WWE announced its 2nd Quarter earnings on Thursday. The big news was that the WWE Network added just 33,000 subscribers from the 1st Quarter. In addition, it reported laying off 7% of its work force.
While the number of subscribers is off from the company’s initial projections, the WWE indicated that the existing subscribers are happy with it. The company indicated that the Network will roll out in its present form internationally.
Similar to how the UFC introduced pricing options for Fight Pass, the WWE will also roll out options to its current payment plans. Fans can now pay $19.99 per month with no commitment to renew. This is likely to grab those wanting to order specifically to watch a “PPV” event. The other new option is that one can pay one time the $9.99 x 6 months. These two options will be in addition to the current $9.99 per month plan with a 6 month commitment.
The WWE also announced a 10 year deal with Rogers Communications in Canada for the Network to be a traditional pay-tv option.
Overall, WWE reported a Net loss of $14.5 million, or $0.19 per share compared to last year’s second quarter net income of $5.2 million or $0.07 per share. The wide swing is due to the costs for the Network.
Payout Take: WWE stock was up slightly to $12.48 on Thursday. Unfortunately, when a company cuts jobs, the stock experiences a positive bump due in part to the belief that the company is addressing issues with excess. The Hartford Courant states that 53 of the 762 positions with the company would be cut. The article also states that the cuts “along with other efficiencies” should improve the operating income by $30 million (before depreciation and amortization) in 2015.
As for the Network, the number of gained subscribers at this point suggests that it will not reach its targeted goal of 1 million by the end of the year.
Leave a Reply