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WWE reported First Quarter 2016 revenue of $171.1 million, which is in-line with investor expectations. This compares to:
- $176.2 million in last year’s first quarter, which included WrestleMania
- $151.3 million in last year’s Q1 excluding the effect WrestleMania
WWE’s quarterly revenue increased 13 percent on a pro forma basis (excluding the effect of WM) based on the ramp-up of paid WWE Network subscribers and TV Rights Revenue.
Before the stock market opened, WWE’s stock price increased by about a dollar (five percent) from Monday’s close.
WWE also reported Net Income of $13.9 million, or $0.18 per share, which exceeded expectations.
Again, WWE’s profitability came from a ramp-up of WWE Network subscribers exceeding the break-even point and improvements in the TV Rights department. This was mainly due to last year’s WrestleMania TV production being very expensive in California, making this year’s First Quarter profit look better in comparison.
WWE’s quarterly business also benefited from a 14 percent increase in revenue outside of North America, primarily driven by monetizing the Network. Plus, more comparable revenue from live events and video games.
Meanwhile, North American revenue decreased 7 percent, mainly due to the timing of WrestleMania. The result was domestic revenue making up 76 percent of total revenue, down from 80 percent for a WrestleMania quarter last year.
MORE DETAILS TO FOLLOW…