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Minor news items that don't deserve a thread


Richie Freebird

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On Thursday, WWE released their earnings report for the second quarter of 2016. Some highlights of the report include the following:

  • Revenue increased 32% to a record $199 million, which is the highest quarterly revenue in company history.

  • WWE Network acheived a record 1.52 million paid subscribers on average, up 25% from Q2 2015.

WWE Chairman Vince McMahon commented on the Q2 2016 earnings report with the following:

“I continue to be pleased with the execution of our strategy to optimize the long-term value of our content. Progress on this objective is evidenced by the continued year-over-year growth of WWE Network, the transition of SmackDown to a live format every week and the completion of our first exclusive content agreement in China.”

 

You can read the full earnings report:http://corporate.wwe.com/news/company-news/2016/28-07-2016

 

The boys are doing alright for themselves, aren't they?

 

Now saying that something they're trying to gloss around is that net income was only 0.8 million dollars, down from 5.1 million dollars last year so they didn't make a lot of profit. Investing for the future? Either way the stock is pretty high now compared to the past so investors must be confident in what they are doing.

 

 

Not to disparage the positive results, but a fair chunk of the revenue increase is because the TV deal is set up so they get paid a higher amount for each year of the contract.

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I admit I haven't watched Tough Enough since the first series, but if you handed me an encyclopedia of past contestants, he'd be the last one I'd consider hiring.

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On Thursday, WWE released their earnings report for the second quarter of 2016. Some highlights of the report include the following:

  • Revenue increased 32% to a record $199 million, which is the highest quarterly revenue in company history.

  • WWE Network acheived a record 1.52 million paid subscribers on average, up 25% from Q2 2015.

WWE Chairman Vince McMahon commented on the Q2 2016 earnings report with the following:

“I continue to be pleased with the execution of our strategy to optimize the long-term value of our content. Progress on this objective is evidenced by the continued year-over-year growth of WWE Network, the transition of SmackDown to a live format every week and the completion of our first exclusive content agreement in China.”

 

You can read the full earnings report:http://corporate.wwe.com/news/company-news/2016/28-07-2016

 

The boys are doing alright for themselves, aren't they?

 

Now saying that something they're trying to gloss around is that net income was only 0.8 million dollars, down from 5.1 million dollars last year so they didn't make a lot of profit. Investing for the future? Either way the stock is pretty high now compared to the past so investors must be confident in what they are doing.

 

 

Not to disparage the positive results, but a fair chunk of the revenue increase is because the TV deal is set up so they get paid a higher amount for each year of the contract.

 

 

Yeah, also on the net income front, I haven't properly read or listened to the latest accounts or conference call but they have been banging on about long term infrastructure investment surrounding the network so it will dip. The large gain in revenue is huge though and the Network is bringing in huge results for them. 

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So is the Network officially a success now then? Or has the ship only just been turned around and it'll be a while before it's altogether in the black?

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So is the Network officially a success now then? Or has the ship only just been turned around and it'll be a while before it's altogether in the black?

 

It's day-to-day profitable, but will still take a fair while to earn back the start-up costs.

 

AFAIK, it's not as profitable as the PPV model was before they made the switch. That's disguised somewhat by big TV rights increases.

 

Big picture is that it's making money and, given there's likely no way to go back to PPV, it'll be here for the long run. It's nowhere near as profitable as they claimed to expect, and it may not have been the right move to ditch PPV altogether at that point, but fundamentally the Network is working as a business strategy.

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But, the bet was hedged on PPV becoming obsolete as a model wasn't it? And they just wanted to get out in front.

 

I'd argue they jumped the gun by 5-10 years, but they clearly had an idea and just decided to pull the trigger. And it's hard to prove conclusively that there PPV revenue would have stayed the course, or increased.

Edited by d-d-d-dAz
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Not sure how true it is, or how reliable PWInsider.com are, but they are reporting that Jinder Mahal has signed a new contract to be part of Raw, Curt Hawkins is returning to be part of Smackdown, and Melina, MVP, Carlito, Tommy Dreamer and Stevie Richards are rumored to have been contacted and possibly returning as well.

 

I am really struggling to get too excited by any of those names returning to Raw and Smackdown.

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