Adjusted OIBDA (operating income before depreciation and amortization) was $34.6 million, which exceeded their forecasts primarily due to increased revenue due to the WWE Super ShowDown event in Saudi Arabia in June.
With another event in Saudi Arabia and the new WWE television deals kicking in Q4, WWE is targeting record revenue of approximately $1 billion and adjusted OIBDA of at least $200 million for the year.