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There are 4 articles on this stock available only to PRO subscribers.
WWE's Narrow-Minded Focus Is Alienating Fans And Investors
- WWE is pushing the WWE Network in an effort to follow a business model similar to Netflix.
- This business decision is cannibalizing higher margin revenues, driving the company from a profit to a loss even as it downsizes and cuts costs to produce its content.
- WWE Network is having problems gaining traction as it doesn't have enough content to keep users engaged.
- Further declines in profits should be expected as WWE offers cheap/free price plans to stimulate growth.
- Jim Cornette, a veteran of the wrestling business, believes that pro wrestling is dying. Ominous words for a company that achieves all of its revenues from wrestling.
WWE Network's Temporary Free Price Is A Last Ditch Effort To Grow Closer To Netflix
- WWE has changed the WWE Network pricing several times in recent months. Right now new subscriber's can join the service for free in the month of November.
- WWE's third quarter earnings showed that revenues increased 6% while net income swung to another loss, marking the 4th straight quarter of negative earnings.
- WWE added just 31,000 net subscribers to the WWE Network between June 30th and September 30th bringing the total subscriber count to 731,000 - well below 1,000,000 goal by year end.
- WWE has only been able to add 30,000 subscribers outside the U.S. since the WWE Network expanded internationally on August 12th.
- The WWE Network will continue to be a huge burden to the company overall as it tries to become the Netflix of professional wrestling.
WWE CFO Discusses WWE Network During Wells Fargo Media Conference
- WWE's CFO outlined the three most important elements for the company's streaming subscription network to grow internationally.
- He repeated ambitious subscriber goals of 2-4 million, but did not address subscriber cancellations in Q2 and Q3.
- He struck a careful balance between OTT/MVPD relations: “WWE is not a proponent of cord-cutting or cord-shaving”.
WWE Could Be In Trouble As Network Struggles To Meet Expectations
- WWE's 3rd quarter earnings release beat on income but disappointed on top line revenue and WWE Network subscriber numbers.
- The WWE Network saw subscriber numbers climb from 700K to just 731K in the most recent quarter. The network needs approximately 1 million subscribers to be profitable.
- The company also decided to drop the 6 month commitment for a subscription and is also offering free content in November.
- The company's strategy to market the network primarily to the existing customer base instead of new customers could be contributing to the company's troubles.
World Wrestling Entertainment: Looking Ahead At Its Upcoming PPV And Q3 Earnings
- Two important upcoming dates for WWE are October 26th for their next PPV, Hell In A Cell, and October 30th before the market opens for Q3 earnings.
- The most important number investors will be paying attention to during Q3 earnings is the total number of subscribers for the WWE Network.
- Through its live shows the past month, the WWE has sent several signals that subscriber totals will not meet the 1 million goal by the end of the year.
- The failure of Redbox Instant, the slowdown of Netflix subscriber growth, and the introduction of HBO and CBS streaming products possibly leaves the WWE Network in a bad situation.
World Wrestling Entertainment: Why I Won't Be A Shareholder Again Anytime Soon
- WWE has seen its net income gradually decline into the red in recent quarters despite revenues, TV ratings, and attendance increasing in these same quarters.
- With simple math, WWE's expectations for its WWE Network in terms of subscriber count goals by the end of this year are largely unrealistic.
- The WWE Network will likely cannibalize other parts of WWE's Media Division segment besides PPV buys and largely hurt WWE's biggest revenue stream.
- Both shareholders and WWE fans should expect the WWE Network to see pricing and program changes in the future, as the WWE tries to balance its bottom line.
- WWE.com had a very large increase in Google organic search engine traffic for the August 17th event.
- Based on an 26.9% increase in search traffic, this should substantially increase network subscriptions.
- Foreign expansion will only accelerate WWE past the break-even point as it's now over 30% of its cable business.
Could WWE's International Network Rollout Send Shares Higher?
- The 2Q14 earnings report assuaged some concerns that management was going to increase costs and capex dramatically by pumping too much cash into its World Wrestling Entertainment, Inc. Network product.
- The rollout of the WWE Network into the international market earlier than expected should accelerate subscriber growth starting in 3Q14 and return WWE to profitability.
- Cost cutting measures worth ~$40 million annually should increase 2015 EPS by ~$0.50. Most of these are from staff reductions and should be an easy target to hit.
- 2014 and 2015 Consensus forecast has room for upside. Upside revisions from international subscriber growth and aggressive cost cuts could act as a positive catalyst to drive the shares higher.
WWE Tries To Give Itself Float With Streaming Video Subscriptions
- World Wrestling Entertainment’s old business model gave it a wide moat but little or no float.
- By switching to a business model based upon streaming video subscriptions, it is trying to give itself a lot of float.
- WWE is experiencing huge losses because it is effectively giving away its premium pay per view wrestling events to attract fans to its streaming video channel.
- If it works, the streaming video experiment could give the WWE as much as $167 million a year in additional revenue.
World Wrestling Entertainment: A Short SWOT Analysis
- World Wrestling Entertainment has had an interesting year. The integrated pro wrestling exhibitor is in the midst of a dramatic transition as it enters the digital media market.
- So, which types of investors are best suited for the company’s stock?
- In this article, we will attempt to address that question by taking a brief look at World Wrestling Entertainment’s business and performing an easy-to-follow SWOT analysis.
World Wrestling Entertainment: The Company Can't Afford OTT Digital Network Underperformance For Long
- Company is undergoing a strategic shift with a wild range of intrinsic values depending on the Digital Network. 2014/15 will be a defining time period for the company.
- Digital Network is not working out so far, will need to get more subscribers quickly to justify further investment.
