WWE Stock Suffers Big Drop On Disappointing Revenue, Overseas TV Deal Concerns

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.

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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.

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