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About This Video: The Sports Courier’s Allan Wu presents the official WWE Q3 2018 Result Conference Call with shareholders featuring Chairman Vince McMahon and the company’s controversial stance on the WWE Crown Jewel 2018 PPV remaining in Riyadh. Saudi Arabia.
Third Quarter 2018 revenue up 1% from last year’s revenue total to $188.4 Million. WWE said revenues met guidance and did not plan to revise prior guidance.
From the earnings press release
“Operating Income decreased to $18.1 million from $33.9 million in the prior year quarter, reflecting the slight increase in revenue, which was more than offset by increased operating expenses, including increases in fixed costs, the timing of various business initiatives, and higher management incentive compensation based on anticipated strong full-year results as well as the rise in the Company’s stock price. “
WWE reports RAW and Smackdown both took a 7% TV ratings hit on the basis of Coverage Rating (the percentage average of US viewing audience per minute , over the network coverage area). Their TV ratings were 8.8 % lower in the national rating column for RAW compared to rating from last year and SmackdownLive ratings were down 9.3% on that basis (National Rating applies a bigger total denominator: the overall number of television households in America).
At the arena, WWE hauled in $26.7 Million, $22.4 Million from ticket sales in North America and $2.3 Million from abroad. There were several fewer shows done this year against shows last year. To compare from figures in the third quarter of 2017, sales were down 55% abroad and down 11.5% within North America.
Gearing towards gaming demographic
During the conference call, Michelle Wilson says Coca Cola and Riot Games, the studio behind the famous online game League Of Legends, have a deal with WWE for advertising. WWE is showing great confidence as they have parlayed from prior deals with Rocket League and Final Fantasy XIV’s
Keeping score on WWE Network
Despite having a 7.56% lower tally of average paid subscribers for WWE Network (at 1.664 Million), the company has bettered that figure from the 2nd Quarter of 2017 (1.634 Million) which was their annual high point. There were 1.213 million stateside network subscribers according to the Average Paid Subs metric, which also was down roughly 8% from 2018 Q2, but matched the total from 2017 Q2.
Notably, during the question and answer portion of the call, WWE execs were quite adamant on not commenting very much on the Saudi situation amidst insistence that Crown Jewel would still take place in Riyadh.
Options Derivatives Case Study
WWE shares plummeted as the call wound down from yesterday’s closing level of 77/share to $73.4295 / share at 1:28:14pm . Heaviest put option volume for WWE stock was on the November 70 with 500 contracts being dealt at over 2 dollars per share. 57 contracts were traded yesterday at that strike when the options were worth only 1.75. (Put options allow a stock owner to sell their shares at a strike price, like a coupon, regardless of how much the stock is trading on market; buyers of the 70 put are betting WWE shares will fall below $68, which is the 2 dollar cost per share of a put option taken away from the strike of 70).
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TSC News – The Sports Courier : WWE Q3 2018 Results Conference Call – Crown Jewel News