World Wrestling Entertainment (WWE) is a fun stock to keep tabs on. Not only is it linked to some crazy (and I mean that in a good way) content, but it sports one heck of a yield. As of this writing, WWE is yielding over 9%. Pretty cool, huh?

Yet, at the same time, investors worry over the company's programming. They have to; WWE lives and breathes by the excitement quotient of its various plots and skirmishes. Wall Street wants to see the ratings go as high as possible, and for that to happen, WWE has to deliver.

Continue reading Will a New Storyline Bolster WWE's Fortunes?

Will a New Storyline Bolster WWE's Fortunes? originally appeared on BloggingStocks on Wed, 23 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

World Wrestling Entertainment (NYSE: WWE) walked to the ring with its second quarter results on Thursday. WWE increased revenues by 7%. Earnings per share came in at 27 cents per share as opposed to 10 cents per share in the year-ago quarter. In the first quarter of this year, WWE reported lower sales and income.

Wrestlemania XXV hulked up the quarter, it must be kept in mind. And that's great. However, don't think WWE is out of the woods yet when it comes to pay-per-view performance. For instance, both the Backlash and Judgment Day events saw decreases in buy rates. Any Wrestlemania event is a given in terms of popularity, but you really want to see every event at least maintain a flat growth rate. Remember: Wrestlemania comes only once a year, not every quarter.

Continue reading World Wrestling Entertainment increases profit and cash flow in Q2

World Wrestling Entertainment increases profit and cash flow in Q2 originally appeared on BloggingStocks on Fri, 07 Aug 2009 09:30:00 EST. Please see our terms for use of feeds.

World Wrestling Entertainment (NYSE: WWE) entered a match it apparently was unprepared to win this time around. I'm talking about a match for the most coveted prize on Wall Street: The Earnings Championship Belt.

During the second quarter, WWE had to lie down for the count. The top line saw a depressing decrease of nearly 6%, coming in at $129.7 million. The bottom line saw no growth whatsoever, as WWE earned $0.10 per diluted share, the same amount that was earned in the year-ago period. According to Briefing.com, this represents a miss of two pennies. One thing that must be noted is that the big Wrestlemania event took place during the second quarter last year and the first quarter this year.

Of course, one of the most fascinating elements of WWE's stock is its incredible yield. Right now, the company is trading at a yield greater than 9%. Considering WWE's massive brand power in sports entertainment, and the fact that wrestling should always be with us, that sounds like a great deal, correct? It could be over the long term.

However, a look at the cash-flow statement does not offer a lot of encouragement, to be honest. Operational cash flow declined massively, dropping 94% during the six-month period. And for both the quarterly period and the half-year period, there was negative free cash flow by management's own calculation. So, as can be seen, servicing a dividend with no free cash flow is like Rey Mysterio trying to body slam Andre the Giant.

Continue reading World Wrestling Entertainment: Management brought B-team to Q2

World Wrestling Entertainment: Management brought B-team to Q2 originally appeared on BloggingStocks on Wed, 06 Aug 2008 15:15:00 EST. Please see our terms for use of feeds.

I recently wrote about World Wrestling Entertainment's (NYSE: WWE) million-dollar giveaway plans. This is the scheme that sees the Mr. McMahon character reward viewers who register at the company's website with portions of his fortune. He calls them up on the phone during WWE's RAW program and doles out various sums; according to this press release, one winner got $200,000, while another player received $125,000. One poor hapless soul won $2! Remember, Mr. McMahon is an evil guy.

I tuned in to see how the contest would be presented and to get some sense of how it was received. It seemed a bit awkward and slow at times. A few in the audience screamed that they were bored. Personally, I thought it was goofy fun to see Vince McMahon calling people to hand out some of his money and enjoyed it for what it was. But WWE will need to optimize the segment and try to make it more exciting, as I don't think it came off exactly as it wanted. McMahon is supposed to keep handing out $1 million a week for an unspecified time period, so the company will have more chances to improve the presentation.

