WWE 2Q'2020 Earnings Chat / Predictions

General
1

For discussion on WWE 2Q Earnings.

Will WWE report Earnings Per Share (EPS) over or under analyst estimates of $0.14
Q1 exceeded estimates and came in at $0.31

  • Over
  • Under

0 voters

Will WWE stock open on Friday, July 31st above or below $44.50
This week it has traded in a range of $44.70 - $45.90

  • Above
  • Below

0 voters

2

Things I am looking for:

  • Guidance on the 2nd Half KSA show, do they say they think it will happen or do they caution it will not
  • Update on any potential deals with Fox / Comcast regarding content, I’m paticularly interested in whether they are providing content for FS1 as a Make Good for the current shows that are being taped at reduced costs; I’m curious if Fox is paying any additional money for FS1 content (this would give insight as to what Fox values WWE content for vs. what they initially valued it at the time of the deal
  • Any commentary on when they may try to film in front of a live audience
  • Status of the class action law suit
  • Whether any analyst presses management on ratings declines as it pertains to future valuation of their content
3

Good luck with that!

There will probably be a question but, based on past calls, Vinnie Mac will trot out the same crap about their ability to create stars, made up stats about viewing figures, etc, etc. The analysts on the WWE call don’t ever have the balls to challenge his bullshit.

2 Likes
4

They also don’t really understand how to ask the right questions and get at the heart of their business beyond it being a media content producer.

I do think we get a status of the class action suit given it is a pretty damning allegation and it would be insane for an analyst not to inquire.

Convenient of WWE to schedule the earnings call on the single biggest earnings day in stock market history when Amazon, Facebook, Apple and Google all report after the bell :rofl: well done VKM. Already winning!

3 Likes
5

Well those results were surprising!

6

I don’t know I’d say surprising. They were always going to crush it with improved operating margins given the low cost of running shows + the Yr/Yr comps in the Media division. What has me befuddled is that there hasn’t been more of a reaction to their inability to effectively get back on the road and tour for live audiences (or hold their big Summer events + Fall KSA event). For Vince to repeatedly state not being in front of fans is a big reason ratings are down, it’s just the same strategy of making a bogus excuse. But from a financial stand point they are really well positioned with these TV deals. Comcast reporting positive earnings in the morning helped them as I think the feeling the deals may be in jeopardy were calmed a good bit. I know I felt that after seeing Comcast.

7

I’m actually wondering if they really want to be holding live events.

They would have to hire out arenas and cover all associated costs and they wasn’t selling out beforehand either.

If they aren’t getting heat from the TV companies for the ratings, then why would they want to move away from the performance center.

Then again if AEW announced a show with fans, then they will suddenly start doing them.

1 Like
8

From an efficiency standpoint it would appear on the surface that what you suggest makes sense.
I think the ability to tour and get in front of crowds is two fold: 1) makes the TV product more engaging, and 2) ability to engage and further develop relationships with the fan base which is an underrated aspect of running events.

9

I do believe no crowds hurts the ratings, but of course I also thing bad creative is aiding to the decline.

With that said, are we honestly giving them shit for not touring at this point? I feel that would be incredibly irresponsible.

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Nooo not saying they should. Vince was using that excuse as to ratings decline. I’m suggesting why in the future they’d want to tour again.

1 Like
11

My bad, context lol.