A WINCIN’ VINCE
Solid Q2 clouded by head-injuries suit
WWE reported secondquarter revenue surged 32 percent andsubscribers to its over-the-top network grew by a solid 25 percent, but investors were not at all impressed, as shares Thursday closed a mere penny to the upside at $19.75.
Weighing on investors’ minds and wallets may have beenaless-than-stellar thirdquarter forecast — plus the lawsuit filed by 50 former wrestlers who claim to have suffered neurological injuries while performing for Vince McMahon’sWWE.
Net income in the period fell 83percent, to $862,000, or 1 cent a share — missing Wall Street estimates of 2 cents. Revenue rose to $199 million.
At WWE Network, its 2year-old OTT distribution gamble, average paid subs hit a record of 1.52 million.
Wrestlemania, WWE’s flagship event, took place April 3 and generated recordbreaking attendance of 101,763 fans, viewership of 1.82 million total subscribers and social-media activity of more than 2.5 million Twitter mentions in a single day, the companysaid.
The event, the single-biggest on the calender, often skewsresults. Last year, it was held in the first quarter. On a six-month basis, which presents a more apples-to-apples comparison, profit dipped less than 1 percent and revenue wasup13percent.
Chief Executive McMahon projects third-quarter paid WWE Network subscribers will dip about 2 percent, to 1.49 million — roughly in line with past non-Wrestlemania quarters.
S&PGlobalRatings, in areport Thursday, raised a red flag concerning the head-injuries lawsuit filed by the former WWE wrestlers — including Joseph “Road Warrior Animal” Laurinaitis, Paul “Mr. Wonderful” Orndorff and Jimmy“Superfly” Snuka.
While these latent injuries could spring up over an extended period of time, the size of any possible settlement and the effect on WWE’s bottom line are not known, the report said.
W WE dismissed the suit as “another ridiculous attempt by the same attorney who has previously filed class action lawsuits against WWE, both of which have been dismissed.”