WWE wants to really juice the ratings for the RAW brand, hoping that viewers beyond the hardcore fan base will stop watching networks owned by CBS (NYSE: CBS), Disney (NYSE: DIS), News Corp. (NYSE: NWS), and General Electric (NYSE: GE) long enough to sample the spectacle of the WWE product (of course, GE's NBC Universal owns the USA cable network, which RAW runs on). McMahon is smart to be trying something like this since WWE will be working its way up to perhaps one of its biggest pay-per-view opportunities ever: Wrestlemania 25. With a milestone like that coming, the company has a chance of really expanding its brand equity and setting the stage for long-term growth.

Continue reading WWE needs to make Vince McMahon's giveaway more exciting

WWE needs to make Vince McMahon's giveaway more exciting originally appeared on BloggingStocks on Mon, 16 Jun 2008 13:17:00 EST. Please see our terms for use of feeds.

World Wrestling Entertainment (NYSE: WWE) stepped into the Wall Street ring on Tuesday -- and lost. The company's stock dropped about 8% at closing on the Q1 earnings release (it did recover a bit during the after-hours session). I'd probably call this profit-taking, although there was one thing about the earnings report that I didn't like: free cash flow.

Let me say first, though, that revenues increased more than 50% to $162.6 million, and that earnings per share rose almost 29% to 27 cents (according to Briefing.com, this matched expectations). This is excellent growth, and it shows the resilience of wrestling as an entertainment brand; sure, many on Wall Street may not take the company seriously, but they're wrong. I enjoyed, by the way, that WWE increased the buy-rates for its Royal Rumble and No Way Out pay-per-view events. Pay-per-view is a very vital part of WWE's operations, in my opinion. And let's not forget a big driver for the quarter -- Wrestlemania XXIV -- which brought in more than million buys.

Unfortunately, free cash tumbled off the mat, decreasing 77%. And, no, the amount generated did not cover the generous dividend that WWE pays. I would really like to see free cash flow do well every quarter since WWE has been a steady dividend-increaser over its time as a public company. Management must focus on the cash-flow statement and make it a priority.

Continue reading World Wrestling Entertainment shows growth in earnings, but what about cash flow?

World Wrestling Entertainment shows growth in earnings, but what about cash flow? originally appeared on BloggingStocks on Wed, 07 May 2008 10:47:00 EST. Please see our terms for use of feeds.

This post is written as part of AOL Money & Finance's Best & Worst 2006. If you'd pick Donald Trump as the most annoying money personality, be sure to vote for him.

A leading contender for the most annoying money personality crown for decades now, consummate self-promoter and real estate mogul Donald Trump is also the producer and star of the reality television show, The Apprentice, from which comes his widely imitated catchphrase, "You're fired."

Trump, also known as "The Donald," a nickname given to him by his former wife, Ivana Trump, is recognized by his usual squint, pursed lips, and that distinctive comb-over, which has been the subject of humor by many comedians, and it's a nominee in another category of the Best & Worst 2006.

Known throughout the 1990s for his much publicized financial difficulties and a high-profile and messy divorce from wife Ivana, he'd already begun a lifelong habit of naming things after himself. Besides Trump Tower and Trump Plaza, there are also such things as a Trump menswear collection, bottled water, vodka, a magazine, an ice cream parlor, and Trump University, a business school founded in 2005.

Not only does Trump reportedly receive $3 million per episode of The Apprentice, but he also headlines the Learning Annex's Real Estate Wealth Expos, for which he reportedly receives $1 million per one-hour seminar. In addition, he's a professional wrestling fan, often appearing ringside at WWE Wrestlemania events, and for the 2004 Emmy Awards he appeared in coveralls and a straw hat, singing the Green Acres theme along with actress/talk show host Megan Mullally.

Best & Worst: Donald Trump: The man, the hair, the naming rights, the source of irritation originally appeared on BloggingStocks on Mon, 04 Dec 2006 21:00:00 EST. Please see our terms for use of feeds.