-= World Wrestling (WWE) reported earnings on Thur 31 Oct 19 (b/o)

World Wrestling beats by $0.06, misses on revs; cuts profit outlook

Reports Q3 (Sep) earnings of $0.06 per share, $0.06 better than the S&P Capital IQ Consensus of ($0.00); revenues fell 0.9% year/year to $186.3 mln vs the $192.19 mln S&P Capital IQ Consensus. Adjusted OIBDA was $25.4 million, which exceeded the Company's guidance.

The Company's previous full year guidance, which targeted Adjusted OIBDA of at least $200 million, assumed continued improvement in WWE's engagement metrics, a second large scale event in the MENA region, and the completion of a media rights deal in the MENA region. Although the Company is holding a second large-scale event today in Riyadh, Saudi Arabia, its previously contemplated agreement for the region has not yet been completed. Additionally, the Company has accelerated strategic investments to support the creation of its content while reducing or delaying other expenses to lessen the impact of that investment. Given the delay in completing a MENA agreement and the impact of these strategic investments, the Company has modified its full year guidance to an Adjusted OIBDA range of $180 million to $190 million, which would be an all-time record.

The Company's full year guidance includes estimated fourth quarter 2019 Adjusted OIBDA of approximately $108 to $118 million. The fourth quarter results reflect substantial revenue growth from the Company's new content distribution agreements in the U.S., which become effective at the start of the quarter.

The Company expects to provide in-depth perspective on its 2020 performance, long-term strategy and business model in mid-to-late February following the announcement of its 2019 results.