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World Wrestling Entertainment: You Can't See Its Chokeslam On Recovery


  • World Wrestling Entertainment's annual report shows growth still achieved, but quarterly numbers are shaky.
  • A large portion of liabilities are held in Current Liabilities; how the company deals with it is an area to watch in 2021.
  • Dividends will be paid out for 2021 Q1, with the company continuing a long streak of pay-outs. Questions remain on dividend growth. The P/E ratio shows mixed signals.
  • 2020 Q4 numbers are down quarter on quarter. Thus, investors should watch how the company proceeds to take opportunities and challenges in 2021.

World Wrestling Entertainment (NYSE:WWE), a brand more known and loved around the world simply as WWE, is a long-running company in the entertainment sector that started in 1982 and which operates multiple wrestling events primarily in the United States, but also in international venues. They also manage the global broadcasting and commercial promotion and rights for these events, engaging in partnerships with television companies to deliver wrestling content to its consumers. WWE is famous for its events such as its signatures Smackdown and WrestleMania, as well as its gimmicky entertainment options (including “The Battle of the Billionaires” in 2007, which pitted then-civilian businessman Donald Trump against the company’s boss Vince McMahon). Its personalities also play a huge role in promoting the company brand and in pushing its visibility into mainstream society and in the non-captive audience for wrestling. Famous names to come out of the WWE stable include Steve Austin (known as Stone Cold), Fast and The Furious superstar Dwayne Johnson (previously made famous as The Rock in his time with WWE), and other charismatic figures such as The Undertaker, John Cena, Hulk Hogan, among others.

As an entertainment company with a global and digital footprint, WWE has shown relative growth in revenue and income for the last four years although some concerns about its cash and borrowings must be noted as well. Meanwhile, a short look at the revenue numbers also shows despite the growth in net income for 2016-2019, the measure showed some cooling-off in 2019 after a blockbuster 2018 with a 22.62 per cent in net income, from a 205.11 per cent gain in the previous year. Given these, the company is continuing to explore its expansion options. A Bloomberg report in 2019 reported that WWE enhanced its footprint in Saudi Arabia through a deal with Saudi Arabia’s General Entertainment Authority to add one more

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