In light of the WWE's Q1 release I feel it would be interesting to examine the trends over the last 2.5 years and see where they may or may not be pointing to.
Revenue:
Q3 2014: 120.2M (Network 22.4M, Television 42.2M)
Q4 2014: 140.5M (Network 27.2M, Television 50.5M)
Q1 2015: 176.2M (Network 37.6M, Television 58.2M
Q2 2015: 150.2M (Network 40.1M, Television 52.1M)
Q3 2015: 166.2M (Network 36.4M, Television 65.2M)
Q4 2015: 166.2M (Network 40.8M, Television 55.6M)
Q1 2016: 171.1M (Network 40.3M, Television 60.7M
Q2 2016: 199.0M (Network 51.8M, Television 56.1M)
Q3 2016: 164.2M (Network 45.1M, Television 56.3M)
Q4 2016: 194.9M (Network 43.7M, Television 68.6M)
Q1 2017: 188.4M (Network 46.5M, Television 64.0M)
WWE has produced more revenue in the last six months that at any point in over two years. Network revenue is steadily creeping upwards, although down from its peak a year ago. Television revenue, presumably fueled by the USA deal is also increasing. The risk for the company will be when the deal expires. Given the decline of RAW ratings which at times is outpacing the general decline in television viewership, can they obtain the same or bigger deal from USA or another entity?
Live Event Revenue:
Q2 2014: 40.3M
Q3 2014: 21.8M
Q4 2014: 26.9M (15.3M US), total events 82 (57 US)
Q1 2015: 39.3M
Q2 2015: 26.4M (16.9M US), total events 85 (65 US)
Q3 2015: 26.1M (17.3M US), total events 85 (79 US)
Q4 2015: 32.9M (18.5M US), total events 82 (56 US)
Q1 2016: 25.3M (22.8M US), total events 78 (72 US)
Q2 2016: 51.9M (40.9M US), total events 81 (62 US)
Q3 2016: 28.6M (21.0M US), total events 82 (71 US)
Q4 2016: 38.6M (22.8M US), total events 103 (75 US)
Q1 2017: 32.1M (30.6M US), total events 95 (91 US)
This is somewhat misleading because one really needs to exclude the impact of WrestleMania. Aside from the Q2 FY16 WM32 blip, revenue is relatively flat.
Operating Costs (Cost of Revenue, Selling, General and Admin Expenses):
Q4 2014: 136.9M
Q1 2015: 154.2M
Q2 2015: 137.0M
Q3 2015: 142.8M
Q4 2015: 155.1M
Q1 2016: 143.5M
Q2 2016: 181.5M
Q3 2016: 137.7M
Q4 2016: 174.4M
Q1 2017: 177.5M
Along with record revenue, this really stuck out. It appears that in the last two quarters that WWE has also had higher costs than at any two quarter period in the last two years
Profit (Net Income):
Q3 2014: (05.9M)
Q4 2014: (01.6M)
Q1 2015: 09.8M
Q2 2015: 14.7M
Q3 2015: 10.4M
Q4 2015: (01.2M)
Q1 2016: 13.9M
Q2 2016: 00.8M
Q3 2016: 11.1M
Q4 2016: 13.9M
Q1 2017: 00.9M
Against near record revenue, WWE turned in a profit of less than a million dollars. That's twice in four quarters. And three times in six quarters that they have been under 1M.
Network Subscriptions (average)
Q1 2014: 0.147M
Q2 2014: 0.665M
Q3 2014: 0.723M
Q4 2014: 0.721M
Q1 2015: 0.927M
Q2 2015: 1.216M
Q3 2015: 1.173M
Q4 2015: 1.237M
Q1 2016: 1.289M
Q2 2016: 1.517M
Q3 2016: 1.458M
Q4 2016: 1.407M
Q1 2017: 1.490M
Network Subscriptions (Ending Paid Subscribers)
Q1 2014: 0.495M
Q2 2014: 0.700M
Q3 2014: 0.731M (0.703M US)
Q4 2014: 0.816M (0.772M US)
Q1 2015: 1.327M (1.131M US)
Q2 2015: 1.156M (0.939M US)
Q3 2015: 1.270M (0.960M US)
Q4 2015: 1.217M (0.940M US)
Q1 2016: 1.357M (1.027M US)
Q2 2016: 1.511M (1.130M US)
Q3 2016: 1.444M (1.071M US)
Q4 2016: 1.403M (1.033M US)
Q1 2017: 1.574M (1.165M US)
Subscriptions are growing, but only very gradually within the United States. This has to be somewhat disappointing to them. They still have not come close to hitting the 1.5M that I believe was their domestic target at the outset of the Network launch.