- Television deal should have been more lucrative than $150m in the US.
- Not all is lost, WWE is a great brand with a competitive moat.
World Wrestling Entertainment: Why Investors Should Stay Away
- WWE's goal of 2 to 3 million WWE Network subscribers in the steady state is aggressive.
- The company is very mismanaged and the product has been deteriorating.
- The future of WWE's stock is dependent on the number of Network subscribers, which is difficult to predict.
World Wrestling Entertainment Inc: Yum, I Love Eating Crow
- In FY2015, television rights OIBDA should increase by $65 million to roughly $120 million.
- WWE's core popularity and brand are strong, measured by its live events revenue and weekly television viewership.
- The market isn't pricing in any upside optionality with shares trading at $11.35.
The World Wrestling Entertainment Opportunity And Floor Valuation
- The stock fell 43% due to investor style positioning issues and mis-management of expectations.
- WWE is a unique attractive asset with true franchise and brand value.
- A good entry point valuation floor given WWE Network subscriber execution risk is 10Xs historical annual FCF ex-films of $50M + net cash, which is $7.63 a share.
Lemelson Capital Announces Stake In World Wrestling Entertainment And Calls On Board To Pursue New Management Or Ownership
- Lemelson Capital, previously short the stock, announces a new stake in company.
- Ongoing losses, operating failures, material misstatements warrant and require urgent executive management changes or a sale of the company.
- Underlying business has value, but not under current management.
Thu, Oct. 30, 9:18 AM
- World Wrestling Entertainment (NYSE:WWE) reports its WWE Network expanded to 731K subscribers in Q3.
- 31K subscriber were added during the period - 3K in the U.S. and 28K international.
- The company's media division increased revenue by 5.8% to $76.9M.
- Live events revenue -13.1% to $21.8M.
- Strategy: The company plans a new pricing plan of $9.99 per month beginning on November 1.
- WWE +1.7% premarket.
Thu, Oct. 30, 8:57 AM| Comment!
Wed, Oct. 22, 2:37 PM
- Shares of World Wrestling Entertainment (WWE -7.1%) slide lower again as sentiment remains shaky following a short presentation yesterday by Mangrove Partners.
- "We think people are really unhappy and that the number of [[streaming]] additions is going to prove very disappointing," warns analyst Nathaniel August.
Thu, Jul. 31, 3:58 PM
- World Wrestling Entertainment (WWE +3.2%) is an unusual gainer in an otherwise down day, after reporting a smaller than expected Q2 loss and announcing a 10-year deal with Rogers Media to be the exclusive distribution partner of all WWE pay-per-view events throughout Canada.
- The company plans to get its WWE Network to 1.4M subscribers; almost twice the number it had at the end of Q2; to achieve that, it announces new pricing options and plans to cut its workforce by 7%.
Thu, Jul. 17, 12:15 PM
- Shares of World Wrestling Entertainment (WWE +6.5%) move higher on heavy volume on renewed buyout speculation.
- The M&A buzz in the media sector kicked into a higher gear yesterday after 21st Century Fox made an offer for Time Warner.
- Though the streaming sub growth at WWE hasn't dazzled, analysts think the initiative could still draw interest from a company on the distribution side of the business.
Fri, May. 16, 12:46 PM
Fri, May. 16, 9:17 AM
Thu, May. 15, 6:57 PM
- 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.
Fri, Apr. 11, 3:58 PM
- "World Wrestling (WWE -3.9%) is facing multiple challenging factors, including underwhelming subscription figures for their WWE network in addition to a multi-year negative earnings trend, suggesting that the firms' intrinsic value is materially lower than the current stock price," says Emmanuel Lemelson, who made the case for shorting the stock a few weeks back on Seeking Alpha, and updated his argument after Monday's disappointing video channel subscriber numbers.
- "The stock may have gotten a little ahead of itself, and a lot of momentum names have been fading," concedes The Vertical Group's Kim Opiatowski, but the subscription numbers were good ones. He continues to rate the name a Buy with $33 price target.
- Lemelson puts fair value at no more than $11.88 per share.
Mon, Apr. 7, 12:45 PM
Mon, Apr. 7, 11:53 AM
- Shares of World Wrestling Entertainment (WWE -19.9%) are slammed after the company releases subscriber totals for its online video channel.
- A sub count of 667K is below early expectations for a mark of closer to a million.
- WWE had almost double YTD on enthusiasm over the online venture before today's selling frenzy.
Thu, Mar. 13, 2:14 PM
- Shares of World Wrestling Entertainment (WWE +0.6%) spiked higher in mid-day trading on a rumor that AMC Networks is interested in buying the company.
- The 7% rally in WWE to all-time highs has been quickly deflated.
May. 3, 2012, 11:07 AMWorld Wrestling Entertainment (WWE +10.1%) trades higher after smashing the estimates of analysts with its Q1 report. Revenues in North America increased 4% Y/Y to $93M, led by the performance of the Live and Televised Entertainment segment. Looking forward, international growth could be the story for the company after 3 events in Abu Dhabi drew close to 15K people in attendance at each with an average ticket price of $147. | Comment!
Mar. 7, 2012, 12:46 PMWorld Wrestling Entertainment (WWE -1.1%) dips after Roth Capital cut the shares downgraded to Neutral on the back of its the lower-than-expected Q4 report and expected weakness post-Wrestlemania when The Rock's storyline ends April 1. The firm also lowers its price target to $10 from $13. | Comment!
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World Wrestling Entertainment Inc is engaged in the development, production & marketing of television & pay-per-view event programming and live events & the licensing & sale of consumer products featuring its World Wrestling Entertainment brands.
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