Why Has WWE Stock Declined 20% Over The Last Month?
World Wrestling Entertainment (NYSE: WWE), a sports entertainment company, has seen its stock price decline by 20% over the past month, following a mixed set of Q3 results that saw the company’s revenues and profits decline year-over-year. While the company’s core Media business posted low single-digit revenue growth over Q3, the Live Events and Consumer Products division posted declines. The company also saw a decline in subscription revenue from its online streaming channel WWE Network, as paying subscribers declined 9% over the period. Moreover, the company has lowered its 2019 income guidance, on account of a delay in closing a media-rights deal in the Middle East and North Africa region.
We ‘step back’ from these recent swings to review World Wrestling Entertainment’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has WWE Stock Dropped 20% Over The Last Month? reviews the near term reasons and the big picture.
The context for the last few years:
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A closer look at World Wrestling Entertainment’s Total Revenues over the last few years and the outlook
Total Revenues for World Wrestling Entertainment significantly increased from $801 Mil in 2017 to $930 Mil in 2018; an increase of 16.1%.
This compares with Total Revenues growth of:
- 21.4% in 2015
- 10.7% in 2016
- 9.84% in 2017
We expect Total Revenues growth to be 5% in 2019, although it could see a sharp increase in 2020, as the company’s deals with Fox and Comcast are likely to significantly boost its broadcast revenues.
A closer look at World Wrestling Entertainment’s Total Expenses over the last few years and the outlook
Total Expense for World Wrestling Entertainment increased from $737 Mil in 2017 to $824 Mil in 2018; an increase of 11.8%.
This compares with Total Expense growth of:
- 5.17% in 2015
- 8.59% in 2016
- 9.01% in 2017
We expect Total Expense growth to be 8.2% in 2019.
How does World Wrestling Entertainment’s Revenue Growth compare with rivals?
For more details on how World Wrestling Entertainment’s Revenue Growth compares with Manchester United, CBS, and Lions Gate, view our interactive dashboard analysis.
How has World Wrestling Entertainment’s EBT trended?
EBT for World Wrestling Entertainment increased substantially by 65.5% from $64.1 Mil in 2017 to $106 Mil in 2018.
We expect EBT to decline by 17% to $88 Mil in 2019.
How has World Wrestling Entertainment’s Net Income and EPS trended?
For more information on World Wrestling Entertainment’s Net Income and EPS, view our interactive dashboard analysis.
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