WWE Q1 2019 results

[cjh]

Covers period from Jan. 1, 2019 to Mar. 31, 2019

Revenue: $182.4 million ($187.7 million in Q1 2018)
Profit/loss: $8.4 million loss ($14.8 million profit in Q1 2018)

WWE Network subscribers: 1.58 million

"During the quarter, we continued to execute our strategy and achieved targeted financial results. While engagement metrics over the past two quarters were impacted by Superstar absences, we believe they will improve as our talent return and we launch our new season following a successful WrestleMania. We remain excited about the future, particularly with our debut on Fox in October." - Vince McMahon

[EoE: Well There's Your Problem]

That’s their first loss in a while, isn’t it?

[eJm]

Wasn’t the Network at 1.9m near the end of the year or am I confusing that?

[This Player Hating Mothman]

Apr 25, 2019 8:25:34 GMT -5 eJm said:

Wasn’t the Network at 1.9m near the end of the year or am I confusing that?

Q4 2018 reported 1.59 million, so it's a minor dip, but in light of Q4 being their cold season at Q1 being when they actually start to pick up with the RUmble and the Mania build, it's really not a great sign that they dipped at all.

[eJm]

Apr 25, 2019 8:29:19 GMT -5 This Player Hating Mothman said:

Apr 25, 2019 8:25:34 GMT -5 eJm said:

Wasn’t the Network at 1.9m near the end of the year or am I confusing that?

Q4 2018 reported 1.59 million, so it's a minor dip, but in light of Q4 being their cold season at Q1 being when they actually start to pick up with the RUmble and the Mania build, it's really not a great sign that they dipped at all.

Yeah, none of those numbers look good but the Network numbers in particular aren’t great either especially since it’s ‘Mania season.

I just think for them, they’re going to try and keep things as steady as possible until November when all of this becomes redundant and the start of the TV deals get them back a substantial profit.

[This Player Hating Mothman]

Apr 25, 2019 8:31:22 GMT -5 eJm said:

Apr 25, 2019 8:29:19 GMT -5 This Player Hating Mothman said:

Q4 2018 reported 1.59 million, so it's a minor dip, but in light of Q4 being their cold season at Q1 being when they actually start to pick up with the RUmble and the Mania build, it's really not a great sign that they dipped at all.

Yeah, none of those numbers look good but the Network numbers in particular aren’t great either especially since it’s ‘Mania season.

I just think for them, they’re going to try and keep things as steady as possible until November when all of this becomes redundant and the start of the TV deals get them back a substantial profit.

On a financial level, yes, but with the networks breathing down their necks because ratings are dropping fast again, I see this being a big, awful juggling act for WWE.

[eJm]

Apr 25, 2019 8:34:57 GMT -5 This Player Hating Mothman said:

Apr 25, 2019 8:31:22 GMT -5 eJm said:

Yeah, none of those numbers look good but the Network numbers in particular aren’t great either especially since it’s ‘Mania season.

I just think for them, they’re going to try and keep things as steady as possible until November when all of this becomes redundant and the start of the TV deals get them back a substantial profit.

On a financial level, yes, but with the networks breathing down their necks because ratings are dropping fast again, I see this being a big, awful juggling act for WWE.

Oh absolutely. I wasn’t saying it’s the best position for them but even from the statement Vince said, that’s pretty much their entire strategy right now.

But things are probably going to get worse before they get better.

[Rican]

I wonder how much of that loss they could make up letting talent go who they're doing absolutely nothing with and cutting back on their insane touring schedule some. With how much money they're getting from the Saudi government and the TV deals I don't get why they don't cut back on shows since house show business is down, and use some of the extra cash flow to make up the difference in wrestler pay. ESPECIALLY if wrestlers being hurt and out is a concern in how it affects the revenue.

[KofiMania]

Apr 25, 2019 9:03:12 GMT -5 Rican said:

I wonder how much of that loss they could make up letting talent go who they're doing absolutely nothing with and cutting back on their insane touring schedule some. With how much money they're getting from the Saudi government and the TV deals I don't get why they don't cut back on shows since house show business is down, and use some of the extra cash flow to make up the difference in wrestler pay. ESPECIALLY if wrestlers being hurt and out is a concern in how it affects the revenue.

