WWE earnings for Q4 impress Wall Street
February 13, 2017
WWE set a 52 week record for stock price as it announced its end of year earnings for 2016 this past Thursday.
According to its earnings call, WWE Network subscribers grew 14% to 1.41 million paid subscribers. Revenue increased 11% to a company record $729.2 million.
Per a company press release, “[T]he Company reported Net income of $8.0 million, or $0.10 per share, as compared to a Net loss of $1.2 million, or a $0.02 loss per share, in the prior year quarter. Operating income increased to $13.9 million from an Operating loss of $1.5 million.”
Notably, television rights fees saw a big year-to-year increase (i.e., 2015-2016). The television division ended the 4th quarter with $68.6 million as opposed to $55.6 million in 2015. The network was up $43.7 million to $40.8 million. Overall, revenue was up across all business divisions except PPV which is likely since the Network is taking over this segment.
As of this writing, the stock is up at $22.37 which is slightly below its 52 week high of $22.56.
The earnings reflect that business is good for the WWE. It is capitalizing on television rights fees while its Network continues to grow according to the numbers.