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.

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Comments (4)
  • CornStove
    , contributor
    Comments (219) | 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 2014, 07:03 PM Reply Like
  • trdrm
    , contributor
    Comment (1) | 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 2014, 07:48 PM Reply Like
  • User 1489312
    , contributor
    Comments (30) | 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 2014, 09:09 PM Reply Like
  • Sameer Advani
    , contributor
    Comments (307) | Send Message
    that's what you call a smackdown. ouch.
    16 May 2014, 10:16 AM Reply Like
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