I think they believe that part of their popularity and success is due to the constant touring and going to all of the cities and countries that they go to, whether the actual events themselves make money or not. More about the exposure of it.

[eJm]

Apr 25, 2019 9:05:57 GMT -5 KofiMania said:

Apr 25, 2019 9:03:12 GMT -5 Rican said:

I wonder how much of that loss they could make up letting talent go who they're doing absolutely nothing with and cutting back on their insane touring schedule some. With how much money they're getting from the Saudi government and the TV deals I don't get why they don't cut back on shows since house show business is down, and use some of the extra cash flow to make up the difference in wrestler pay. ESPECIALLY if wrestlers being hurt and out is a concern in how it affects the revenue.

I think they believe that part of their popularity and success is due to the constant touring and going to all of the cities and countries that they go to, whether the actual events themselves make money or not. More about the exposure of it.

Which, you know what, I can buy that.

Considering they promote the crap out of stuff when they get on local TV or with local sports teams or different stuff. So it makes THEM look popular even if nobody actually goes to them as much anymore.

[KofiMania]

Apr 25, 2019 8:24:05 GMT -5 EoE: Well There's Your Problem said:

That’s their first loss in a while, isn’t it?

Reading the financials in detail it seems that they were actually plus-12 or so million but ended up with a loss due to some type of investments. Perhaps those were the international performance centers they are setting up.

My guess is they’re starting to invest a lot of money ahead of their windfalls they’re about to start receiving with their new TV deals.

[Gus Richlen Was Wrong]

This news has caused the stock to slip below ninety dollars as of this post.

[Doctor No]

Apr 25, 2019 9:03:12 GMT -5 Rican said:

I wonder how much of that loss they could make up letting talent go who they're doing absolutely nothing

They are happy to take that loss to be able to try to control the talent pool out there. Paying to control the rights and release of talent to the open market is part of their plan at this point.

[Deleted]

the revenue pressure is why they'll never have an offseason

[toodarkmark]

But they HAD to extend Luke Harper.

Also, CAN'T WAIT for XFL to start.

[Prince Petty]

Apr 25, 2019 9:03:12 GMT -5 Rican said:

I wonder how much of that loss they could make up letting talent go who they're doing absolutely nothing with and cutting back on their insane touring schedule some. With how much money they're getting from the Saudi government and the TV deals I don't get why they don't cut back on shows since house show business is down, and use some of the extra cash flow to make up the difference in wrestler pay. ESPECIALLY if wrestlers being hurt and out is a concern in how it affects the revenue.

The bloat of the company was always going to bite them, at some point. But it won't be shareholders or the McMahons who suffer, it will be the wrestlers who are fired, and the various, low level corporate and menial staff who get shitcanned so the company can cut some costs.

They have over three hundred wrestlers under contract, and use a fraction of them regularly. There are currently fifty seven people listed as being assigned to Raw. I counted nineteen of them as barely ever appearing on Raw. Okay, some are injured (which, as you point out, can easily be tied to their schedules), but the majority are the likes of Viktor and Konnor, Gran Metalik, Curtis Axel and Bo Dallas etc. People who simply have no role on Raw. Why are they employed? Just in case? To stop other companies from using them? Because there's some masterplan that will see Lince f***ing Dorado become a huge star of the brand, six months from now?

[Dub H]

I really want to know if Vince believes the injury fest is to blame for bad numbers instead of being an awful tv show. Or if its just PR talk

["Evil Brood" Jackson Vanik]

Meltzer said on WOR that the company wasn't worried about the losses because they chose to spend more knowing that they are about to get a gigantic boost of revenue in the next few years.

[TWERKIN' MAGGLE]

They still need to do something about the massive 20%+ drops in viewership.

TV rights fees are short term successes. Chasing away your audience is a long term failure.

[Dub H]

Apr 25, 2019 11:58:26 GMT -5 "Evil Brood" Jackson Vanik said:

Meltzer said on WOR that the company wasn't worried about the losses because they chose to spend more knowing that they are about to get a gigantic boost of revenue in the next few years.

Basically: the fans dont matter ,we have saudi and Fox money