Disappointing WWE Q1 2019 Financial Reports Include $5.3m Revenue Drop
Lowlights aplenty in WWE's latest earnings report.
WWE have today released their latest set of financial reports (Q1 2019), and for the first time in a long time it isn't all sunshine and rainbows for Vince McMahon's once-bulletproof business team.
A disappointing earnings report brought a $10 drop in the promotion's premarket stock price overnight. The numbers, of course, remain untouchable by any other wrestling company, but there are some worrying trends within these vast reports.
Most notable is a 2.8% drop in revenue from Q1 2018 to Q1 2019, which comes in at roughly $5.3 million. Operating income of $28.6 million turned into a loss this time around, which WWE attribute to "a decline in revenue and increased fixed costs, as well as higher stock compensation costs driven by increases in the company's stock price," per the reports.
Raw and SmackDown viewership numbers are down by 14% and 13% respectively, which is far higher than the national cable average of 5%. There was an 11% fall in live event attendance compared to Q1 2018 as well, with such shows producing a loss of approximately $200,000.
How do WWE intend on reversing these trends? By "increasing fan engagement over the next few years" to "enhance WWE's brand value and strengthen long-term growth."
Good luck to them with that.