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World Wrestling announces new TV deal but shares -20% AH

  • World Wrestling Entertainment (WWE) says it reached a new multi-year television deal with NBCUniversal for Raw to return to the USA Network and Smackdown to run on Syfy.
  • An early afternoon report tipping off the deal sent shares 3% higher during regular trading but have plunged 20.2% AH, perhaps because the actual announcement failed to include financial terms.
  • WWE also says it expects to potentially double or triple its 2012 operating income before depreciation and amortization to $125M-$200M by 2015, based on an aggressive ramp of 2M-2.5M subscribers.
Comments (4)
  • CornStove
    , contributor
    Comments (109) | Send Message
    I don't get why the shares plumet 20% because of the omission of financial terms, which can be determined or disclosed later? Explain?
    15 May, 07:03 PM Reply Like
  • trdrm
    , contributor
    Comments (2) | Send Message
    Because they are reiterating the same OIBDA guidance from the recent eps conference call even though they supposedly signed a "great" TV contract. Looking at the tables they provide for OIBDA scenarios, they have to more than double there current subscriber base to hit that OIBDA guidance. You have to assume a big bump in TV contract licensing fees would have resulted in a big bump in guidance. That didn't happen.
    15 May, 07:48 PM Reply Like
  • User 1489312
    , contributor
    Comments (28) | Send Message
    The contracts are on a five year ramp. 2015 is just year 1 and is reflected at what is likely a lot less than 200mm for the new deals in the company's scenarios for 2015. One needs to assume a ramp for 2016, 2017, etc. Think the market is really missing this. The incremental OIBDA from the TV contracts really should ramp on in '16, '17, etc.
    15 May, 09:09 PM Reply Like
  • Sameer Advani
    , contributor
    Comments (256) | Send Message
    that's what you call a smackdown. ouch.
    16 May, 10:16 AM Reply Like
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