Revenue:
Q3 2014: 120.2M (Network 22.4M, Television 42.2M)
Q4 2014: 140.5M (Network 27.2M, Television 50.5M)
Q1 2015: 176.2M (Network 37.6M, Television 58.2M
Q2 2015: 150.2M (Network 40.1M, Television 52.1M)
Q3 2015: 166.2M (Network 36.4M, Television 65.2M)
Q4 2015: 166.2M (Network 40.8M, Television 55.6M)
Q1 2016: 171.1M (Network 40.3M, Television 60.7M
Q2 2016: 199.0M (Network 51.8M, Television 56.1M)
Q3 2016: 164.2M (Network 45.1M, Television 56.3M)
Q4 2016: 194.9M (Network 43.7M, Television 68.6M)
Q1 2017: 188.4M (Network 46.5M, Television 64.0M)
WWE has produced more revenue in the last six months that at any point in over two years. Network revenue is steadily creeping upwards, although down from its peak a year ago. Television revenue, presumably fueled by the USA deal is also increasing. The risk for the company will be when the deal expires. Given the decline of RAW ratings which at times is outpacing the general decline in television viewership, can they obtain the same or bigger deal from USA or another entity?
Live Event Revenue:
Q2 2014: 40.3M
Q3 2014: 21.8M
Q4 2014: 26.9M (15.3M US), total events 82 (57 US)
Q1 2015: 39.3M
Q2 2015: 26.4M (16.9M US), total events 85 (65 US)
Q3 2015: 26.1M (17.3M US), total events 85 (79 US)
Q4 2015: 32.9M (18.5M US), total events 82 (56 US)
Q1 2016: 25.3M (22.8M US), total events 78 (72 US)
Q2 2016: 51.9M (40.9M US), total events 81 (62 US)
Q3 2016: 28.6M (21.0M US), total events 82 (71 US)
Q4 2016: 38.6M (22.8M US), total events 103 (75 US)
Q1 2017: 32.1M (30.6M US), total events 95 (91 US)
This is somewhat misleading because one really needs to exclude the impact of WrestleMania. Aside from the Q2 FY16 WM32 blip, revenue is relatively flat.
Operating Costs (Cost of Revenue, Selling, General and Admin Expenses):
Q4 2014: 136.9M
Q1 2015: 154.2M
Q2 2015: 137.0M
Q3 2015: 142.8M
Q4 2015: 155.1M
Q1 2016: 143.5M
Q2 2016: 181.5M
Q3 2016: 137.7M
Q4 2016: 174.4M
Q1 2017: 177.5M
Along with record revenue, this really stuck out. It appears that in the last two quarters that WWE has also had higher costs than at any two quarter period in the last two years
Profit (Net Income):
Q3 2014: (05.9M)
Q4 2014: (01.6M)
Q1 2015: 09.8M
Q2 2015: 14.7M
Q3 2015: 10.4M
Q4 2015: (01.2M)
Q1 2016: 13.9M
Q2 2016: 00.8M
Q3 2016: 11.1M
Q4 2016: 13.9M
Q1 2017: 00.9M
Against near record revenue, WWE turned in a profit of less than a million dollars. That's twice in four quarters. And three times in six quarters that they have been under 1M.
Network Subscriptions (average)
Q1 2014: 0.147M
Q2 2014: 0.665M
Q3 2014: 0.723M
Q4 2014: 0.721M
Q1 2015: 0.927M
Q2 2015: 1.216M
Q3 2015: 1.173M
Q4 2015: 1.237M
Q1 2016: 1.289M
Q2 2016: 1.517M
Q3 2016: 1.458M
Q4 2016: 1.407M
Q1 2017: 1.490M
Network Subscriptions (Ending Paid Subscribers)
Q1 2014: 0.495M
Q2 2014: 0.700M
Q3 2014: 0.731M (0.703M US)
Q4 2014: 0.816M (0.772M US)
Q1 2015: 1.327M (1.131M US)
Q2 2015: 1.156M (0.939M US)
Q3 2015: 1.270M (0.960M US)
Q4 2015: 1.217M (0.940M US)
Q1 2016: 1.357M (1.027M US)
Q2 2016: 1.511M (1.130M US)
Q3 2016: 1.444M (1.071M US)
Q4 2016: 1.403M (1.033M US)
Q1 2017: 1.574M (1.165M US)
Subscriptions are growing, but only very gradually within the United States. This has to be somewhat disappointing to them. They still have not come close to hitting the 1.5M that I believe was their domestic target at the outset of the Network launch.
