WWE stock dropped 15.65% to $56.04 on Thursday, near its 52 week low of $53.25.
While WWE managed to beat profit expectations, they missed on revenue. The also lowered their outlook, modifying its 2019 adjusted OIBDA target to $180 million- $190 million from $200 million. The company cited a delay in completing a new TV deal in the Middle East for the change, although it still would be an all-time record.
WWE saw increases in media revenue, with decreases in live event revenue and merchandise from the prior year quarter, although all three areas missed expectations. Media revenue rose 28% to $146.1 million, while live event revenue declined 13% to $23.2 million and merchandise was down 13% to $17 million.
Live events lost money again in Q3, which is the third time in the last five quarters. Total live event revenue was $23.3 million, down from $26.7 million in the prior year quarter. WWE held 16 fewer events in the quarter than last year, excluding NXT.
Merchandise was down from $19.6 million in Q3 2018 to $17 million this year. Sales from WWEShop.com were down 16% from Q3 2018.
You can read our recap of this morning’s WWE Q3 earning call by clicking here.