- WWE’s income fell by 0ver 80% from a similar quarter a year ago.
- Since the year started, WWE stock has depreciated by nearly 50% from its April high.
- The sports entertainment firm has also revised guidance downwards signalling that the stock could fall further.
Shares of the Vince McMahon-led World Wrestling Entertainment (NYSE: WWE) fell drastically by over 15% Thursday after releasing third-quarter results that lowered the profit outlook and missed forecasts. After ending Wednesday at $66.40, the price of WWE’s shares fell to $56.04 at the close of Thursday’s session, a drop of 15.65%. The stock is 44% lower from the yearly high of $110.10 reached in April.
WWE’s stock price chart | Source: Yahoo Finance
In the Q3 results, WWE reported revenues of $186.3 million. This was a drop of less than 2% year-on-year. The sports entertainment company reported revenues of $188.4 million in last year’s third quarter.
Quarter by quarter comparison | Screenshot
WWE Profits down by 83%
Net income for the third quarter also fell drastically year-on-year from $33.6 million to $5.8 million. That’s a seismic 82.7% drop. The company attributed this to a fall in excess tax benefits, lower operating performance and costs related to the new WWE headquarters. In March, the sports entertainment firm announced it was shifting its global headquarters to a new office complex. It will still be based in Stamford, Connecticut.
For the full year 2019, WWE revised guidance on operating income before depreciation and amortization (OIBDA) from $200 million to $180 million to $190 million. The sports firm owned largely by the McMahon family attributed the change to a delay encountered in signing new broadcasting rights in the Middle East and North Africa (MENA) region.