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Will repackaging a WWE event increase revenues?

Posted Jul 7th 2009 1:00PM by Steven Mallas (RSS feed)
Filed under: Television, Media World, World Wrestling Entertainment (WWE)

World Wrestling Entertainment (NYSE: WWE) definitely needs to increase the buy rates for its pay-per-view products. According to an article at Multichannel News, WWE wants to improve on the quality of its marketing and branding efforts by getting a little creative.

WWE management will utilize video-on-demand platforms to replay old content associated with branded events such as SummerSlam to enhance buy rates, as well as offering free souvenirs, depending on certain pay-per-view purchases. To me, the most interesting thing mentioned in the article by far is changing the title of an event.

Continue reading Will repackaging a WWE event increase revenues?

WWE: Again, it's all about the cash flow

Posted Nov 7th 2008 2:38PM by Steven Mallas (RSS feed)
Filed under: Earnings reports, Walt Disney (DIS), Viacom (VIA)

World Wrestling Entertainment (NYSE: WWE) reported results for the third quarter, and by just about all accounts, things were tough. Revenues were flat at $108.8 million. Net income on a per-share basis, however, dropped almost 42% to $0.07. Talk about getting slammed to the mat! But the really bad aspect was the cash-flow statement. This has been a constant theme as of late. The company's operational cash flow declined massively during the nine-month period, coming in at $17.7 million. Know how much money was paid out in dividends? Try almost $61 million. That's probably why WWE's stock yields over 10%.

So what's the problem here? A couple things. First, costs need to be controlled (the press release does mention this issue, as well as a desire to be more careful when it comes to capital expenditures). Second, CEO Linda McMahon has to get fans excited about wrestling again. If you look at the buy rates for the pay-per-view events, you'll notice they've been declining. I think one thing that WWE must do is figure out a way to make its secondary pay-per-view shows a must-purchase item for the part of the fan base that falls outside of the hardcore wrestling viewer but doesn't exactly reach the realm of the casual audience. If the company can bring shows like The Great American Bash and Unforgiven up to the level of a SummerSlam, then the company will really be on a growth track.

Continue reading WWE: Again, it's all about the cash flow

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Last updated: November 24, 2009: 12:08 PM

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