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WWE Stock Sinks on Q4 Earnings, But Company Bullish on Peacock Deal

WWE shares have been down in after-hours buying and selling Thursday after falling effectively wanting fourth-quarter earnings and income forecasts.

In Q4, income fell 26% from the prior-year quarter to $238.2 million. Web revenue was $13.6 million, or 16 cents per diluted share. Analysts had predicted the sports activities leisure firm would submit per-share earnings of 30 cents and income of $245.69 million.

WWE said the lower got here on account of an absence of reside ticketed occasions due to the pandemic: 310 WWE reside occasions have been held in 2019 in comparison with 42 occasions held in 2020. As well as, they anticipate COVID-19 associated restrictions on reside occasions to proceed “no less than by means of the primary half of 2021.” Nonetheless, it was beforehand introduced that WWE’s flagship pay-per-view, WrestleMania, will happen at Raymond James Stadium in Tampa Bay, Florida, with restricted fan attendance as a result of state’s easing of restrictions.

For 2020, income was $974.2 million, a rise of 1% in comparison with 2019. The corporate additional estimated it might obtain 2021 Adjusted OIBDA of $270 – $305 million pushed by its take care of Peacock that may see WWE Community content material migrate to the AVOD service in addition to the ramping up of reside occasions each domestically and internationally. Nonetheless, WWE expects “important” will increase in year-over-year bills as staff return from furlough in addition to greater manufacturing prices related to its ThunderDome residency at Tropicana Area.

For the total 12 months, working revenue was $208.6 million, a rise of 79% in comparison with 2019. Per WWE, this was “pushed by the substantial rise in content material rights charges, which have a excessive incremental margin.”

“In the course of the fourth quarter, we continued to supply reside content material in new methods, which efficiently elevated viewers interplay and engagement,” stated Vince McMahon, WWE Chairman & CEO, in an announcement. “As we continued to adapt our enterprise to the altering media atmosphere, we accomplished an vital settlement to license WWE Community content material to Peacock, which we anticipate will increase the attain of our manufacturers and improve the worth of our content material.”

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